Temu encounters obstacles overseas again, another region will take action on tariffs

Last week, Temu was officially launched in Brazil. So far, Temu has 70 overseas sites.

Coincidentally, the day before Temu Brazil officially launched, the Brazilian Senate voted to pass a proposal to "impose a 20% tariff on imported cross-border goods worth less than $50." Earlier, it was also reported that the German Finance Minister said that Germany would support the abolition of the 150 euro tax-free limit at the European level. Obviously, in addition to the United States, other countries are also taking action against low-priced packages.

According to the latest news circulating on the Internet, South Africa is another country that will impose tariffs on small packages. Starting next month ( July 1), low-value and small-volume clothing orders on platforms such as Temu will be subject to a 45% import tax and value-added tax.

The change comes after local clothing retailers and stakeholders accused platforms such as Temu of exploiting tax loopholes to drive down the prices of imported clothing, with the South African government hoping the new tariffs will provide a more level playing field for local retailers.

It is reported that the current "minimum tax rate" rules allow Temu and other platforms to pass customs with only a 20% tax on clothing packages worth less than 500 rand, but local clothing retailers need to pay an additional 45% VAT on their imported clothing. They believe this puts them at a significant disadvantage compared to Chinese competitors.

For example, currently South African consumers who order goods worth 100 rand from Temu only need to pay 20 rand in tariffs and no value-added tax, for a total cost of 120 rand.

However, from July 1, for the same 100 rand order, consumers will need to pay 45 rand import tax and 21.75 rand value-added tax. The total price of the order will increase from the current 120 rand to 166.75 rand, an increase of 39% compared with before.

National Clothing Retail Federation ( NCRF) executive director Michael Lawrence said he was pleased with the news and believed it was urgently needed.

Anthony Thunström, CEO of The Foshini Croup (TFG), a large local clothing retailer in South Africa , also said, "This is a major move that will help the local industry, including local production and employment."

Over the past two years, NCRF and the Southern African Clothing and Textile Workers Union (Sactwu) have been lobbying the South African Revenue Service (SARS) to take action against platforms such as Temu. In response to accusations from local retailers, a Temu spokesman said that the platform's competitive prices come from supply chain efficiency and operational expertise, rather than circumventing rules or exploiting tax loopholes.

As it stands, the adjustment only affects clothing. Other goods, such as small electronic products that are also cheap and popular in Temu, are not affected by the import duties.

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