DEPARTMENT OF TRADE, INDUSTRY AND COMPETITION

  1. R. 524 12 MAY 2020

 

DIRECTIONS REGARDING THE SALE OF CARS AND EMERGENCY AUTOMOBILE REPAIRS DURING ALERT LEVEL 4 OF THE COVID-19 NATIONAL STATE OF DISASTER

I, Ebrahim Patel, Minister of Trade, Industry and Competition, after consultation with the Minister of Co-operative Governance and Traditional Affairs and the Minister of Justice and Correctional Services, hereby issue the Directions set out in the Schedule in terms of regulation 4(6)(a)(ii) and (b), read with Part H.6 and Part L of Table 1 of the Regulations issued by the Minister of Co-operative Governance and Traditional Affairs in terms of section 27 (2) of the Disaster Management Act, 2002 (Act No. 57 of 2002) and published on 29 April 2020 in Government Notice No. R.480 of Government Gazette No. 43258.

MINISTER OF TRADE, INDUSTRY, AND COMPETITION

MR EBRAHIM PATEL

 

  1. Definitions

In these Directions, any word or expression to which a meaning has been assigned in the Disaster Management Act or the Regulations bears the meaning so assigned and, unless the context indicates otherwise —

“Alert Level 4” means Alert Level 4 as determined in terms of regulation 3(2) of the Regulations, commencing on 1 May 2020;

“car” means any vehicle designed or adapted for propulsion or haulage on a road by means of fuel, gas or electricity or any other means, including Passenger Cars (PCs), Light Commercial Vehicles (LCV), Medium Commercial Vehicles (MCV), Heavy Commercial Vehicles (HCV), Extra Heavy Commercial Vehicles (XHCV), inclusive of buses, motorcycles, trailers, caravans, agricultural or any other implement designed or adapted to be drawn by such car;

“COVID-19” means the Novel Coronavirus (2019-nCov2), (SARS-COV 2 / COVID-19);

“CPA” means the Consumer Protection Act, 2008 (Act No. 68 of 2008);

Disaster Management Act” means the Disaster Management Act, 2002 (Act No. 57

of 2002);

“importer” means an importer of cars and includes distributors of cars;

“OEM” means an Original Equipment Manufacturer;

Regulations” means the Regulations issued in terms of section 27 (2) of the Disaster Management Act and published on 29 April 2020 in Government Notice No. R.480 of Government Gazette No. 43258;

“trade associations” means associations that act as a collective to represent, assist, educate, and advise their members in matters of common interest; and

“used car” means a car that has been previously licensed or registered and includes demonstration (demo) cars, but excludes a car or the components thereof disposed of as scrap or utilised for parts and not saleable as an operating car.

2. Permitted trading activities

  • The following trading activities with regard to cars are permitted during Alert Level 4:
    • Trade in new and used cars;
    • wholesale trade of new and used cars by OEMs and importers;
    • export and import of all category of cars through national ports of entry under strict guidelines; and
    • trade-in purchases, car lease scheme returns and wholesale trading of used cars.
  • To allow for and facilitate the sales of cars, and the proper functioning of the supply chain, it is necessary that the various administrative and other functionaries, such as roadworthy assessment and testing centres, and other testing stations are
  • Car sales will be allowed under the following conditions:
  • Phase One:
    • All dealerships and used car outlets will operate with up to 30% of employment subject to a maximum of one employee or customer per every nine (9) square metres of floor space: Provided that small businesses may operate with a minimum of five
    • The majority of car sales will be done remotely via the internet or e- Commerce or Personal contact will be kept to a minimum and only on appointment under very strict hygiene and social distancing conditions in line with the Regulations.
    • Test drives will be conducted on appointment
    • Home delivery of vehicles with full sanitisation will be
    • Where possible, electronic, or virtual signatures will be used for finance and insurance
    • Car auctions for all categories will be conducted online in compliance with the CPA Regulations.
  • Phase Two:
    • All dealerships and used car outlets will operate with up to 60% of employment.
    • Limited customers will be allowed to enter the dealership under very strict hygiene and social distancing conditions in line with the Regulations.
    • Remote vehicle sales will continue for those potential customers with access to online
    • Test drives can be arranged on-site by appointment only, and under very strict hygiene conditions including fully sanitised
    • On-site pick-ups and deliveries of fully sanitised cars will be allowed under strict hygiene conditions with an option of home delivery of fully sanitised cars, if
    • Car auctions for all categories will be conducted online in compliance with the CPA Regulations and limited physical contact will be allowed for viewing prior to the auction under very strict hygiene conditions including fully sanitised
  • Phase Three: From 8 June 2020 until Alert Level 4 is Lifted:
    • All dealerships and used car outlets will operate with up to 100% of employment.
    • Customer on-site contact will be allowed but kept to a minimum, whilst remote vehicle sales are
    • Test drives can be arranged on-site by appointment only, and under very strict hygiene conditions including fully sanitised
    • On-site pick-ups and deliveries of fully sanitised cars will be allowed under strict hygiene conditions with an option of home delivery of fully sanitised cars if
    • Car auctions for all categories will be conducted online in compliance with the CPA Regulations and limited physical contact will be allowed for viewing prior to the auction under very strict hygiene conditions including fully sanitised cars and limits on the numbers of persons at auctions in order to maintain a distance of at least 1,5m between persons at all times, including when entering or exiting from an auction.
  • Further Directions in relation to the sale of cars:
    • All dealerships and used car outlets will ensure limited teams of employees and contractors to access the dealerships to prepare for the start-up in line with COVID-19 risk mitigation
    • All dealerships and used car outlets shall implement health and safety measures, including, but not limited to the following:
      • Sanitisation procedures at all sites will be strictly applied to ensure that all work surfaces, equipment and cars on the floor are disinfected before the dealership is opened, and regularly cleaned during the working period;
      • maintaining social distancing protocols at all times;
      • ensuring that all staff and customers wear a cloth face mask or a home-made item that covers the nose and mouth and not allowing any customer access to a dealership, used car outlet or auction without a face mask;
      • not allowing an employee who is sick or who has COVID-19 symptoms to work
      • mandatory screening of all employees when they arrive for work on a daily basis;
      • the mandatory signing of a register by all visitors and customers to all sites; and
      • not permitting children access to dealerships and used car outlets under Alert Level
  • Dealer Principals or other persons in charge of dealerships and used car outlets will ensure that ongoing training and guidance on personal hygiene and preventative measures are communicated to all employees on a regular
  • All dealerships and used car outlets shall at all times act in compliance with risk-adjusted measures for occupational health and safety as a prerequisite for

