Cape Town - In the past year, Sars, together with Law Enforcement, have confiscated close to R2 billion of counterfeit goods crossing South Africa’s borders.
Experts say this is just the tip of the iceberg, while in some cases, counterfeit goods may exceed the original product in the market.
Sars said between April 1, 2022, and March 31, 2023, 192 seizures of counterfeit clothing took place valued at R234 035 351.
They said counterfeit footwear peaked at 151 items confiscated valued at R1.6 million. Sars had carried out 112 seizures for other goods, which amounted to R1.5m.
The Institute for Security Studies’ Martin Ewi said there was a lack of regulation, control and confiscation of so-called fake goods and used pharmaceutical goods as an example.
He said often there were more counterfeit medicines on the market than the original, which was a concern, and that they took the same route as drugs.
“I would say that this is a billion dollar industry,” he said.
“It is way more. Pharmaceutical products are very expensive.
“We have not been able to detect a lot of it because people do not report fake medicines.
“The only time we get to know about this is through seizures at the borders or airports or land borders.
“The problem in Southern Africa is that we do not know the true extent of the trafficking, the value of the product.
“You have more counterfeit medicine circulating than original stock.
“These counterfeit medicines are coming from West Africa. We have seen in the past. It is coming from India.
“Most often, it is part of the drug shipment, for example, cocaine and heroin.”
“They sometimes follow the same route.
“We are glad that the media is doing this piece to create awareness so that law enforcement can be more alert.
“If you take something like Tramadol, for example, a lot of it in West Africa is fake, and that is because it has a higher over because it is cheap.
“A lot of people consume it.
“If you take antibiotics, a lot of these, even if you look at penicillin, are fake. Most in circulation are counterfeit.”
Counterfeit cigarettes and illicit cigarettes raked in millions to billions each year for confiscation.
Just last month, a law enforcement team comprising of the police and Sars intercepted a truck carrying illicit cigarettes, claiming to carry tea leaves,
This is just the tip of the iceberg and one example.
The value totalled R20 million.
Sars media said: “The illicit cigarettes were imported through Beitbridge, where they were falsely declared as tea leaves.
“The truck was stopped at Bronkhorstspruit. On being approached, the driver fled the scene, and the truck and its consignment was detained.
“The truck was carrying 1000 Master cases of illicit cigarettes valued at a tax prejudice of R20m.
“The truck and its content have been moved to a secure Sars facility. Sars will make further disclosures once the investigation has progressed further.”
Sars Commissioner Edward Kieswetter conveyed his gratitude to the team: ”The country is battling the scourge of illicit cigarettes, smuggled from a neighbouring country, with a view to not only displace legitimate manufacturers but to also deprive fiscus of all taxes due.
“The message to crooks engaged in this criminal enterprise is that we will not tire to confront and deal with them decisively.”
Sars believes that, on average, 500 people cross the borders on any given day, each smuggling two master cases of illicit cigarettes on their back and loaded on South African-owned trucks.
Five months ago, they hauled in R3m worth of sneakers and sandals, which had been confiscated at the border post in Mozambique and found 5237 pairs inside a truck.