How is customs duty calculated in south africa

Includes information on average tariff rates and types that U. Treaties South Africa applies Most Favored Nation MFN rates to imports from the rest of the world, as well as preferential rates applied to products originating from trade partners with which it has negotiated trade agreements.

SACU member states also apply identical excise duties and ad valorem customs duties as reflected in the relevant schedules of the respective member States Customs and Excise Acts. In support of this, member States also do not have rules of origin on trade among themselves. The SACU regime requires review, with the arrangement having often been described as complicated and haphazard.

Complexity South Africa reformed and simplified its tariff structure in Tariff rates have been reduced from a simple average of more than 20 percent to an average of 5. Notwithstanding these reforms, importers have complained that the tariff schedule remains unduly complex, with nearly forty different rates.

Tariff rates mostly fall within eight levels ranging from 0 to 30 percent, but some are higher e. The end rate for apparel is 40 percent, yarns 15 percent; fabrics 22 percent; finished goods 30 percent; and fibers, 7.

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. The bases in determining the correct duties and taxes payable on imported goods is set out in the following Customs areas:. All import and export transactions require declarations according to an appropriate tariff heading.

If you want to claim the duty, you can refer to refunds and drawbacks. Frequently Asked Questions. VAT on imported goods is paid on the Added Tax 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.