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South Africa Trade, Exports and Imports

South Africa¶s trade, exports and imports are heavily dependent on the nation¶s

natural resources and the government¶s highly liberal trade incentives. South Africa

recorded a trade surplus of R3.7 billion in December 2009, according to the South

African Revenue Service (SARS). The surplus resulted from a decrease in imports of

13.73% and a decrease in exports of 1.08%. In December, exports amounted to R45.36

billion and imports amounted to R41.69 billion resulting in a surplus of R3.67 billion. The

cumulative trade deficit for 2009 was R25.84 billion. Compared to a deficit of R71.63 in

2008, this represents a decline of R45.79 billion or 64%.

South Africa Trade: Exports

South Africa¶s primary export commodities include gold, diamonds, platinum, other

metals and minerals, machinery and equipment. South Africa¶s exports were worth

$67.93 billion in 2009, down from $86.12 billion in 2008. The following chart shows the

distribution of South Africa¶s export partners. All data are in percentages.

South Africa: Imports



South Africa¶s primary import commodities include machinery and equipment,

chemicals, petroleum products, scientific instruments, and food materials. South Africa¶s

imports were worth $70.24 billion in 2009, down from $90.57 billion in 2008. The

following chart shows the distribution of South Africa¶s import partners. All data are in

percentages.

South Africa Trade: Exchange Rates

The following graph shows South Africa¶s main currency, the Rand¶s (ZAR) exchange

rates in comparison to the US dollar during 2005-2009.



http://www.intracen.org/appli1/TradeCom/TP_EP_CI.aspx?RP=710&YR=2008

http://www.intracen.org/appli1/TradeCom/TP_IP_IC_P.aspx?IN=64&RP=710&YR=2008&TY=I

Imports: 64 Footwear, gaiters and the like, parts thereof (2008 in thousands USD)

RankLeadingpartners

Import value

Importsas ashare of totalimports(%)

Importsas ashareof worldimports(%)

Growthof importsinvalue(%p.a.)

Growth of imports involume (%p.a.)

Number of exportmarkets( whichvalue>USD100.000)

Share of top 3importedproducts(%)

Nettrade

0 World 576,584 0.6600 0.6000 9 4 26 70.5554,2

1 China 437,218 75.8300 0.4500 10 5 25 74.1437,1

2 Viet Nam 43,582 7.5600 0.0500 20 17 17 75.2 -43,5

3 Italy 31,422 5.4500 0.0300 16 9 22 85.8 -31,3

4 Indonesia 17,428 3.0200 0.0200 14 7 14 81.7 -17,2

5 India 11,894 2.0600 0.0100 10 6 18 72.8 -11,8

Customs Tariffs

Your product will be subject to the payment of import duties and in some cases, excise tariffs. Theframework for the external tariff is the 2-column Harmonised Commodity Coding System (HS).

Key Points

y Customs Tariff

y Excise duties y Value for duty

y Preferential Access y Value-Added Tax (VAT)

y World Trade Organisation (WTO)

Customs Tariff



South Africa is a contracting party to the General Agreement on Tariffs and Trade

(GATT) and is a member of the World Trade Organisation (WTO). The framework of the external tariff is the 2-column Harmonised Commodity Coding and Description

System (HS).

The Southern African Customs Union (SACU) is a customs union agreement that is infor ce between South Africa, Botswana, Lesotho, Namibia and Swaziland. In terms of

the agreement, goods are traded free of duty between members of the customs union.

Import tariffs are levied at the first point of entry in the South African Customs Union.

Tariff reductions:

Under her market access offer for the Uruguay Round, South Africa will:

y rationalise 10 000 tariff lines down to between 5 000 and 6 000 by theend of the five-year adjustment period following 1995;

y bind 98 per cent of its tariff lines over that period, well up from the 55

per cent bindings prior to the offer;

y replace all remaining quantitative controls and formula duties with ad

valorem duties; and

y cut back tariff lines from the 80 different levels of the past into six

levels: 0 per cent, 5 per cent, 10 per cent, 15 per cent, 20 per cent and 30 per cent.

Protection for two industries will be phased down over a longer period: clothing and

textiles will comply with the GATT schedules over 12 years and maximum tariffs willfall to 45 per cent, instead of 30 per cent. Motor industry manufacturers have a

maximum of eight years to adjust and will have to reach a terminal maximum tariff of

no more than 50 per cent.

