Wednesday 29 June 2022


Sars prevails in a case involving "customs fraud on garments imported from China."



By Business Unusual Staff

The commodities were seized by the Revenue Service because the respondents had under-declared the value for import duty purposes. Under the Customs Act, the South African Revenue Service (Sars) has the authority to hold items in order to determine whether they are subject to forfeiture.

In a case involving the Commissioner for the South African Revenue Service (Sars) and the Minister of Trade, Industry and Competition (the minister) v clearing agent Dragon Freight and a number of importers of goods from China, the lawfulness of Sars' decision to seize 19 containers of clothing imported from China was considered in a Supreme Court of Appeal (SCA) judgment handed down on June 7, 2020. (The respondents)

"Customs fraud, particularly in relation to apparel imported from China, is a systematic problem in South Africa," the minister said in response to the application. The commodities were seized by Sars because the respondents under-declared the value for import duty purposes. After losing in the high court, Sars appealed to the SCA, which reversed the high court's decision with costs.


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