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