FEATURES
South African importers are keeping inventory levels low in response to sluggish market conditions .
ships so you know what you are getting . We visit overseas factories too , but it is nice to have a solid contact in the countries from which you import . It is not practical to send someone from South Africa and wait for them to find the quality you want .”
He says currently there is a lot of ‘ rubbish ’ coming into the country . “ Site foremen don ' t care ; they want to pay as little as possible . But smaller operators can ' t afford comebacks . Some wood arrives with nails in it . Some guys are using off-cuts , which they turn into plywood . People are always trying to reduce costs which means shortcuts are being taken .
“ I buy from the factories that also supply to Europe because they are the strictest when it comes to quality . We ' ve had hiccups with timber sourced from Argentina , due to its government imposing taxes and other charges .” According to Heilbuth , large amounts of charcoal are leaving the country . He says importers and exporters need to produce sanitary certificates . Pallets have got to be heat-treated , which also requires certification .
DUTY CALLS
Plywood and chipboard carry a 10 % import duty into South Africa . Finished products like doors carry a 15 % duty . Door frames also have a 15 % duty – if the frame has been manufactured in its entirety overseas – even if it hasn ' t been assembled yet . “ If you import door framing materials in component form which hasn ' t had a rebate cut into it , there is no import duty to pay ,” he explains . MDF / superwood and laminated shelving incur 10 % duties . Different duties also apply to different countries , depending on what international trade agreements are in place .
Exported wood must be heat treated . “ You cannot ship wet timber , due to the extra weight and the resultant increases to freight rates . You need to get a certificate from the Department of Agriculture . Some people also insist on a Certificate of Origin or want Forest Stewardship Council ( FSC ) -certified timber . This is especially true for European destinations .
“ We quote customers a CNF price , which includes carriage , insurance and freight . Sending product into SADC countries can be difficult , due to border delays and the challenge of dealing with the South African Revenue Service ( SARS ) which handles VAT payments .” He says congestion and delays at ports , particularly Durban , are problematic .
He adds that , due to current economic activity , importers are not holding large amounts of stock . He also believes that some importers are not properly declaring their goods to SARS to lower their import costs .
SUPPLY AND DEMAND
Andrew Fish , managing director at Interwil Trading International , says like with any product , the biggest influencing factor in cost terms relates to whether an
// DECEMBER 2017 / JANUARY 2018 45