In December 2006 Trade and Industry Minister Mandisi Mpahlwa signed a new regulation in terms of the Merchandise Marks Act. The regulation only came into effect on 14 April 2007. In terms the regulation certain goods which are being imported will have to disclose in which country they were made or produced. This was done as apparently many South African retailers are passing off locally manufactured clothing as being imported. The regulation is intended to act as a guardian of consumer interests.

The regulation only applies to certain textile, clothing and shoe products being imported into, or sold in, South Africa. Thus even where the goods are manufactured locally, if the goods are sold in South Africa, they will be subject to the regulations. In terms of the regulations the importation of these goods or their sale in South Africa is prohibited unless they have a label indicating the country of origin attached to them. The label showing the country in which they were made or produced must be conspicuous and the words on the label easily legible. The government has also issued a statement which acts as a general guideline to assist businesses in complying with the regulations.

Furthermore where a South African textile manufacturer used imported greige fabric to produce dyed, printed or finished fabric in the RSA, the textile manufacturer will have to state that the fabric has been dyed, printed or finished in South Africa from imported fabric. To the same extent where imported fabrics are used to manufacture a product in South Africa, the product must have a label attached to it which disclosed that the product was manufactured in South Africa from imported fabrics.

Even goods that have been reconditioned, rebuilt or remade (whether in South Africa or elsewhere), will have to state on a label that they have been reconditioned, rebuilt or remade as the case may be.

The regulations also state that if you want to attach a label to your product which states that the product is made in South Africa, then the label itself must be made in South Africa. It also follows that if the product has been wholly assembled in South Africa, it is not considered as made in South Africa, and can thus not have the local production label attached to it as the materials used would not have originated from South Africa. This should be easy enough to determine with reference to present certificates of origin which accompany the bill of lading on imported goods.

The goods must further conform to the South African National Standards (SABS) for fibre content and care labelling as prescribed in terms of Notice No. 2410 of 2000.

Failure to comply with this regulation could result in the goods being seized and a fine of R5000 and/or imprisonment of 3 years could be levied for each article which contravenes the regulations. As is the norm with regulations under the Merchandise Marks Act, the dti will enforce the regulations in collaboration with SARS and the SABS.

By Rian Geldenhuys