For more information on import policy and tariffs, contact:

Board on Tariffs and TradePrivate Bag x753

Pretoria, 0001

Telephone: (27 12) 322-8244

Fax: (27 12) 322-0149



Protection levels:

Many goods, especially industrial inputs, enter duty free. Where duties apply, the rates

generally fall between five and 25 per cent, although protection can be quite high,with automobile tariffs at 50% per cent. Goods not exceeding a value of R400 are not

liable for customs duty and do not have to be entered on a bill of entry.

As noted earlier, the government is now in the process of simplifying the tariff system

by consolidating categories of similar goods and reducing many tariff levels. Themove to simplify the tariff system by reducing the number of separate tariff items has

met with limited success in reducing tariff barriers: some tariffs have been reduced,

others, due to the combining of formerly separate listings, have actually risen.

Any South African producer may petition the Board of Tariffs and Trade for tariff

protection. In practice, approval of such petitions is more likely in cases where the

producer has a major share of the domestic market and can show that foreigncompetition is eroding the producer's market dominance. In mid- 1991, the

Government introduced a new three-week public comment period followed by an

undefined period for governmental decision-making.

Excise duties

S pecific excise duties are levied for revenue purposes on luxury goods: spirits, beer,

cigarettes/tobacco and new cars. In effect, local and imported items are treated

equally.

Value for duty

The dutiable value of goods imported into South Africa and the Southern African

Customs Union (SACU) is calculated on the f.o.b. price in the country of ex port.

Section 66 of the South African Customs and Excise Act implements the GATT

Customs Valuation Code and states that the value for customs duty purposes is the

transaction value, the price actually paid or payable. In cases where the transactionvalue cannot be ascertained, the price actually paid for similar goods, adjusted for

differences in cost and charges based on distance and mode of transport, is regardedas the transaction value. If more than one transaction value is ascertained, the lowestvalue 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 and Excise, the relationship does not



influence the price, or if the importer shows that the transaction value approximates to

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 themer chandise, plus the weight of the immediate container in which the product is sold,

unless specified otherwise in the tariff.

Preferential Access

Trade Blocs

Southern African Customs Union (SACU): Southern African Customs Union is

composed of South Africa, Botswana, Lesotho, Namibia and Swaziland. In terms of the agreement, members use the South African tariff as a common external tariff and

goods are traded free of duties and quotas between member states.

Southern African Development Community (SADC): South Africa joined SADC

in August 1994. The other members of SADC are: Angola, Botswana, Democratic

Republic of the Congo, Lesotho, Malawi, Mauritius, Mozambique, Namibia,Seychelles, Swaziland, Tanzania, Zambia, Zimbabwe. SADC's objectives are that

member states work together to reconstruct and develop the entire social and

economic framework of the region so that the region can develop and offer its peopleseconomic well being, social stability and lasting peace. The SADC treaty places

binding obligations on member countries with the aim of promoting economic

integration towards a fully developed common market.

SADC committed itself to the creation of a free trade area (FTA) when a Protocol on

Trade was signed at the SADC Summit in 1996. The essential ingredients of the trade

protocol are: an eight year timetable for the implementation of a FTA; classification

of products covered by and excluded from the protocol based on level of sensitivity;

elimination of ex port duties, non-tariff barriers and qualitative ex port restrictions; and

rules of origin for community treatment. The agreement will be in full compliance

with WTO rules whereby it will cover "substantially all trade" without the exclusion

of any sector.

It is hoped that an interim agreement will be in place by January 2000 with the fullagreement in place by 2010. The initial agreement will exclude the Democratic

Republic of Congo, Angola and the Seychelles. It is envisaged that they will join at alater stage. The remaining eleven SADC members have now tabled either preliminary

or opening offers with Mozambique and Tanzania having tabled draft offers.



y Customs Procedure for Imports y Customs procedure for samples

Documentation for Import

Introduction

An essential feature of all import sales transactions is import documentation. There

are various categories of documents required in international trade transactions. This

section lists the basic documentation required for an import shipment. Not all the

documents listed below are required for every import transaction; many of them are

applicable to specific products or cir cumstances.

Enquiry Documents

Costing sheet: (see section on costing for ex port for information).

Quotation/offer to the importer

Pro-forma invoice: After receiving a quotation from the ex porter, the importer may

request a pro-forma invoice. This is a preliminary invoice and is prepared prior toshipment or even before a firm order has been received. The purpose is to enable the

importer to obtain an import licence (if required) or a letter of credit prior to entering

into the contract of sale.

