South Africa - Import Requirements and

Documentation
Includes import documentation and other requirements for both the U.S. exporter and foreign
importer.

Last Published: 10/25/2018

South Africa applies Most Favored Nation (MFN) rates to imports from the rest of the
world, as well as preferential rates applied to products originating from trade partners
with which it has negotiated trade agreements. South Africa has an Economic
Partnership Agreement (EPA) with the European Union. Tariff rates are detailed here
and are part of the Southern African Customs Union arrangement (SACU).
SACU comprises South Africa, Botswana, Lesotho, Swaziland and Namibia and
administers a common external tariff for third parties. SACU member states also
apply identical excise duties and ad valorem customs duties as reflected in the
relevant schedules of the respective member States Customs and Excise Acts. In
support of this, member States also do not have rules of origin on trade among
themselves. This common external tariff and excise regime provides a cornerstone of
the customs union and SACU’s relationship with third parties. The SACU regime
requires review, with the arrangement having often been described as complicated and
haphazard.
The South African International Trade Administration Commission (ITAC) is
responsible for tariff investigations, amendments, and trade remedies in South Africa
and on behalf of SACU.
As a result of the Uruguay Round in 1994, South Africa reformed and simplified its
tariff structure. Tariff rates have been reduced from a simple average of more than
20% to an average of 5.8%. Notwithstanding these reforms, importers have
complained that the tariff schedule remains unduly complex, with nearly forty
different rates. Tariff rates mostly fall within eight levels ranging from 0 to 30%, but
some are higher (e.g. most apparel items).
Nearly all of South Africa’s specific and composite duties were converted to ad
valorem rates (a tax, duty, or fee which varies based on the value of the products,
services, or property on which it is levied), with a few exceptions remaining in a
limited number of sectors, including textile and apparel products.
In the Uruguay Round, South Africa agreed to a twelve-year phase-down
process. The end rate for apparel is 40%, yarns 15%; fabrics 22%; finished goods
30%; and fibers, 7.5%. The effective rated duty rates on cars, light vehicles, and
minibuses is still at the high level of 34%, while the rate of duty on original motor
parts is 20%.
The dutiable value of goods imported into South Africa is calculated on the f.o.b. (free
on board) price in the country of export, in accordance with the WTO (ex-GATT)
Customs Valuation Code. The value for customs duty purposes is the transaction
value, or the price actually paid or payable.
In cases where the transaction value cannot be determined, the price actually paid for
similar goods, adjusted for differences in cost and charges based on distance and
mode of transport, is regarded as the transaction value. If more than one transaction
value is determined, the lowest value applies. Alternatively, a computed value may be
used based on production costs of the imported goods. In the case of related buyers
and sellers, the transaction value will be accepted if, in the opinion of the
Commissioner for Customs, the relationship does not influence the price, or if the
importer shows that the transaction value approximates the value of identical or
similar goods imported at or about the same time.
Dutiable weight for the assessment of specific duties is the legal weight of
merchandise, plus the weight of the immediate container in which the product is sold,
unless specified otherwise in the tariff.

The value-added tax (VAT) is 14%. VAT is payable on nearly all imports. However,
goods imported for use in manufacturing or resale by registered trades may be exempt
from VAT.Specific excise duties are levied on tobacco, tobacco products, and
petroleum products. Duties on alcoholic beverages are set at fixed %ages of the retail
prices.

Ad valorem excise duties are levied on a range of “up market” consumer goods. The
statutory rate is currently 10% (except for most office machinery, as well as
motorcycles, that attract duty of 5%).
Various provisions for rebate of duty exist for specific materials used in domestic
manufacturing.

The importer must consult the relevant schedules to the Customs and Excise Act to
determine whether the potential imports are eligible for rebate duty. Information can
be found on the International Trade Administration Commission of South Africa’s
website.