Greg Boulle, deputy chairman and CEO of the South African Furniture Initiative (SAFI), has emphasised the urgent need to tackle the impact of illicit imports. “Our industry plays a vital role in supporting jobs, communities and the broader economy,” he stated. “However, the influx of undervalued imports is threatening this foundation. Addressing these challenges requires a united effort.”
The true impact of undervalued imports
South Africa’s furniture industry has been grappling with a surge of undervalued imports that distort market pricing and undermine fair competition. These imports are often declared under incorrect Harmonised System (HS) tariff codes, which mask the true value of the products and help avoid or reduce import duties. As a result, local manufacturers are left struggling to compete.
“Illicit imports directly harm local businesses,” explains Boulle. “By bypassing appropriate duties, these products unfairly undercut the prices of locally produced furniture, making it difficult for our manufacturers to sustain operations and invest in growth. This imbalance is costing the industry jobs, profitability and long-term stability.”
Undervalued imports also erode consumer trust, as some imported products fail to meet quality and safety standards. In contrast, local manufacturers adhere to stringent regulations to ensure durable, high-quality furniture, adding to their production costs.
Strengthening industry defences
To address these challenges, SAFI has strengthened its collaboration with the South African Revenue Service (SARS). Efforts include targeted training for customs officials to enhance the accuracy of valuation practices and reduce the prevalence of misdeclarations.
“Proper customs valuation is critical to levelling the playing field,” Boulle remarked. “We are working closely with SARS to ensure imports are fairly assessed, which will create a more competitive and transparent marketplace.”
SAFI has also urged SARS to investigate raw material imports declared under specific HS subheadings that currently attract no duties. This targeted approach will help curb the misuse of duty-free classifications and promote compliance across the industry.
A case for protective measures
SAFI is also pursuing plans to apply for anti-dumping and safeguard duties on specific raw material and furniture categories. These measures aim to protect the local market from the disruptive effects of low-cost imports priced below fair market value.
“Advocacy backed by data is essential in this process,” Boulle said. “We are analysing trade patterns, discrepancies in import valuations, and the overall impact on the local industry to build a robust case for these protective measures.”
SAFI will present its findings to SARS, the Department of Trade, Industry and Competition (DTIC), and other stakeholders in early 2025 as part of its ongoing commitment to safeguarding the industry.
Supporting local businesses
Providing financial and operational support to local businesses remains a key focus. SAFI is working with the DTIC and other partners to create funding initiatives that enable manufacturers to improve efficiency, expand operations and navigate compliance challenges.
“This support is essential for helping local manufacturers stay competitive,” Boulle noted. “It provides the resources needed to modernise operations, reduce costs, and remain viable in an increasingly globalised market.”
Industry collaboration and job creation
The impact of undervalued imports extends beyond individual businesses to the broader economy. Reduced production volumes threaten job security and stifle opportunities for growth and innovation.
“Every job in the furniture sector has a ripple effect on families and communities,” Boulle emphasised. “Protecting our industry means protecting livelihoods and creating opportunities for the future.”
SAFI is calling on all players in the furniture industry to join its efforts. By collaborating through SAFI, manufacturers, suppliers, and other stakeholders can work together to address market imbalances, advocate for fair trade practices, and secure the long-term sustainability of the sector.
“The challenges we face are significant, but they are not insurmountable,” Boulle concluded. “Through collective action, we can create a fairer marketplace, promote local manufacturing, and ensure a thriving future for South Africa’s furniture industry.”