Instruction Documents

F orwarder's instruction: Most freight forwarders have a printed forwarder'sinstruction form, but the required information may also be printed on the ex porters

company letterhead. Information required includes instructions for booking of cargo,

information for completing transport documents, description of goods as per the letter

of credit etc.



S hipping instruction: Where a shipping company has a computerised bill of lading

system, it provides pre-printed shipping instruction forms which must be completed by the ex porter/freight forwarder. The bill of lading is drawn up from the information

provided on this form. If the ex porter/freight forwarder prepares the bill of lading

independently, then a shipping instruction must be attached. However, many

independent shipping lines do not insist on the shipping instruction document.

Bank instruction: When the ex porter is selling on the basis of a letter of credit, the

instructions stipulated in the letter of credit must be followed. However, if selling on

the basis of sight or usance draft under documentary collection, bank instructions

must be generated to secure payment for the goods. Information supplied would

include description of cargo, name of vessel, date of shipment etc; a detailed list of all

documents submitted; payment method etc.

Transport Documents

1. Bills of lading

The bill of lading is a contract of carriage and has three functions:

i) It defines in detail, the terms of the contract between the shipper and the shipping

line for the carriage of goods from one specified port to another.

ii) It is a formal, signed receipt for a specified number of packs e.g. crates, drums etc.which is given to the shipper by the shipping line when the shipping line receives the

consignment. (It should be noted that the shipping line denies all knowledge of

quantity, quality, value or condition of the contents of the packs.)iii) It is a document of title (i.e. a certificate of ownership) to the goods. As such, it must

be produced at the port of final destination by the consignee in order to claim thegoods. As a document of title, the bill of lading is also a negotiable document and

the consignee may sell the goods by endorsing or handing over the bill of lading toanother authorised party, even while the goods are still at sea. Although negotiable

bills of lading are in common use, some countries do not allow them or make itdifficult to be used and ex porters should enquire whether it is accepted in the buyers

country.

1. Bills of lading may be negotiable or non-negotiable:With

a negotiable bill of lading, ownership of the goods may betransfered to a third party. The shipper marks the bill of lading, 'to

order' to ensure that the bill of lading may be negotiated by a third

party, e.g. the bank, through blank endorsement i.e. by signingon the reverse side of the bill of lading. The third party is then

able to take ownership of the goods. The shipper can also ensure

that the bill of lading is only negotiated by the buyer by entering



the name of the consignee on the document, instead of 'to order'.

The buyer then has the option of transfering title of the goods to athird party by endorsing in blank or to a named third party. Bills

of lading can become highly negotiable documents. All original

bills of lading are thus negotiable documents to some extent - it is

only the copy bills of lading that are absolutely non-negotiable.2. A shipped bill of lading indicates that goods have been loaded on

board the vessel. This bill is required if payment is being made onthe basis of a letter of credit. (also known as an on board bill of

lading). A received for shipment bill of lading acknowledges that

the carrier has received the goods and are in the custody of the

carrier, but have not actually been loaded on board the vessel.This may be used when there is congestion at the port or in the

case of dock strikes. Once the goods are on board, the bill of

lading is stamped 'on board', in accordance with the InternationalChamber of Commer ce (ICC) rules.

3. Clean and claused bills of lading: If the cargo is apparently in

good order and properly packed when received by the shippingline, the bill of lading which the shipping line issues, is

termed 'clean'. The shipowner thus admits full liability for the

cargo described in the bill. If, however, a defect is noted such as a bale is torn or a cask is leaking, a clause will added to the bill. The

bill then becomes 'unclean', 'dirty', or 'claused'. When an ex port

transaction is conducted on the basis of a letter of credit, banks

will refuse shipping documents bearing su

chclauses, unless theletter of credit specifically states that they are acceptable, e.g. it

may be the custom of the trade to use second-hand packing, anaspect may be noted as a defect.

4. Freight pre-paid or freight collect bills of lading: When an

ex porter pays freight to the shipping line in advance, for exampleon a c.i.f. basis, the ex porter will acquire a bill of lading

marked freight pre-paid. However in instances when freight is

paid on arrival of goods, e.g. under an f.o.b. contract, the bill of

lading is marked freight collect.

