SARS guns Temu and Shein

As SARS guns for Temu and Shein, be prepared for prices to increase significantly from 1 July onwards. Image: Business2Community

Good times over as SARS guns for Temu and Shein

As SARS guns for Temu and Shein, be prepared for prices to increase significantly from 1 July 2024 onwards.

SARS guns Temu and Shein

As SARS guns for Temu and Shein, be prepared for prices to increase significantly from 1 July onwards. Image: Business2Community

SARS guns for Temu and Shein in a big way from 1 July 2024 onwards, as the way Customs and Excise handles small orders will see a big shake up. According to Daily Investor, prices from these online stores are about to increase significantly starting from next month onwards.

That’s right, while everyone thought a Takealot versus Amazon battle would dominate Mzansi’s eCommerce space, it’s two companies from the Far East that stole the limelight. But not for much longer, as the South African Revenue Service guns for Temu and Shein and the way its handles small orders below R500 coming into the country.

SARS GUNS FOR TEMU AND SHEIN

SARS guns for Temu and Shein
The cheap import of small items from China is about to be severely reduced. Image: Business of Fashion

From Monday, 1 July 2024, items valued at less than R500 will carry the same duties as bigger orders. Therefore, just like anything above R500 coming into South Africa, a 45% import duty plus value-added tax (VAT) applies. Moreover, many local South African companies have accused Shein and Temu of abusing this rule by breaking up larger orders into smaller quantities and packages.

Therefore, after paying less customs duties and taxes, they then recombine smaller packages into the original order and ship it to the client. It is this practice that has given Temu and Shein an unfair price advantage over South African retailers, say labour experts.

NOT PAYING CORRECT DUTIES

SARS guns for Temu and Shein
SARS is clamping down on any and every revenue stream it can. Image: File

Michael Lawrence, executive director of the National Clothing Retail Federation (NCRF), says they’re not paying the correct duties and VAT on their imports. “Our concern with offshore eCommerce services is they’re not paying the correct duties and VAT. Our national revenue and local producers suffer as a result,” said Lawrence.

The Foschini Group (TFG) has its own online retail platform called Bash. And TFG’s CEO, Anthony Thunstrom, says South African retailers have been working hard with SARS to better understand the discrepancy. They approached the revenue service to ensure they were competing on a level playing field. As SARS guns for Temu and Shein, Thunstrom described it as a big move that would help safeguard the South African clothing retail industry.

Temu has said the displayed prices of its goods do not include import duties and taxes. And that local authorities will impose the applicable taxes upon arrival of the package. Shein said it works with local agents to declare items according to World Customs Organisation Harmonized System (WCO HS) codes, and its orders do not benefit from any favourable tax treatment.

HAVE YOUR SAY

SARS guns for Temu and Shein
Time to have your say. Are prices of basic retail items too expensive in South Africa? Image: Duncan P Walker

Now that SARS guns for Temu and Shein, will you still support the online stores? Is such practice hurting South African products and services, or is everything just too expensive? Be sure to share your thoughts with our audience in the comments section below. And don’t forget to follow us @TheSANews on X and The South African on Facebook for the latest updates. Click the links below to check out trending stories in the last 24 hours on our website …