The South African Revenue Service (SARS) has shut down a long-standing customs concession that allowed Chinese e-commerce platforms to bring in low-value parcels at reduced duty rates, reports AI Copilot.

The concession, introduced in 2007, permitted parcels under ZAR500 (US$30.53) to enter with a flat 20 percent duty and no VAT. Local textile manufacturers, who faced 45 percent tariffs plus 15 percent VAT, pressed authorities to close the loophole.

By February 2025, SARS had introduced new duty brackets reaching up to 45 percent. In April, Commissioner Edward Kieswetter announced the withdrawal of more than 140 outdated concessions, ending simplified clearance at Johannesburg's OR Tambo International Airport.

The National Treasury's 2025 Draft Tax Bills propose removing all low-value consignment relief and enforcing a standard 15 percent VAT on incoming goods.

Importers now face stricter valuation rules under World Customs Organization guidelines, requiring itemized declarations instead of bulk flat-rate processing. Clearance times are expected to lengthen as consolidated payments and grace periods are abolished.

Logistics providers must overhaul compliance frameworks as the government seeks to recover billions in lost tax revenue. The era of frictionless, low-cost e-commerce imports into South Africa has ended.