Imports & Exports

1. Knowing the laws and your obligations

Import and Export Control measures are applied to enforce health, environmental, security and safety, and technical standards that arise from domestic laws and International Agreements such as the Montreal Protocol on Substances that Deplete the Ozone Layer, the Basel Convention on the Control of Transboundary Movements of Hazardous Wastes and Their Disposal, and the 1988 UN Convention Against the Illicit Traffic in Narcotic Drugs and Psychotropic Substances. The import and export control measures or restrictions are limited to those allowed under the relevant World Trade Organization (WTO) Agreements.

Out of approximately 6 650 tariff lines in the South African version of the International Harmonised Commodity Description and Coding System, there are 276 tariff lines under import control and 177 tariff lines that are under export control. However, for the importation of all used or second-hand goods, an import permit is required.

A list of goods that are subject to export control are available here.

2. The role of the Import and Export Control Unit

As mentioned above, the key role of Import and Export Control is essentially to enforce health, environmental, security and safety, and technical standards that arise from domestic laws and International Agreements.

Enforcement and inspections are conducted to ensure effective compliance with the conditions contained in permits, compliance with provision of the Regulations and for detection of contraventions of the Act.

3. Export Control Requirements

To export certain goods out of South Africa, you must have a permit ensuring that you comply with applicable export control measures. The export of some goods may be restricted to support strategies of beneficiation or to assist local manufacturers to obtain raw materials before they are exported.

An export permit is required to ensure that goods exported by an individual or organisation comply with the provisions of international agreements. Export permits also help to control the outflow of goods of a strategic nature or of smuggled and stolen goods.

The policy that applies to the export of goods differs from sector to sector. Policy information regarding the export of specific goods can be obtained from the Import and Export Control Unit at ITAC. Though as indicated, not all goods or products are subject to export control measures.

4. Legislation

The following legislation and provisions applies to an importer or exporter only in cases where an import and export permit is required:

5. How to register as an importer?

If you are planning to bring controlled goods, used or second-hand goods, waste or scrap into the country, you first need to register as an importer with the South African Revenue Service (Sars) and then apply to the International Trade Administration Commission (ITAC) for an import permit.

An import permit ensures that the goods you intend importing, conform to the safety, quality, environmental and health requirements of the country. They must also comply with the provisions of international agreements.

Import permits also help to control the inflow of goods of a strategic nature or smuggled goods.

The policy that applies to the importation of goods differs from one sector to another. Most new goods are exempt from import control measures. However, all used goods, second-hand goods, waste and scrap are subject to import control measures.

5.1. What you should do?

Register as an importer at Sars.
Go to ITAC or download the applicable form
Fill in the forms
Submit the forms to the Directorate: Import and Export Control at ITAC.

5.2 How long does it take?

In most instances import permits are issued within five working days.

5.3 How much does it cost?

Itac does not charge service fees but you will have to pay customs duty to Sars. Customs duty is calculated as a percentage of the value of the goods (set in the schedules to the Customs and Excise Act). For more information on Sars customs duty, visit the Sars website.

6. How to register an exporter?

To export certain goods out of South Africa, you must have a permit ensuring that you comply with applicable export control measures.

The export of some goods may be restricted to support beneficiation strategies or to assist local manufacturers to obtain raw materials before they are exported.

The policy that applies to the export of goods differs from sector to sector. If you require policy information regarding the export of specific goods, you should provide the Import and Export Control office at the International Trade Administration Commission (ITAC) with details of the particular goods you want to export.

6.1 What is the procedure to register as a local exporter?

The prospective exporter must complete forms A185 and DA185.4A2 Application for registering as an Exporter – and forward it to the relevant Customs Offices where a Customs and Excise code will be allocated to the client.

While the exporter is awaiting approval from the Customs Office, he may attach a copy of the application form to the Customs Export declarations. Click here to download the application form. There are two types of exporters; local exporter and foreign exporter.

Documents that must accompany the application:

Proof of address i.e. your municipal water and electricity account;
Certified copy of your identity document.

From the Registrar of Companies a certified copy of either of the following:

Close Corporation registration;
Company registration.

Certified copies of the following documents:

VAT, IT, PAYE, SDL, UIF letters from SARS to confirm revenue registration details;
Resolution/consent or other authority as applicable.
Telkom and/or cellphone account not older than 3 months to confirm contact details;

One of the following to prove bank details:

A cancelled cheque;
A legible certified copy or original bank statement which confirms the account holders name, account number and branch code;
An original letter from the bank on a letterhead; or
An original auto bank statement.

Indicate that the applicant must be older than 21 years and have a permanent address in the RSA.

6.2 Which forms are required for registration as a Local Exporter?

6.3 Forms to complete to apply for Exporter registration under Preferential Trade Agreements:

SADC/TDCA/SACU-EFTA

AGOA

GSP

6.4 These are the forms needed to be an approved Exporter in TDCA & SACU-EFTA:

7. Where do we send the forms?

Application forms must be submitted to the nearest Customs and Excise office.

8. How to register as a Foreign Exporter?

Fill in the application forms and relevant annexure(s) as prescribed by the Customs and Excise Act.
Submit certified supporting documents as listed on the relevant application forms.
Nominate a registered agent by completing and sending the relevant form to Customs.

8.1 Which forms need to be completed for registration as a Foreign Exporter?

8.2 How long does it take?

The turnaround time for processing an application is two working days on average, with an exception of Export Permits for scrap metals, which take 10 working days for circulation, plus time for processing and issuing.

8.3 How much does it cost?

The service is free.

9. Customs & Duties

9.1 What duties are levied on imported goods?

Three kinds of duties are levied on imported goods:

Customs duties (including additional ad valorem duties on certain luxury or non-essential items)
Anti-dumping and countervailing duties
VAT (which is also collected on goods imported and cleared for home consumption).

9.2 Anti-dumping and countervailing duty

Anti-dumping and countervailing duties are levied:

On goods considered to be “dumped” in South Africa; and
On subsidised imported goods.

These goods are the subject of investigations into pricing and export incentives in the country of origin; the rate imposed will depend on the result of the investigations. These duties are either levied on an ad valorem basis (as a percentage of the value of the goods) or as a specific duty (as cents per unit).

The amount and type of duty imposed on a product is determined by the following main criteria:

The value of the goods (the customs value)
The volume or quantity of the goods
The tariff classification of the goods (the tariff heading).

9.3 How is VAT calculated on imported goods?

The VAT rate in South Africa is currently 15%.

To calculate VAT on imported goods, the ATV (added tax value) needs to be determined first.

This is done as follows:

[(Customs Value + 10% thereof) + (any non-rebated duties levied on the goods)] x 15%

= [ATV] x 15%

= VAT payable

The 10% mark-up on the customs value in this calculation is applicable when goods are imported from a country outside the Customs Union. Therefore, if goods have their origin in any of the BLNS countries (Botswana, Lesotho, Namibia or Swaziland), the 10% will not be added to the calculation.
When goods are exported to any of the BLNS countries, the same applies (no mark-up on the customs value to determine ATV).

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