5. Stale bills of lading: This is a bill of lading which has been presented so late after the due date of delivery of goods to the

port, that as a result of the delay in its presentation, theconsignee/buyer has become involved in legal or administrative

complications. According to Uniform Customs and Practice for

Documentary Credits of the ICC, banks may refuse a transportdocument that is presented more than 21 days after the date of



shipment. The bank may accept a stale bill of lading 'with

recourse' if the buyer repudiates payment on the basis of non -confirming documents, the ex porter must return the funds

received. Preferably the shipper should approach the buyer to

have the letter of credit amended to permit the presentation of a

stale document, or indicate that the documents will be acceptedwhen presented.

6. There are different categories of the bill of lading: Charter party bill of lading: Normally if commodities are

to be transported in bulk (e.g. grain, coal, oil etc), a shipper

may charter (hire) a whole vessel by entering into a

contract of carriage with the shipowner, the terms of whichare embodied in a legal document called the charter party.

As this type of bill of lading does not contain all the

essential terms of the contract of carriage, banks will refuseto accept it under a letter of credit unless instructed to the

contrary by the buyer.

Through or transhipment bill of lading: It is oftennecessary to employ two or more carriers to transport a

consignment of goods to its final destination. Shipping

lines issue bills of lading which cover the whole transit andthe shipper need only deal with the first carrier. Normally, a

through rate is quoted.

Container bills of lading: These are issued by a shipping

line which engages in

combined transport.

Groupage/House bill of lading: Freight forwarders are

permitted to group various compatible consignments fromdifferent consignors together, and to dispatch the cargoes as

one containerised consignment. The shipping line issues a

'master' bill of lading to the forwarder once the fullcontainer has been loaded. The freight forwarder cannot

hand the original shipping line's bill of lading and therefore

issues a house bill of lading to the individual shippers. At

the destination, an agent of the forwarder breaks down the

consignment and distributes the goods subject to an originalhouse bill of lading being presented. Under letter of credit,

the banks may reject this form of bill of lading unless it isspecifically stated that this type of bill of lading is

acceptable.



A FIATA or other freight forwarder's combined transport bill of

lading can be used in the place of a forwarder's house bill of lading. This is recognised by the ICC and according to UCP (1993

revision), will be accepted by banks in letter of credit transactions.

(FIATA translated from French, stands for International

Federation of Freight Forwarders Associations.)

7. Mate's receipt: Associated with the bill of lading in respect of

breakbulk consignments, is the mate's receipt. When goods are

loaded on board, they are inspected by tally clerks who record the

date of loading, number of individual packs etc and note any

defect or comment about the condition in which the goods are

received. On completion of loading, the ships officer signs the

mate's receipt based on the note of the tally clerks. If there areadverse observations, the mate's receipt is qualified and is said to

be claused or unclean. If there are no adverse observations, the

mate's receipt is termed clean. The qualifications of the mate'sreceipt are later embodied in the bill of lading which in turn is

also claused clean or unclean. A signed copy of the mate's receipt

is given to the shipper/freight forwarder once the goods have beenloaded on board ship, in exchange for the original bill of lading.

The full particulars of all bills of lading are entered on the ship's

manifest which contains the details of total cargo carried by theship and is a requirement of naval, port, customs and on occasion,

consular authorities.

8. Non-negotiable liner waybill: Containerisation increased thespeed with which cargo was transported and goods tended to

arrive before the importer received the bill of lading required to

take delivery of the goods. As a result, certain shipping linesintroduced an alternative to the bill of lading, the non-negotiable

liner waybill. This document provides for the automatic delivery

of cargo to a named consignee. In contrast, the bill of ladingdocument must reach the destination of the goods and be

surrendered to the carrier before delivery can be authorised.

NOTE: The non-negotiable liner waybill is not a document of

title and must be made out to the consignee. It acts only as a

receipt for the cargo and as evidence of the contract of carriage.

2. Air waybill: This transport document serves as:

o documentary evidence of the conclusion of a contract of carriage

o proof of receipt of the goods for shipment



o an invoice for the freight

o a certificate of insuranceo guide to airline staff for the handling, dispatch and delivery of the

consignment.

The document consists of three originals and nine copies and is onlyissued in a non-negotiable form. The first original is intended for the

carrier and is signed by the shipper; the second original, the consignee's

copy, is signed by the shipper and accompanies the goods; the third

original is signed by the carrier and is handed to the shipper as a receipt

for the goods after they have been accepted for carriage. The copies are

dispatched by the airline authorities as required to on-carriers, airport

authorities, etc or they serve as delivery receipts, invoices etc. The

standard IATA air waybill applies to the carriage of goods over anydistance and by as many airlines as are required to convey the goods to

their final destination.

