Why Shein is under fire in South Africa | City Press

MOST READ | Why Shein is under fire in South Africa

The retailer sells clothes very cheaply – for example, a pair of jeans costs as little as R279, blouses cost less than R200 and dresses start at R100 each.Unions and local clothing groups are complaining that Shein gets clothes across national borders without paying the full, prescribed import taxes.

Local players say Shein probably pays less import tax because it bring clothes into the country in smaller quantities and smaller packages. It therefore uses the handy e-commerce loophole – the so-called de minimis value. Local players in the clothing industry are now asking government to adjust the country’s customs clearance regulations.

“We can’t say it’s a loophole. It’s specially designed so that e-commerce can take place on a smaller scale with smaller transactions,” he says.A country such as China is easily able to help its companies export, and a company like Shein has invested money over the years to make its e-commerce platform efficient.Lawrence denies that local retailers complaining about Shein are “anticompetitive”: “We have no problem with companies doing ‘smart’ business, but the rules must be followed.

In July 2021, the US Product Safety Commission pulled thousands of pairs of Shein’s children’s pyjamas off the market for failing to meet safety standards. They were highly flammable;

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