Customs Fraud Is Costing The Taxpayers Billions – Here’s How It Works — Nigeria Today
Pages Navigation Menu

Latest and breaking news, sports and all that is trending today

Customs Fraud Is Costing The Taxpayers Billions – Here’s How It Works

Back in the day – 2009, to be precise – the South African Revenue Service (SARS) began a concerted effort to stamp out illegal clothing imports into the country.

There were many reasons for this, with the loss of taxes and massive job cuts in the local sector topping the list.

Initially the effort reaped reward, but then things changed over at SARS.

The Daily Maverick with more:

…after “rogue unit” allegations were planted in the Sunday Times, the revenue service’s top executive was purged. Subsequent to this, hundreds of experienced officials also left SARS as part of Moyane’s [below] extensive restructuring of the country’s key revenue-generating institution…

While SARS does not publish information annually for the total of goods impounded at entry ports, in 2011/12 it seized over 7-million items of clothing, according to that year’s annual report. For 2015/16, only 495,436 items were confiscated which is less than 7% of goods confiscated in 2011/12…

Chinese customs data from 2014 indicates that in that year China exported $1.71-billion worth of garments to South Africa. Yet South African customs data shows only $945-million worth of garments recorded as being imported from China.

Somehow imported clothing to the value of $767-million is missing from the South African customs data.

That equates to more than R3 billion in unpaid import taxes, but it also has a crippling blow on the clothing manufacturing business here in South Africa.

Customs fraud like this means that importers can undercut the local market, “undermining the intention to create a country characterised by employment and greater levels of equality”.

There’s a general understanding amongst some consumers about the importance of supporting local enterprise, especially with regards the clothing manufacturing business, but we still have much ground to break.

When you read about the struggles some local companies face to make it, one really begins to fully appreciate local industry leaders like TCI Apparel, the southern hemisphere’s largest clothing supplier.

Producing more than 100 000 units per day, and employing 3 500 people, the company has also made a commitment to reduce its environmental footprint.

Their groundbreaking Design Centre will officially launch on May 5, and has a number of features that stand out:

  • tinting on the windows on the south side of the building to keep heat in winter and cool in summer
  • a borehole that supplies the toilet system
  • 40 000 litre water tanks,
  • a veggie garden,
  • energy efficient LED lighting,
  • locally produced furniture (recycled wood, plastic and steel),
  • eco-friendly ceiling boards, living walls and indoor plants

In addition, all discarded food or vegetables that has passed its shelf life is recycled back to the vegetable garden in the form of compost.

On a personnel level TCI Apparel also run a talent agency, aimed at nurturing both creative talent and future industry business leaders.

Under the guidance of CEO Herman Pillay the company continues to go from strength to strength, and stands as an example of how local businesses can both run successfully and serve the communities in which they operate.


Follow us on twitter @NigeriaTodayNG

Also, Like us on facebook

This post was syndicated from Click here to read the full text on the original website.


Notify of
Download the Nigeria Today app from Play store. Click here download now
Hello. Add your message here.