Fast-Fashion Giant Shein Faces South Africa Probe Over Import Practices

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Fast-Fashion Giant Shein Faces South Africa Probe Over Import Practices
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Shein is facing the probe following complaints that it may be exploiting tax loopholes to gain an unfair advantage in Africa’s most developed economy

Textile workers and industry groups allege that Shein dodges import tariffs by sending goods in small packages

Shein is accused of deliberately sending its goods in small packages of lesser value to reduce import duties.March 13, 2023 9:52 am ET JOHANNESBURG—South Africa’s government said Monday that it is investigating fast-fashion company Shein following complaints from the local textile union and industry association that it may be exploiting tax loopholes to gain an unfair advantage in Africa’s most developed economy.

A spokesman for the Department of Trade, Industry and Competition declined to provide details on the investigation, but he said that it was initiated in response to concerns raised by labor and industry groups. The issues raised by the South African groups resemble complaints by manufacturers and unions in the U.S.

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