The supply of essential medical products, one of the fastest-growing market segments since the onset of the coronavirus (Covid-19), is being held back by lockdown restrictions on goods aimed at bolstering the fight against Covid-19.
That’s according to Kevin Dagnin, co-owner of exclusive SA-Lesotho cross-border transporter Kayhil Freight, who says suppliers failing to apply timeously for International Trade Administration Commission (Itac) permits for certain essential goods are losing out on market share by not making cargo departure deadlines.
With Itac restrictions gazetted by Sars on March 27, goods such as alcohol-based hand sanitiser and cloth face masks can’t be taken cross border unless they have Itac permits.
In the supposed confusion about the different product codes and which ones require Itac permits and which not, permit-defaulting suppliers are contributing to depleted volumes Kayhil carries cross border, says Dagnin.
“Before shutdown we were running daily to Lesotho, with an average of about 15 tonnes a day, out of Johannesburg only.
“Since the shutdown Johannesburg is running on restricted staff levels and we’re averaging one to two loads a week. Now we’re down to about eight tonnes a day, consolidated over two trips a week, and the bulk of that is medical supplies.”
On a weekly basis it equates to a volume depreciation from 74 tonnes to 16 tonnes.
“Some suppliers are unaware of the ITAC requirements, however, the Government Gazette was published at the beginning of the shutdown.
Kayhil’s undertaking that modernisation by Sars and computerisation in Lesotho means same-day delivery is no longer guaranteed, says Dagnin, “because you never know when you’re going to be stopped for inspections or document verification.”
Bizarrely, certain restrictions also include non-essential pharmaceuticals such as Grandpa headache powders and products containing vitamin C, with demand on the Lesotho side escalating because certain goods are not making it through from South Africa.
“I think what they are trying to do,” Dagnin says of restrictions on the SA-side, “is to keep certain important supplies in South Africa.”
And although Sars has announced the lifting of restrictions on non-essential goods, Lesotho is still undecided whether they want to follow suit.
“They’re very strict that side. The borders are open between 8am and 4pm and grocery stores close at two in the afternoon. It means our drivers simply can’t cover some of the distances because they’re only allowed to operate between 8am and 4pm. Thereafter they’re too scared to be on the roads of Lesotho with its strict lockdown procedures.