IT industry welcomes import regulations

Resellers of electronic products are now legally required to tell consumers if these are grey, or parallel, imports.

Minister of trade and industry Mandisi Mpahlwa yesterday signed into law final regulations that compel resellers of goods brought into SA through unofficial channels to notify consumers of this fact. Failure to do so could result in a fine of up to R200 000, or jail time.

Mpahlwa's regulation covers any product sold "without the specific authorisation of the manufacturer or trademark holder", says the department. This includes electronic goods such as audiovisual equipment, photocopiers and computers.

SA's largest IT distribution company, MB Technologies, has welcomed the move. CEO Leo Baxter says the sector has been pushing for the regulations for some time. "I think it will push people to buy genuine products."

He adds the official distributor does not cover warrantees on parallel goods, which are sold legitimately, but not imported through companies such as MB Technologies, having been brought in by the sellers. "We have a right not to stand behind the warranty on a grey product."

Acer's local country manager David Drummond says: "We have no issue with grey importers as long as they identify themselves and the product as such."

He points out that customers unwittingly buying grey imports can become dissatisfied with products that do not work correctly, and this could lead to "hard feelings towards the vendors".

"Acer South Africa carries R13 million in spares in its inventory to ensure products under warranty can be fixed quickly using official Acer parts. Grey outlets do not have access to Acer spares, which means customers may need to wait for spares to be imported before their equipment can be fixed, or even worse, that the product may be repaired using substitute parts not sanctioned by Acer."

Warrantees on such products are, instead, backed by the importing company, notes the Department of Trade and Industry. As a result, sellers of grey goods must identify these products with the wording: "The authorised South African distributor of this product is under no obligation to honour the manufacture's guarantees/warranties or to provide after-sales service."

Baxter predicts the regulations will result in a "cleaning up" of the market, as companies may prefer products imported by an authorised distributor. He adds the regulations are likely to be policed by this industry. "We will make absolutely certain [the grey import] is identified."

The regulations, which come into effect today, follow an investigation by the Consumer Affairs Committee, which found consumers have the right to be informed if a product has been brought in through unofficial channels.