Sars warns of random detentions over labelling infractions

IMPORTERS OF clothing and textiles and footwear will need to get their product labelling
ducks in a row as SA Revenue Service (Sars) customs gets ready to tighten the screws,
says Riaan de Lange of Tariff &
Trade Intelligence.
“It seems to have been a lenient first year in the application of the new Merchandise Marks Act
brought into being last April,” he told FTW.
However, a May 8 release by Sars of an information circular on the subject, said it
was “intended to inform the media and business about the application of the notice on
country of origin”.
The act – originally gazetted
on December 14, 2006, and effective from April 14, 2007 – aims to prevent false trade
descriptions of goods and their
sales. This after an investigation
into the influx of imported goods into SA.
It basically demands that no textiles, clothing and footwear will be allowed to
be imported without certain information being “attached permanently and prominently”
to the goods.
This labelling has to show the country where they were produced. It also demands that
locally manufactured products using imported material must state “made in SA from
imported material” – and
conform to the SA national standards for fibre content and care labelling.
The Sars notice also said it would randomly detain consignments to conduct
inspections, and goods that did
not comply with the origin-labelling requirement would be seized. And, said De Lange, if
importers haven’t complied, they face pretty hefty penalties and fines.
Any person found guilty of an offence in terms of the act will be liable to:
l in the case of a first
conviction, a fine not exceeding R5 000 for each
article to which the offence relates, or imprisonment for a period not exceeding three
years – or to both a fine and
imprisonment; l in the case of repeat
offenders, a fine not exceeding R10 000 for each
article, or imprisonment for a period not exceeding five years – or both.
“In addition to any penalty, Sars can order the confiscation of all or any part of the
offending goods which will be disposed