Temu and Shein crackdown in South Africa

The South African Revenue Service’s (SARS) new regulations for customs clearance for product imports took full effect on 1 February 2025, according to SA Express Parcel Association CEO Garry Marshall.

Moreover, Marshall said there was no longer a concession for simplified online shopping imports. Speaking to Cape Talk, he said the concession was set up years ago to speed up customs clearance.

“The new regulations so far as a new system and tariff regime started in September 2024 already and were fully implemented on 1 February, so we’re already into the third month of this,” says Marshall.

“There’s no longer a concession, and a concession was granted many years ago when it was a different world, when there was no technology and when everything was done manually.”

Therefore, South Africans ordering from platforms like Temu and Shein have been paying more since 1 February 2025.

Marshall notes that the changes mean the end of simplified customs clearance for low-value items.

“I think the key issue is not only the duty but the issue of a simplified clearance,” he said.

“E-commerce demands that people want things faster, and so the customs concession was set up to create a simplified clearance model at a low value for goods.”

He added that the cost of processing imports increases with the price of the goods.

Local retailers had complained that companies like Temu and Shein were unfairly benefiting from lower import duties, giving them an advantage.

As a result, SARS announced many changes to level the playing field and align South Africa’s customs policies with the World Customs Organisation (WCO) release and clearance guidelines.

From 1 November 2024, full duties were charged on clothing, footwear, textiles, and leather, with rates ranging from 20% to 45% plus VAT.

As of 1 February 2025, all goods fall into four broad categories based on their duty ranges. These range from under 20% to between 31% and 45%, all plus VAT.

The categories are as follows:

• Category 1: Correspondence and documents with no commercial value — Not subjected to duties and taxes, immediate release on the basis of a consolidated declaration that may be oral or written.
• Category 2: Low-value consignments below a specified de minimis threshold — No duties and taxes are collected, and immediate clearance and release are done against a manifest, a waybill, a house waybill, a cargo declaration, or an inventory of items.
• Category 3: Low-value dutiable goods above de minimis, but below full declaration value threshold — Dutiable, and the use of a simplified declaration, or release against a manifest with subsequent simplified clearance, etc.
• Category 4: High-value consignments — Consignments that do not fall under the three categories described above and include consignments containing goods that are subject to restrictions. Normal release and clearance procedures, including payment of duties and taxes, apply.

Marshall lauded SARS for its pragmatic approach to implementing the changes.

“Bear in mind, something about SARS is that its role is not only to protect the fiscus in terms of extra tariffs and duties. It’s also to facilitate trade,” he said.

“We found them to be very pragmatic in that respect.”

SARS commissioner Edward Kieswetter issued a notice of intention to withdraw all customs concessions in late March 2025.

The concession Shein and Temu were accused of abusing was implemented in 2007, and it was one of the main mechanisms used by e-commerce giants to import their goods to South Africa.

A letter from Kieswetter to Sars-registered clients and traders dated 20 March 2025, with the subject line “Intentions of the Sars Commissioner to withdraw all concessions,” gave businesses 21 business days to argue their case for keeping the concessions.

“Upon receipt of your evidence and/or submissions, the commissioner will take a decision as to whether the relevant provisions of the Customs Act had been complied with or not and will advise you of his decision,” the letter read.

“Should you fail to timeously respond to this letter, a decision will be taken on the available evidence and submission.”