Importing to Africa means bringing something into Africa from another country. According to Section 34 of the EACCMA 2004, products for importation must be registered within twenty-one days of the start of release or, in the particular instance of cars. When announcing a shipment in customs law, the purchaser or settlement intermediary must collect all compulsory documentation.

Requirements for importing

Clearing manager 

The buyer must employ the assistance of a licensed tariffs settlement advisor. A settlement agent is responsible for processing customs papers in the customs framework and assisting with the clearance of products on your behalf.

Import duties payment

Duties are levied based on the worth of foreign goods. Shipped goods are subject to three types of duties: 

• Customs duties; 
• VAT; anti-dumping and 
• countervailing duties

Custom duties 

Import duty is the tariff levied on products as they travel across foreign boundaries. In layman’s words, it is the levy on commodities imported and exported. This liability is used by the authorities to increase earnings, protect local industries, and restrict the transport of goods. Customs charges are imposed on foreign goods to generate revenue. They are typically calculated as a percentage of the item’s value.

If the total worth of your products exceeds 500 ZAR, the customs duty on delivery will be 15%. For instance, if the proclaimed price of your merchandise is 500 ZAR, the beneficiary will be obligated to pay an extra amount of 75.00 ZAR in taxation.

VAT

VAT is leviable at the spot of import of goods into the country. Foreign-made items are subject to VAT at the same price as similar products sold in the region. 

South Africa presently has a VAT amount of 15%. To evaluate VAT on foreign goods, the ATV must first be calculated. This is calculated as follows: [(Customs Cost + 10% thereof) + (any non-rebated duties charged on the commodities)] x 15%= [ATV] x 15% = VAT amount due.

When products are purchased from a nation outside the Trading Bloc, a 10% surcharge on the total is applied in this calculation.

Counterbalancing duty and anti-dumping liability 

These charges are imposed on merchandise deemed to be “dumped” in South Africa, as well as on discounted foreign items. 

These commodities are the issue of valuation and export reward inquests in the home country. That is, the percentage levied will be determined by the findings of the inquests. The aforementioned key consideration decides the sum and kind of duty enforced on an item:

• The worth of the item;
• The weight or number of the products; and
• The tax classification of the products. 

Aside from these, the Miscellaneous Charges and Taxes Legislation of 2016 imposes a 3.5 percent import statement tax and a 2% railway advancement levy on the prices of imports.

Documents required for clearance of goods 

Any foreign-made items, such as a car, industrial equipment, or retail goods, must be cleared by a licensed customs clearance operative. When working with your preferred service advisor, always make sure to supply customs papers such as:

• Letter of Credit;
• List of products;
• Automobile Vehicle inspections Credential;
• Purchase contracts;
• Document showing tax identification number;
• Allowance for constricted goods;
• Invoice for cargo;
• Airway or sea cargo bill;
• A valid receipt from exporting company;
• An affirmation certificate.

The import duties settlement officer is then authorized to declare the products you are bringing into the country in the customs process.

Goods clearance procedure

After receiving the Pro-forma bill, the buyer must interact with a licensed clearing intermediary to file a shipping statutory declaration. Following that, the entity should submit the IDF to the provider for pre-shipment checking. The assigned clearing officer should issue a shipping document and a billing slip to the buyer. The importer pays the financial institution and provides the advisor with a formal bank invoice. 

The tangible document should be presented by the representative at the customs office where the products are residing for confirmation. All compliant statements are resolved and returned after confirmation.