SARS

The South African Customs Administration plays an integral role in the facilitation of movement of goods and people entering or exiting the borders of South Africa. Our vision is to offer a world-class Customs service which contributes to the stability, health and prosperity of the country, region and world.

All import and export commercial transactions require commodities on Customs declarations to be classified according to an appropriate tariff heading. The tariff classification code is directly linked to the rate of duty payable on that commodity. Classification operates as part of the international Harmonised Commodity and Coding System, under the WCO Harmonised System Convention.  

Tariff classification of goods is one of the more complex issues under the Customs and Excise Act. Tariff classification relates to the proper classification of goods within the Harmonized Commodity Description and Coding System (tariff book). The Tariff Book indicates the normal customs duties (Schedule No 1, Part 1), excise duties (Schedule No 1, Part 2A), ad valorem duties (Schedule No 1, Part 2B), anti-dumping duties (Schedule No 2, Part 1) and countervailing duties (Schedule No 2, Part 2) that would be payable on importing goods into South Africa. Tariff classification of goods also determines the necessity for import control permits, the rules of origin obligations, and the applicability of any customs rebate provisions.  

The World Customs Organisation (WCO) issued the general rules of interpretation that are used as a guide in the correct classification of goods. It is crucial for an importer to have sufficient knowledge of these rules to ensure the correct classification of imported goods. It is important to ensure that an importer has a proper description of goods before the goods are imported into South Africa as the tariff code identified has to be inserted on the customs declaration. The customs duties and VAT payable will be calculated based on the rate of duty dictated by the specific tariff code. Failure to correctly classify goods within the tariff book could result in either under or over payment of Customs Duties and Value-Added Tax (VAT) on importation.  

In cases where the tariff classification of goods is complex, i.e. the goods could easily be classified under two tariff headings or there is no clearly identifiable appropriate tariff heading, it is the duty of the importer to approach the local SARS office and apply for a written tariff determination. If you do not agree with the Tariff , you can follow the dispute process.

What are Customs Duties and Taxes?

Customs duties are imposed by the Customs and Excise Act 91 of 1964. They are levied on imported goods with the aim of raising revenue and protecting the local market. They are usually calculated as a percentage of the value of the goods (set in the schedules to the Customs and Excise Act). However meat, fish, tea, certain textile products and certain firearms attract rates of duty calculated either as a percentage of the value or as cents per unit (for example, per kilogram or metre).

Additional ad valorem excise duties are levied on a wide range of luxury or non-essential items such as perfumes, firearms and arcade games. See the SE-ADV-02 – Ad Valorem Excise Duty – External Policy.

The bases in determining the correct duties and taxes payable on imported goods is set out in the following Customs areas:

Tariff;

Valuation (value); and

Origin.