S&V Weekly Newsletter Vol.10 No.34, August 19 2024

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Seizure of incorrectly marked gloves – NCC has ‘draconian’ powers over importers

This is an update of the article published in S&V Protect on Friday.
Importers beware! Under the Consumer Protection Act, enacted in 2008, the National Consumer Commission (NCC) has immense power over the labelling of goods, and it appears to be stepping up its efforts to police labelling legislation.
      In response to complaints by importers, the NCC said it published guidelines in 2022-23 and followed these with workshops for CTFL importers in Gauteng, the Eastern Cape, KZN and the Western Cape last year.


We are aware of 3 PPE businesses which have had glove shipments seized for incorrect or no labelling, but the legislation covers all textile, clothing, leather and footwear (CTFL) products, for fashion or safety wear.
      In the first case reported to us, a KZN-based PPE distributor which has been a regular importer of plain white cotton gloves – 3 containers a year for 10 years, 120 000 pairs per container – had its most recent container detained by the NCC, and has been told it will be prosecuted.
The container was unloaded on 11 July and initially inspected by Customs on 16 July, at which time the importer was told it would face “a full unpack”, which happened on 17 July. On 18 July, the importer was told it had been detained for inspection by the NCC. The NCC inspected the consignment on 08 August, and told the importer the report would take 2 weeks. “At that point, the NCC will decide whether to prosecute and what fine it will seek,” the importer said.
      Meanwhile, the goods are in storage, costing the importer approximately R2000 per day. “We know there are cheaper depots, but we’re not allowed to move the goods to another depot while this is being resolved.”
      The gloves themselves are unmarked, but the cardboard cartons containing 300 pairs, and the smaller plastic bags containing 12 pairs, are marked with the country of origin and a description of the gloves.
      In terms of the legislation, the importer has only 2 options with the goods themselves – return them to the country of origin, or destroy them. Having them marked with the required labelling in South Africa is not allowed.
      Further, it faces a fine which can be up to R10 million or 10% of its annual turnover.
      The importer said he had been caught unawares, and had no knowledge of the labelling legislation.
He said he had since discovered that at least 2 other PPE distributors have had similar experiences.
      “This has to be publicised,” he said. “We’ve asked legal advice, and their opinion is that the NCC has misinterpreted the law. However, since the NCC has won a previous legal challenge, the attorneys say the remaining route is to approach the Constitutional Court. That’s an expensive exercise, and one which the PPE industry – perhaps the entire CTFL industry – should tackle as an industry.”


A second PPE importer had a similar experience: “We had a container of cotton gloves stopped by the NCC in June last year, because the gloves did not have the correct labels as per the NCC regulations. (We had no previous communication from the NCC regarding labelling requirements.)
“We requested them to allow us to clear the container under embargo, so that we could get the labels printed and attached locally. We also stated that there had been no communication from NCC to the safety industry, as far as we were aware.
“They refused, stating that the goods had to be returned to the supplier for labelling.
“This was not going to be cost-effective, so we had to get the goods destroyed and send proof of destruction to them and SARS.”


In response, NCC media liaison manager Phetho Ntaba wrote: “The Consumer Protection Act was enacted in 2008. Section 24 of the CPA read with Regulation 6 requires that the producer or Importer of any goods as prescribed in subsection 4 (Clothing, Textile, Footwear and Leather (CTFL) goods), must apply a trade description to those goods, disclosing the following:
Country of origin of the goods,
Any other prescribed information (Fibre content, care instructions, language must be English or any South African language.)
The trade description must be permanently affixed on the goods)
“Goods that fail to meet any of the requirements cannot be labelled locally. Non-compliant goods must either be destroyed at an accredited facility or reexported back to the country of origin or anywhere outside the continent at the cost of the supplier. (please refer to this judgment:National-Consumer-Commission-v-Scoop-Clothing-CC-and-The-National-Consumer-Tribunal.pdf (thencc.org.za)
“In 2022-23 we published guidelines to assist in simplifying this provision (00206BF4685F220919135243 (thencc.org.za). Subsequently, we hosted workshops with various suppliers of the CTFL in Gauteng, Eastern Cape, KwaZulu Natal, and Western Cape provinces. The purpose was to unpack Section 24 and Regulation 6 of the CPA, understand reasons for non-compliance and any challenge that the suppliers might encounter in the process of importing goods into the republic.”


