Someone is paying the price, say local competitors who are forced to pay 45% import duties plus VAT on orders. This is unfair if online offshore retailers continue to circumvent tax laws.

Listen to this article 5 min Listen to this article 5 min Temu and Shein customers can loosen up -- their cheap imports are safe from the South African Revenue Service (Sars) for a little longer.

The import duties threatened by Sars have not yet been instituted, so small parcels of clothing are still flying under the radar.

advertisementDon't want to see this? Remove adsNew duties had been expected to go into effect on 1 July, as Sars was expected to tighten its grip on all clothing imports to protect local manufacturers and retailers.

Customs duties for imported parcels under R500 are significantly lower, attracting a 20% import duty and zero VAT, compared to larger shipments, which are taxed at 45% and attract 15% VAT.

Known as the "de minimis rule", the loophole has been exploited by some retailers. Offshore online platforms Temu and Shein, in particular, have been accused of splitting up larger orders into smaller packages in order to qualify for the lower import duties. The companies have also been accused of undervaluing small shipments, which the National Clothing Retail Federation says has given the foreign businesses an unfair advantage at the expense of domestic clothing manufacturers....