Two Chinese low-price e-commerce sites posed a threat to both importers and local manufacturers in South Africa, clothing retailers claimed, causing them to highlight that cheap imports were contravening the de minimis rule.
This emerged after it was found that Shein and Temu were not paying the SA Revenue Service (Sars) duty of 45%.
In response, Sars issued a notice stating that as from July 1, all clothing purchased via e-commerce must be declared separately and that the 45% duty would become applicable as well as VAT.
Of concern is that SARS has decided to act on behalf of a specific sector which may be viewed as a form of favouritism, even though this step has been welcomed.
One reason for concern is, for example, imported footwear, which attracts an average of 30% duty or R5 per pair (whichever is the higher), is currently not required to be declared separately and only the flat rate of 20% is applicable.
A level playing field has therefore not been created as was intended but this is, of course, a matter of interpretation.
This is n excerpt from a clumn you can read here: 'Why e-commerce must be regulated.' Sign up to our mailing list and get daily news headlines and weekly features directly to your inbox free. Subscribe to receive print copies of Freight News Features to your door.
