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Saturday, July 13, 2024

From July 1st, South Africa will levy duties on small imports of clothing

Starting July 1, 2024, South Africa’s Revenue Service (SARS) and Customs will implement new regulations affecting small clothing imports. Items valued at less than R500 (~$27.75) will now be subject to the same duties as larger orders.

Currently, imported clothing packages exceeding R500 face a 45% import duty plus 15% VAT, while parcels below this threshold are charged approximately 20% import duty without VAT. The government aims to create a fairer competition landscape for local retailers by applying uniform taxation to clothing items purchased from international e-commerce platforms, regardless of package size.

Concerns have been raised regarding Chinese high-fashion e-commerce sites like Temu and Shein exploiting tax loopholes through shipping products in small quantities to benefit from lower import duties.

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