How To Calculate Customs duty In South Africa

Below is How To Calculate Customs duty In South Africa

Every single item which is imported into South Africa, no matter by what means of transport; airfreight, sea freight, courier, etc. is compelled to be customs cleared.

Customs Import Duty can be charged by Customs in three ways; namely “free”, “rated or specific” and “ad valorem”. Customs may also use a combination of rated and ad Valorem duty, called compounded duty. If the item is “free” this means that there is no import duty to be paid.

This is explained in more detail below

Type of Duty and Examples

Rated or Specific – 10 cents per square meter or 3 cents per dozen

Ad Valorem (Fixed percentages of the value) – 10% of the value of 25% of the value

Compound (combination of rated and ad Valorem duties applicable to goods mentioned in the same tariff heading) – 20% + 8 cents per kg or 50 cents per square meter less 20%

Furthermore, all import customs clearances attract Customs VAT.

Following is a detailed, yet simple illustration of how the relevant Duty & VAT is calculated.

Customs Duty & VAT
With the commodity and the customs tariff being a percentage. For eg., if the value of the goods as per the Commercial Invoice is ZAR1000.00, and the Duty is 20%, then the Customs Duty will be ZAR200.00

Additionally, is the Customs VAT is calculated as follows: Value of the goods on the Commercial Invoice (ZAR1000.00) + 10% = ZAR1100.00. This is known as the Added Tax Value (ATV) Then add to this the Customs Duty amount of ZAR200.00 and you get a total of ZAR1300.00 15% VAT is levied on this total amount = ZAR195.00

Customs VAT only (Free)
Commodities that are Duty-free, only pay Customs VAT, which is determined as follows: Value of the goods on the Commercial Invoice (ZAR1000.00) + 10% = ZAR1100.00. Previously mentioned, is the Added Tax Value (ATV) 15% VAT is levied on this total amount = ZAR165.00

Importers who are VAT registered vendors may claim this VAT amount back with their TAX return.

VAT on imported goods from BLNS – Where imported goods have their origin in Botswana, Swaziland, Lesotho, or Namibia (BLNS) and are imported from that country the Customs Value must not be increased by 10 percent.

What is the customs duty rate in South Africa?

10%

The statutory rate is currently 10% (except for most office machinery, as well as motorcycles, that attract duty of 5%).

Various provisions for a rebate of duty exist for specific materials used in domestic manufacturing.

How do I avoid customs charges in South Africa?

To avoid South African import duties, break the seal of the items before coming back.

If you arrive at the airport, for example, with a new phone still sealed in a box, you will be charged a customs duty even if it is yours.

Break the seal and place the item in a different bag out of the box.