Potential setback for Shein lovers as SARS considers 45% tariff implementation date

Stephen Grootes interviews Jan Vermeulen, Editor at MyBroadband.

Listen below.

According to the South African Revenue Service (SARS), the implementation date of the 45% tariff, plus VAT, on small, low-cost clothing imports from brands like Shein and Temu has not yet been set.

Sars says adjusting tariffs is a complex matter involving numerous stakeholders who must be consulted before they make a final decision.

Once in effect, imports of clothing, textiles, and footwear valued at R500 or less will be subject to a 45% tariff plus VAT.

The struggling South African clothing industry and various unions have long urged the government to enforce stricter regulations on fast fashion retailers, arguing that current rules disproportionately benefit online giants such as Shein and Temu.

RELATED: 'Shein and Temu are strangling South African producers and e-tailers'

Conversely, Vermeulen highlights arguments against implementing the tax from a consumer standpoint.

Many argue that items from these sites have significantly lowered prices, easing the financial burden on consumers.

He further notes that the primary purpose of the concession was to help Sars manage the high volume of incoming parcels. 

Vermeulen suggests that customs officials are unable to inspect every parcel.

"This can actually be quite complicated for Sars to implement."

- Jan Vermeulen, Editor – MyBroadband

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