Support and Enablement Services

In order to improve efficiency and support car sales, the following entities must be allowed to operate under strict risk-adjusted measures, hygiene and physical distancing requirements stipulated in the Regulations 

  • Car testing centres;
  • Homologation services from the National Regulator for Compulsory Specifications [NRCS];
  • Weighbridges;
  • Logistics for the wholesale distribution of cars across South Africa, subject to the following:
    • movement of cars under own power to be permitted from Port of arrival to an approved storage facility provided vehicles moved do not exceed batches of 10 at a time;
    • new cars to be driven between dealerships within the same province where a car is required for sale only; and
    • movement of cars to be permitted to service outlets required to complete the repair of the car were unable to perform the work at the dealership but excluding the fitment of

3. Emergency Automobile Repairs

  • Service Operations:
    • All car maintenance and repairs will be confirmed through appointment only. Unsolicited walk-ins will only be allowed under exceptional and emergency
    • circumstances and a full record of each such instance will be kept in writing at the premises of the business for a period of 3 months after the state of disaster have been lifted.
    • Members of the public will not be allowed, under any circumstances, to enter the workshop environment. These workspaces will exclusively be reserved for technical and support
    • Car owners are to maintain or service their cars within their own municipal boundaries unless in case of extraordinary
    • The following categories are classified as emergency car repairs for passenger cars (PCs), Light Commercial Vehicles (LCV), Medium Commercial Vehicles (MCV), Heavy Commercial Vehicles (HCV), Extra Heavy Commercial Vehicles (XHCV), inclusive of buses, motorcycles, trailers, caravans, agricultural or any other implement designed or adapted to be drawn by such car:
      • Repairs on essential services cars, or on the cars of persons performing essential services;
      • repairs required to restore a car’s safety and roadworthiness to good running condition;
      • routine servicing of cars that is due or overdue in terms of the manufacturer’s recommended service intervals, whether due as a result of -
        • mileage;
        • time interval since last service;
        • recommendation by car on-board computer;
        • urgent collision repairs; and
        • specific OEM activated recall or warranty
      • The following categories are not classified as emergency car repairs:
        • Cosmetic repairs, such as minor scratches and dents or cosmetic enhancements;
        • voluntary or routine servicing that is not overdue in terms of manufacturer’s service intervals; and
        • warranty campaigns of a cosmetic nature unless the warranty is due to expire within 30 days of the intended repair
  • Parts Supply and Logistics
    • Aftersales car servicing and parts sales should operate to support regular services and maintenance of cars under Alert Level 4 and to avoid or minimise any mechanical breakdown that might result in permanent damage given continued car usage and mileage increases during the extended lockdown by ensuring the provision of the necessary
    • In order to give effect to the provisions of subparagraph 3.2.1 the following facilities may be reopened under strict trading risk-adjusted measures, hygiene and social distancing restrictions:
      • Auto electricians;
      • tyre fitment, windscreen replacement centres;
      • bond stores and parts distribution centres;
      • motor body repairers; and
      • any other related business that can attend to the mentioned
  •  
  • Support services should operate at the same staggered workforce levels as set out in paragraph 2, except for bond stores and parts distribution centres which shall operate at 50% from Phase One and ramp up

 

4. Commencement

These Directions come into effect on the date of publication in the Government Gazette.