The National Consumer Commission (NCC) and the South African Revenue Service (SARS) have concluded a Memorandum of Understanding (MoU) to enhance consumer protection against the proliferation of non-compliant goods entering the South African market. The MoU aims to improve enforcement, promote consultation, collaboration, and enhanced information sharing, in line with both entities’ respective mandates and to the extent permitted by law.
The MoU focuses on addressing non-compliant imports, improving tax and customs compliance, and protecting consumers from unsafe and substandard goods. The agreement provides for joint investigations, information sharing, and coordinated awareness initiatives.
The MoU specifically aims to facilitate collaboration between the parties in addressing contraventions of section 26 of the Consumer Protection Act, 2008 (Act No. 68 of 2008), particularly in relation to the failure to issue invoices or the issuing of invoices that do not comply with statutory requirements, including the omission of VAT registration details. It also establishes mechanisms for the NCC to report suspected contraventions of tax and customs legislation, including failures to register for tax and/or customs purposes.
The cooperation between the two institutions is expected to enhance enforcement efforts within the Clothing, Textile, Footwear, and Leather (CTFL) sector by identifying instances of evasion or avoidance of customs duties and taxes by importers, and by implementing appropriate legal controls and interventions to address such conduct. It further strengthens oversight in key sectors, including e-commerce imports, where the risks of mislabeling and regulatory non-compliance remain significant.
The Commissioner for SARS, Dr. Johnstone Makhubu, endorsing the agreement signed by his predecessor, affirmed:
“This partnership enhances our capacity to detect and act against non-compliant imports and tax evasion. It enables and aligns with the President’s announcement in SONA on the launch of the National Illicit Economy Disruption Programme that brings together key state agencies and other stakeholders, including the private sector. It enables us to protect the economy better while ensuring that all traders operate on a fair and lawful basis.”
He went on, “The agreement forms part of our collaboration strategy, drawing on multiple MOUs with state entities to stem cross-border trade abuses.”
Echoing these sentiments, the Acting Commissioner of the NCC, Mr Hardin Ratshisusu, stated that the MoU reinforces the NCC’s mandate to protect consumers. He further said, “Consumers have a right to safe, good quality goods and fair market practices. This collaboration enables more effective action against prohibited conduct, while improving accountability across the value chain.”
The agreement reflects a whole-of-government approach grounded in cooperation, transparency, and accountability. It further provides for structured reporting, joint operations, and ongoing engagement to ensure that non-compliant goods are identified and dealt with in accordance with applicable legislation.
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Nthato Motlana – Dr. Nthato Motlana is ‘the renaissance man’ of South Africa, with successful careers in politics, medicine and business. He was the founder of NAIL and a mentor to many of the top business leaders in South Africa today. He is considered by many to be the father of economic empowerment in South Africa.