Following a takedown operation counterfeit goods with an estimated value of more than R100 million were seized. Picture: SAPS
Cape Town: In what can be seen as one of the biggest counterfeit busts in the country's history, truckloads of counterfeit goods were transported from a shopping complex in Bellville.
The value of the July 28 seizure is estimated to be more than R100 million.
Four people have been arrested, and more arrests are expected.
Provincial police spokesperson Colonel Andrè Traut said the multidisciplinary team, led by the police, customs and excise, and brand protectors, executed a search warrant after a thorough investigation.
“The end-product of the operation saw truckloads of counterfeit goods, comprising an assortment of famous brands as well as illicit tobacco products, being transported to a depot as exhibits in contravention of the Counterfeit Goods Act.”
This bust, once again, shed light on how counterfeit products can negatively affect the economy.
According to South African Revenue Services (Sars), one of the main purposes of the Counterfeit Goods Act, 1997 (Act No. 37 of 1997) is to prevent the release of counterfeit goods into the local market of South Africa.
Sars officials may, in terms of Section 113A of the Customs and Excise Act, 1964, detain any goods upon importation into South Africa to ascertain whether the goods are indeed counterfeit goods as contemplated in the Counterfeit Goods Act, 1997.
Phetho Ntaba, a spokesperson for the National Consumer Commission (NCC), said the NCC works closely with SARS (Customs) officials.
The officials, upon inspecting the consignments and suspected or alleged goods which do not meet the requirements, as per the CPA, detains the goods on behalf of the NCC and informs the Commission.
Ntaba said during the 2022/23 financial year, the NCC, working with Sars Customs officials at different ports of entry, continued to intercept and stop non-compliant clothing, textiles, footwear, and leather goods from entering the republic.
“The NCC has issued compliance notices to the value of just above R2.8M. The suppliers/importers either returned non-compliant goods to the country of origin or destroyed these goods worth R21.6 million, at their own costs,” she said.
Dawie Roodt, an economist, said counterfeit goods were goods that pretend to be the real product at a much lower price, and although there are advantages, such as the fact that you can get a desired product for less, the negatives outweigh the positives.
He explained: “A brand is very important because a good brand thrives on quality and products of excellent standard. This allows brands to charge more for their products because people are assured of its quality, and the name is known for it.’’
According to Roodt, people who trade in counterfeit products are guilty of theft.
He further explained: “When you trade in these products, you are actually stealing from the original brand. You sell a product under someone else's name for cheaper, which means that the money does not go to the brand, but into the pocket of the one who illegally trades in these products."
Roodt adds that the trade in counterfeit goods negatively affects the economy.
‘’This affects the economy negatively because it can also discourage brands from trading in SA at a loss because there are counterfeit products on the streets.”
Weekend Argus