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Foreword
Contents
Value proposition
The benefits of the new system included reducing border turn-around time from two hours to six minutes on average and reducing inspection time from eight hours to two hours on average. There is better security and risk detection which will help SARS to protect South African businesses. The digital network will promote trade within Africa, and improve the competitiveness of the South African economy. Deferment of payment scheme A deferment scheme is available to qualified importers that allow the deferment of applicable import duties, and VAT. Payment is generally deferred for 30 days with seven days to settle the account. No locally manufactured goods, (duties and levies) may be deferred under this scheme. To apply for deferment, importers may apply to the local Customs Controller. Required documentation includes: • Application for deferment. • Statement of income. • Balance sheet. The local controller will make its recommendation to the Commissioner. Following approval, the applicant will be required to submit additional documentation, including a signed agreement and any required surety bond.
Fast facts and quick stats about South Africa
General information about South Africa
South Africa: An economic overview
Duty drawback scheme A duty drawback scheme provides refunds for import duties paid on materials used in the production of goods exported. Manufacturers may apply for refunds after the final product is exported. Manufacturers must provide proper documentation to reconcile imported materials with exports. Bonded warehouses Secure bonded warehouse facilities are available at all points of entry and may be used to store imported goods without payment of duties until required for use, resale, or re-export. Goods withdrawn from a bonded warehouse are liable for the duty applicable only if cleared out of bond for home consumption. Goods may be stored for no more than two years. However, the new customs legislation proposed a reduced storage period of 12 months only (i.e. one year).
Regulatory Foreign trade requirements in South Africa
South African taxation
Incentives and industrial financing
Contacts in South Africa
Acronyms and abbreviations
Imported materials must be used within 12 months. This facility is exclusively export driven, and to qualify manufacturers must have secure facilities on their premises for the storage of dutiable materials. The designated area is subject to inspection by Customs. It is recommended that building plans be submitted to Customs prior to construction to ensure that all requirements are met. Upon approval, manufacturers are also required to provide a surety bond. The bond amount is usually determined in consultation with SARS. The entire process can take from two weeks to two months, depending on the length of time required to obtain the bond.
Addendums: Indicative costs and other practical aspects of doing business and living in South Africa
Clearing agents Clearing agents/customs brokers are available throughout South Africa to attend to all formalities necessary for the clearance of goods through Customs, including any required permits, documentation, payment of duties, port charges, forwarding and transport costs. Customs duty planning Customs duty planning can provide significant savings for businesses locating to South Africa whether through immediate reduction in amounts of customs duty payable, improved cash flow, or by streamlining procedures and reducing overhead costs.
Manufacturing under rebate programme: SARS also administers a programme for manufacturing under rebate, whereby manufacturers may claim a rebate on imported materials used in the production of goods for export. The objective from a SARS perspective will be to ensure that materials imported are used in the manufacturing, packing, finishing or equipping of goods for export and that control measures are in place to ensure that the manufactured products are exported.
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Beyond auditing
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