The A M Moolla Group (now Kingsgate Clothing Group, or KCG) began its journey in 1944 when Dr. A M Moolla took over the family business, Mahomed Ismail & Co., a small wholesaler in Durban. In 1955, Kingsgate was established as a clothing division specializing in shirts and schoolwear. The company’s growth was rapid, with the first manufacturing plant opening in 1958 and operations soon relocating to larger premises. By 1960, the business had formalized as A M Moolla (Pty) Ltd. and laid a strong foundation for future expansion, including the creation of the A M Moolla Charity Trust to support welfare and education.
The 1980s marked significant milestones for the Group, including a rebrand to the A M Moolla Group in 1981 and the acquisition of Star Clothing Manufacturers in 1983. A major coup was securing the Calvin Klein franchise in the same year, establishing the Group as a player in the international fashion industry. The company expanded its production capabilities, built relationships with Small, Medium, and Micro Enterprises (SMMEs), and ventured into exports, pioneering clothing exports to Russia with a $10 million deal in 1992. Numerous awards during this period recognized the company’s excellence in export achievement, business practices, and support for local industries.
In the 1990s, the Group diversified its operations further. It entered the tenders market, winning major contracts from South African government entities and earning accolades such as “Supplier of the Year.” The Group developed innovative concepts like Management Buyouts (MBOs), empowering employees to establish their own businesses while maintaining strong ties with the Group. This era also saw the company listed on the JSE, with leadership restructuring to separate roles between the Executive Chairman and CEO.
By the early 2000s, the Group had delisted from the JSE and rebranded as Kingsgate Clothing Group (KCG). It made strides in the export market through the AGOA program, becoming a recognized exporter from KwaZulu-Natal to the United States. Throughout the 2010s, KCG supported various social and community initiatives, such as donations to underprivileged schools and partnerships with co-operatives to promote employment in rural areas. The Group also expanded its product portfolio, manufacturing the 46664 brand under license and catering to corporate and government uniform needs.
Despite challenges, including the financial strain caused by the Edcon business rescue in 2020, KCG demonstrated resilience by filling the gap with new customers. During the same year, the Group successfully claimed pandemic insurance after a protracted arbitration process, underscoring its meticulous risk management practices.
In 2023, KCG achieved Level 1 Authorized Economic Operator (AEO) status, reflecting its commitment to global supply chain standards. This accreditation enhances the Group’s efficiency and reliability, benefiting its customers through faster customs clearance and reduced disruptions.
Today, the Group operates with a diversified business structure, catering to chain stores, independent retailers, schoolwear, government tenders, and export markets. Its long-standing relationships with South African government entities underscore its commitment to quality and service. With a legacy spanning over 70 years, KCG continues to focus on innovation, transformation, and sustainable growth.
The Preferred Trader programme was officially launched by the South African Revenue Service (SARS) on 8 May 2017. Our Group was presented by SARS with a Preferred Trader Accreditation Certificate – Level 2 Accreditation Status, under this programme on 4 October 2017.
The Preferred Trader programme was replaced by the Authorised Economic Operator (AEO) programme in November 2020, limited to importers and exporters only. There are two levels of AEO Accreditation, Level 1 (Compliance) and Level 2 (Safety and Security). On 1st April 2023, KCG was granted a Level 1 Accreditation AEO – Compliance status.
Level 1 Accreditation is a voluntary programme in which participating entities or traders co-operate with SARS customs in maintaining high quality measures in terms of internal operational processes and computer systems, appropriate records of compliance, sufficient financial resources as well as display sufficient customs knowledge to be held responsible for Customs matters. Compliance benefits in Level 1 include access to a Client Relationship Manager, reduced inspections, expedited processes, inspection of goods at the client’s premises, mutual recognition with major trading partners and the authorized use of the AEO logo.
The AEO status is a globally recognized quality mark and certification that demonstrates a company’s compliance with international customs standards. It demonstrates that our business’s role in the international supply chain is secure and has customs control procedures that meet AEO standards and criteria. As a Level 1 AEO, KCG has demonstrated that its supply chain management processes are efficient, transparent, and compliant with all relevant worldwide regulations.
This accreditation provides significant benefits for our customers. It means that as an AEO, KCG is recognized as a trusted and reliable partner in the supply chain and that our customers can benefit from faster customs clearance times, reduced inspection and lower risk of delays or disruptions to their supply chain.
The following are the AEO Compliance benefits available to Authorised Economic Operators:
Access to client relationship manager | Reduced security amounts | Reduced inspections | Expedited processes | Priority to non-intrusive inspection |
Priority to TDN and VDN (Tariff & Value Determination) | Inspection of goods at client premises | Authorised use of AEO logo | Mutual recognition with major trading partners | Co-ordination of other Governmental agency intervention |
We are extremely delighted to announce that KCG has now been granted a Level 2 Accreditation AEO – Safety and Security status with effect from 9 September 2024.
The Authorised Economic Operator Safety and Security Programme also known as Level 2 Accreditation is a voluntary supply chain and security programme, focused on improving the security of entities’ or traders’ supply chain through a documented process for determining and alleviating risk throughout their international supply chain. Safety and Security accreditation benefits include all Level 1 benefits but are also extended to include exemptions from certain customs supervisions, expedited refunds and drawbacks, security payments, co-ordination of Other Government Agency interventions, no charges for special attendance and the provision of quarterly trade statistics. AEO Accreditation will have significant benefits when trading internationally as foreign companies who are also accredited will be aware that dealing with an AEO partner poses little or no risk. This would also apply to service providers within the supply chain when appointing a freight forwarder, transporter, manufacturer, warehouse or agent. It is clear that AEO accreditation will eventually become a ‘must’ rather than a ‘maybe’, with traders who are not AEO accredited gradually falling by the wayside. Currently, we are one of a few hundred traders only in South Africa to hold such an accreditation.
The strategic intent of SARS is to work towards a system of voluntary compliance, and this requires SARS to place more reliance on traders who choose to be compliant. The strategic objective of SARS is to assist traders to clarify their obligations and help them fulfil those obligations whilst having the ability to detect and respond to non-compliance. An obvious benefit to SARS will be that, as more and more traders become AEO-accredited, Customs can utilize their resources more effectively elsewhere to combat illicit trade, rather than policing compliant traders.
Once again, this Accreditation is an attestation that as an AEO, KCG is recognized as a trusted and reliable partner in the supply chain. As such, KCG can benefit from faster processing and clearance of cargo, deferred payment of duty, direct port delivery/entry, and benefits under Mutual Recognition Arrangements (MRA), and our customers can benefit from faster Customs clearance times, reduced inspection and lower risk of delays or disruptions to their supply chain.
Receiving this recognition is a testament to our unwavering commitment to upholding our integrity, and a reflection of our good name and reputation. It serves as a validation of our efforts to maintain the highest standards of ethics and professionalism, and providing our customers with the highest level of service and expertise in the industry.
CONTACT US
Ammdale Centre,
240/242 Mathews Meyiwa Road,
Durban