Imports

Documentary and legal requirements, payments to Customs and other costs:

An essential requirement is that you have to be a registered importer with a valid importers code. Ask your freight forwarder to assist you with registration if you are not already registered. Research any import permits and other mandatory requirements relevant to the goods before you place the order. All import shipments must usually be accompanied by a detailed packing list, a commercial invoice (not a pro forma invoice) and often also a manufacturers’ declaration. A detailed description of the goods purchased, as well as the exact number of items and the financial value of the goods must be reflected on the commercial invoice. The value on the invoice must be accurate, as you can be fined when using undervalued invoices when importing.

Different duties apply to various products, and if you are, for instance, importing clothing, you have to specify the exact material used, whether it is 100% cotton, polyester or a combination, so that the correct tariff heading is applied.

VAT (Value Added Tax), which is similar to General Sales Tax,  is levied on most goods imported into South Africa. The rate was increased to 15 per cent as from 1 April 2018. Commodities imported or exported are classified according to an appropriate tariff heading for customs formalities. Classification is based on the international Harmonised Commodity and Coding System, under the World Customs Organisation (WCO) Harmonised System Convention. The rate of Customs Duty, Excise Tax and Ad Valorem Duties (when applicable) payable on all commodities are directly linked to the tariff classification code. Tariffs and duty rates are constantly revised and are subject to change without notice.

The importer is also liable for other charges, like port charges, clearance fees, etc. Your freight forwarder will include all of these costs and charges in your quote.

Special Restrictions:

Certain goods may carry special restrictions, or may even be prohibited from being imported. South Africa has anti-dumping laws to protect local manufacturers against low value or second-hand goods coming in from other countries. Products not authorised to enter South Africa are, for example, second-hand cars, medications that are not approved by the Medicines Control Council of South Africa and certain animal products and plant materials. All potentially dangerous goods must be declared as such and must be accompanied by a Material Safety Data Sheet.

Current import control policy regarding vehicles or parts thereof includes:

• Used motor vehicles for personal use
• Specially designed vehicles
• Used buses, trucks, taxis and coaches
• Used engines
• Used gearboxes
• Used differentials.

Import permits may be applicable to the import of certain goods, such as:

• Consumer goods (Food, clothing, fabrics, footwear and books)
• Fresh produce, meat and unprocessed primary products
• Raw wool
• Petroleum products (Refined petroleum products, motor and aviation fuels)
• Pesticides and specified chemicals
• Minerals
• Selected plastic raw materials and resins
• Selected rubber items, like tyres and conveyor belts
• Paper products
• Selected machinery items, including transformers, lathes, mechanical shovels
• Certain agricultural equipment items
• Gold, silver and certain metal alloys
• Firearms
• Gambling machines
• Second-hand goods

*Notes

• The above list is not definitive
• Import permits are handled by the Department of Trade and Industry
• Import permits are valid from the date of issue until 31 December of that particular year.
• Import controls fall under DTI and must be registered with the Director, Import and Export Control and with the Commissioner of the South African Revenue Service(SARS)
• Import of agricultural products including animal, veterinary, plants etc, is managed by the Department of Agriculture, Fisheries and Forestry
• Samples which are mutilated in a way that they are not usable, for instance, a piece of material cut out of a blanket, are imported duty-free, but if the goods have a commercial value, the importer is liable for applicable duties and VAT.

Excise Duty:

Excise duties are applicable to high volume daily consumable goods, such as:

• petroleum goods
• alcohol
• tobacco
• perfumes
• cosmetic
• automotive vehicles.

Excise duties are payable by the manufacturer if it is based in South Africa, and businesses should register with SARS Excise prior to manufacturing or transacting in these goods.

An Excise Levy is charged on certain goods that impact the environment, like plastic bags and CO2 emissions.

More information is available on the SARS website.