South Africa Market
Regulations for Importers
South Africa is a member of the World Trade Organization (WTO) and follows the Harmonized System (HS) of import classification.
There is free exchange of trade between South Africa and the other four countries (Botswana, Lesotho, Namibia, and Swaziland) comprising the Southern African Customs Union (SACU). There will also be substantially free trade between South Africa and the European Union by 2008 as a result of a Free Trade Agreement. The Southern African Development Community (SADC) Free Trade Agreement should also allow the free exchange of goods among the 14 countries of the region when it comes into full effect.
Traders are subject to exchange control approval, administered by the South African Reserve Bank. The Department of Trade and Industry is also empowered to regulate, prohibit or ration imports to South Africa in the national interest but most goods may be imported into South Africa without restrictions.
Import permits are required only for specific categories of goods and are obtainable from the Director of Import and Export. Importers must possess an import permit prior to the date of shipment. Failure to produce a required permit could result in the imposition of penalties. A summary of main import regulations are:
- Certain goods imported into South Africa require an import permit, which may be obtained from the Director of Imports and Exports Control.
- The list of goods requiring import permits is specified each year in the annual Import Control Program.
- Permits are valid for imports from any country.
- Foreign Trade Zones: No Foreign Trade Zones or Free Ports are established in South Africa.
- South Africa uses the Harmonised System of Classification.
- Samples are dutiable unless they are cut samples of cloth, leather, linoleum and wallpaper in book form and not for distribution as advertising matter. Samples that have no commercial value because of mutilation in some way are also allowed duty-free access.
- The South African Government has viewed countertrade as a second-best alternative to be engaged in only when normal trade cannot be conducted.
- Bonded warehouses are available at various points of entry.
- South African banks can accommodate all international transactions and are situated throughout the country.
- General rebates of duty are available for specific situations, and duties may be rebated on goods on re-export.
- The Reserve Bank plays a pivotal role in the economic and financial sectors.
- Some imports may require permission from the Department of Agriculture, Health or Environment Affairs.
- Specific excise taxes are levied on alcoholic and non-alcoholic beverages, tobacco and tobacco products, mineral waters, some petroleum products and motor vehicles. South Africa is an adherent to the Customs Valuation Agreement negotiated under GATT/WTO. The dutiable value of goods imported into South Africa is calculated on the F.O.B. price in the country of export. In conformance with its WTO commitments, South Africa has lifted import surcharges.