The imposition of quotas on Chinese textiles “is going to present challenges” to the South African Revenue Services (Sars), its commissioner Pravin Gordhan told Members of Parliament on Wednesday.
Responding to a question from official opposition Democratic Alliance (DA) finance spokesperson Ian Davidson at the National Assembly finance portfolio
committee — who asked how customs officials were going to be able to distinguish goods from China from other countries — such as Taiwan, South Korea and Vietnam — he said South Africa had, in terms of the memorandum of
understanding with China, taken the responsibility “for controlling the quota”.
“If goods from China come in at five different ports of entry, we have to make sure that the quantities are recorded. We must count the number of shirts, for example … whatever the case might be.”
He noted that the Chinese minister of customs had recently visited South Africa and the two countries had entered into an administrative agreement. This allowed South Africa, when investigating fraudulent activity, to gain access to valuation data and other paperwork which could be used in court.
Noting Davidson’s question about other access routes that could be used for Chinese goods, he said Sars was aware that goods could be taken, for example,
to a small border post.
He added that the staff there would have been made aware of the quotas which applied.
Gordhan said a team of anti-smuggling officers police the different ports of entry and “do drives along the borderline” to intercept things that “they think are suspicious”.
“That is the capacity that we are trying to build … so that we will then have a greater capacity to intervene,” he said.
The restrictions on Chinese imports will affect more than 200 items including denim wear, children’s clothes, leather and non-leather jackets, shirts, trousers and even underwear.
The quota system — which will reduce the amount of imported goods retailers
will be allowed to source in China until 2008 — arises out of an agreement
signed between President Thabo Mbeki and his Chinese counterpart, Premier Wen
Jiaboa in June. – I-Net Bridge