Are you thinking about importing goods into South Africa? We have some helpful information regarding regulations and considerations to smooth the way.
In simple terms, imports mean the movement of goods from a foreign country to a domestic country. Re-imports mean the import of domestic goods which have already been exported from the domestic country to a foreign country.
Once you have done your research and found the perfect product abroad, you might feel excited, but also overwhelmed by the various rules and regulations for the countries that you want to import from. It would save you time and money to get advice from a company like Currency Assist that specialises in Forex trading.
GET THE PAPERS
You will need a commercial invoice to give Customs and Border Protection (CBP) a detailed description of what you are importing, the precise quantity, and the true financial value of your product. A Pro forma invoice will not be sufficient. The description of the goods being imported needs to be unambiguous, accurate, and specific. It is required that you not only state what you are importing but also indicate the materials it is made of, the size(s) and quantities of items, and the colours or brands if there are variables.
Some of the basic import documents that you need are:
- Clearing instructions to submit a valid customs clearance declaration (SAD500).
- Customs clearance declaration (SAD500) to ensure that imports are declared to SARS
- Commercial Invoice for SARS clearance into South Africa.
- Bill of Lading (sea)/Air waybill (air)/Road or Rail consignment note (road/rail) as proof that the carrier has the goods.
- Certificate of Origin (customs tariff payable depend on the trade agreements between South Africa and the particular country of origin of the imported goods.
GET THE CODE
Different materials are charged at different duty rates and a precise description will prevent uncertainty and hold-ups. Also, specify if the product is a sample, which SARS will verify. You need to register as an importer through the SARS website and receive an importer’s code with which you will be able to regularly import. The SARS customs code will be used by SARS to verify the accuracy of the declared price and you could be fined or legally prosecuted if anything is found to be under the value of its worth. If you do not want to import products more than three times a year, you may apply as an irregular importer.
Each country has its particular way of regulating imports, and sometimes rules and duty fees are even different for states or regions where the products are from. So the possibility exists that suppliers may under-declare the goods for importation which could land you in trouble. It is best to work with a clearing agent from the onset to keep them informed about the true value of the goods as reflected on your commercial invoice. Currency Assist is a good place to stop for expert advice before you embark on the import journey. This may prevent fines or delays that could leave your imports stranded!
GET PERMISSION
Import permits act to control imports and ensure that imports are in agreement with the local regulations for health, safety, and the environment. You will also have to declare flammable and other “Dangerous Goods” and have a Material Safety Data Sheet on hand before import. An import permit from the International Trade Administration Commission (ITAC) will be required before you will be allowed to import controlled goods, used goods, second-hand goods, waste, or scrap, excluding those products that are not authorised to enter South Africa:
- Second-hand vehicles
- Medicines that the medical control council has not approved
- Unlicensed plant material
- Specific animal products, e.g. hides and fur
- Some liquids are not allowed to be imported as air freight.
GET THE TRANSPORT
The noun “freight” is a variant of the original Dutch word “fraght”, or German “vracht/vrecht” and was first used in the early 1500’s to describe the “cargo of a ship”. At the same time, freight was used as a verb meaning “to load” and fraught later became freight, meaning to carry or transport (by ship in those days). The name “freight train” only emerged in the 1840s. Nowadays you can still transport your imports by sea or rail, but for urgent or less bulky products you have the options of road and air. Considerations such as the type of product, the distance, and cost will influence your choice of transportation, and if you need something urgently it is best not to make use of shipping, which can take about a month to arrive. Air shipments only take about 10 days and the cost can vary depending on the number of goods that need to be transported, as well as how much each of them weighs.
GET THE CALCULATOR
Airlines base the bill on calculating “chargeable weight” by combining the weight and size of a shipment. Sea carriers charge per container, but weight can also influence price, and you will have to take destination charges into consideration too. Trailer services by rail or road usually charge according to the distance that needs to be travelled, keeping in mind that trucks have a maximum load specification.
There will be customs and destination fees, and warehousing fees at seaports can be more expensive than expected. Get detailed quotes from a few shipping companies before you decideand only use respectable freight operators. Remember that your customs clearance declaration (SAD500) will be handed to SARS to scrutinize before they give permission and you will be liable for payment of relevant VAT and duties. These costs will be calculated by SARS every time you request import clearance for delivery.
GET THE SCHEDULE
Depending on the urgency of your delivery, the reliability can differ for each method of transport. Airlines are usually the most reliable, but ships can get delayed more often due to unforeseen circumstances, or cut-off times at a seaport. Preferably you should opt for companies that enable you to track your goods online.
GET THE TIPS
Contact us to talk to our experts about the most cost-effective and efficient way to transfer funds internationallywhenimporting goods into South Africa: https://currencyassist.co.za/
Currency Assist SA (Pty) Ltd is a registered financial services provider registered in South Africa authorised with the FSCA under FSP number 46057.