'Customs are insane.' Some Shein shoppers shocked by sudden surge in import costs

• Shein shoppers are reporting a sudden sharp increase in customs tax levied on their packages.
• This comes amid a government probe into whether Shein has been exploiting import tax loopholes.
• Its logistics partner in South Africa has launched an internal probe about the client complaints. 
• For more financial news, go to the News24 Business front page.

Many of Shein's South African clients are up in arms, as they are suddenly forced to pay much more for their imported clothing.

Across social media platforms, customers are reporting a sudden sharp increase in customs tax.

Regular Shein shopper Clivia Arendse told News24 that her most recent package weighed about 0.0353kg and she paid R322.65 in customs. But previously she paid only R135 for a similar package. Another client of the Chinese-founded fast-fashion giant reported that she received a bill for taxes of more than R777 on a R2 400 order.

A SA Revenue Service spokesperson said the agency is not aware of any increase in customs duties. But SARS did not respond to a query about whether it increased its scrutiny of Shein imports amid a South African government probe into the exporter's customs duty compliance.

Recently, Trade, Industry and Competition Minister Ebrahim Patel told News24 that clothing importers must pay 45% in duties, but that Shein seems to believe its imports are entitled to a much lower duty.

Shein appears to be sending very small packages to South Africa which are below the threshold for full duties. These packages are sent directly to customers or their local distributors. The retailer therefore avoids the 45% duties levied on larger consignments.

Patel said lower duties are meant for small quantities of imported clothing – like a single specialist wedding dress.

"Shein, of course, is an industrial-scale operation bringing in huge quantities of clothing but packages in small amounts."

Patel added that Shein was using the lower duty in ways it was not intended, which is creating an "unfair playing field" and could result in massive job losses in the local clothing industry.

Shein previously told News24 that the company was committed to adhering to local laws and regulations in all its markets.

Much of the local ire is directed towards Buffalo International Logistics, which delivers Shein packages to clients in South Africa. Shein shoppers are sharing their invoices online, comparing their shopping cart totals to the custom duty charges levied by Buffalo.

The company told News24 that it is aware of the social media discussion about custom duties.

Buffalo spokesperson, Travis Haefele, said the group had launched an internal probe to address any concerns related to changes in customs duties "due to system glitches or business adjustments".

SARS also pointed out that clearing agents that receive the imports levy charge a service fee in addition to the customs duties.

Arendse told News24 she preferred Shein to local clothing retailers because of its inclusive clothing size range and cheaper products. "When you go to normal stores, you really struggle to find what you want, and the clothing that is available for smaller sizes is usually not available for larger sizes," said Arendse.

But she says the hike in custom duties may dissuade her from purchasing from Shein in future.

Shein has been criticised in recent years for its controversial business model, its sustainability practices and alleged unfair labour conditions. The company told News24 that its suppliers must adhere to a strict code of conduct according to the International Labour Organisation core conventions.

As for the environmental concerns raised, it claims its model was especially good at reducing wastage, because it avoids overproduction due to its on-demand model.