The air waybill is a fairly complex document and is seldom completed

by the ex porter. The services of an airfreight forwarder are usuallyengaged for this purpose and clear instructions should be provided by the

shipper noting any specific requirements if the transaction is under a

letter of credit. Most airlines and forwarders have a standardised form

for this purpose, the shipper's letter of instruction.

With the recent development of Electronic Data Inter change (EDI), it is

now possible for documents to reach the consignee before the goodshave even left the ex porter's premises. This enables the consignee of airfreighted goods to prepare customs clearance documentation in

advance of the goods' arrival and consequently avoids incurring storage

charges at the airport of destination.

R ail waybills:

Spoornet Combined Consignment Note and Truck Label(c.c.t.): This is the official transport document in respect of carriage

of bulk cargo by rail. The c.c.t. consists of two stick-on labels and twoidentical tear-off pages which constitute copies for the ex porter and

S poornet respectively.

Spoornet Freight Transit Order (f.t.o.): This is the official transportdocument in respect of carriage of containers by rail. The f.t.o. consists



of five identical tear-off pages comprising a pricing copy, a checking

copy, a receiver's copy, a delivery note and a sender's receipt.

The c.c.t. and f.t.o. documents apply to transport within the borders of South Africa and serve both as evidence of the contract of carriage and

as a receipt of goods. Unlike air or sea transport documents, the S poornetdocuments do not incorporate comprehensive conditions of carriage. The

provisions contained in the S poornet tariff book form part of the carriage

contract and transportation is offered at 'railway's risk' or at 'owner's

risk', according to the particular cir cumstances of the transaction.

Ex porters should therefore ensure that the relevant conditions are

carefully noted.

R oad waybill

There is no standard transport document for road haulage. Road hauliersusually design their own waybills which serve as evidence of a contract

of carriage and as receipts for consignment of goods.

Insurance Documents

Marine insurance policy document

Certificate of insurance

See sections Credit Insurance and Marine Insurance for detailed information.

Customs Documents

The Department of Customs and Excise requires the following documents to clear

imports:

Bill of Lading/Air Waybill/ R oad Hauliers Certificate

Commercial Invoice

Customs Worksheet

Bill of Entry (DA500)

A certificate of origin (DA59) is required for imports of certain strategic

commodities or imports of goods involved in anti-dumping charges (e.g.: shoes from

Hong Kong, T-shirts from China)



Exchange Control Documents

See section on Complying with Foreign Exchange Control Requirements for more

detailed information.

Payment Documents

Transport documents

Marine insurance documents

Draft (bill of exchange)

Pro-forma invoice Inspection certificates

Commercial invoice (c/i): This should be virtually the same as the pro-forma invoiceand should contain all the final and accurate details relating to a particular order. The

import licence number and the l/c number should all be stated on the commer cial

invoice. Also the price and the delivery term should be consistent with the sales

contract. The commer cial invoice need not be signed unless a signature is specifically

called for in the l/c.

Certificate of origin (c/o) if it is a required document

Packing declaration: The packing list indicates the number of packs involved, the

contents of each pack and the individual weights, dimensions and HS numbers. Thislist enables the customer to check that the correct number of units has been received.

Customs authorities can also easily identify a specific pack they wish to inspect.

Specific South African Documentary R equirements

Examples of South documentation that may be required depending on the product

being imported include:

Import permits: Import permits are required for certain goods and commodities as

spec

ified inSc

hedule 1 of the Import Control Regulations Ac

t.P

ermits are obtainablefrom the controlling authority, which includes:

y Department of Agriculture

y Department of Water Affairs

y Department of Sea Fisheries

y Department of Trade and Industry

y Department of Mineral and Energy Affairs



y Department of Health

Phytosanitary certificate: South Africa requires these certificates for imports of

plant and plant products e.g. seeds, bulbs, cut flowers, etc. The Ministry/Departmentof Agriculture in the country of origin usually issues Phytosanitary certificates. A

copy of the import permit should be forwarded to the ex porter as conditions regardingthe importation of plants are stipulated in the permit.

Veterinary health certificates: These are usually required for imports of liveanimals, fresh, chilled and frozen meat and certain canned products, in order to

control the spread of animal diseases. A copy of the import permit specifying the

conditions of importation will be required in order to obtain the certificate. SouthAfrica has many agreements with many countries regarding the conditions under

which food products must be traded, for example, meat may only be imported from

approved abattoirs in certain countries.