However, attorneys approached by the KZN importer feel the NCC can and should be challenged over the legislation. Their comment follows:

The labelling dilemma

by Quintus van der Merwe & Siphesihle Ngubane

We repeatedly get queries from incensed importers who have had goods stopped at the behest of the National Consumer Commission (“NCC”) because the labelling of the goods is not compliant. Such a small thing, which gives rise to disastrous consequences since the NCC issues a directive to the importer:
• threatening a fine of R10 million or 10% of turnover;
• that the importer must either destroy the goods or re-export the goods to the place of origin or off the African continent.
The poor importer then believes the directive of the NCC so draconian and unreasonable that it simply cannot be lawful. Wrong! The NCC indeed has these draconian powers and will not allow rectification of the defective labelling after the fact. In June 2023 the powers of the NCC were upheld in the case of the NCC v Scoop Clothing & another (Gauteng High Court case no A269/2021).
The NCC is tasked with ensuring compliance with the Consumer Protection Act 68 of 2008 ("CPA"), including the labelling requirements provided for therein. Section 24, read with regulation 6 of the CPA deals with product labelling. Annexure D to the CPA contains the items that are regulated. The NCC has been steadfast in its strict interpretation that goods must, at the time of importation, have labelling which:
• reflects the country of origin;
• provides care instructions; and
• contains the fibre content.
Goods not conforming with these requirements are detained. The NCC does not allow compliant labels to be affixed post importation. The detention is often for a substantial period resulting in excessive storage and demurrage costs, making any potential constitutional challenge against the powers of the NCC uneconomical. It bears mention we believe there might be a valid constitutional attack against the provisions which only allow for destruction of the goods or the re-export of the offending goods.
Compliance is key to avoid costly detentions. Importers must be made aware of the labelling requirements and must ensure that their suppliers adhere to these requirements. Perhaps it is necessary to have a pre-shipment inspection given the incredible (and unreasonable) cost of non-compliance.

Well-known South African retailer in business rescue

From Daily Investor 19 August 2024

Shaun Jacobs

Popular sportswear retailer The Cross Trainer has entered the business rescue as South Africa’s poor economic performance and reduced consumer spending weigh on retailers.
       The family-owned and operated retailer first opened its doors in 1995 and has grown since then to a total of 67 stores with hundreds of employees.
     The Cross Trainer has been run by the Frame family under its investment vehicle, Frame Leisure Trading.
     Cash-flow problems stemming from the Covid-19 pandemic and its lockdowns resulted in the company failing to keep up with increasing operational costs.
       This resulted in some stores being shuttered by landlords due to disputes over rent payments.
     Ultimately, the company officially entered business rescue on the 14th of August before having to shut down any of its stores.
     The company appointed George Nell from Corporate Business Rescue as one of its business rescue practitioners.
     Nell told Newzroom Afrika that The Cross Trainer’s employees will be protected throughout the process as he focuses on saving the company.
     “For sure, there are difficult times ahead, and negotiations should take place with employees as well as relevant trade unions,” Nell said.
     Some former employees said they were not aware the company was under financial stress or would be retrenching staff. Others said they had not been paid since April.
     Nell said the business rescue practitioners will look into the employees’ issues and try to ensure the company will survive to protect current employees.
     “Sometimes the situation is that the procedures just follow one another so quickly that they cannot follow the legitimate procedures, but we will go back and see what uh what happened, and we will rectify what the company did wrong,” he said.
     The business rescue practitioners will give an update on the labour issues in a few weeks’ time and outline a plan to save The Cross Trainer.

In case you missed it!

The latest issue of S&V Protect Magazine

CLICK HERE TO VIEW IT ONLINE

S&V PROTECT MAGAZINE VOL18 NO3 THIRD QUARTER 2024

IN THIS ISSUE:

03 Upfront
- National Consumer Commission blitz on ‘incorrectly marked’ gloves catches at least 3 importers, potentially threatens much wider group.
- The labelling dilemma: An opinion piece by attorneys Quintus van der Merwe and Siphesihle Ngubane.
- Beier Group, which includes BBF Safety Group, appoints Warren Sachs as new CEO.
- Fashion footwear company Dangee Carken enters safety footwear and appoints Mark Silverman to head new division.

05 OHS in Focus
- Understand the issues using Artificial Intelligence in OHS, advises Leighton Bennett, Benrisk Consulting, Johannesburg, Gauteng, SA. The version you use must comply with local legislation.

07 Safety in Construction
- Essential controls for managing inclement weather risks for high-risk activities in construction, by Yaseen Francis, principal OHS consultant NCC Health & Safety.
- Promoting health and safety on construction sites: a vital commitment, by Seipati Leboko, head of occupational health, safety and environment division of Afroteq Advisory.
- George disaster highlights the importance of compliance and the right people partner, by Donné Niemann, sales director at Workforce Staffing.

