Shein Slips As Tariffs Bite And Bash Cashes In On Sa Fashion Wars

Chinese fast-fashion giant Shein is facing turbulent times in South Africa. Recent regulatory changes have significantly impacted its operations, leading to a notable decline in market share.

In 2024, the South African Revenue Service SARS identified that Shein was exploiting the 'de minimis' rule. This loophole allowed parcels valued under R500 to incur only a 20 import duty without the standard 15 Value Added Tax VAT. In contrast, local retailers were subjected to a 45 customs duty plus VAT on imported clothing, creating an uneven playing field.

Responding to concerns from domestic businesses, SARS implemented stricter measures . As of 1 July 2024, all clothing imports, regardless of value, are subjected to the standard import duties and VAT. This decision aimed to ensure fair competition within the retail sector, as Cape town Etc reported earlier this month.

The impact on Shein was immediate. Data from Slant Research , a Cape Town-based analytics firm, revealed a significant decline in Sheins market share following the enforcement of the new tariff regime. Payments to logistics partners like Buffalo International and Meili Logistics saw a marked increase in median value, indicating higher costs per transaction. However, the overall volume of transactions decreased, suggesting a drop in consumer purchases.

Further tightening the noose, SARS announced in April 2025 its intention to withdraw all customs and excise concessions not aligned with current regulations. This move is set to affect businesses relying on outdated allowances, including Shein and its counterpart, Temu.