SARS: Changes to Customs import system

(Media Release: Issued and provided by the South African Revenue Service)

SARS noted legitimate concerns that have been expressed in the importation of several of goods, especially clothing, via e-Commerce by a number of importers who have not been paying the obligatory Customs duties and VAT on these imports, resulting in unfair competition with other industry players.

The South African Revenue Service (SARS) remains committed to providing clarity and certainty in the implementation of its mandate of promoting legitimate trade for the economic development of the country in an era of rapidly expanding e-Commerce. This will be achieved by making it simple and easy to facilitate an increased movement of goods.

The concerns stem from the fact that, due to the immense scale of trade via e-Commerce, SARS Customs implemented a “concession” for goods valued at less than R500, in terms of which importers paid a flat rate of 20% in lieu of Customs duties and no VAT.

To address these concerns and to provide clarity for traders involved in the importation of goods via e-Commerce, SARS will make several changes in line with the World Customs Organization (WCO) framework to deal with the already changing trade landscape.

View the full press release here.