Tariffs on Shein and Temu: Cheaper clothes versus saving jobs

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Tariffs on Shein and Temu: Cheaper clothes versus saving jobs
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Thousands have signed a petition opposing the Sars' decision to close a loophole in the tariff on clothes imported from Shein and Temu.

SARS closes a loophole in import duties.Thousands have signed a petition opposing the South African Revenue Service’s decision to close a loophole in the tariff on clothes imported from outlets such as Shein and Temu.

, Sars said it had noted “legitimate concerns” expressed about the import of goods, especially clothing, by importers who had not been paying customs duties and VAT, resulting in unfair competition. The Masterplan also includes measures to minimise customs fraud, which Eppel says is one of clothing manufacturers’ biggest challenges. Goods are misclassified or under-invoiced to evade tariffs and then sold at deflated prices, undermining local factories. Under the Masterplan, Sars has increased inspections and seizure of goods.

Comparing clothes across retailers is hard because one seldom finds the same product for sale from more than one company. But an orange sundress from Shein is being sold for R132 . A similar dress at a local retailer is being sold for over R200.

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