The South African Revenue Service and the National Consumer Commission have signed a memorandum of understanding (MoU) aimed at strengthening enforcement against non-compliant goods entering the South African market.
The agreement focuses on improving co-operation between the two entities in areas such as customs and tax compliance, consumer protection, and the regulation of imported goods.
Under the MoU, the agencies will collaborate on joint investigations, share information, and co-ordinate awareness initiatives, with the aim of identifying and addressing the entry of unsafe or substandard goods into the market.
A key element of the agreement is closer co-ordination around contraventions of section 26 of the Consumer Protection Act (CPA), which deals with the issuing of compliant invoices. The MoU establishes mechanisms for the NCC to report suspected breaches of tax and customs legislation to SARS, including failures to register for tax or customs purposes and the omission of required VAT details on invoices.
The partnership is also expected to strengthen enforcement in the clothing, textile, footwear, and leather sector, where authorities have identified risks related to the evasion or avoidance of customs duties and taxes.
In addition, the agreement targets growing risks in e-commerce imports, including mislabelling and broader regulatory non-compliance.
SARS Commissioner Johnstone Makhubu said the partnership would enhance the revenue authority’s ability to detect and act against non-compliant imports and tax evasion. It also aligns with the government’s broader efforts to tackle illicit trade through co-ordinated action across state agencies.
He noted that the agreement forms part of SARS’s wider collaboration strategy, which includes multiple agreements with other public institutions to address cross-border trade abuses.
Acting NCC Commissioner Hardin Ratshisusu said the agreement reinforces the Commission’s mandate to protect consumers and improve accountability across supply chains.
“Consumers have a right to safe, good-quality goods, and fair market practices. This collaboration enables more effective action against prohibited conduct, while improving accountability across the value chain,” he said.
The MoU forms part of a broader government approach aimed at improving co-ordination, strengthening oversight, and ensuring that goods entering the country comply with applicable legal and regulatory standards.
Tightening controls on cross-border e-commerce
The agreement comes as authorities step up efforts to address risks linked to cross-border e-commerce platforms and low-value imports.
SARS has already moved to close gaps in the customs and VAT system that allowed some offshore retailers to undercut local businesses. Historically, parcels valued below R500 qualified for a simplified regime, attracting a flat 20% duty and, in many cases, no VAT – well below the tariffs of up to 45% typically applied to imported clothing.
From 2024, SARS introduced 15% VAT on these low-value imports and began shifting away from the flat-rate duty system towards product-specific tariffs, aligning treatment more closely with standard import rules.
The changes were driven in part by concerns over revenue leakage. Estimates cited in public discussions suggested that the earlier system may have cost the fiscus several billion rand in lost VAT and customs duties, while industry bodies warned that thousands of jobs in local manufacturing and retail were at risk as offshore platforms gained market share.
These reforms aim to ensure that imported goods – particularly in sectors such as clothing and footwear – face the same tax treatment as locally imported stock, reducing opportunities for under-declaration and duty avoidance.
The shift in policy has been accompanied by more visible enforcement action. In March, SARS executed search-and-seizure and preservation orders in a customs corruption investigation involving six current and former officials, as well as associated traders and clearing agents. The probe found that customs inspection teams had allegedly colluded with importers to manipulate inspections in exchange for bribes, with financial analysis identifying more than R45 million in under-declared taxable income and an estimated R18m in tax losses.
Read: SARS raids mark overdue escalation in illicit economy crackdown
NCC targets digital platforms and consumer risks
On the consumer protection side, the NCC has already signalled a more assertive approach to regulating global e-commerce platforms.
In late 2025, the Commission launched formal investigations into fast-growing platforms such as Shein and Temu, focusing on compliance with the CPA, including product safety, marketing practices and the accuracy of digital representations.
Read: NCC launches probes into Shein and Temu as regulators warn of rising digital-market risks
NCC executive head Prudence Moilwa said at the time the regulator intended to “test their compliance fully” with the CPA” and made it clear that digital platforms would be held accountable within South Africa’s legal framework.
The investigations form part of a broader shift in focus towards digital markets, where rapid growth in online shopping has outpaced traditional enforcement models.
Regulators have also raised concerns about how algorithms influence consumer behaviour, the rise in online scams, and the increasing complexity of cross-border transactions involving multiple intermediaries.
At the same time, industry stakeholders have warned that offshore platforms are placing growing pressure on South Africa’s manufacturing base. Estimates cited in regulatory discussions suggest that thousands of local jobs have already been affected as imported goods gain market share.
