Microdot verification is a sure-fire way through which the automotive industry can stop the inflow of illegally imported cars into South Africa.
Illegally imported vehicles – also known as grey imports – cost the country some R8 billion per annum in lost import duties, VAT, and other taxes.
According to verification system company VehicleFacts, grey imports are vehicles that are not brought into the country through the official channels and are destined for other African nations but end up never crossing the borders.
They can also be vehicles that are fraudulently imported with the intention of evading customs and registered in South Africa illegally.
These autos pose numerous challenges and threats to all parties involved in the industry, from buyers and dealers all the way up to the vehicle manufacturing industry.
Grey vehicles are often a different specification from similar models sold locally and not tuned to run efficiently on South Africa’s fuel quality.
Furthermore, they have steadily seeped into the used market over the years and are now being sold to unsuspecting consumers under the guise of being legitimate vehicles.
While grey imports are usually sold at far more attractive prices, they are usually not covered by any warranties or service plans.
It’s also difficult to find the correct spare parts which, combined with the fact that these cars have not been homologated for local conditions, results in far higher general maintenance costs.
Generally speaking, after-sales values of grey vehicles are poorer than legitimate cars, too.
A complex problem
While there have been efforts made to reduce the movement of grey vehicles over our borders – such as moving relevant imports from South Africa to Mozambique – they have not been as successful as the authorities hoped.
As such, VehicleFacts contends that the only real way in which grey imports can be removed from the roads is to employ proper vehicle authentication tools.
“Reducing the influx of grey imports is a complex problem that can only be solved using proper vehicle authentication,” said Bryden Menday, GM of VehicleFacts.
Grey imports are registered unofficially, and one of the methods of doing this is by cloning a vehicle.
Cloning takes various forms and can be as simple as copying a number plate of a similar vehicle to fraudulently cloning a vehicle on the National Traffic Information System (Natis) through the theft of an original’s control number.
Cloning also sees the reuse of vehicle information from vehicles that have been in an accident, where the Natis is more valuable than the salvage, onto grey imports, which creates the impression that the original vehicle is still on the road.
Since 2013, it has been mandatory for all cars sold and produced in South Africa to be equipped with microdots, which are tiny dots that contain unique vehicle identifiers, such as those supplied by DataDot.
“Modern vehicles are equipped with vehicle identifiers in the form of numbers stamped onto major components such as the chassis, engine, and transmission,” said Menday.
“However, a vehicle that has been equipped with DataDots contains thousands of vehicle identifiers across the vehicle. This means that with DataDots almost all the components can be traced back to the original vehicle, making the reuse of components and vehicle identifiers sourced from stolen or written off vehicles virtually impossible.”
There are laws in South Africa requiring the authentication of used vehicles when purchased or traded by consumers through dealers to protect consumers.
“Before purchase by a dealer and the necessary change of ownership, vehicles should be verified through Microdot authentication to confirm the vehicle is legitimate and that it was introduced through the correct channels,” concludes Menday.
“Utilising DataDots as a trustworthy vehicle identifier is the only real way of authenticating vehicles as all other channels and vehicle identifiers available are susceptible to fraudulent practices.”
Join the discussion