How To Start Import Export Business In South Africa

How To Start Import Export Business In South Africa

What is Import and Export?

Imports lead to an outflow of funds from the country since import transactions involve payments to sellers residing in another country. Exports are goods and services that are produced domestically, but then sold to customers residing in other countries.

How To Start Import Export Business In South Africa

1. Get your business basics in order

Anyone starting a business in the 21st century needs to cover certain bases, like creating a website as well as social media channels like Facebook, Twitter, and a host of others.

So here’s your first step: Get the basics in order. This means registering your business with the state in which your headquarters will be located, registering a domain name, getting any business licenses you need to legally operate, and so on.

2. Pick a product to import or export

The next step in starting an import/export business is to find a product or industry you are passionate about and that you think could sell in international markets.

For Cuffe, that product turned out to be wine. She felt a connection to the product not just from a quality and taste standpoint but from a social justice standpoint as well.

3. Source your suppliers

Once you have a product you’d like to trade internationally, you need to find a local manufacturer or other producer that makes your product and can lead to a strong partnership. A good relationship with a supplier is crucial to long-running success in an imports/exports business.

4. Price your product

You know what product you want to work with and you’ve identified your target market. Next up, figuring out how much to charge.

Typically, the business model on an imports/exports business includes two key understandings: the volume of units sold, and the commission made on that volume.

5. Find your customers

Next up on how to start an imports/exports business? Finding customers to sell to.

Deciding on a market is not the same as finding your customers. You can’t just send your products to the Port of New York and start selling your wares on the docks to whoever walks by. You usually need to find distributors and clients who will take on your product and sell to others.

6. Get the logistics down

Perhaps the most complex aspect of importing and exporting is the logistics of taking a product created somewhere and selling it somewhere else. How does the product make the trip from the vineyard of South Africa to the wine glasses of drinkers in California, for example?

“When you are operating within a supply chain where your customer is different than your client, which is different than your consumer, it requires an extraordinary amount of coordination,” says Cuffe. “I use a freight forwarder that on my behalf reaches out to shipping lines, like Maersk.”

Frequently Asked Questions (FAQs).

Can I start a import export business in South Africa?

One of the more essential requirements to start an Import and Export business is obtaining Import Export Code (IEC) Registration. IEC is required in all cases except in case of a restricted or prohibited group of Goods or Services.

How do I get a SADC certificate?

To order SADC certificates you must be registered as an exporter under the SADC Free Trade Agreement. If you already have an import export license but you are not registered as a SADC exporter, your existing export registration must first be amended.

What are the five major exports of South Africa?

Chief exports include corn, diamonds, fruits, gold, metals and minerals, sugar, and wool. Machinery and transportation equipment make up more than one-third of the value of the country’s imports.

What is South Africa’s biggest export?

Exports The top exports of South Africa are Gold ($13B), Platinum ($11.9B), Coal Briquettes ($6.37B), Cars ($5.19B), and Diamonds ($4.75B), exporting mostly to China ($11.9B), United States ($10.2B), India ($7.88B), United Kingdom ($7.51B), and Germany ($6.93B).

How can I get export license in South Africa?

If you need to export goods or services, a onetime registration procedure is being completed in most of the countries. Such export license may be obtained from concerned government department if required in Philippines. You should enlist your business with the Department of Trade and Industry (DTI).

What does SA import the most?

South Africa main imports are: machinery (23.5 percent of total imports), mineral products (15.1 percent), vehicles and aircraft vessels (10 percent), chemicals (10.9 percent), equipment components (8.1 percent) and iron and steel products (5.3 percent).

How much is import duty in South Africa?

How is VAT calculated on imported goods? The 10% mark-up on the customs value in this calculation is applicable when goods are imported from a country outside the Customs Union.

How much is custom clearance fee in South Africa?

Customs clearance (Handling fee): A customs clearance fee of R50,10 is charged on all incoming parcels and R25,85 on all other postal items. This fee is charged by the Post Office to cover costs incurred in clearing the parcel/postal item on behalf of the addressee.

How long do parcels take to clear customs in South Africa?

The estimated time that it takes for an exported package to clear South African customs is 5 days. The imported items could take three or more days to clear customs.

What does South Africa export to Germany?

The main products that South Africa exported to Germany were Cars ($2.42B), Platinum ($906M), and Precious Metal Ore ($900M). During the last 25 years the exports of South Africa to Germany have increased at an annualized rate of 5.2%, from $1.95B in 1995 to $6.93B in 2020.