Temu and Shein Face Tougher Import Rules as SARS Cracks Down on E-Commerce Loopholes in South Africa

South Africa’s booming appetite for fast, affordable online shopping is hitting a hard regulatory wall. As of 1 February 2025, the South African Revenue Service (SARS) has fully implemented new customs clearance rules that are changing the game for platforms like Temu and Shein.

Gone are the days of simplified customs clearance for low-value goods—a model that made it quick and cheap for South Africans to receive overseas purchases. The concessions that allowed these items to skip full duties and declarations have now been removed.

According to Garry Marshall, CEO of the South African Express Parcel Association, the new system began rolling out in September 2024 and is now fully operational. “There’s no longer a concession,” he told Cape Talk, explaining that the old system was built for a pre-digital world when customs were processed manually.

What It Means for Online Shoppers

Since February, all goods imported—including clothing, shoes, accessories, and electronics—are now categorized under four tariff bands, each with increasing levels of duties and VAT, depending on the product’s value and type.

The most affected items include:

• Clothing

• Footwear

• Textiles

• Leather goods

Duties now range from 20% to 45%, plus VAT, making many online purchases significantly more expensive than they were just a few months ago.

Why SARS Took Action

South African retailers have long argued that Temu and Shein benefited unfairly from reduced import duties and customs leniency. The lack of enforcement allowed these platforms to undercut local businesses—who are required to comply with full tariffs and taxes.

To level the playing field and comply with World Customs Organisation (WCO) guidelines, SARS rolled out a tiered import system:

• Category 1: Non-commercial documents – duty-free.

• Category 2: Low-value, non-dutiable items – minimal paperwork.

• Category 3: Low-value but dutiable – simplified declaration required.

• Category 4: High-value consignments – full duties and clearance process.

Will These Rules Stay?

In late March 2025, SARS Commissioner Edward Kieswetter issued a formal notice signaling the intention to withdraw all customs concessions. Businesses were given 21 days to submit arguments to retain any current allowances.

Failure to respond means SARS will proceed based on the evidence it has.

Marshall noted that despite the tougher stance, SARS is not inflexible. “They’ve been very pragmatic. Their job is also to facilitate trade, not just collect duties,” he said.

Local Industry Response

The local retail industry has welcomed the changes. Many see the updated system as a long-overdue correction to a loophole that allowed foreign e-commerce platforms to thrive at the expense of local jobs and compliance.

While consumers may feel the pinch, business leaders argue that the shift is a step toward a fairer and more sustainable e-commerce environment in South Africa.

As e-commerce continues to evolve globally, South Africa is asserting its regulatory grip to protect both national revenue and local business interests. Platforms like Temu and Shein, once able to bypass full customs scrutiny, are now subject to South Africa’s full import regime.

Whether this will deter shoppers or spark price adjustments remains to be seen—but the rules of the game have officially changed.

{Source BusinessTech}

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