Shein is set to include customs duties at checkout.
Many South Africans love shopping on the Chinese online store Shein for several reasons, with the most popular one being its affordability. However, shoppers often have a headache due to the uncertainty of how much customs will cost after they clear their carts.
Shoppers need not worry, as this is coming to an end. Shein is set to include customs duties when you check out your cart.
Usually, shoppers only find out how much money their customs cost after their packages have arrived in South Africa. This would result in delays, with some packages being held at the border or getting returned to China due to non-payment.
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Shein’s customs to be displayed on the app
“With the new feature, customs fees are calculated and displayed directly on the checkout page, giving customers full visibility of their total cost before they pay,” said Shein.
Shoppers will be able to view estimated fees before making payment. The Chinese online store stated that the change was introduced in response to requests for upfront clarity.
Shein is one of the platforms that offers clothing at an affordable price, but this comes at a cost to the clothing sector in the country, resulting in millions of rands and job losses.
Shein’s impact on SA
A report by Localisation Support Fund (LSF) revealed that Shein and Temu have collectively achieved approximately R7.3 billion in sales, resulting in an estimated R960 million in lost local manufacturing sales, 2 818 manufacturing jobs that may have materialised, and 5 282 unmaterialised retail jobs from 2020 to 2024.
The Retail-Clothing, Textile, Footwear and Leather (R-CTFL) sector has reported a decline in sales from R117 billion in 2011 to R105 billion in 2024
However, online shopping in the country is expected to grow, with sales projected to reach 15.9% by 2030.
ALSO READ: Sars cracks down on Shein and Temu
Sars comes after Chinese stores
Another report by Slant Research revealed that Shein has lost customers in the country due to the implementation of the import tax.
As of 1 September 2024, the South African Revenue Services (Sars) introduced VAT in addition to the current 20% flat rate customs.
Shein and Temu were hiding behind the de minimis rule, which allowed parcels with clothing under R500 to pass through customs, paying only 20% import duty and no VAT.
This differs from local retailers, who must pay 45% customs duty, as well as 15% VAT, on imported clothes.
Sars is set to have consumers who import clothing from the two online stores pay the normal 45% customs duty, even if the parcel is under R500.
NOW READ: How Shein and Temu changed the SA shopping landscape
