South Africa - International Franchise Association

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Chapter 5: Trade Regulations, Customs and Standards
• Import Tariffs
• Trade Barriers
• Import Requirements and Documentation
• U.S. Export Controls
• Temporary Entry
• Labeling and Marking Requirements
• Prohibited and Restricted Imports
• Customs Regulations and Contact Information
• Standards
• Trade Agreements
• Web Resources
Import Tariffs Return to top
As a result of the Uruguay Round in 1994, South Africa reformed and simplified its tariff
structure. Tariff rates have been reduced from a simple average of more than 20
percent to an average of 5.8 percent. 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 percent to 30 percent, but
some are higher (e.g. most apparel items).
Nearly all of South Africa’s specific and composite duties were converted to ad valorem
rates (a tax, duty, or fee which varies based on the value of the products, services, or
property on which it is levied), with a few exceptions remaining in a limited number of
sectors, including textile and apparel products.
In the Uruguay Round, South Africa agreed to a twelve-year phase-down process. The
end rate for apparel is 40 percent, yarns, 15 percent; fabrics, 22 percent; finished goods,
30 percent; and fibers, 7.5 percent. The effective rated duty rates on cars, light vehicles,
and minibuses is still at the high level of 34 percent, while the rate of duty on original
motor parts is 20 percent.
The dutiable value of goods imported into South Africa is calculated on the f.o.b. (free on
board) price in the country of export, in accordance with the WTO (ex-GATT) Customs
Valuation Code. The value for customs duty purposes is the transaction value, or the
price actually paid or payable.
In cases where the transaction value cannot be determined, the price actually paid for
similar goods, adjusted for differences in cost and charges based on distance and mode
of transport, is regarded as the transaction value. If more than one transaction value is
determined, the lowest value applies. Alternatively, a computed value may be used
based on production costs of the imported goods. In the case of related buyers and
sellers, the transaction value will be accepted if, in the opinion of the Commissioner for
Customs, the relationship does not influence the price, or if the importer shows that the