The SA Revenue Service (Sars) has undertaken to look into a matter of alleged mis- or under-declaration of imported goods reportedly affecting a local manufacturer of doors and window frames.
This after the matter was brought to the attention of Freight News by Terry Gale, chairman of the Exporters Club Western Cape (ECWC).
According to Gale the manufacturer in question is becoming uncompetitive due to the lower cost of products, particularly from Indonesia.
“More importantly, the belief is that certain importers are either mis- or under-declaring,” Gale added.
In relation to the enquiry, he referred to a column Freight News (then still known as FTW Online), published in February by Devlyn Naidoo who wrote in his capacity as facilitator and customs mentor at the South African Maritime School and Transport College.
Speaking on behalf of the clothing and textile industry, Naidoo said that Sars had made significant strides in curbing corruption and minimising illicit trade – but more needed to be done. ”We do not have the luxury of time,” he added.
“Local market erosion through unfairly advantaged and tax-flouting trade has hollowed out the local clothing and textile industry to a shadow of its former self, employing roughly 19 000 people compared to 200 000 some 25 years ago.
“Under-declaration of customs value in the sector,” he stressed, “increased from R5.2 billion in 2014 to R8.52 billion in 2018, with the under-declared customs value in 2017 and 2018 representing 34% and 35% of the declared customs value respectively.”
With Naidoo’s views still holding true, especially while South Africa’s economy is still struggling under pre-Covid sluggishness and straining to re-awaken from the torpor of crippling self-imposed lockdown restrictions, it comes as no surprise that Gale is stepping into the breach for local manufacturers lest lessons learned elsewhere have since been forgotten.
Approached this morning for comment after receiving word from Gale about the complaint, a Sars representative said: “I will forward it to my colleagues in Customs. We will get back to you ASAP.”
