Partial List of Clients in Automotive Tire Domain
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1 GCC and Africa Tire Regulations & Standards Analysis Market Intelligence. Consulting
2 About TechSci Research TechSci Research is a premium market research and consulting service provider with offices in Canada, the US, UK and India. TechSci Research features a large number of high quality research reports across a broad range of industries such as Water & Water Recycling, Chemicals, Automotive, Telecom, Retail, Consumer Electronics and Energy & Power. Industry Reports Custom Research TechSci Research Services Strategic Consulting Automotive Database Partial List of Clients in Automotive Tire Domain 2
3 Contents Objectives of Tire Standards Tire Standards in GCC and Africa GCC Conformity Certificate CAGR 4.73% CAGR 9.28% Homologation Process Impact of VAT on GCC countries GCC Custom Duties in GCC & Africa Africa Africa & GCC Tire Market Value, 2012 & 2016 (USD Billion)
4 Objectives of Tire Standards in GCC and Africa Why Tire Standardization? Storage of Automotive Tires Automobile Tires comply with the safety regulations in the region Consumer Safety Prevention of deceptive practices For Ensuring Protection of religious and public morals (Only applicable for GCC Countries) Protection of environment and public health Protection from low quality brands Automobile Tires fit to run in harsh climatic conditions And promoting Intra-GCC trade
5 Tire Standards in GCC & Africa Certain Aspects covered under GSO Standards Tire Standards followed in GCC countries : Mandatory to have GCC Conformity Certificate. Should abide by standards set up by GSO Standards Tire Index Speed Rating Ply Rating Maximum Load Load Index Marking GCC Countries African Countries Tire Standards followed in African Countries: Manufacturer or Importer should strictly follow National Regulator for Compulsory Specifications (NRCS) guidelines. Should abide by standards set by United Nations Economic Commission for Europe. Mandatory Markings & Process for tires entering Africa: Size Tread Pattern Process: Load/Speed Index E Mark Homologation Date of Manufacture Radial/Bias Whether tubeless or not
6 Tire Standards in GCC and Africa Major Tire Standards Followed in GCC Load Index Speed Ratings Prohibitions Provisions Markings for Tire load from 1.5 Tons to 14 Tons Speed symbol F to V F corresponds to 80 km/h and V corresponds to 210 km/h and above Re-grooved, recapped or retreated tires on a front wheel (Bus) No crack or cut on the tire Uniform tread without separated piles No pinch or strike of metal pieces, etc. in tires Tire Pressure Gauge Spare Tire should be provided Name of Tire Manufacturer Country of Manufacture Category of Vehicles Type of Tyre Tire Size designation Speed category symbol
7 Tire Standards in GCC and Africa Major Tire Standards Followed in South Africa Load Index Speed Ratings Markings for Tire load from 0.25 Tons to 14 Tons Speed symbol F to Y F corresponds to 80 km/h and Y corresponds to 300 km/h Name of Tire Manufacturer Country of Manufacture Category of Vehicles Type of Tyre Tire Size designation Speed category symbol
8 GCC Conformity Certificate Procedure for obtaining GSO Conformity Certificate Step-1 Registration on GSO Site ( for new registration and certificate renewal Step-2 Application Submission Every tire selling company is required to obtain GCC conformity certificate in order to sell its tire in GCC countries. Validity: Certificate is valid for 1 year from the date of approval. After the expiry of certificate, the tire company is required to renew its certificates Step-3 Evaluation Process- Once application is completely filled by the tire supplier, GSO issues a batch to the tire supplier Evaluation process comprises of two rounds of evaluation and the process usually takes up to 5 working days with an evaluation fee of about 700 SAR per tire type/size Upon evaluation, GSO approves, rejects or put the request on hold. Step-4 Approval/Rejection/On-Hold from GSO
9 Tire Homologation Process Note: Homologation Process is applicable specifically for South Africa What is Homologation? Why is Homologation done? When should homologation be done? Compulsory Specifications for tires introduced by Ministry of Trade & Statistics. The law was introduced for monitoring and administering the legal fulfillments. The law was introduced to minimize and prohibit the entry of non-complying tires in the region as well as to the public. Homologation is a mandatory specification for a tire to be imported in South Africa before going for sale in the market. How is homologation done? Tire Homologation is conducted at National Regulator for Compulsory Specifications (NRCS) at Automotive Regulatory Department in Groenkloof, Pretoria, South Africa. Who should do homologation? It is mandatory for all the manufacturers and importers to homologate their tires before selling in South Africa.
10 I m p a c t o f VA T o n G C C c o u n t r i e s VAT is likely to impact the entire supply chain The implementation of VAT in 2018 is likely to affect the supply chain as the additional tax will be levied at every stage of supply chain which includes distributors, dealers and end consumers. Demand for automobiles to bloom during year end VAT is expected to be implemented from 1st January, 2018, wherein it is anticipated that the automobile sales in the entire region will boom during the last few months of the current year. Demand for used vehicles likely to boom post VAT Once VAT is successfully implemented, it is anticipated that the demand for used automobiles is likely to gain pace as compared to the current scenario for used vehicles in the region. Automobile & tires to become costlier Implementation of VAT would translate into rise in prices of automobiles due to leveraging of taxes at all levels in the supply chain which would finally lead to automobiles and their tires to become costlier post implementation of VAT. 10
11 Custom Duties in GCC & Africa Custom Import Duties in GCC countries: Tire HS Code Description Tire Type Custom Duties Motor Cars Passenger Car Tire Bus or Lorries Tires Commercial Vehicle Tire Motorcycle Tire Two-Wheeler Tire Tire Having a "Herring Bone" Tire Having a "Herring Bone" Tire Having a "Herring Bone" Tire Having a "Herring Bone" OTR Tire Tire Having a "Herring Bone" Agriculture Tire Construction/Industrial Tire Construction/Industrial Tire Others Other Tires
12 Custom Duties in GCC & Africa Custom Import Duties in Africa: HS Code Description Angola Egypt Ghana South Africa Tanzania Zimbabwe Motor Cars 20% 30% Bus or Lorries Tires % Motorcycle Tire 20% Tire Having a "Herring Bone" 0% Tire Having a "Herring Bone" 20% Tire Having a "Herring Bone" Tire Having a "Herring Bone" Tire Having a "Herring Bone" 0% Agriculture Tire 20% Construction/In dustrial Tire Construction/In dustrial Tire Others 20% 30% 2 2
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