DUTIES APPLICATION: Increase in cost of tyres could be the ‘final nail in the coffin’ for transport industry operators

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The cost of tyres, which is the third-biggest cost driver in the transport industry after wages and fuel, is set to surge drastically if an application for additional duties is successful. But the other side of the coin is that South African tyre ...

The SA Tyre Manufacturers’ Conference group, made up of the four large domestic tyre producers — Continental, Bridgestone, Goodyear and Sumitomo — has applied to the International Trade Administration Commission to impose additional duties of between 8% and 69% on passenger, taxi, bus and truck vehicle tyres imported from China.

Ozoux says Sumitomo’s original equipment footprint is growing steadily as vehicle manufacturers gain trust in the quality, safety performance and durability of locally manufactured tyres. The company’s most well-known brand is probably Dunlop, and Sumitomo is producing these tyres at its factory in Ladysmith, KwaZulu-Natal, which opened doors in 2018 as part of a R2-billion investment by the Japanese-based tyre manufacturer.

De Villiers believes that the increased duties will add a significant cost burden to motorists, taxi and bus operators and trucking and logistics companies. “Even more bizarre is that Goodyear China has opposed Goodyear South Africa’s application. If new duties are imposed against Chinese imports, two things will happen: the first is that those importing tyres will shift imports to other, possibly more expensive markets, such as Europe, increasing the price of tyres.

In its April report, Stats SA noted that transport was one of the drivers of inflation on the back of surging fuel prices. In the last 18 months alone, the cost of fuel has risen sharply from R14.86 a litre in January 2021 to a staggering R26.74 per litre.

 

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SA may hit Chinese tyres with heavy import duties – that will drive up fares, warns taxi industry | BusinessinsiderSouth Africa may impose heavy import duties on tyres from China, and, if that happens, consumers will be burdened by the additional costs, warn opponents of the local industry's bid. BISouthAfrica I have a serious question. What's the SABS/SANS specifications for the Motor Industry and have the Chinese Tyres comply, we're they submitted for Verification Tests before being allowed to import the tyres into South Africa?. BISouthAfrica Since when are we importing from China? And why? BISouthAfrica Of course, more import duties, more money for cadres
Source: BISouthAfrica - 🏆 34. / 51 Read more »