Fumigation certificate: This document is required as proof that the packing materials

e.g. wooden crates, wood, wool etc), second-hand clothing or certain commoditieshave been fumigated or sterilised. Certificates are issued by specialists and contain

details such as purpose of treatment, articles concerned, temperature range used,

chemicals and concentration used etc.

It is important that shipments be packed in cases or crates that are free of insect or fungus infestation. If these requirements have not been met the consignee may be

required to apply treatment to the wood at his own ex pense in a manner indicated by

the authorities.

The South African regulations in this regard stipulate that No person shall introduceinto the Republic any hay, straw, flax combings, palm packing fibre, or brown

coconut fibre, used for the packing of mer chandise unless (a) it is kept in bond at the

port of entry for four months from the date of shipment; or (b) it is accompanied by acertificate signed by an official authorised by the government of the country of origin,

stating that the hay or straw:

(1) Has been kept in store free from contact with any animal likely to be affected with foot and

mouth disease, contagious bovine pleuropneumonia, sheep-pox or rinderpest for a period of four months immediately prior to its use; or

(2) has been subjected to the action of live steam in a closed compartment at a temperature of

185 degrees F for at least ten minutes; or has been placed loosely in a closed compartmentand

(3) sprayed with formaldehyde solution; or

(4) Subject to the action of heat in the presence of moisture.



Inspection certificate: Although South Africa does not require pre-shipment

inspection on imports, certain importers, particularly those in the food sector, willstipulate a clean report of finding from a well-known inspection company when

pur chasing from a new supplier. The requirement generally falls away once a

relationship has been established.

Quality certificate: May be a required document in respect of imports of fruit,

vegetables and processed fruit and vegetable products. Inspection is carried out prior

to ex port.

South African Bureau of Standards: The South African Bureau of Standards

maintains certain compulsory standard specification on specific products or groups of products. For example Under the Standards Act of 1993, compulsory standards are

maintained and inspection is compulsory for the importation of: -

y canned fish, canned fish products and canned marine molluscsy canned crustaceans

y canned meat productsy frozen fish, frozen marine molluscs and frozen fish and frozen

marine mollusc products

y frozen rock lobster productsy frozen shrimps (prawns), langoustines and crabs

y smoked snoek

All imports falling into these categories require inspection by the Port Health Officer

at the port of entry into South Africa. With specific regard to canned products, theSABS prefers ex porters to work through local agents. A potential ex porter can

provide the SABS with samples of each product intended for ex port to South Africa,

the SABS will submit a written report on the suitability of the product.

There are numerous other documentary requirements depending on the productconcerned, and the importer and ex porter should always conduct a thorough

investigation into the documentary requirements before shipping consignments.

Dangerous Goods Documentary R equirements

There are a number of special shipping instruction forms and transport documents that

are required in respect of dangerous goods. S pecial documentation is usually requiredfor all shipments of dangerous goods, regardless of the mode of transport used.

Dangerous goods documents are normally characterised by red chevrons framing

them.



Customs Procedure for Imports

All goods declared for consumption must be landed and entered within 7 days after

the arrival of the importing ship or within such additional time as the Secretary for Customs may allow. Failure to do so will result in them being conveyed to a custom

warehouse. If the goods are not properly entered and all duties and charges are not paid within 3 months after the goods have been placed in a customs warehouse, they

may be sold at public auction.

Goods may be stored in bond, without payment of duties, in any bonded warehouse or

in an unbonded warehouse approved by the Secretary for Customs. State warehouses

are also available.

Irrespective of the mode of transport used when importing goods, the importer or his

freight forwarder is required to present the following documents to the customs

authorities:

Bill of entry: Goods may not be imported into South Africa unless a bill of entry is

submitted to and accepted by the customs authorities. An original of the form, a

DA500 is required by Customs.

Customs Worksheet: This is a customs document which details rates of exchange

and conversion of rates of the foreign currency amounts into South African Rands.

Commercial invoice: The commer cial invoice must be presented to customs with the

bill of entry as well as relevant transport documents to be stamped by customs. Thisenables customs to check the validity of the value of a consignment of goods as stated

in the DA500.

Import permit (if necessary): This document is required for certain goods and

commodities only in terms of import control regulations. If an import permit is

required, the import permits number and the ex piry date should appear on the DA500.

