New system in South Africa for people to check whether a product is legal using their smartphone

South Africa is set to introduce a new system to combat the growing trade in illicit goods, which will allow consumers and regulators to verify whether products are genuine by scanning them with a smartphone.

The system forms part of a broader partnership between the South African Revenue Service (SARS) and the National Consumer Commission (NCC), which are increasing efforts to stop the import and sale of illegal products.

The initiative is expected to strengthen enforcement while increasing pressure on suppliers to improve compliance and traceability across their supply chains.

The collaboration follows a memorandum of understanding (MoU), which was signed by SARS and the NCC on 6 May 2026.

The agreement aims to improve consumer protection and strengthen tax and customs enforcement as illicit goods continue to enter the South African market.

The NCC and SARS will also share information more closely. This will allow the consumer watchdog to report suspected tax and customs violations to SARS.

The agreement focuses partly on businesses that fail to issue valid invoices or issue invoices that do not meet legal requirements, including those that omit VAT registration details.

However, the biggest change will be the rollout of a national track-and-trace system, which is expected to launch in 2028.

This is according to law firm Cliffe Dekker Hofmeyr’s (CDH) Timothy Smit, Claudia Grobler, Lavious Sedibane, and Mapule Shai.

They explained that the new system will allow consumers to scan a unique barcode on products using their smartphones.

The scan will confirm whether a product is legitimate and provide information about where it came from. This includes where it was manufactured, whether it was imported, who imported it and when it entered the country.

The system will also allow regulators to monitor the movement of goods through the supply chain, from manufacturers and importers to distributors and retailers.

The initial focus will be on products most commonly linked to illicit trade and those that pose health risks if sold illegally. These include tobacco products, alcohol, medicines, food and consumer appliances.

What businesses should do now

CDH’s experts said the additional visibility across supply chains is likely to make it easier for regulators to identify businesses that fail to comply with South African laws.

However, suppliers operating in these sectors will need to consider not only the Consumer Protection Act, but also customs, counterfeit goods and other industry-specific regulations.

The legal team explained that South African businesses do not need to wait until the system is introduced before preparing.

They recommended that suppliers strengthen their internal compliance systems and review agreements with suppliers and distributors to include traceability and audit requirements.

Businesses should also improve due diligence when onboarding suppliers and ensure their record-keeping systems can support increased reporting requirements.

According to the law firm, companies with stronger procurement, compliance, and traceability systems will be better positioned once the new system is introduced.

By contrast, businesses that fail to comply could face regulatory action, administrative penalties and reputational damage.

CDH’s experts added that the track-and-trace system has the potential to significantly change how high-risk industries operate.

This is because it will improve transparency across supply chains and make it more difficult for illicit goods to enter the formal market.

If enforced effectively, the system could help remove illegal products from store shelves while giving consumers greater confidence that the goods they buy are genuine.