The South African Revenue Service (SARS), working with the SAPS Directorate for Priority Crime Investigation Serious Commercial Crime Investigations, has dealt a major blow to the illicit alcohol trade after seizing a consignment of imported ethanol in Kempton Park, reports Kempton Express.

SARS and SAPS conducted a targeted enforcement operation at a warehouse in Kempton Park yesterday (July 29), after the premises were identified as a storage facility for imported ethanol containing approximately 96% alcohol.

The raid took place as a consignment of the product was being delivered to the warehouse after being declared as destined for a country further north in Africa.

The consignment was imported by sea and declared to be in transit, meaning it should have been removed directly through one of South Africa’s Ports of Exit.

The seized consignment is one of four and consists of 26 000 litres of ethanol with an alcohol content of approximately 96%. The product is a base ingredient used in the manufacture of liquor and generally attracts a duty rate of R302.84 per litre on the legitimate market.

According to SARS, the duties and taxes due on this consignment would have amounted to approximately R9.1m.

The joint enforcement team discovered the consignment being offloaded at an unlicensed and unregistered facility into 1 000-litre flow bins.

Several other flow bins and storage tanks were also found on the premises. The contents of these containers still need to be tested, but SARS suspects they may contain a further 28 000 litres of ethanol.

Crackdown on illicit alcohol trade

The operation forms part of SARS’ intensified strategy to tackle the illicit economy and target criminal syndicates involved in the illicit alcohol and liquor sectors.

According to SARS, these syndicates exploit tax differentials by illegally diverting products and manufacturing illicit liquor.

“Such schemes deprive the fiscus of billions of rands in revenue each year, while also undermining legitimate businesses that cannot compete with the artificially low prices of untaxed liquor products.”

The illicit alcohol trade also poses risks to consumers through potentially substandard liquor quality.

SARS Commissioner Dr Johnstone Makhubu welcomed the success of the operation, saying the enforcement action forms part of broader government efforts to combat illicit economic activities and improve compliance in critical sectors.

“This initiative also aligns with SARS’s strategic goal of making non-compliance hard and costly through intelligence-led interventions aimed at customs fraud, excise-duty evasion, smuggling, and illegal trade,” he said.

Makhubu said the operation demonstrated the value of coordinated enforcement between SARS, SAPS and other government partners.

“We will continue to strengthen our intelligence, customs, and investigative capabilities to detect diversion schemes, disrupt illicit trade, and ensure that those who seek to evade their tax and customs obligations are held accountable,” he said.

SARS said it remains committed to working with law-enforcement and regulatory partners to detect, disrupt and dismantle illicit trade networks.

“Those involved in customs fraud, excise-duty evasion, and other forms of illicit economic activity are put on notice,” Makhubu said.

“We will not surrender the destiny of this country to criminals or tolerate brazen alcohol smuggling and tax evasion. I commend the collective enforcement and teamwork by SARS, SAPS, and our other partners for their dedication and swift action.”

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