Sars Increases Customs Duties For Online Retail Orders: What You Need To Know

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sars increases customs duties for online retail orders what you need to know

By Chetan Vanmali, Yael Shafrir, Emily Gammon, Raeesah Shaik, Sidrah Suliman, Lauren Jimmy and Danica Jonker.

The clothing and textile industry has faced wide-scale criticism for controversial environmental, social and governance practices. South African consumers might imagine themselves to be far from the hub of the issues, but we are all participants in the global supply and demand for fashion.

Recent changes to the imposition of customs duties on online retail orders shine a light on some of the issues. In this article, we unpack the impact of the adjustments on consumers, as well as some considerations for the South African fashion industry.

Despite being a relatively new player in the global fashion sense, South Africa's textile industry plays a significant role in the countrys economy, contributing to job creation, economic development and export earnings. The textile industry, which includes the production of fabrics, apparel and home textiles, has a rich history and has undergone significant transformations. Today, South Africa's textile industry is a diverse and multifaceted sector, encompassing various segments such as spinning, weaving, knitting, dyeing, finishing and garment manufacturing. The industry primarily serves the domestic market but also exports to regional and international markets.

Although there is potential for growth in the South African clothing industry, consumers purchase significantly more imported products compared to locally produced clothing. According to the South African Revenue Services' (Sars) trade statistics for June 2024, China remains the primary source of textile imports for South Africans, with an average monthly import value of approximately R4.2 million.