Wiggle/CRC future in doubt

[Headshot]

19 hours ago, Shebeen said:

Not a lawyer but think they have already (all, as tried together) lost.

Taxes and loopholes, a dance as old as time itself. I'm not in the game but thought it was common practice for bikes to arrive in parts here and then get assembled, to avoid this exact duty.

obviously the 15% is on landed cost, not RRP 

A good few years back I was involved on behalf of an importer of plastic sheeting liner material which SARS decided was not exactly what it said on the box (biaxially oriented) and a higher duty was due. After a win in the High Court and being thrown out on appeal, SARS gave up. Back then judges were perhaps a bit better than now, but it does all turn on semantics and in some cases like this one, a bit of science, so a good expert is essential. When it comes to bikes, I suspect most Judges think they know what one is but its hard to see how a wheelless frame is a bike, unless it was also seen as a contrived attempt to escape duty, which it probably was.

[GHOST FACE]

Basically what they did was package the wheels in this box and the frame/groupset etc in that box and shipped them together in the same container and claimed "we aren't importing bikes" hoping to dodge the 15% duty.

Most times they're even marked "Box A" and "Box B".

There's no expert needed here. They tried and got busted. Simple really.

[michaelbiker]

Pretty good set of interviews on all of this from a number of people working behind the curtain: https://pca.st/episode/10b4333f-07ee-4590-807f-af57c427f978

Seems obvious to me why this is happening. Anticipated and actual demand dropped as massive supply came online.

[Shebeen]

18 hours ago, GHOST FACE said:

Basically what they did was package the wheels in this box and the frame/groupset etc in that box and shipped them together in the same container and claimed "we aren't importing bikes" hoping to dodge the 15% duty.

Most times they're even marked "Box A" and "Box B".

There's no expert needed here. They tried and got busted. Simple really.

Wonder what the actual fines are too? In for more than just taxes, interest and legal fees.

[Danger Dassie]

Most went with admission of guilt fines, only two or three who refused and consequently had the book thrown at them by the CA. The matter has been closed for some years now. 

[ChrisF]

On 2/13/2024 at 5:18 PM, Shebeen said:

Not a lawyer but think they have already (all, as tried together) lost.

Taxes and loopholes, a dance as old as time itself. I'm not in the game but thought it was common practice for bikes to arrive in parts here and then get assembled, to avoid this exact duty.

obviously the 15% is on landed cost, not RRP 

 

Exact same is happening with windfarms.

 

The "PARTS" are sources in Europe, and then the units are "manufactured" in Atlantis ..... 

 

The extent of the "manufacturing" is to bolt the segments of the blades together.

 

The full length blade is then transported to the site and installed.

 

 

If those bolts were fitted overseas the units were tax liable .....  But now it is "job creation" and "local content" ....

 

 

 

Back to the bikes and tax .... they should have used locally manufactured wheels, or saddles, or handle bars .... just something to move away from "Box A" and "Box B"

[IceCreamMan]

Cake gone into administration. 

[David Marshall]

43 minutes ago, IceCreamMan said:

Cake gone into administration. 

Yup, both the E bikes AND Sara Lee😉

[Shebeen]

7 hours ago, ChrisF said:

 

Exact same is happening with windfarms.

 

The "PARTS" are sources in Europe, and then the units are "manufactured" in Atlantis ..... 

 

The extent of the "manufacturing" is to bolt the segments of the blades together.

 

The full length blade is then transported to the site and installed.

 

 

If those bolts were fitted overseas the units were tax liable .....  But now it is "job creation" and "local content" ....

 

 

 

Back to the bikes and tax .... they should have used locally manufactured wheels, or saddles, or handle bars .... just something to move away from "Box A" and "Box B"

Not exactly the same scenario. 

REI4P renewable energy projects have increased local content incentives/thresholds (amongst other criteria). Some of it is just not possible to build here (ie. Local solar pv is only viable as basic assembly, and even that has very limited capacity). The rider to that in pv for instance is that China has subsidized production to gain market share.  Pointless fighting that with our requirements and Rands.

[Iwan Kemp]

It's going swell... 

https://m.pinkbike.com/news/evil-bikes-announce-company-layoffs.html

"While we have continued to produce & sell bikes at a reasonable pace, the retail & wholesale margins associated with these sale prices are simply not sustainable toward our current staffing levels."

[ChrisF]

Whispers of some letters at our importers as well ...

 

 

Local industry is not doing good.

 

[IceCreamMan]

43 minutes ago, Iwan Kemp said:

It's going swell... 

https://m.pinkbike.com/news/evil-bikes-announce-company-layoffs.html

"While we have continued to produce & sell bikes at a reasonable pace, the retail & wholesale margins associated with these sale prices are simply not sustainable toward our current staffing levels."

Right sizing is the term companies been using for decades. 

[BigDL]

Seems like that’s it. If Mike Ashley buys it, that’ll be the end of anything decent. 
 

https://www.cyclingweekly.com/news/almost-every-member-of-staff-axed-at-wigglecrc-as-company-hits-rock-bottom

https://road.cc/content/news/mike-ashley-set-take-over-wiggle-chain-reaction-306867

Edited February 22, 2024 by BigDL

[Shebeen]

1 hour ago, BigDL said:

Seems like that’s it. If Mike Ashley buys it, that’ll be the end of anything decent. 
 

 

seems like the right guy to get bikes to people

 

https://www.businessinsider.com/mike-ashley-sport-direct-biography-life-story-2017-7#ashley-likes-to-mingle-with-newcastle-fans-occasionally-16

[IceCreamMan]

1 hour ago, BigDL said:

Seems like that’s it. If Mike Ashley buys it, that’ll be the end of anything decent. 
 

https://www.cyclingweekly.com/news/almost-every-member-of-staff-axed-at-wigglecrc-as-company-hits-rock-bottom

https://road.cc/content/news/mike-ashley-set-take-over-wiggle-chain-reaction-306867

Self made millionaire business man deserves a bit more love I reckon. Worth over 2 billion quid. 
 

if he can save the enterprise and make it profitable then bravo. 

[Liam_Volschenk]

26 minutes ago, IceCreamMan said:

Self made millionaire business man deserves a bit more love I reckon. Worth over 2 billion quid. 
 

if he can save the enterprise and make it profitable then bravo. 

As a Newcastle supporter I unfortunately have very little faith this man can save anything.