Buying from Amazon, Shein or Temu? What you need to know.
The South African Revenue Service (SARS) has recently issued a notice clarifying regulations concerning the purchase of personal goods from international online retail platforms such as Amazon, Shein and Temu. Over the past few years, these retailers have become increasingly popular among South African consumers.
One of the primary queries addressed by SARS relates to whether individuals need to register as importers when buying goods for personal use from abroad.
According to SARS, the answer is “no,” provided buyers adhere to specific conditions. Recent adjustments that came into effect in April 2024, also scared some shoppers, wanting to know how the new rules will impact their purchases from abroad.
Personal goods can now be cleared through Customs under the generic code 70707070 without requiring importer registration.
To qualify for this exemption, shoppers must meet the following criteria:
- Transactions must fall within the newly revised limit. As of April 2024, this limit has increased from a cumulative R50,000 over three transactions to R150,000 across one or more transactions.
- Goods must be imported strictly for personal use or home consumption, not for resale or any commercial purposes.
- The buyer must be located within South Africa.
- The buyer’s identity number, passport number, or taxpayer reference number must be correctly entered in the declaration form field.
If purchases exceed these limits, registration as an importer and obtaining an importer or exporter code becomes necessary, as outlined by SARS.
SARS emphasized that this clearance procedure has been established for several years, with recent changes primarily affecting transaction amounts and limits from April 2024. Importantly, SARS clarified that this notice does not relate to potential future taxes or duties on low-value parcels, such as clothing purchases from overseas, as such discussions remain informal.
This update coincides with Amazon’s recent launch of its online marketplace in South Africa, although it does not guarantee identical inventory as its UK or US counterparts. The notice also addresses the growing popularity of platforms like Temu and Shein, which provide cost-effective retail options with delivery to South Africa.
Notably, starting July 1, 2024, SARS and Customs will revise their approach to small orders entering South Africa. Previously, clothing items valued under R500 were subject to reduced customs duties. However, from the specified date, all clothing imports below R500 will incur duties equivalent to those applied to larger orders, which includes a 45% import duty plus value-added tax (VAT).
This adjustment follows accusations by South African businesses against Shein and Temu for allegedly exploiting the previous rule by splitting larger orders into multiple smaller shipments. However, Temu and Shein were not the only companies that have done that to decrease taxes on imports. But now that SARS clarified the adjustments they made, you can keep importing from these retailers – just be ready to pay the required import taxes.
If you have any questions about taxes on the goods that you import, do not hesitate to contact us.