Fo c u s o n Tyre IM PorTs - SA TREADS

Focus on Tyre Imports • 11
tread tyres since many sizes in this category are not
being locally produced, and the local companies
cannot effectively meet growing demand.
As of May of this year, the rebate in question was
scrapped, allegedly with no warning, under instruction
by SARS, the administrator. What pre-empted this
development has been the source of major contention
and finger-pointing with no one party seemingly
willing to take responsibility.
Our investigations into the matter first led us to NRCS,
the alleged instigator of the withdrawal process by
way of a special application made to ITAC, which Dries
van Tonder, Subject Specialist for NRCS categorically
denied. He had this to say, by way of explanation:
“NRCS is merely the National Regulator, there to
❝
It is becoming
increasingly more
difficult for us to
compete against the
local makes
Trade Administration Act, 2002, administered by
ITAC. Whilst SARS administers the goods imported
in terms of the Schedules to the Customs and Excise
Act, 1964, the levels of rebates or ordinary customs
duties and any other conditions that may also apply
are determined by ITAC in terms of trade policy.
“The rebate item for herringbone tread tyres as well as
the rebate item for racing car tyres required approval
from NRCS, so by law, NRCS was the responsible
entity to approve the tyres imported under the
respective rebate items.
He added: “The deletion of rebate item
460.07/4011.61 for herringbone tread tyres and the
amendment of rebate item 460.07/4011.10 for racing
car tyres were published in the Government Gazette
ensure that any passenger or commercial tyre entering our borders is of of 15 March 2013 to give effect to the request by the Minister of Trade
an acceptable quality as laid out by the Standards in place. As herringbone and Industry to implement the recommendations made by the International
tyres (traditionally used on tractors and other slow moving vehicles), do not Trade Administration Commission in Report No. 423. ITAC also gave notice
pose a danger to the consumer, they are not bound by the homologation of its intentions to review the said rebate items through Notice No. 570 of
process, and therefore do not require inspection.
2012, published in the Government Gazette of 20 July 2012.”
❞
“Therefore, inspecting containers of herringbone tyres at port sites for
the purpose of financial rebates, was not only depleting our manpower
resources, it was creating such a backlog that we were unable to effectively
meet our responsibility towards the passenger and commercial tyre sector.
But despite the publishing of this Notice, it appears the import sector was
unaware of ITAC’s intention to cancel this agricultural rebate, claiming that
unlike the SATMC, which was approached for comment, they were not
afforded the same opportunity.
NRCS indicated that we do not wish to be involved with the inspection
of herringbone and sporting tyres as well as the subsequent issuing of a
rebate certificate. Never did we indicate or question the reason for the
rebate or the cancellation of the rebate.”
Dr. Etienne Human of the SATMC confirmed that the SATMC had in fact
been approached for comment, but the controversy deepens further with
Bridgestone SA and Apollo Tyres apparently the only local manufacturers
in the know. When approached for comment, Bridgestone admitted that
Upon instruction from SARS that the rebate had fallen away, we sent out the
relevant correspondence, informing the industry that we would no longer
be performing inspections for the sake of rebates.”
The mystery deepens further with the subsequent unearthing of a
document dated 30 January 2013 that was submitted to ITAC that clearly
states that the review follows a notice by the NRCS that it would no longer
issue certificates for the purpose of the relevant rebate provisions. *
As for NRCS’s reference to SARS, Adrian Lackay, Media spokesperson
for SARS had this to say: “Rebates and ordinary customs duties are
governed by trade policy that falls within the ambit of the International