Taxman pounces on tax evaders

BOKANG MOSHOESHOE

MASERU – In a significant crackdown on illegal import practices, the Revenue Services Lesotho (RSL) has confiscated hundreds of undeclared bales of second-hand goods, including clothing, shoes, and bags. Officials have labelled the incident a major breach of customs regulations.

The seizure underscores RSL’s intensified efforts to combat smuggling and enforce tax compliance. Undeclared goods deprive the state of critical revenue and undermine local markets, authorities emphasized.

These illicit imports violate customs laws and harm the country’s economy, and the RSL has on several occasions urged all importers to adhere strictly to declaration protocols.

The incident took place at the beginning of July when RSL officers, acting on standard inspection procedures, intercepted a large consignment at St James’ Anglican Primary School Sports Ground.

The consignment, which had been imported from China, was scheduled for routine clearance and inspection after the importers had declared their goods at the border.

According to an official press release from the RSL, the importers had declared a total of 269 bales comprising 232 bales of assorted second-hand clothing, 32 bales of shoes, and five bales of bags.

However, during the detailed physical inspection conducted by RSL officials at the offloading site in St James, discrepancies were discovered between the declared items and the goods actually present in the shipment.

Upon scrutiny, RSL officers uncovered an alarming volume of additional goods that had not been included in the customs declaration forms. The undeclared consignment included: 137 additional bales of assorted clothing, 197 bales of assorted shoes and 15 bales of assorted bags.

This brought the total of undeclared goods to 349 bales, an amount that far exceeded the initially declared quantities.

Officials have labelled this a direct violation of the Customs and Excise Act No 10 of 1982, as amended.

The law mandates that all goods entering Lesotho must be declared in full, with appropriate documentation submitted for assessment and taxation. Failure to do so, the RSL noted, constitutes an attempt to evade lawful duties and taxes.

Following the discovery, RSL officers immediately instructed the importers to take possession only of the declared portion of the goods. The undeclared bales were held on-site and later transported to the RSL warehouse for safekeeping and further administrative processing.

Later on the seizure was formalised and all 349 undeclared bales were secured under RSL custody.

The consignment will remain with RSL pending full legal compliance by the importers.

RSL has informed the concerned parties that in order to reclaim the confiscated goods, they will be required to fulfil all pending legal obligations, which includes: payment of outstanding customs duties, payment of Value-Added Tax (VAT) and payment of applicable penalties.

In its statement, RSL reiterated its commitment to upholding the integrity of Lesotho’s trade systems and protecting national revenue from tax evasion and fraudulent commercial practices.

“The RSL remains fully committed to facilitating legitimate trade while ensuring compliance with customs laws, we are dedicated to protecting the country’s revenue and supporting fair business practices,” the statement reads.

RSL also issued a strong warning to all importers and traders, urging them to comply strictly with customs procedures, submit accurate declarations, and avoid any attempts at circumventing the system.

As they urge all importers and traders to declare their goods accurately and adhere strictly to customs procedures to avoid penalties, delays, or confiscation of goods.

The incident has sparked widespread interest among business owners, especially those in the second-hand clothing and import sector, many of whom are now expressing concerns about tightened enforcement and the broader implications on cross-border trade.

While some support the RSL’s strict stance as a necessary measure to ensure fairness and prevent illicit activities, others fear it may delay legitimate business operations and increase the burden of compliance on small-scale traders.

Nevertheless, authorities have remained firm that enforcement of customs laws is essential not only for revenue protection but also for the credibility of Lesotho’s trading environment.

As investigations continue, the RSL is expected to keep a close eye on all incoming consignments in the coming months, with the aim of discouraging under-declaration and ensuring full transparency in international trade.