NCC and Sars join forces against non-compliant imports and illicit trade

The National Consumer Commission (NCC) and the South African Revenue Service (Sars) have signed a memorandum of understanding (MoU) aimed at tightening enforcement against non-compliant imports, tax evasion and unsafe goods entering the South African market.

The agreement will strengthen cooperation between the two entities through joint investigations, information sharing and coordinated enforcement initiatives, particularly in sectors vulnerable to illicit trade and regulatory breaches.

Read: Counterfeit goods amount to 10% of SA economy

A major focus of the partnership is the clothing, textile, footwear and leather (CTFL) sector, where authorities say some importers evade customs duties and taxes, creating unfair competition and exposing consumers to potentially substandard goods.

The MoU also targets growing risks linked to e-commerce imports, including mislabelled products and failures to comply with consumer protection and customs regulations.

Under the agreement, the NCC and Sars will collaborate on identifying contraventions of Section 26 of the Consumer Protection Act, including failures to issue valid invoices or provide value-added tax (Vat) registration details where required.

The arrangement also creates mechanisms for the NCC to report suspected tax and customs violations to Sars, including businesses that may not be properly registered for tax or customs purposes.

Sars Commissioner Dr Johnstone Makhubu says the partnership strengthens government’s ability to tackle illicit trade and improve compliance.

“This partnership enhances our capacity to detect and act against non-compliant imports and tax evasion,” he says.

Makhubu adds that the agreement aligns with government’s broader National Illicit Economy Disruption Programme announced by President Cyril Ramaphosa during the State of the Nation Address.

“It enables us to protect the economy better while ensuring that all traders operate on a fair and lawful basis,” he says.

Read: SA losing $62bn a year due to illicit financial flows

Acting NCC Commissioner Hardin Ratshisusu says the agreement reinforces the commission’s mandate to protect consumers from unsafe and poor-quality products

“Consumers have a right to safe, good quality goods and fair market practices,” he says.

“This collaboration enables more effective action against prohibited conduct, while improving accountability across the value chain.”

Officials say the agreement forms part of a wider government effort to strengthen oversight of cross-border trade and improve enforcement coordination between state entities.