SARS Seizes Smuggled Ethanol in Anti-Smuggling Raid

Ethanol is widely used as a base ingredient in the production of alcoholic beverages and carries an excise duty of R302.84 per litre when sold legally in South Africa.

A joint operation by the South African Revenue Service (SARS) and the South African Police Service (SAPS) has dealt a major blow to the illicit alcohol trade after officers intercepted 26,000 litres of high-proof ethanol being offloaded at an unregistered warehouse in Kempton Park.

The raid took place on Wednesday as investigators caught a shipment of 96% ethanol being unloaded into 1,000-litre flow bins at a facility that was neither licensed nor registered to store the product. Authorities said the ethanol had been imported by sea and declared as goods in transit to another African country, meaning it should have left South Africa directly through an official port of exit instead of entering the local market.

Tax losses from a single shipment exceed R9 million

SARS said the intercepted load was one of four consignments under investigation. Ethanol is widely used as a base ingredient in the production of alcoholic beverages and carries an excise duty of R302.84 per litre when sold legally in South Africa. Officials estimate that this single consignment represented unpaid duties and taxes of about R9.1 million.

Investigators also discovered several additional flow bins and storage tanks at the warehouse. The contents still need to be tested, though authorities suspect they could contain another 28,000 litres of ethanol, which would significantly increase the scale of the operation.

Intelligence-led operation targets organised crime

SARS described the raid as part of its wider campaign against the illicit economy, which continues to undermine legitimate businesses and deprive the country of critical tax revenue.

The revenue service said criminal syndicates often exploit customs and tax rules by diverting products declared for export into the domestic market before manufacturing and distributing illegal liquor. The joint operation with SAPS' Directorate for Priority Crime Investigation (DPCI) Serious Commercial Crime Investigations reflects a broader strategy of making tax evasion and customs fraud increasingly difficult and costly for organised crime groups.

SARS vows to intensify enforcement

SARS Commissioner Dr Johnstone Makhubu said the successful operation demonstrates the value of intelligence-driven enforcement against customs fraud, excise-duty evasion, smuggling and illegal trade.

He said SARS will continue strengthening its intelligence, customs and investigative capabilities to detect diversion schemes, disrupt illicit trade and ensure offenders are held accountable. Makhubu also warned those involved in customs fraud and tax evasion that authorities will continue pursuing criminal networks responsible for alcohol smuggling and other illicit economic activities, while praising the coordinated efforts of SARS, SAPS and their enforcement partners.