The problem with “Other”: How a loophole is distorting SA’s manufacturing sector

A little known tariff code is quietly reshaping South Africa’s manufacturing landscape. The widespread misuse of “Other” is enabling under declared imports, skewing industry data and undermining fair competition, with serious consequences for local manufacturers, policy decisions and the broader economy.

20 April 2026, Johannesburg: Illicit trade is increasingly one of the most complex and damaging challenges facing South Africa’s manufacturing industry. While often associated with counterfeit goods or under invoicing, a less visible but equally significant issue lies in the misuse of tariff codes, and its impact is far reaching.
At the centre of this challenge is a category labelled simply as “Other”.

Originally designed as a residual classification within global tariff systems, the “Other” code is intended for products that do not neatly fall into predefined categories. In markets such as Europe and the US, its use is limited and tightly controlled. In South Africa, however, it has evolved into a broad, catch all classification, and one that is increasingly open to misuse.

According to Greg Boulle, CEO of the South African Furniture Initiative, this trend is creating significant blind spots in the system: “The ‘Other’ category is meant to be the exception, not the norm, but locally, it is being used far too broadly, making it incredibly difficult to accurately track what is actually being imported.”

The data highlights the scale of the issue. For the three years from 2022 to 2024 between 79% and 82% of all imports under tariff code 9401, seating, were declared as “Other” and under tariff code 9403, furniture, the percentages ranged from 52% to 58%.

A system open to exploitation

The misuse of tariff codes is not always accidental. In many instances, incorrect classification is used deliberately to reduce customs duties. Generalised codes are more difficult to interrogate and value accurately, creating opportunities for under declaration.

“When products are declared under vague or incorrect codes, it becomes much easier to avoid paying the correct duties,” Boulle explains. “This creates an uneven playing field for businesses that are compliant.”

The financial implications are significant. While penalties for incorrect classification can be as low as R1,500, the potential loss to the state through under declared imports can run into millions. This imbalance between risk and reward leaves the system vulnerable to abuse.

“It is a low risk, high reward scenario for those choosing to operate outside the rules,” says Boulle. “And that ultimately undermines the integrity of the entire system.”

Distorted data, distorted decisions

Beyond revenue loss, the misuse of tariff codes has another serious consequence. It distorts industry data. In 2025, the South African Revenue Service identified that furniture import statistics from 2024 had been skewed due to misclassification. Products such as car seats were incorrectly declared under furniture related “Other” codes, inflating import figures and misrepresenting the true size and dynamics of the sector.

This has direct implications for industry planning, notes Boulle: “If the data is wrong, the decisions based on that data are also wrong. We rely on accurate import statistics to understand demand, identify gaps in the market and plan for growth. Without that clarity, it becomes extremely difficult to navigate the industry effectively.”

For manufacturers, this lack of visibility can result in missed opportunities, misaligned production and reduced competitiveness, both locally and internationally.

An uneven playing field

Illicit trade, in all its forms, creates an environment where compliant businesses are disadvantaged. Manufacturers and retailers who follow the correct procedures and pay the appropriate duties are forced to compete against those who do not.

“Businesses that are doing the right thing are being penalised,” Boulle says. “They are absorbing costs that others are avoiding, and that is not sustainable for the sector.”
This imbalance extends beyond individual businesses, affecting job creation, investment confidence and the long term viability of the manufacturing sector.

The broader economic impact

The consequences of incorrect tariff classification extend beyond the industry itself. Lost customs revenue directly impacts the state’s ability to invest in infrastructure, support local industries and drive economic growth.

“At a national level, this is about more than compliance,” says Boulle. “It is about protecting revenue that could be used to strengthen the economy and support industrial development.”

In a country where manufacturing plays a critical role in employment and economic stability, these losses are particularly significant.

Driving awareness and accountability
SAFI has made progress in working with stakeholders to refine tariff codes, but misuse remains a persistent challenge. Addressing it requires more than regulation. It requires industry wide awareness and accountability.

“There needs to be a stronger understanding of why correct classification matters,” Boulle explains. “This is not just a technical issue. It affects the entire value chain. Education, collaboration and consistent enforcement will all be essential in closing the gaps and restoring transparency.”

A call for a level playing field

Ultimately, the goal is not enforcement for its own sake, but the creation of a fair and sustainable operating environment, Boulle concludes: “We are not looking to police the industry. We are advocating for a level playing field, one where businesses can compete fairly, data can be trusted and the sector can grow with confidence. Until then, the continued misuse of ‘Other’ remains more than a technical issue. It is a structural weakness, and one that, if left unaddressed, will continue to distort the foundations of South Africa’s manufacturing industry.”

ENDS

Released on behalf of SAFI (https://furnituresa.org.za) by The Line (www.theline.co.za).

ABOUT SAFI
The South African Furniture Initiative (SAFI) is a national industry body focused on strengthening and growing the local furniture manufacturing sector. Working closely with government, retailers and manufacturers, SAFI drives initiatives that support localisation, export development and skills advancement. It plays a key role in improving market access for South African products, while also addressing challenges such as illicit trade, tariff misclassification and unfair competition. Through programmes like export market development, compliance support and industry collaboration, SAFI aims to build a more competitive, sustainable and globally recognised furniture industry that creates jobs and contributes meaningfully to South Africa’s economy.