South Africa - International Franchise Association

transaction value approximates the value of identical or similar goods imported at or
about the same time.
Dutiable weight for the assessment of specific duties is the legal weight of merchandise,
plus the weight of the immediate container in which the product is sold, unless specified
otherwise in the tariff.
The value-added tax (VAT) is 14 percent. VAT is payable on nearly all imports.
However, goods imported for use in manufacturing or resale by registered trades may be
exempt from VAT.
Specific excise duties are levied on tobacco, tobacco products, and petroleum products.
Duties on alcoholic beverages are set at fixed percentages of the retail prices.
Ad valorem excise duties are levied on a range of “up market” consumer goods. The
statutory rate is currently ten percent (except for most office machinery, as well as
motorcycles, that attract duty of five percent).
Various provisions for rebate of duty exist for specific materials used in domestic
manufacturing.
The importer must consult the relevant schedules to the Customs and Excise Act to
determine whether the potential imports are eligible for rebate duty. Information can be
found on the International Trade Administration Commission of South Africa’s website at:
www.itac.org.za
Trade Barriers Return to top
U.S. companies have cited protective tariffs as a barrier to trade in South Africa. Other
barriers to trade often cited include port congestion, technical standards, customs
valuation above invoice prices, theft of goods, import permits, antidumping measures,
IPR crime, an inefficient bureaucracy, and excessive regulation.
For additional information on trade barriers for the Southern Africa Customs Union that
includes South Africa, please see the National Trade Estimate Report on Foreign Trade
Barriers published by the Office of the U.S. Trade Representative at:
http://www.ustr.gov/Document_Library/Reports_Publications/Section_Index.html
In a 2008 ruling, the South African Supreme Court of Appeal upheld rulings by the
Competition Tribunal in favor of local soda ash producers and against the American
Natural Soda Ash Company (ANSAC). According to the court ruling, ANSAC admitted
that its membership agreement eliminates price competition between its members in
export sales to South Africa. ANSAC has agreed to pay an administrative penalty and
cease exports to South Africa. The agreement does, however, allow the constituent
members of ANSAC to continue trading in South Africa. While the penalty and market
size is negligible for ANSAC, this may constitute a possible international precedent in
relation to price fixing. South Africa is the only developing country that has effectively
prohibited ANSAC.
The International Trade Administration Commission (ITAC) is tasked with administering