Illegal for locals to buy these 'cheap' cars

Published Jun 4, 2006

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By Noelene Barbeau

South Africans cannot buy used imported cars, say the police, the South African Receiver of Revenue and the Department of Transport.

Why? According to Sars spokesperson Adrian Lackay, it is illegal because it threatens local economic activity, job creation and the government's agreement with the motor industry.

"South Africa has investment from major car manufacturers to manufacture the cars here.

"If we allow second-hand imported cars to be sold locally and without our own COR, then we jeopardise our safety."

He said that a vehicle could be imported from Japan if the owner, for example, lived in Mozambique, but the car could not be driven on South African roads. It would have to be transported.

Lackay said an individual could import a new car and would have to pay import duties and shipment costs. The costs involved would depend on the country from which it was being imported.

"In South Africa, import duties depend on the value of the purchase."

An official of the Department of Transport said they had an established relationship with Customs and Excise which was responsible for placing records of imported cars on to the national database.

He said the Anti-Smuggling Unit was also involved.

"If an individual wants to license a new imported car, he or she would have to make an application to the provincial Department of Transport.

"Our head office is in Pietermaritzburg, so all applications are checked, sent to Pietermaritzburg, checked again and then sent to Customs who conduct another check."

If a person wanted to buy a new imported car from a registered importer - for example Hyundai which did not manufacture cars in South Africa, it was the same as buying from a dealership. The registered importer had already gone through the procedure and the paperwork.

All importers have to be registered with the Department of Transport.

The Durban company mentioned in the accompanying article is not listed on the importers' registry, but the official did say it might be registered under a different name.

SAPS spokesperson Captain Muzi Mngomezulu said a South African living or working abroad could import a car purchased in the foreign country and register it in South Africa.

"We don't encourage South Africans to buy imported cars because they are problematic to license and it affects car manufacturers."

Mngomezulu said that MEC for Transport, Community Safety and Liaison, Bheki Cele, had publicly said South Africans were not to drive these cars on local roads.

Other than that there is no COR, the reason is also that they have no insurance cover.

"No third party can claim," said Lackay. Sars said it regularly investigated car importers and confiscated imported goods.

"We have a big case against an import company which imported quite a few cars.

"In cases like these, there can either be civil litigation or we can lay criminal charges. "In this case the clearing agent - an intermediary between the seller and the buyer - is from Durban," said Lackay.

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