Hefty duty charges shock FTW reader

One of our readers has appealed to FTW for help, after her sister was hit for import duty on the purchase of six T-shirts from the US. This follows a similar appeal from FTW’s own receptionist, Lorraine da Fonseca, who had been knobbled with a similar duty imposed on a present of a Real Madrid soccer shirt from a European uncle. And our answer to new complainant, Yeshika Singh, is the same negative bad news we forwarded to Lorraine – there’s nothing you can do about the imposition of duty, because your sister’s T-shirts are considered an import, and import duty is due. “The amount for the T-shirts is R1 220 (including shipping) and they are NOT sold in South Africa,” said Yeshika. “Please let me know what the customs’ duty for the T-shirts would be, as they are charging my sister an amount of R715 – more than half of what is being paid for the shirts.” FTW put this puzzle before Andre Hattingh, partner of Customs Refund Specialists (CRS) in Durban. It’s a complicated issue, he said – first of all requiring the actual cost of the item(s), excluding the shipping cost. “The duty portion,” he added, “is based on this product cost. And, being textile and clothing items, they will be faced with duty of about 40%, compounded by value-added tax (VAT) at 14%.” And the VAT amount is also no simple matter. “It is worked out against the ATV (actual true value),” Hattingh said. “This is the SA rand value of the goods, plus 10% as a common factor, plus the duty amount. That all adds up to the ATV – on which that 14% is levied.” But there are still other things to be added before you reach a final charge – like the Post Office handling and customs duty assessment fees. “There’s one thing you can say for sure,” Hattingh told FTW. “It will certainly be well over half the value of the T-shirts, I can assure you.” It doesn’t matter that these T-shirts are not available in SA. The label, design, material and colour differences don’t detract from the fact that they are T-shirts – and such clothing items ARE made here. They fall into the category of light goods, and as such, attract a duty at 40% of the customs value of the import goods, according to Hattingh. And he doesn’t advise Yeshika to try any sort of legal action. “The cost for a legal appeal,” he said, “is horrendous. And nobody is going to touch such a case when the value is only just over a thousand rand.” Hattingh also feels that she doesn’t have much of a case. “These T-shirts are imports, and import duty must be paid,” he said. “It’s in the book, and there’s nothing you can do about that.” Adrian Lackay, Sars customs spokesman, agreed. He said that customs regretted Yeshika’s discontent, but its hands are tied in such a matter. “As your customs expert said, it all goes by the book,” he told FTW. “But certainly, customs considers all cases on their individual merit. And, if Yeshika can present a reasoned case to the commissioner, it would certainly be considered.”