Merchandise Marks Act 17 Of 1941

1. Merchandise Marks Act 17 Of 1941 General Notice 1831 of 2006(Country of Origin Labeling)

2. Presenter Bulelwa Hewu OfficeofConsumer Protection Department of Trade and Industry Tel No. 012- 394 3873 Fax No. 012- 394 3873 Cell No. 082 695 5542 Email. Bhewu@thedti.gov.za

3. Legislative authority • Merchandise Marks Act No 17 of 1941 (Sections 10 and 11) • General Notice 1831 of 2006 (14 December 2006) • Code of practice – Care-labelling of textiles and clothing (SABS 011) • Code of practice – Fibre-content labelling of textiles and textile products (SABS 0235) • Customs and Excise Act (Section 113 (8))

4. What is labelling about? • Import restriction • Applicable to South Africa only • Linked to an information campaign • To inform consumers about the products they buy • To make an informed decision when buying the product • Promote the buying of local goods • ( Labelling will also apply to locally manufactured products, including products made from imported fabrics.)

5. What is covered by labelling? • Country of origin • (Where does the product come from?) • Care-labelling • (How to care for the product after you have bought it?) • Fibre-content labelling • (What materials / fibres are the product made of?) • Reconditioned, rebuilt or remade • (Is this a used product that have been reworked?)

6. Tariff coverage in the Harmonized Systems • Textiles – Chapters 50 to 60 and 63 • Clothing – Chapters 61, 62 and 65 • Shoes and leather goods – Chapters 42, 43 and 64 • (i.e. Chapters 42, 43 and 50 to 65)

7. Notice 1831 of 2006 • Section 3 – subject to the laws governing the public service, the Minister may appoint such officers as he or she may deem necessary for carrying out the provisions of this Act. • The Notice is in terms of sections 10 and 11 of the Merchandise Marks Act 17 of 1941. • Requirements: • The notice prohibits the importation and or sale of goods specified in the schedule, irrespective of whether the goods were made in South Africa unless: • The product states the country of origin.

8. Notice cont • That a locally manufactured product using imported materials must state made in South Africa from imported materials. • They conform to the South African national standards for fibre content and care labeling in accordance with Notice 2410 of 2000. • There shall, if after they have been reconditioned, rebuilt or remade whether in the Republic or elsewhere, be applied to them in a conspicuous and easily legible manner, the words stating clearly that they have been reconditioned, rebuilt or remade, as the case may be.

9. Exclusions / exemptions / application • Exclusions • Imported goods cleared prior to 14 April 2007 • Goods cleared ex-warehouse from 14 April 2007 • Cleared for warehousing for export (WE) • Cleared in transit to destination in BLNS country and • outside SACU (RIT) • Cleared for temporary importation • Exemptions • There will be no exemptions from labelling requirements

10. Exclusions / exemptions / application • Application • Will apply to new and second-hand goods for domestic sale • Re-imported goods for domestic sale • Locally manufactured goods

11. Responsibility • The DTI • Be responsible for the enforcement of the Merchandise Marks Act (Apply discretion) • Inspectors appointed by the DTI will be responsible to verify compliance in the domestic market

12. Responsibility • SARS Customs • While goods are under customs control, i.e. at the time of first clearance and goods cleared from storage warehouses • Verify, detect, detain, notify and act on instructions from the DTI • Dispose of goods as directed

13. How must labels be applied to goods? • In respect of country of origin: • Directly on the fabric, i.e. printed on the goods • On a label securely attached, i.e. sewn-in labelon the goods • In respect of fibre content • On packing or on a label attached to the packing • On a non-permanent label attached to the goods, i.e. a swing or adhesive label • A note contained in or on a document accompanying the goods, i.e. brochure, pamphlet, etc. • Sets need only have a label on one item provided it is of the same fibre-content

14. Labels • One giving brand name/ manufacturer, the size, the country of origin and the fibre-content • The other giving the care instructions • Could also be any combination

15. Country of origin • Made in South Africa • Produced in South Africa • Manufactured in South Africa • South Africa

16. Examples of where labels can be found • Pants • Sewn on the back pocket sleeve on the inside • Jackets • Sewn in the inside of the right hand pocket • Shoes • Sewn under the tongue, printed / sewn on the inner side wall • Underpants / panties • At the back in the centre on the ribbing • Shirts • Sewn into the inside of the side seam

17. Penalties and Fines • Non-compliance with the Notice is a criminal offence and any person found guilty of an offence in terms of the Act, except section 5, shall be liable to: • in the case of a first conviction to a fine not exceeding R5 000 for each article to which the offence relates, or imprisonment for a period not exceeding three years or to both a fine and imprisonment; • in the case of repeat offenders to a fine not exceeding R10 000 for each article to which the offence relates, or to imprisonment for a period not exceeding five years or to both the fine and imprisonment.

18. Penalties and Fines Any person convicted of an offence in terms of section 5 shall be liable to a fine or to imprisonment for a period not exceeding six months. The court may in addition to any penalty, which it may impose, order the confiscation of all or any part of the goods of which the offence was committed, and such goods shall be disposed of in a manner prescribed by the Minister.

19. Contact Details Non-compliance with the Notice must be reported to Sipho Tleane at: Tel No. 012-394 1422, Fax No. 012-394 1422, Cell No. 083 399 5306 or mail to sipho@thedti.gov.za or Jerry Modiba at : Tel No. 012-394 1066, Fax No. 012- 394 2066, Cell No. 084 857 7962, or email to jmodiba@thedti.gov.za Enquiries regarding compliance with the legislation can be forwarded to the Compliance Unit at Tel No. 012-394 3873, Fax No. 012-394 4873, Cell No. 082 695 5542 or email to: Bhewu@thedti.gov.za

20. Contact Details The Office of Consumer Protector can be contacted through dti Costumer Contact Center at: Phone: 0861843384 Fax No: 0861843888 Or write to: The dti Consumer Complaints Consumer and Corporate Regulation Division Private Bag X84 PRETORIA 0001