Second-Hand Goods Bill

Presentation by Richard Mukheibir: MD - Cash Converters Southern Africa (Pty) Ltd

Second-Hand Goods Bill

·         Cash Converters International

 

·         Established in Perth, Australia in 1984

 

·         Over 500 stores worldwide

 

·         Largest Franchised Second-Hand Dealer and Pawnbroker in the world

 

·         Listed on Sydney Stock Exchange

 

·         Cash Converters Southern Africa

 

·         Established in Parow, Cape Town in 1994

 

·         Over 50 stores in Southern Africa

 

·         General second-hand dealer focusing on household goods

 

Objects of the Bill:

·         Regulate the business of dealers in second-hand goods and pawnbrokers

 

·         Promote ethical standards in the trade

 

·         Cash Converters supports the initiative and purpose behind the Bill

 

·         Consultations: since June 1999

 

·         Section 6 Information on application...... (1) (d) "including members and directors"?

 

·         Section 12 Renewal of Registration (3) How does the dealer practically show compliance?

 

·         Section 22 Records by Dealers

 

·         last part of sentence to read "acquisition or disposal of second-hand goods"?

 

·         Section 22 Records by Dealers (1), (4) and (5) Issue with recording all sales transactions

 

·         Section 22 Records by Dealers (4) Note onus on "Person" = Consumer to comply. Who will communicate this to them?

 

·         Section 22 Records by Dealers (9) (b) what about subsection (2) Is this an omission?

 

·         Section 23 False information and stolen goods How will this section be implemented?

 

·         Section 27 Communication equipment records (3) same argument as Section 22

 

·         Section 28 Identification by police official What is an "appointment certificate"?

 

·         Section 33 Penalties (d) "..., be forfeited to the State". How does this effect the rightful! owner of the goods?

 

Schedule 1 Goods

 

·         What are "antique goods" ?

 

·         What are "valuables" ?

 

General

·         Does this act pertain to Auctions of second-hand goods?


Questions?


COMMENTS ON THE SECOND-HAND GOODS BILL

Bill 2 of 2008

INTRODUCTION

On behalf of Cash Converters we wish to at the outset, express our support for the initiative and the purpose behind the Bill.

We are of the opinion that the second-hand goods industry needs to be regulated and legislation is imperative to regulate and to allow for easier policing. We have in our comments pointed out certain practical difficulties that may be encountered in the implementation of legislation as well as try to emphasise the benefits of recording information electronically.

Section 6 Information on application by person other than natural person

(1) (d) Should this not include members of Close Corporations and directors of companies?

Section 12 Renewal of Registration

m How does the Dealer practically show compliance to this section of the Act?

Section 22 Records by Dealers

(1) last part of sentence to read "acquisition or disposal of second-hand goods"?

We would assume this section does not apply to new goods?

We would further assume the act does not apply anywhere to new goods?

1 states that: "a dealer must……….. record in a register……every acquisition or (4) and (5)

It is perfectly in line with the purposes of the Bill to require that a person disposing of second-hand goods to a dealer should furnish the dealer with proof of his or her identity and all relevant details need to be recorded in the register.

However, when a person is acquiring goods from a dealer we believe that it is both impractical and does not serve the intended purpose of the act to record all sales transactions.

We believe that a threshold value should be introduced that requires the purchasers information to be recorded. We believe that reference to the VAT Act needs to be made with regards to such threshold. We would support a threshold value of One Thousand Rand (R1000.00) being the minimum sales value requiring entry into the register.

This would negate the necessity for a customer to have to give his full particulars including full name, ID number (and copy thereof) and address for the purchase of a second-hand CD for a value of R1 0-00, as an example.

We are strongly of the opinion that a person acquiring second-hand goods from a dealer need only furnish the dealer with his or her full name and address and not an original identity document or passport.

We understand the point of view that the stolen goods should be able to be traced. However, requiring that every prospective purchaser needs to furnish an original identity document or passport will seriously hamper the second­hand goods trade.

Furthermore, the purpose of the Act is to limit the trade in stolen goods and this involves control to the entry of stolen goods into the legitimate commercial sector. Controls and guards such as proof of identity and so forth need to be placed at the point of entry rather than at the point of exit.

We also feel that reference needs to be made to the VAT Act with regards to information required and Rand values of the transactions.

(4) Onus on "Person"

Records by dealers: here an onus is being placed on a "person", namely a

consumer to comply to this act. How will this be communicated to the general

public?

(9) (b) Would appear that subsection (2) has been omitted here?

Section 23 False information and stolen goods How will this section be implemented?

Section 27 Communication equipment records

(3) Same argument as 22 (1)

Section 28 Identification by police official

What is an "appointment certificate"?

Section 33 Penalties

(d)" , be forfeited to the State"?

How does this effect the rightful owner of the goods?

Schedule 1 Goods

What are "antique goods"?

What are "valuables"?

General

Does the Act pertain to auctions of second-hand goods?

Cash Converters would suggest that it should.