Tem, Chinese The e-commerce platform, which has grown rapidly in South Africa this year, said in a statement that it is “committed to complying with local laws and regulations in the markets in which we operate.”
This comes as the country faces criticism that it is exploiting import tax loopholes to squeeze profits of local companies.
In a statement sent to TechCentral on Friday, a Temu spokesperson said: “For South Africa, the prices of products displayed on Temu do not include import duties or taxes.” Applicable taxes will be levied on you by the local government upon the arrival of your package.
“In our commitment to provide the best service to our customers and comply with local customs laws, Temu collaborates with reputable logistics companies with extensive experience in e-commerce packaging. We act as our customers' agents before local customs and tax authorities, clearing shipments, processing and remitting applicable taxes.”
But South African retailers have complained that Temu is exploiting loopholes to undermine local businesses, and that the company has offered deep discounts in South Africa since its launch in January. I'm dissatisfied with that.
Michael Lawrence, executive director of the National Clothing Retail Federation, acknowledged the concerns of the federation, trade unions and South African manufacturers in a recent interview with Bruce Whitfield on The Money Show.
investigation
“All of our investigations to date seem to suggest that offshore online traders from the East are not paying the correct customs duty or value added tax. And there are also implications for national revenue collection. Sars is taking action. We should,” Lawrence said.
“We get a lot of small packages coming in, and the courier company that's supposed to deliver them is delivering them. We've done some testing because these are our competitors, but so far we've done some testing. No product or purchase invoice was found.”
Read: Temu, China's new shopping app that threatens Amazon
Textiles and clothing imported into the country are subject to a 45% customs duty, plus VAT where applicable. “You're talking about a lot of cash,” Lawrence told Whitfield. “This morning he was shown an invoice for R600 with a total collection of 10%, or R60, which does not make any sense. It means that it is either misclassified or misclassified.”
The federation has requested a report from Sars on this issue.
“We have identified a large number of courier companies and specific service providers, and in order for Oriental e-commerce operators to see if their business practices are fair, we have provided a general report on their services. We know that the volume of parcels has increased rapidly over the past three to four years, with most of it being transported as air cargo.
“SARS officials cannot intercept every package at land, sea, or air borders, but they do need to develop smart algorithms to identify which products may have problems,” Lawrence said.
“That in itself is interesting given the current challenges with air travel and port logistics in South Africa, where handling issues happening there are holding up large container loads destined for major retailers.”
Read: South Africa takes Shein to China
The rise of fast fashion e-commerce retailers such as Temu and Shein is upending the global air cargo industry, luring consumers for limited air cargo space and speedy transportation, according to a TimesLive report. We are increasingly competing for our time. – © 2024 News Central Media
