The Tyres Equipment Parts Association (TEPA) of South Africa has officially launched a Whistle Blower hotline where both consumers and companies can report cases of illicit trading activity in the automotive space.
In recent years, the country has seen an influx of sub-standard car parts and accessories not conforming to regulatory standards flood the market through illegal channels.
The new hotline aims to put an end to these dealings, as they are severely compromising consumers’ health and safety, said Vishal Premlall, national director of TEPA.
Last year, the South African Petroleum Retailers Association set up a similar hotline to curb unlawful fuel trading, and in a space of 18 months, over 200 cases were reported of which over 50% have been investigated and taken action against, he said.
In addition to TEPA, the initiative has the support of the SA Tyre Manufacturing Conference (SATMC) which represents Bridgestone, Continental, Goodyear, and Sumitomo Rubber, as well as the Tyre Importers Association of South Africa (TIASA) which constitutes a total of 17 commercial industry participants.
The new Whistle Blower hotline can be accessed on the TEPA website or by following this link.
Sub-standard car components are flooding South Africa
The domestic market has become rife with traders at the bottom end of the supply chain bringing in parts through “compromised channels of very poor quality,” said Premlall.
“These sub-standard products then find themselves falling into the hands of cash-strapped consumers who do not realise the full impact of utilising inferior or counterfeit parts.”
Not only do the components put the safety of the driver and passengers at risk, if something does go wrong, there is little to no traceability with regards to where the parts came from, and therefore, no technical support nor alternative methods of recourse for the consumer.
“Although 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,” said Premlall.
Lubin Ozoux, SATMC chairperson, highlighted the increasing occurrence of illegitimate tyre imports as one of the issues that the hotline aims to cull.
“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 Ozoux.
“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.”
In a rare case of collaboration, TIASA has also joined forces with TEPA and the SATMC to support the Whistle Blower hotline, illustrating just how prolific the issue has become.
“Curbing illicit trade practices will be virtually impossible without the commitment from all industry players and their members at all levels of business,” said Charl de Villiers, TIASA chairperson.
“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.”
As the hotline gains momentum, TEPA will also be advocating for the formation of a “Policing Compliance Forum for illicit parts” that will allow all industry participants to be represented, concludes Premlall.
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