From today, the leather and footwear sectors, and their suppliers, may resume limited business, from manufacturing to retail, subject to various safety measures. Subject to clarification, it appears that ANY closed footwear qualifies. So far, no mention has been made of leather goods.
       In Government Notices No 43258, April 29 [https://www.gov.za/sites/default/files/gcis_document/202004/43258rg11098gon480.pdf], issued by the Department of Co-Operative Governance & Traditional Affairs, on page 24, Part C: Manufacturing, it states: "Manufacture of winter clothing, footwear, bedding and heaters (and all inputs required, including textiles) permitted, commencing at 25% and scaling up to 50% employment and subject to strict health protocols."
       On page 25, Part E: Wholesale and retail trade, covering stores, spaza shops, e-Commerce and informal traders, point 15, it states: "Winter clothing, footwear, bedding and heaters and the components and fabrics required to manufacture these."

The semi-processing of leather has fallen under regulations for agriculture, according to Ernest Heunis, chairman of the Skin, Hide & Leather Council (SHALC). He said the entire red meat value chain, including ostrich and crocodile, had been working with full workforces throughout, including the processing of hides and skins to wet blue, to prevent waste.
       What changes now is that automotive leather finishing tanneries, which fall under regulations governing the automotive sector, may start work with 30% of their workforces, building up to 50%.
       All other tanneries, including exotic leather tanneries, processing from wet blue to crust and finished leather, may start work with 30% of their workforces, under regulations governing 'other manufacturers'. Mossop Leather has been working throughout, with a small staff, producing leather for contract and tender footwear.

Reacting to the regulations, SAFLIA executive director Jirka Vymetal said: "We're a little disappointed in that they only gave us half of what we asked for."
       National Clothing Retail Federation executive director Michael Lawrence said: "In terms of retail, as far as footwear is concerned, we categorised any closed shoe as winter footwear, but we're waiting on clarification."
       He said the NCRF had included belts in its submission for winter clothing, but not handbags. "We thought about bags," he said, "but we thought they might be a bridge too far. The problem will be enforcement - if we were just dealing with the DTI, it would be simple, but there needs to be a list for the police to follow."

In the document Risk Adjusted Strategy Regulations 29 April 2020, issued by the Department of Cooperative Governance, on page 7, point 4 reads: "Every business premises, including, but not limited to, a supermarket, shop, grocery store, retail store, wholesale produce market or pharmacy shall a) determine their area of floor space in square metres; b) based [on that], determine the number of customers and employees that may be inside the premises at any time with adequate space available; c) take steps to ensure that persons queuing inside or outside the premises are able to maintain a distance of one and a half metres from each other; d) provide hand sanitisers for use by the public and employees at the entrance to the premises; and e) assign, in writing, a employee...who must ensure the compliance with the measures provided for in paragraphs a) and d), and that all directions in respect of hygienic conditions and limitation of exposure to persons with Covid-19 are adhered to."

