South Africa Imposes New E-Commerce Duties as US Expands Forced Labor Entity List

South African Revenue Service (SARS) officially implemented its restructured customs duty and VAT regime for low-value e-commerce imports. According to reports from Reuters, Daily Investor, and TechCentral, the new regulations are specifically aimed at leveling the playing field for local brick-and-mortar retailers, who have faced intense competition from Chinese fast-fashion e-commerce giants. Under the newly enforced rules, SARS has eliminated the previous 20% flat-rate duty concession. It has replaced it with standard customs duties plus a 15% VAT on all clothing imports valued under R500.

The South African Revenue Service’s decision to enforce standard customs duties and VAT on low-value e-commerce imports marks a decisive end to the tax advantages previously enjoyed by international digital platforms. According to TechCentral, the previous 20% flat-rate concession was originally designed to simplify customs processing for occasional, low-value personal imports. However, the explosive growth of global e-commerce platforms transformed this concession into a loophole that allowed high volumes of commercial clothing shipments to enter the country with minimal taxation. Daily Investor reports that local textile manufacturers had long lobbied for this change, arguing that the flat-rate duty undermined domestic production and threatened local jobs.

Meanwhile, the United States is also intensifying its regulatory scrutiny on textile and apparel supply chains, focusing heavily on compliance and labor standards. On August 6, 2026, the US Department of Homeland Security (DHS) announced the expansion of the Uyghur Forced Labor Prevention Act (UFLPA) Entity List. As reported by the Associated Press, the Wall Street Journal, and Reuters, the DHS has added several new companies to the list, specifically targeting new textile and chemical exporters.

The expansion of the UFLPA Entity List places a heavy administrative burden on importers. Under the law, goods produced by entities on this list are restricted from entering the United States unless importers can provide clear and convincing evidence that the products were not manufactured using forced labor. The Wall Street Journal reports that the chemical sector’s inclusion adds a new layer of complexity, as chemical compounds are often integrated into a wide variety of downstream consumer and industrial products. Customs brokers and trade compliance experts have warned that this expansion will lead to increased scrutiny at US ports of entry, resulting in potential clearance delays for textile and chemical shipments. Importers are urged to conduct thorough audits of their multi-tier supply chains to ensure complete traceability, as failure to do so could result in costly cargo seizures and supply chain disruptions.