15 Training
- Understanding how compliance training and the QCTO apply to your workplace, by Jacques Farmer, MD of Prisma Training.
- From lectures to life-saving skills – transforming safety training with Hazard Parks, by Ruan Janse van Rensburg, partner at KBC Health & Safety.

18 Public Health
- Afreximbank and Africa CDC join hands to strengthen health systems in Africa.
- Expansion of AstraZeneca’s flagship health equity programme, Healthy Heart Africa.

19 Standards
- ASTM International devises new standard for drowning detection systems for residential pools.

20 Fairs & Events
- Anticipate London.

18 Workwear
- Pioneering protection: The evolution of Da Gama’s D59 workwear fabrics, by Janice Roberts, Technical Projects Manager, Da Gama Textiles.

20 Innovation
- Fraunhofer-Gesellschaft: Pathogen identification – next generation sequencing optimises diagnostics.
- Fraunhofer-Gesellschaft: How drivers and cars understand each other.
- Fraunhofer-Gesellschaft: Bio-concrete and biogenic construction materials with cyanobacteria.
- Fraunhofer-Gesellschaft: Compact power plants with green hydrogen.

27 Buyers' Guide
- What's on offer.

Advertisers in this Issue
BBF Safety Group/Bova (08), Dangee Carken/Grittgear (02), Kaliber (04, 06), Hi-Tec Interceptor (OFC), Rainbow Group (13), Rebel SafetyGear (11), S&V Calendar (01), S&V Directory (14), SAFLEC (09).

They Said It

"Plan well before you start the journey in every walk of life…remember the carpenter’s and tailor’s rules…Measure twice BUT cut once." - Arvind Morar, Californian Outfitters, Pietermaritzburg, KZN, SA. His advice was passed on to us by another Pietermaritzburg retailer, Madan Ghëla of Ghëla Outfitters.

Got anything you'd like to share?

Do you have any suggestions, comments or experiences about the industry that you'd like to share with the industry? - tony@svmag.co.za

New subscribers last week

Rod Bloom, Director, Barksole, Cape Town, South Africa
Jannie Stander, Entrepreneur, Welbourne Shoes, Robertson, South Africa
Allan de Boom, Sales, Bata SA, Gauteng, South Africa
Paul, Director, Pienaar Brothers North, South Africa

Birthdays this week

19/08/1959: Luis de Freitas, Leather Leisure, Welkom, Free State, SA.
19/08/1979: Suran Sukdav, Ornella Footwear, Durban, KZN, SA.
20/08/1965: Craig Brouwer, Albatros Clothing & Promotional Gifts, Germiston, Gauteng, SA.
20/08/1980: Nicholas Bryant, A Greenaways and ProFit Safety Footwear, Cape Town, W. Cape, SA.
21/08/1949: Brian Pollock, retired, formerly Jordan Shoes, Cape Town, W. Cape, SA.
21/08/1952: Wayne Little, Matas Import, Cape Town, W. Cape, SA.
21/08/1974: Lisa Rheeder, Acol Chemical, Harare, Zimbabwe.
22/08/1936: Norma Varley, retired, formerly Edcon (closed), Durban, KZN, SA.
22/08/1945: Richard Hirsch, Richardson's Shoes, Johannesburg, Gauteng, SA.
22/08/1954: Jax Snyman, The Sweat Shop, Johannesburg, Gauteng, SA.
23/08/1947: Leon Volschenk, Leo D’ Mar, Great Brak River, W. Cape, SA.
23/08/1949: David Sheppard, D.P. Sheppard & Co, Port Elizabeth, E. Cape, SA.
23/08/1965: Glyn Giani, the Footwear Design & Technology School of SA, Pretoria, Gauteng, SA.
23/08/1971: Raymond Schutte, agent, Pretoria, Gauteng, SA.
24/08/1940: Fred Carpel, agent, Johannesburg, Gauteng, SA.
24/08/1944: Rolf Oltmanns, retired, PMC Group, Pinetown, KZN, SA.
24/08/1957: Clive Wood, Crown Footwear, Pinetown, KZN, SA.
24/08/1961: Ulf Oehl, Stahl SA, Midrand, Gauteng, SA.
25/08/1957: Judy Ambrose, left the industry, formerly agent, Durban, KZN, SA.
25/08/1965: Imran Lockhat, Famous Shoes, Durban, KZN, SA.
25/08/1970: Imran Mahomed, Mr American, Malelane, Mpumalanga, SA.
25/08/1972: Andrew Fenwick, Saddler Belts & Leathercraft, Durban, KZN, SA.
25/08/1978: Adrian Ramsamy, Novita Shoes, Durban, KZN, SA.
25/08/1980: Yvonne Speirs, emigrated, formerly Fusion Leather, Durban, KZN, SA.
25/08/????: Anthea Ball, Adidas, Cape Town, W. Cape, SA.

