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

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14 • Focus on Tyre Imports stops, incurring huge losses for us. We tried to engage with SARS on the matter but were unsuccessful.” Added Alida Mouton of CFP Tyres: “We believe that pressure from the local manufacturers was the reason behind these stops by Customs which not only delayed arrival times but incurred additional costs resulting in loss of sales and higher prices.” Pieter Kruger of Tubestone concurred: “The new tyre companies tried to slow down imports by presenting SARS with a document stating that imported tyres were being under-declared, but SARS never took into consideration aspects such as weight, compound, tread depth etc. We were hammered with storage and demurrage bills. The situation was totally ridiculous.” ❝ Clearance times are unacceptably long and often exacerbated by labour unrest and poor weather conditions Where to from here? Amidst turbulent market conditions, the local tyre producers are struggling to compete in a price-conscious market. For them, the scrapping of the agricultural rebate on sizes that are locally produced will bring some relief, but like their import counterparts, they will be equally affected by their inability to claim for a rebate on sizes not produced locally. At this point in time, only bias ply herringbone tyres up to a certain size are locally made whilst Radial Tractor,Radial Row Crop, Radial Implement, Floatation (Bias as well as Radial), Forestry (Bias as well as Radial) are fully imported. For the import sector, the trading platform is particularly challenging they say, given the Rand/ Dollar exchange rate, and now the cessation of the But local manufacturers argued that they too experience their fair share of agricultural rebate on which so many had come to rely. frustrations when it comes to importing tyres they require to supplement their range. At least where the agricultural rebate is concerned and according to Johan Pienaar of Agri SA, all is not lost. “Scrapping the agricultural Said Gascoyne: “Port efficiency with respect to container unloading is a rebate will place the sector under immense pressure and will severely problem, especially in the Port of Durban, which is very congested. We hamper our ability to remain competitive, especially under the current have also experienced similar problems with the Port of Port Elizabeth.” pressures of wage negotiations. We are in negotiations with ITAC and believe there is a chance for the agricultural rebate to be re-instated Apollo’s Haffejee, agreed: “Clearance times are unacceptably long and should we be able to demonstrate the ability to regulate and police this often exacerbated by labour unrest and poor weather conditions.” matter ourselves.” ❞ And as for allegations that local producers could well be lowering their prices in order to dispose of excess stock to augment poor export performance to Europe, this too, is pure speculation, according to the local four. “The farming community is dependent on all the assistance it can get, and costs related to the scrapping of the rebate are already being passed on to the end user on the part of the tyre importers with potentially dire consequences,” he said. The agricultural sector, along with reputable importers, who have been compelled to up their prices, remain hopeful that a long-term solution can and will be reached, failing which there appears to be little, if any, recourse for the import segment of the industry. *Despite multiple attempts to elicit comment from ITAC, we were unsuccessful. Disclaimer: The views and opinions expressed in this article are not necessarily those of the Publisher, Editor or any staff member of SA TREADS magazine. Sky Publications can accept no responsibility for the veracity of claims made by contributors or participants to this story.
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Page 1 and 2: Tyre Imports - Have the tables turn
Page 3: Introduction • 1 Contents one-on-
Page 6: 4 • One-on-One We believe that Mi
Page 9 and 10: Michelin Advertorial • 7 All-Terr
Page 11 and 12: Focus on Tyre Imports • 9 IMPORTS
Page 13 and 14: Focus on Tyre Imports • 11 tread
Page 15: O n e - o n - O n e • 1 3
Page 19 and 20: Manufacturing • 17 NEW COOPER MUL
Page 21 and 22: WHEN YOUR FLEET’S TRAVELLING THOU

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