Special import certificates or permits: Apart from those goods requiring an import permit, a number of products are subject to inspection and/or to the issue of special

permits by certain authorities prior to the goods being imported.

Transport documents: i.e. the Bill of Lading (sea), the air waybill (air), the freight

transit order (rail), and the road 'waybill'.



If all documentation is in order, the documents will be stamped by customs and excise

and, once the import duties, excise duties (if applicable), and VAT have been paid, the

goods will be cleared through customs.

Certificate of Origin (DA59): Certain strategic commodities and goods facing anti-

dumping charges require a certificate of origin. Goods claiming preferential treatmentin respect of tariffs also require proof of origin.

When goods are seafreighted, customs clearance is performed at the port of entry or inthe case of cargo destined for the inland province of Gauteng, at the Customs Depot in

Johannesburg.

When goods are being airfreighted, customs clearance is performed at:

y Johannesburg or Cape Town International Airport, if an international

airline is being used

y Lanseria Airport in the case of small consignments from, for example

Zambia, DRC, etc.

BLNS Countries: As the BLNS countries (Botswana, Lesotho, Namibia andSwaziland) form part of the Southern African Customs Union, goods imported from

the BLNS states do not require a Bill of Entry and no customs duties are payable.

VAT is payable at the point of entry into South Africa on goods originating in BLNS states.

Customs procedure for samples

South Africa applies the ATA Carnet system for the entry of commer cial samples,

advertising material and professional equipment. Note that while goods imported on a

temporary basis for subsequent re-ex port are exempt from import control, ATA

carnets cannot confer immunity from other conditions of temporary importation.

Persons importing under cover of a carnet should ensure that the goods are adequately

marked for identification purposes so as to facilitate their passage through customs.

The purpose of the ATA Carnet

'ATA' is an acronym of the French and English words 'AdmissionTemporaire/Temporary Admission'. The ATA Carnet is an internationally recognised

and accepted uniform Customs document to allow for the temporary importation of

goods, whether accompanied or not, into a member country without the need to raiseCustoms bonds, payments of duty and the fulfilment of other Customs formalities in



one or a number of foreign countries. ATA Carnets are issued by affiliates of the

International Bureau of Chambers of Commer ce (IBCC) in Paris, France. The ATA

Carnet system is used by 51 authorised Chambers of Commer ce worldwide.

The ATA Carnet System

The ATA Carnet System was drawn up by the Brussels based Customs Cooperation

Council (CCC), now known as the World Customs Organisation (WCO), with the

assistance of the ICC's International Bureau of Chambers of Commer ce (IBCC) and issubject to International Conventions which govern the requirements for the temporary

duty-free admission of a reasonable number of goods from participating countries.

These international conventions are as follows:

y GATT Convention on Samples (1952)

y Fairs and Exhibitions Convention of the World Customs Organisation(WCO)(1961)

y Professional Equipment Convention of the World Customs Organisation

(WCO)(1961)

The advantages of using the ATA Carnet system

The ATA Carnet system eliminates the need for a Customs declaration, as the ATA

Carnet system gives instant recognition and acceptability by foreign Customs

Officials at border points thus avoiding the necessity for a deposit or guarantee by theforwarder and ex porter to the foreign country of temporary importation. It permits

commer cial or professional travellers to make Customs arrangements in advance

locally, quickly and at a predetermined cost.

It enables travellers the use of a single ATA Carnet for goods accompanied or

unaccompanied to visit an unlimited number of countries which will pass through

several Customs authorities during the course of one trip.

Users of the ATA Carnet document

Companies and individuals may apply for a Carnet.

y Travelling business/sales executives

y Technicians

y Fair exhibitors



y Postal traffic; and

y Livestock.

Conditions to be observed by the ATA Carnet holder

Goods imported under an ATA Carnet should not be sold. Such goods must be re-

ex ported by the ATA Carnet holder within the period approved for their temporaryadmission by the foreign Customs. It is therefore, particularly important to obtain the

correct Customs verification of entry and exit from each country visited. Failure to do

so may well lead to Customs duty and penalty or tax being imposed.

Note: The use of the ATA Carnet does not absolve the holder from observing theCustoms regulations of the countries that participate in the ATA Carnet system. For

example, in certain cir cumstances an import license may also be required.

Validity period of ATA Carnets and liability of ATA Carnets holders

The ATA Carnet is a temporary importation document and the holder must comply

with the Customs regulations of the country into which the goods are being imported.

