Blow the whistle on illegal, inferior parts trade on this line

The Tyre Equipment Parts Association (TEPA) encourages those with knowledge of fraudulent activities within the industry to use its hotline to report it.

Vishal Premlall, national director of TEPA, says the initiative has support from key stakeholders in the tyre and parts environment, including the SA Tyre Manufacturing Conference (SATMC), and it is supported by most of the major parts manufacturers and distributors.

“We know that, unfortunately, traders at the bottom end of the supply chain are bringing in parts through compromised channels of very poor quality, not-fit-for-purpose parts that do not adhere to local regulatory standards,” said Premlall.

He further stated that though it is almost impossible to quantify, there is a significant cost to the sector in loss of revenue from the growing influx of these illegal and inferior quality automotive parts creeping into the market.

“These parts compromise consumers’ health and safety. The problem with these parts is that there is very little, if any, traceability, no technical support and no recourse for the consumer. The SATMC is working with law enforcement agencies to identify and investigate cases of illicit tyre trade, and we are advocating for stronger measures to prevent this trade from happening in the first place. There are rising incidents of misdeclaration of tyre consignments and rerouting of imports through neighbouring countries to avoid tyre duties, environment levies and permits,” said SATMC’s chairperson, Lubin Ozoux.

Charl de Villiers, chairperson of the Tyre Importers Association of South Africa (TIASA) concurs, and said they welcome the joining of forces between these three associations.

“Curbing illicit trade practices will be virtually impossible without the commitment from all industry players and their members at all levels of business. TIASA is very concerned that should an anti-dumping margin be implemented, in the absence of effective policing, it will serve as a further incentive for those who are already making themselves guilty of duty circumvention, to increase their volumes, placing further strain on legitimate traders,” De Villiers said.

According to him, they are at a crossroads. “As an industry, we have to stand up against illicit trade to ensure we protect not only the sustainability of legitimate importers’ businesses but also the consumer from buying inferior products entering our market.”

Compliance is absolutely key, and the TEPA will continue to actively engage the relevant compliance authorities to prevent these parts from entering the automotive aftermarket.

The South African Petroleum Retailers Association (SAPRA) set up a hotline. The awareness it created made movement by illicit operators significantly harder. In a space of 18 months, over 200 cases were reported, of which over 50% have been investigated, resulting in the necessary sanction.

Premlall said TEPA will be advocating for the formation of a policing compliance forum for illicit parts, which can have representation from all role players.

“We believe this will send a strong message out to these traders who are not only endangering consumer’s lives but also impacting the profitability of our sector,” he concludes.

The whistle blower hotline contact number is 011 886 6300.

Source: Cathy Findley PR