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S&V Weekly Newsletter Vol.3 No.4, January 30, 2017

This Newsletter is sponsored by SAFLIA

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EAC proposal for duty-free footwear rebuffed

Johannesburg (SA) – SAFLIA has so far successfully lobbied against a proposal by the East African Community (EAC) that footwear trade between it and South Africa through the Southern African Customs Union (SACU) be zero-rated. Following ongoing negotiations at NEDLAC, the standard 30% duty, which applies to all footwear imports, remains in place and SAFLIA requested that the SACU’s report on the proposal lists footwear as “sensitive”.
        The duty on imports of raw, crust or tanned bovine or equine hides and skins from the EAC into SACU remains at 10%, “subject to negotiations”, according to the SACU report. Ostrich leather, which carries a 30% import duty, is labelled as “sensitive” by SACU.
        Leather goods are not mentioned in the report.
        “It’s not the EAC’s own manufacturing industry that concerns us,” SAFLIA executive director Jirka Vymetal said. “For instance, we’re aware that Chinese manufacturers are growing in Ethiopia and suspect they could take advantage of trade agreements i.e. Through COMESA or the Tripartite FTA ( Free Trade Agreement) of which negations are also ongoing.
        “There is also the issue of policing imports landing in the EAC and being forwarded to South Africa under the SACU agreement from there.”
        The EAC includes Burundi, Kenya, Rwanda, Tanzania and Uganda. SACU is made up of South Africa, Namibia, Botswana, Lesotho and Swaziland.
        COMESA includes Ethiopia and 18 other countries.
Monitoring negotiations at the National Economic Development & Labour Council (NEDLAC) has become part of SAFLIA’s operations, primarily to protect and promote the industry.

 

 

Western boots at risk in US-Mexico trade war of words - worry for SA ostrich tanners

Western boots in the US - 1 of 3 key markets for SA ostrich leather - are likely to be affected by any changes to US-Mexican trade relations, including the threat to impose new import duties. A high percentage of Western boot manufacturing has moved from the US to Mexico, and further afield.
        "We're concerned about the implications of tariffs," says SCOT marketing director Frik Kriek. "It will for sure have implications for the ostrich industry.
        "We're considering different options on how to deal with this, but until such time as they make a final decision and we get the detail, we can't do anything.
        "Trump will not be able to change the NAFTA agreement on his own and it will have to be renegotiated. So we at least have time to prepare for changes."
        Thurling Investments MD Vidrik Thurling has mixed feelings: "I've been very outspoken in my criticism of US Western boot manufacturers being forced to send their production offshore in order to remain competitive. I know there's a lot of automation involved, but it's supposed to be a high-value, high-quality, hand-made American product. Instead, most of it has gone to Mexico, and some of it is now being made in China, which is very disappointing.
        "I'm not advocating a protectionist economy, but American boot manufacturers do need some tariff protection.
        "Also, some of the Mexican manufacturers have got so big they're taking big quantities of skins - up to 8 000 a month have gone to Mexico at peak times - and this pushes the price of ostrich leather below market value.
        "I have reservations about certain aspects of his approach, but I support what Trump is doing in this instance, and if it works, it will enhance the value of exotic leathers."

 

 

Da Gama Textiles fined R2m for ‘collusive trading’

