Big Changes for Online Shopping in South Africa: SARS to End Key Import Concessions

Online shoppers and businesses in South Africa should prepare for significant changes in how imported goods are processed at customs. The South African Revenue Service (SARS) has announced the withdrawal of over 140 concessions that previously simplified import and export clearance, impacting e-commerce giants like Temu and Shein, as well as various local industries.

Why Is SARS Removing These Concessions?

SARS Commissioner Edward Kieswetter explained that many of these concessions are outdated, with some dating back over 20 years. They were originally introduced to streamline customs processing but have since been outpaced by technological advancements, policy shifts, and legislative updates.

Businesses affected by these changes have until 20 March 2025 to submit feedback on how the concession withdrawals will impact their operations.

How Will This Affect Online Shopping?

One of the biggest changes will be the removal of a special clearance concession used by Temu, Shein, and other e-commerce platforms.

Currently, a simplified process at Johannesburg’s OR Tambo International Airport allows bulk shipments with individual values under R500 to be cleared at a flat 20% duty, rather than standard product-specific rates.

• Until September 2024, these shipments were also exempt from VAT.

• Importers could pay this duty at the end of each month, speeding up the customs process.

What changes now?
If this concession is removed, shipments will likely be subjected to higher product-specific import duties, which could increase costs for online shoppers and cause delays in delivery times.

For example, South African textile businesses have long criticized the 20% flat duty on clothing imports, arguing that local retailers pay up to 45% in import duties on similar products. Removing the concession could create a more level playing field but also increase the price of fast fashion imports.

Beyond E-Commerce: Industries Facing Delays

The SARS concession withdrawal will affect multiple industries beyond online shopping. Key sectors impacted include:

• Perishable Goods Exports:

  • Currently, exporters don’t need to provide full shipment details (weight, dimensions, etc.) upfront. If the concession is scrapped, all information must be submitted before departure, potentially causing delays.

• Duty-Free Shops:

  • Stores at OR Tambo currently submit customs declaration forms every two weeks. They may now be required to report each sale immediately.

• Wine Exports:

  • Cape Town wine producers currently clear goods up to 14 days after departure. This could change to immediate clearance, leading to possible logistical issues.

SARS Aligning with Global Customs Standards

SARS has indicated that it aims to align its policies with the World Customs Organisation (WCO) guidelines for low-value consignments.

These guidelines divide imports into four categories:

1. Correspondence & Documents: No duties, immediate clearance.

2. Low-Value Goods (Under a Set Threshold): No duties, simplified clearance.

3. Dutiable Low-Value Goods: Requires a simplified declaration.

4. High-Value Goods: Full customs clearance applies.

To implement this, SARS must set new thresholds so importers can classify shipments correctly. This move aims to standardize customs procedures but could also lead to stricter enforcement and longer processing times.

What’s Next for South African Shoppers and Importers?

Industry groups, including the South African Association of Freight Forwarders (SAAFF), are expected to challenge some of these changes. However, SARS is moving forward with its plan to close loopholes, ensure fair competition, and align with international trade regulations.

For now, South African online shoppers and importers should expect price increases and possible delivery delays as these new customs regulations take effect. Stay updated as SARS finalizes these changes and businesses react to the shifting import landscape.

{Source MyBroadBand}

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