Durban car trail on, but not so hot

MONKAGEDI GAOTLHOBOGWE
Staff Writer | Friday November 5, 2010 00:00

Since mid-October, local dealers and middlemen profiteering from the Japanese cars in Durban were hit hard after dozens of warehouses were shut down, while clearance certificates were also frozen for Botswana-bound vehicles, leaving local dealers in confusion.

However, some locals, who had long put in orders for their Japanese cars started receiving them last week, while some middlemen early this week also started travelling to Durban to buy cars for their clients.

The Japanese cars have become a source of income for self employed middlemen, who travel to and from Duran every week to source cars for their clients. Some say in a week they can make P2,000 profit from the trade.

Nigerians and Asians have also benefited from the trade in Japanese vehicles as they opened garages in Botswana to supply the highly affordable vehicles.

A number of dealers in Japanese cars around Mogoditshane said yesterday they would only travel to Durban next week to go shopping. Others said only a few warehouses are operational now in Durban.

Many were forced to close by South Africa's tax department and prices for the imports have now shot up, forcing local dealers to also adjust their prices.

A Corolla car which used to go for P30,000 in various Mogoditshane garages, is now going for P33,000.

Clearance certificates for Botswana-bound vehicles from Durban were frozen for almost a month following a raid on nine warehouses by South African law enforcement agencies.

The raid also resulted in the tax department there confiscating eight vehicles worth R1.8 million for investigation of non-compliance with tax laws.

The South African Revenue Services (SARS) has also confirmed that it began to take punitive steps against a number of traders in imported second-hand Japanese cars in Durban for allegedly contravening the country's laws by allowing their vehicles onto South African roads.