Commissioner for the South African Revenue Service v Trend Finance (Pty) Ltd and Another

Three consignments of shoes were imported into South Africa from China by Trend Finance (Pty) Ltd and Trend Gear Enterprises (Pty) Ltd for delivery to Pep Stores and Foschini. SARS detained the consignments on suspicion of under‑declaration of customs value. Trend made provisional payments (R100 000, R300 000 and R600 000) as security to obtain release of the goods. Almost two years later, SARS issued a determination in respect of the first consignment alleging underpayment of customs duty and VAT and demanded payment in lieu of forfeiture. No determinations were made in respect of the second and third consignments, and the provisional payments were retained.

Appeal by the Commissioner dismissed; cross‑appeal by Trend dismissed. The Commissioner’s determination of the first consignment stood. SARS was ordered to repay the R300 000 and R600 000 provisional payments (with interest, subject to set‑off) relating to the second and third consignments.

The case clarifies that while SARS has discretionary powers to determine customs value and investigate potential forfeiture, those powers must be exercised within a reasonable time. It establishes limits on SARS’s ability to retain seized goods or security indefinitely and explains the interaction between the Customs and Excise Act and PAJA.