Pretoria (SA) – The Competition Tribunal has fined The Good Hope Textile Corporation (Pty) Ltd, t/a Da Gama Textiles, over R2m for a case involving a State tender dating back to 2013. The case was heard on January 25.
        In its investigation and findings, the commission wrote: “On 16 September 2013, the Commissioner initiated a complaint in terms of section 49B(1) of the Act against Da Gama Textiles, Monoge Mining Contractors & Supply Services cc and Motseng Trading (Pty) Ltd for allegedly colluding when bidding for tender RT60-2012T issued by the National Treasury in contravention of section 4(1)(b)(iii) of the Act.
        “The tender was for the supply of fabric used in the manufacture of uniforms to the Department of Correctional Services, the SA Air Force and the SA Military Health Services.
        “The Commission’s investigation…revealed that: Da Gama Textiles concluded bilateral agreements with Monoge Mining and Motseng Trading in terms of which they agreed that Da Gama Textiles would determine the prices at which both Monoge Mining and Motseng Trading would quote when submitting…their respective bids in response to the tender number RT60-2012T. The bilateral agreements…constitute collusive tendering in contravention…of the Act.”
        Da Gama admitted its guilt and confirmed it had “ceased engaging in the conduct set out…above”.
        It was fined R R2 113 335.45, payable in 2 instalments, “the first payment being made 12 months from the confirmation of the Consent Agreement...the second...6 months after the first payment.”

 

 

Dangee Carken’s Miss Black hits Facebook milestone

Johannesburg (SA) – Dangee Carken’s Miss Black brand has reached 150 000 likes on Facebook, according to a statement by director Jason Craft.
        “We would Like to thank our consumers and retailers for their support over the past few years.
        “Miss Black is ruling when it comes to leading the ladies’ fashion footwear market and we couldn’t have done it without all of you.
        “Our Winter 2017 collection is hitting stores from February!” – [+27 (0)11 402 0312, info@missblack.co.za, https://www.facebook.com/missblackfootwear]

 

They Said It

"Of trading conditions in Zimbabwe, you could say they remain extremely challenging mainly due to the extreme cash shortage and the massive retrenchments which took place in 2016." - Linda Masterson, Group Managing Director - Edgars Stores Limited - Zimbabwe.

 

 

Birthdays this week

31/01/1971: Ashley Benjamin, NULAW, Durban.
31/01/1961: Andy Williams, Agent, Cape Town.
01/02/1934: Con Barnard, Stanhope Boot & Shoe, Pinetown.
01/02/19??: Elaine Smith, the DTI, Pretoria.
01/02/1969: Noeline Kemp, Knots, Bloemfontein.
02/02/1946: Chris Schroeder, retired, formerly PMC Group, Pinetown.
02/02/1931: Gordon Singh, retired, formerly Monique Shoes, Pietermaritzburg.
02/02/1941: George Geyser, Dancewell, Durban.
02/02/1965: Rod Oliveira, Rodrigo Shoes, Durban.
03/02/1963: Vusumzi Mabuto, NULAW, Port Elizabeth.
03/02/1965: Grant Daniel, Mendelson Frost, Johannesburg.
04/02/1947: David Buckingham, retired, formerly Royal Adhesives, Pinetown.

 

In Memoriam this week

31/01/2016: Rudi Geyser (b. 11/03/1937), EVA Industries, Durban.
03/02/1977: Ismail Adam Moosajee (b. 28/08/1927), Seltex, Johannesburg.

Do you have any names you’d like to add to our list of birthdays and In Memoriam? Please send the details.

 

ABSA Agri Trends 31/01: Hides & skins prices

The average bovine hide price over the past week was R15.10/kg green. Hide prices are determined by the average of RMAA and independent companies. “Hide prices are coming under immense pressure to reduce and the expectations are that prices may drop over the next few weeks.” – Quote from the weekly report, Jan 24.
        The average price for Dorper skins was R46.00/skin and Merino was R94.55/skin.

Hide & skin price progression
Date Hides/Kg Dorper/Skin Merino Skin
19/01 15.34 45.56 81.38
24/01 15.17 40.92 89.52

 

Trade Fair dates

For a list of local and international trade fairs covering footwear, leather goods, leather and PPE, visit our website: http://www.svmag.co.za/events.php

 


Classified Adverts

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  Email CV to: garysaks@mweb.co.za

 


  

Contact us

News & Classifieds: Tony Dickson, +27 (0)31 209 7505, tony@svmag.co.za

Next newsletter: February 6, 2017.

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