Understanding customs duty is essential for anyone importing goods into South Africa. This guide explains how duty works, how rates are determined, and how to calculate your total import costs.
What is Customs Duty?
Customs duty is a tax levied by SARS on goods entering South Africa from another country. The duty rate depends on the type of product, determined by its HS code classification.
Duty is one of several costs that make up the total landed cost of imported goods, alongside freight, import VAT, port charges, and clearing agent fees.
How Duty Rates are Determined
Every product is classified under the Harmonised System (HS) using an 8-digit tariff code. South Africa's tariff schedule (Schedule 1 of the Customs and Excise Act) assigns a duty rate to each code.
Rate Types
- Ad valorem — A percentage of the customs value (e.g., 25% on the value)
- Specific — A fixed amount per unit (e.g., R5 per kilogram)
- Mixed — Combination of ad valorem and specific rates
- Free — 0% duty
Common Duty Rates
| Product Category | Typical Duty Rate | HS Code Chapter |
|---|---|---|
| Electronics (phones, laptops) | 0% | 85 |
| Machinery | 0-10% | 84 |
| Vehicles (passenger) | 25% | 87 |
| Clothing/Garments | 40-45% | 61-62 |
| Textiles (fabric) | 22-30% | 50-60 |
| Furniture | 20-30% | 94 |
| Footwear | 30-40% | 64 |
| Plastics | 0-15% | 39 |
| Food products | 0-30% | Various |
| Pharmaceuticals | 0% | 30 |
| Steel | 0-10% + anti-dumping | 72-73 |
These are indicative rates. Actual rates depend on the specific HS code.
How to Calculate Customs Duty
Step 1: Determine the Customs Value
The customs value is typically the CIF value (Cost + Insurance + Freight):
- Product cost (as per commercial invoice)
- Plus international freight charges
- Plus insurance charges
Step 2: Apply the Duty Rate
Duty payable = Customs value × Duty rate
Example: R200,000 CIF value × 25% duty rate = R50,000 customs duty
Step 3: Calculate Import VAT
SARS uses the Added Tax Value (ATV) to calculate import VAT. The ATV includes a 10% uplift on the customs value:
ATV = (Customs value + 10% uplift) + Duty
VAT = ATV × 15%
Example: ATV = (R200,000 + R20,000) + R50,000 = R270,000
VAT = R270,000 × 15% = R40,500
The 10% uplift does not apply to goods from SACU countries (Botswana, Lesotho, eSwatini, Namibia).
Total Duty + VAT = R90,500
Duty Reduction Mechanisms
Trade Agreements
SA has preferential trade deals that reduce duty on qualifying goods:
- SADC Free Trade Area — Reduced duty for SADC member states
- EU Economic Partnership Agreement — Preferences for European imports
- SACU — Zero duty between SA, Botswana, Lesotho, eSwatini, Namibia
- AGOA — US trade preferences
Rebates and Drawbacks
- Industry-specific rebates for manufacturers using imported inputs
- Duty drawback on re-exported goods
- Schedule 3 and Schedule 4 rebate provisions
Bonded Warehousing
Defer duty payment by storing goods in a bonded warehouse until they're needed.
Anti-Dumping and Safeguard Duties
Additional duties may apply when ITAC determines that imports are:
- Being sold below fair market value (anti-dumping)
- Causing injury to local industry (safeguard)
Products commonly affected: certain steel products, chicken, textiles, and specific Chinese manufactured goods.
FAQ
Can I claim back import VAT?
If you're a registered VAT vendor, import VAT is claimable as input VAT on your VAT return.
What happens if I pay too much duty?
You can apply for a duty refund through SARS if you were overcharged due to incorrect classification.
Who calculates the duty?
Your clearing agent (V & S Freight) determines the correct HS code and calculates the applicable duty. SARS verifies the calculation.