[Image: FMT]
Big shoutout to SARS for standing up to the global retail giants who’ve been treating South Africa like their personal playground.
In a bold move, the South African Revenue Service just dropped notice that it plans to yank all the special treatment traders have been enjoying outside of the actual customs regulations.
Yeah, that includes all those dodgy side deals, outdated workarounds, and sweetheart concessions some big-name importers have been riding for years.
We’re talking about everything from “temporary deviations” to “special allowances” that were once handed out like party favours to help traders bypass real compliance with the Customs and Excise Act.
According to consultancy PwC, SARS reckons most of these perks are now completely irrelevant, thanks to changes in law, policy, and tech. That means the loopholes are old, the game has changed, and it’s time everyone starts playing fair.
Even SARS commissioner Edward Kieswetter weighed in, saying some of these allowances “date back 20 years and were granted for a specific purpose at the time, that are no longer applicable.”
And honestly, it’s about time. For too long, platforms like Temu and Shein have been shipping in products by the ton, ducking proper duties and slashing prices so low that local retailers couldn’t compete even if they tried.
These e-commerce juggernauts have been using a neat little trick since 2007 – slipping their goods in under a “simplified process” that hits them with just a flat 20% duty, as long as each shipment stays under R500. Cute, right? Makes it look like they’re not dodging anything… just being clever.
But that workaround wasn’t built for mega-corporations flooding the market. It was meant to help logistics companies manage a few parcels when international shopping first started booming and not to let billion-dollar giants bulldoze through customs on discount mode.
Local retailers have been shouting about this for years – how they’re stuck paying full taxes, fighting unfair competition, and watching their customer base vanish. And they’re not wrong. SARS even admitted importers were working the system, like splitting orders into tiny packages just to keep skating under that R500 limit.
In 2024, SARS tried to put a bit of a speed bump in place, adding VAT on top of the 20% customs duty. That was the warning shot. This new move is a bit more of a crackdown.
“All special concessions are now on the chopping block,” says PwC. So if you’re a mega importer who’s been coasting on special privileges — bad news: your free ride’s over.
From now on, businesses are going to have to follow the rules the rest of us have already been following. PwC says they’ll need to adjust operations, get aligned with actual legislation, and, heaven forbid, compete fairly.
“The withdrawal of concessions could lead to increased costs for businesses that previously benefited from special allowances or arrangements,” PwC said.
Boo-hoo.
SARS is still keeping things above board, though. They’re letting stakeholders submit feedback until 23 April 2025. But unless you’ve got a solid case and a legislative fix in hand, don’t expect SARS to blink.
The fallout is spreading fast. While Shein and Temu are the obvious targets, other sectors are feeling the shake. Like Cape wine producers, who’ve just lost the concession to clear goods 14 days after they’ve shipped. It’s a big change, and not everyone’s thrilled.
The thing is, this isn’t the first time SARS has made waves. When they tweaked import/export rules back in September 2024, legal experts pointed out the same thing: Some industries win, and others take a knock. The textile sector gained a lifeline, sure, but consumers had to cough up more cash for what used to be cheap imports.
And then there’s the global stage. Other countries might not love this crackdown either, especially the ones used to pushing their low-cost exports here without much resistance. The US has already fired back with tariffs, claiming that South Africa’s charges are “unfair.”
But here’s the thing: If you’re a local business, you’re finally getting a fair swing at the plate. No more being steamrolled by Big Tech-funded mega-apps or Chinese factories pumping out disposable fashion at breakneck speed.
This isn’t just customs reform, it’s about reclaiming the economy from companies that treat local markets like clearance bins.
And for once, SARS is backing the home team.
[Source: BusinessTech]