Dr. Jay Irkhede on behalf of the dtic thanked all sector associations, export councils, cluster, individual manufacturers, organized labour and sector media "S&V" for patience, resilience, very active communication and feed back to the dtic. He said that after the recent publication and dissemination of the Risk Adjusted Strategy Regulation 29th April 2020 (Govt. Notice from COGTA on Alert Level 4) we have received various question for clarity and the following is our responsible response to the inquiries:
1. We may insist that as a "Good Practice" the manufacturers may have internal "COVID-19 company representative" delegated with "development of strict health protocol" and "to monitor and mitigate the risk of virus spread". However, this is not a mandatory requirement.
2. We insist that we adhere to "General Measures to Contain COVID-19" as stipulated on page 9 of the regulation.
3. All manufacturers are required to develop a "Work Place Plan" as per ANNEXUR E on page 38 of the regulation (Item 1, 2, 3, 4, 5a to 5h & 6).
However, we confirm that the Work Place Plan developed does not need any Govt. approval.
4. Table 1 on Alert Level 4 on page no 24:
a. Please demonstrate that all persons who can work from home are doing so.
This will also improve your "on site employment complement" within the scope of Level 4 restriction.
b. Part C: Manufacturing; Item 5: Manufacturing of winter footwear permitted commencing from 25% and scaling up to 50% employment subject to strict health protocol.
You may develop a stricter health protocol while phasing employment up to 50%.
Use "Full Scale Prevention Strategy recommended guidelines for footwear industry developed by Footwear Leather Industry National Cluster (FLIC)".
While manufacturing of "winter footwear" under this provision the manufacturers should demonstrate the manufacturing of appropriate winter articles and that production was strictly meant for "the current winter season" and support such activity traced back to "winter order books".
c. Part C: Manufacturing: Item 9: All other manufacturing, scaling up to 30% employment subject to strict health protocol.
All of the six sub-sectors in Leather, Leather Goods and Footwear manufacturing value chain producing fashion/non-fashion goods will fall under this provision.
d. The manufacturing of essential goods will be allowed phasing in up to 100% employment.
Against confirmed commitments/tenders the manufacturing of products such as face masks, gloves and service footwear by our sectors will require CIPC permit to operate within Level 4 alert.
e. For hides and skins, ostrich, crocodile and taxidermy industry, the regulation Part C: Manufacturing: Item 9: All other manufacturing, scaling up to 30% employment subject to strict health protocol, will normally apply.
However, as part of upstream Agriculture Value chain the provisions of 100% employment under Part A (1) Agriculture, Hunting, Forestry and Fishing should be reviewed.
However, the dtic, is not in a position to officially interpreter these provisions and we recommend that the SHALC, SAOBC, SACIA, SATTA & ELSA to verify such provision on processing of agriculture waste & bi-products during Alert Level 4 through the DEA and DAFF.
During the Alert Level 5, in case of SAPS enforcement on CPC/AHT, we through the dtic Chief Director: Agro Processing had supported the position that "The hides are an end product of animal production more important a bi-product of animal production hence in terms of regulation falls within food industry mainly part of meat value chain".
We acknowledge mails received from these sub-sectors and recommend the following:
(i) Keep a scale of employment phased in to maximum of 30% on the processes further to preservation and storage such as tanning, crusting and finishing, till provisions to operate with 100% employment are reviewed from the DEA and DAFF.
(ii) Obtain a new permit from CIPC to operate to at 100% employment with shift work to process Agriculture waste / bi-product to avoid decay during Alert Level 4.
5. Currently for the sub-sectors without existing shift work system we recommend not to perform manufacturing in shifts since you will be seen as constructing an arrangement to exploit Alert Level 4 regulations.
6. There is absence of clarity on overtime work during Alert Level 4 and the dtic's view is that overtime defeats the purpose of relaxation provided during Alert Level 4.
7. Yesterday during the evening telecast Hon. Minister Patel indicated "rotation".
We would expect that during Alert Level 4 the manufactures rotate employee in phases with an objective to achieve "close to equal distribution of remuneration".
8. For the movement of shift employee particularly for operations with contentious processes the tanneries and taxidermists may seek assistance from Provincial Authorities.
We could not comprehend which agency will offer such permissions to avoid violation of the curfew conditions during Alert Level 4.

Cape Town (SA) – The SARS footwear task team decided on a minimum reference price for safety footwear imports at its third meeting on February 6, but it is not clear what the price will be.
       Geraldine Fröhling from SARS' communication department responded to questions from S&V:
I know from the previous meeting that the focus of the task team currently is reaching consensus on a reference price for safety footwear imports. What price has been agreed?
• The information on reference pricing is confidential as it is a risk tool used to manage the risk of possible undervaluation on identified high risk goods. Reference pricing is not a minimum price – it is merely, as said, a risk tool used to alert possible under-valuation of imported goods.

If you cannot give me that agreed reference price, please explain why you can't and when importers will be told what the reference price will be.

• Importers will not be informed about risk rules as all types of risk rules are confidential in nature and the risk rules change as and when the risk levels change from high to low risk. Risk rules are part of the internal controls and cannot be shared with traders as this will compromise the required controls.

Why is the reference price in Rands when the importers buy in US Dollars? Surely that prejudices them?

• The reference price is not formulated in South African rands but in US$.

When will the reference price be applied?

• The implementation date is dependent on the section managing the risk engine but it is envisaged to be 1 March 2018 unless otherwise the risk level on such commodity has dropped. How many pairs are currently being imported under the reference price?

• 1 373 856 pairs.

       Please note that the mere fact that goods will be alerted by the risk engine for possible under-valuation, it is not at that stage regarded as an outright fact that the goods are indeed under-valuated. SARS will call for supporting documents and if necessary a valuation audit will be conducted based on the required documents and the risk identified. If the value as declared by the importer is confirmed to be a price paid or payable, the goods may then be released as entered. If any contravention of the Customs and Excise Act is detected, the goods will be dealt with in terms of the provisions for the particular contravention as provided for in the Customs and Excise Act.