NRCS to fast-track letters of authority for compliant importers

The National Regulator
for Compulsory
Specifications (NRCS) is set
to launch a pilot programme
designed to cut delays in
the issuing of Letters of
Authority (LOAs).
By categorising risk,
compliant importers will be
fast-tracked.
“This essentially means
that those importers who
fall under the lower risk
category will have their
LOA application process
expedited to 21 days, or less,”
said Asogan Moodley, CEO
of the NRCS.
He cautioned however
that there would be a “cost”
involved. “The contract we
sign with those companies/
importers who fall into the
low-risk category will be
very stringent and there will
be heavy penalties if those
companies fail in any way to
meet the requirements,” said
Moodley.
He told FTW that the
NRCS was still working on
a proposal to submit to the
Department of Trade and
Industry (dti) but that it was
envisioned that there would
be three categories – low
risk, medium risk and high
risk.
“We are also aware that
information technology (IT)
will play a crucial role in not
only fast-tracking the LOA
application process but in
communicating key data
around compliance – so we
are working closely with
our IT department on a
comprehensive and seamless
communications system,”
said Moodley.
The NRCS would roll
out a pilot study in the last
six months of the year to
“iron out any issues” before
launching it to industry early
next year. The regulator
would identify the companies
earmarked for the pilot study
by mid-June, Moodley said.
At a networking breakfast
held by the American
Chamber of Commerce
(AmCham) last week, the
delayed LOA process was
raised with the Minister
of Trade and Industry,
with the import manager
of a manufacturer of IT
equipment pointing out that
it had taken around 21 days
to issue an LOA about three
years ago, whereas it now
took over six months.
“We are losing business
because of this and we have
always been compliant with
all the specifications,” he
said.
Moodley said the regulator
recognised the fact that not
all companies had the same
risk profile. “The challenge is
that we cannot treat anyone
differently under our current
process. Which is why we
are introducing the risk
categories.”
He pointed out that
around 30% of imports – to
the value of up to
R1 billion – were substandard
goods that could
be harmful to consumers
and/or the environment.
“At the end of the day
that is our mandate – to
protect the country from
non-compliant goods.
We have been warned by
the Portfolio Committee
for Trade and Industry
not to be intimidated by
importers seeking short-cut
measures.”
He said there had been
major
problems,
for example,
around the
importation
of paraffin
stoves.
“The lowerincome
people
use these
stoves and
of course
are going
to buy the
cheaper
version,
not realising that they
are potentially dangerous
because they don’t
meet specifications. We
managed, through our
control process, to stop
the importation of these
harmful products, but then
an illegal factory began
importing the parts and
assembling them here – so
we had to re-direct our
efforts to identify the
parts,” explained Moodley.
He also admitted that
there were “some issues”
around the reduction of
the 120 ‘working days’
application process to the
120 ‘calendar
days’. “We’ve
had some
success but it
is a process
and when
we tightened
up our
controls and
re-examined
our business
model, we
suddenly
went from
around 400
applications
per month
to over 1 200. And we
have to apply the same
rigorous control process to
all applications,” Moodley
commented.
“We invite anyone who is
still experiencing extensive
delays to contact our office and
we will investigate,” he added.
INSERT & CAPTION
Importers who fall
into the lower risk
category will have
their LOA application
process expedited to
21 days, or less.
– Asogan Moodley