Audio By Carbonatix
Importers of low-value parcels destined for South Africa will soon pay value added tax, the country's tax authority said, as an interim measure to protect a clothing industry facing fierce competition from international e-commerce players such as Shein.
The move follows other countries, including the European Union, which is discussing abolishing its duty-free limit as part of a customs reform.
The South African Revenue Service said on Thursday that it "noted legitimate concerns that have been expressed in the importation of several goods, especially clothing, via e-commerce by a number of importers who have not been paying the obligatory customs duties and VAT."
This situation, it added, has resulted in "unfair competition."
Due to a high volume of e-commerce imports, SARS said it had earlier implemented a "concession" for goods valued at less than 500 rand ($27.25) which meant importers paid a flat rate of 20% in lieu of customs duties, and no VAT of 15%.

To address competition concerns and to provide clarity for e-commerce importers, SARS said it will introduce VAT in addition to the current 20% flat rate on low-value parcels on Sept. 1 as an interim measure.
Other changes include reconfiguring the 20% flat rate into the World Customs Organisation regime with appropriate duty rates by Nov. 1, it added.
Brick-and-mortar fashion and e-commerce retailers have urged South African regulators to impose a 45% import duty on all clothing imports, no matter the price, to level the playing field.
China-founded Shein, which plans to go public in Britain, attributes its success to its "on-demand business model and flexible supply chain."
Latest Stories
-
GoldBod’s $214m is a transactional cost, not a loss – Parliament’s Economic and Dev’t Committee chair
4 minutes -
‘Which of your ‘old’ ideas reduced dollar rate or fuel prices?’ – Kobby Mensah to Oppong Nkrumah
11 minutes -
Defence Ministry swears in 9-member advisory boardÂ
18 minutes -
Energy Ministry clarifies ECG reform, assures no sale under private sector participation
36 minutes -
24-hour Livestock Market launched to drive economic growthÂ
43 minutes -
Gender Minister leads call for coordinated action to reduce maternal deaths
55 minutes -
Driver’s mate jailed for stealing cash and mobile phone
1 hour -
Legal Green Association commends government and Edmond Kombat for TOR revival
3 hours -
Trump hopes to reach phase two of Gaza ceasefire ‘very quickly’
3 hours -
Bangladesh’s first female prime minister Khaleda Zia dies aged 80
3 hours -
We’ll prosecute persons who do not surrender illegal arms before Jan 15 – Dr Bonaa
3 hours -
Col. Festus Aboagye warns against ‘outsourcing’ African security following US airstrikes in Nigeria
4 hours -
SEC assures investor protection as Virtual Asset Bill comes into force
4 hours -
El Kaabi brace powers Morocco to win; Bafana brave fightback; Egypt top group and Mali reach knockout stage
4 hours -
Ukraine denies drone attack on Putin’s residence
4 hours