Ex porters must take careful note of the authorised period of temporary importationallowed by Customs upon entry, as this may differ. It is usually 12 months for

commer cial samples, 6 months for exhibition goods and professional equipment, but

sometimes only a few hours or days for goods in transit through a country. If thestipulated period for temporary admission is exceeded, duties and penalty charges will

be payable even though proof of eventual re-ex portation is provided. Any suchcharges incurred will be the liability of the ATA Carnet holder.

It is also important to bear in mind that if any goods covered by an ATA Carnet aredestroyed, lost or stolen whilst in a foreign country, they will automatically become

liable for Customs duty. This will be the liability of the ATA Carnet holder. In

addition, the Carnet holder will also be responsible to the Chamber for any costs that

the Chamber may incur in meeting its obligation as guarantor.

If the ATA Carnet itself is destroyed, lost or stolen, a similar situation could well

arise. In this event the ATA Carnet holder should immediately notify the local policeand/or customs of the mishap and obtain a covering statement from them. An

application for a new ATA Carnet is then required.

The guarantee period



The primary purpose of the ATA Carnet is to give an acceptable guarantee to the

Customs authorities of a foreign country into which the goods are temporarilyimported, that all duties and taxes will be paid to them if the conditions under which

they allow these goods into their country, are breached. The Chambers of Commer ce

participating in the ATA Carnet system provide this guarantee to the Customs

authorities. It follows, therefore that the issuing Chamber must in turn receiveequivalent security from the ATA Carnet holder. The 31-month guarantee period is

essential, as this is the period during which the Chamber itself remains liable. There isof course no need for the security to be given 'at risk', throughout this period. If an

ATA Carnet is used for four weeks and is returned to the Chamber without delay and

found to be in order, a 'conditional discharge', may be given at the Chambers

discretion and the deposit/guarantee will be returned within a shorter time.

Importing

Regulations for importers

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South Af rica is a member of the World Trade Organization (WTO) and f ollows the

Harmonized System (HS) of import classification.

There is f ree exchange of trade between South Af rica and the other f our countries (Botswana, Lesotho, Namibia,

and Swaziland) comprising the Southern Af rican Customs Union (SACU). There will also be substantially f ree trade

between South Af rica and the European Union by 2008 as a result of a Free Trade Agreement. The Southern

Af rican Development Community (SADC) Free Trade Agreement should also allow the f ree exchange of goods

among the 14 countries of the region when it comes into f ull effect.

Click here f or the World Trade Organisation site

Click here f or the SADC Trade and Industry and Investment Review

Click here f or the South Af rican Department of Foreign Affairs SADC page

Traders are subject to exchange control approval, administered by the South Af rican Reserve Bank. The

Department of Trade and Industry is also empowered to regulate, prohibit or ration imports to South Af rica in the

national interest but most goods may be imported into South Af rica without restrictions.

Import permits are required only f or specific categories of goods and are obtainable f rom 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:

y Certain goods imported into South Af rica require an import permit, which may beobtained f rom the Director of Imports and Exports Control.

y The list of goods requiring import permits is specified each year in the annual Import

Control Program.y Permits are valid f or imports f rom any country.y Foreign Trade Zones: No Foreign Trade Zones or Free Ports are established in South

Af rica.y South Af rica uses the Harmonised System of Classification.y Samples are dutiable unless they are cut samples of cloth, leather, linoleum and

wallpaper in book f orm and not f or distribution as advertising matter. Samples thathave no commercial value because of mutilation in some way are also allowed duty-f ree access.



y The South Af rican Government has viewed countertrade as a second-best alternativeto be engaged in only when normal trade cannot be conducted.

y Bonded warehouses are available at various points of entry.y South Af rican banks can accommodate all international transactions and are situated

throughout the country.y General rebates of duty are available f or specific situations, and duties may be

rebated on goods on re-export.y The Reserve Bank plays a pivotal role in the economic and financial sectors.y Some imports may require permission f rom the Department of Agriculture, Health or

Environment Affairs.y Specific excise taxes are levied on alcoholic and non-alcoholic beverages, tobacco

and tobacco products, mineral waters, some petroleum products and motor vehicles.South Af rica is an adherent to the Customs Valuation Agreement negotiated under GATT/WTO. The dutiable value of goods imported into South Af rica is calculated onthe F.O.B. price in the country of export. In conf ormance with its WTO commitments,South Af rica has lifted import surcharges.