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Africa
Economy
Imports and Exports
Logistics

Tyre manufacturers fight rising illicit trade

16 Mar 2023 - by Staff reporter
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The South African Tyre Manufacturers Conference (SATMC) says it is actively working to confront the challenge of the illicit trade of tyres in South Africa.                                                                                                                           

This includes the rising incidents of misdeclaration of tyre consignments and rerouting of imports through neighbouring countries to avoid tyre duties, environment levies and permits.  The SATMC is the representative body of the four global tyre manufacturers, namely Bridgestone Southern Africa, Continental Tyre South Africa, Goodyear South Africa and Sumitomo Rubber South Africa.

SATMC Chairperson, Lubin Ozoux, said illicit tyre trade was a growing concern, with far-reaching impacts on the industry and on the safety of drivers and passengers.

“The production, import, export, purchase, sale or possession of tyres that fail to comply with the domestic legislation of South Africa must be taken seriously and stamped out. We as the SATMC, representing local tyre manufacturers, are particularly concerned about the entry of substandard and counterfeit tyres into the South African market,” said Ozoux.

“These tyres often do not meet the required safety standards, are made with inferior materials and are prone to failure, placing millions of lives at risk on our roads.” 

He said tyres that were illegally brought into the country posed a serious threat to consumer safety, and the recent growth of the problem could be attributed to the rise in illegal trade activities globally as globalisation and e-commerce continued to expand.

SATMC Managing Executive, Ndu Chala, said the Tyre Importers Association of South Africa, in collaboration with the SATMC, had been working closely with the South African Revenue Service to root out illicit trade.

“There are currently just over 60 open cases of illicit trading related to the tyre industry that are being investigated by SARS. There is no outcome yet and we await SARS’ processes to finalise these.

“This influx is concerning, and we have endeavoured to collaborate with the Tyre Importers Association of South Africa, the Tyre Equipment Parts Association and the government through the Department of Trade, Industry and Competition to detect non-compliant behaviour and ensure consequences for those found to have resorted to this illegal and criminal behaviour,” said Chala.

Ozoux said all tyre industry stakeholders, including manufacturers, importers, dealers and distributors were collaborating to tackle the scourge of illicit tyre trade. He said the SATMC had also introduced a number of solutions, including increased collaboration with law enforcement agencies to enforce regulations, and increased public awareness through targeted campaigns.

“Illicit trade must be stopped, as this will create a safe and fair market for South Africa, helping to keep millions of lives safer on the roads, and protecting local jobs.

“If reducing the unacceptably high number and cost of road deaths in South Africa is a priority for us all, then we simply cannot continue to allow illegal and often inferior tyres to keep proliferating on the local market,” Ozoux said.

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