Illegal used vehicle imports costing govt billions every year
Grey vehicle imports pose a threat on many fronts for South Africa, from the economy to road safety.
Picture: 123rf/Khongkit Wiriyachan
Africa Melane interviews Chad Thomson, COO of DataDot Technology SA.
There have been many warnings about the threat grey vehicle imports pose in South Africa, but the volume of these imports keeps increasing.
The risks they pose range from losses to the national fiscus and job creation to practical safety concerns.
In 2022, it was estimated that the country lost about R8 billion in taxes due to these illegal vehicle imports, writes VehicleFacts CEO Craig Wahl in an opinion piece for BusinessLIIVE.
Africa Melane finds out more from Chad Thomson, Chief Operations Officer of DataDot Technology SA, which has microdotted over 6 million vehicles on our roads.
"Grey imports are vehicles that have been brought into South Africa by illegal means. The importation of used vehicies is prohibited under the International Trade Administration Act of 2002."
"The exception is only allowed for legal immigrants and permanent residents returning to South Africa."
Chad Thomson, COO - DataDot Technology SA
Thomson says there is a need for stricter enforcement at South Africa's ports of entry.
He notes that it is not a policing issue per se, but a customs and government regulatory issue.
According to Thomson, fixing the problems also requires 'relatively simple' updates to our current import controls and regulatory framework.
"I think it's time for consumers, government officials and industry leaders such as ourselves to confront the dangers and take steps towards eradicating grey vehicle imports."
"We'd like to see more effort being made in local government as well, as far as what is coming into the provinces, what is being licensed through the provinces, and also then through the ports of entry."
Chad Thomson, COO - DataDot Technology SA
As a consumer who could unintentionally be looking at grey vehicles, the red flags include an uncommon model and a suspiciously low price.
For more info, listen to the interview audio at the top of the article