In memoriam this week

19/08/2019: Ronald 'Ronnie' Harris (b. 4/12/1934), La Nuova Shoes [closed], Pinetown, KZN, SA.
20/08/2016: Gordon Horsfield (b.), GW Cowie & Co, Durban, KZN, SA.
21/08/????: Edward Jones-Davies (b. 10/06/1925), BUSM [closed], Port Elizabeth, E. Cape, SA.
21/08/2021: Imraan Kharva (b. 17/01/1973), Americanos, Ladysmith, KZN, SA.
21/09/1993: Bhagwandas Dayaram Ambaram (b. 15/07/1943), JFK Trading, Durban, KZN, SA.
22/08/2006: Bob Butler (b. 01/02/1928), Burton’s Shoes, Cape Town, W. Cape, SA.
23/08/1950: Andy Thuysman, In Step Leather Craft, Jeffrey's Bay, E. Cape, SA.
23/08/2022: Sakkie van der Vyver (b. 02/03/1945), retired, formerly Adidas, Cape Town, W. Cape, SA.

Have you let us know about your birthday, or the birthdays of your colleagues? Our readers love this section, so please become part of it. This also applies to the In Memoriam section. Help us remember former colleagues.

Directory entries updated last week

Alleather Sales (Pty) Ltd, Durban, KZN, SA.
Cape Knife Cutting cc, Cape Town, W. Cape, SA.

3. Malawian Kwacha (MWK) (buying)

Source: https://www.rbm.mw/

4. Zambian Kwacha (ZMW) (buying)

Source: https://www.boz.zm/

5. Zimbabwe Dollar (ZWL$) (average) / Zimbabwe Gold (ZiG)

Source: Source: https://www.rbz.co.zw/

Note: For previous rates, see HERE

ABSA Agri Trends: Hides & skins prices

Johannesburg, Gauteng, SA (15 August 2024) - The average hide price increased by 0.51% to 2.801/kg from R2.743/kg a week ago. The current price is 12.68% lower than the average price a month ago and 8.5% lower than the average price a year ago. The range of prices reported was as follows: Minimum price: R2.75 Maximum price: R3.00. Price movements will be highly influenced by developments in the status of our animal diseases. Please note: Our methodology weighs the prices we collect according to the number of hides they sell in a month. This is done to make it more representative of the prevailing market price. NB* Hide prices are determined by the average of the RMAA (Red Meat Abattoir Association) and independent companies. - Marlene Louw, senior agricultural economist, and Nkhensani Mashimbyi, agricultural economist, and Zama Sangweni, agricultural economist, Absa group.

Note: For previous prices, see HERE

Have a look at these links

We invite businesses to send us links to websites, Facebook pages and the like which they feel would be of interest to others. The links below are from our database:

Takkie Wash, Durban, KZN, SA. Sneaker cleaning service.
Tallyho Leisure & Stylez, Umhlanga, KZN, SA. Women’s beachwear.

THIS WEEK LAST YEAR!

PPE: So far this year, very good.

Surf: Holidays were good, but…

Sport: There’ll always be a place for the running shoe specialist.

SAVA: Programme and speakers for first ‘innovation in PVC’ conference.

In case you missed it! : The August issue of S&V African Leather Magazine.

READ IT HERE - S&V Weekly Newsletter Vol.9 No.34, August 21 2023

THIS WEEK FIVE YEARS AGO!!

Retail last week: Comment from 4 retailers on Saturday

Truworths: Revenue up, profit down

Choppies: Exiting SA

Export Charter: SAFLIA 'a key supporter'

READ IT HERE - S&V Weekly Newsletter Vol.5 No.34, August 26, 2019

NEWSLETTER ARCHIVE

All the past S&V Weekly Newsletters from January 2016 onwards are available in the newsletter archive.
VIEW THE ARCHIVE - CLICK HERE

CLASSIFIED ADVERTS

Agent seeks principals

Seasoned, well entrenched men’s footwear agent with over 35 years’ experience and established brands covering Gauteng, Limpopo, Mpumalanga, North West, Botswana & Swaziland, seeking agency. Able to elevate established brands exposure.
For possible opportunities kindly email contact details with brand/s available to targetdist@icon.co.za

Contact us

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

Next newsletter: Monday August 26, 2024. Ad and editorial deadline Friday 23 August.

SAFLIA enquiries: Tel 0800SAFLIA * Email info@saflia.co.za * Website http://www.saflia.co.za

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