'Shein and Temu threaten South African jobs, Takealot alleges’ 24 June 2024

Low-cost Chinese fashion and general merchandise online retailers Shein and Temu have taken advantage of loopholes to undercut South African e-commerce companies unfairly, Naspers-owned Takealot Group said on Monday. In notes accompanying Naspers’s annual results for the year ended 31 March 2024, Takealot accused Shein and Temu – and others like them – of threatening South Africa’s “reindustrialisation and localisation efforts”.

…Takealot accused the companies of “exploiting outdated regulations and loopholes by using shipping methods that allow them to offer products at exceptionally low prices while avoiding duties, taxes and other government fees imposed on conventional retailers”. “Collectively, this hinders government initiatives focused on revenue generation and collection, and undermines South Africa’s sense of sovereignty,” it added. “It is imperative that policymakers craft regulations to level the playing field, ensuring all participants adhere to the same standards and practices and contribute fairly to the national economy.”

… South African authorities impose a 45% duty and VAT on imported clothing worth more than R500. Parcels below this value previously attracted only minimal duties. From 1 July, however, such parcels will attract the same 45% duty plus VAT as larger-value shipments. TechCentral has previously asked Shein and Temu for comment on the changes to the tax rules and the allegations that they have been abusing loopholes. Neither company responded