Country/Territory profiles

South Africa

Last update: October, 2024

Transparency and Predictability

1. Are laws and regulations published in official journal? (Art 1 TFA)
Yes (https://www.gov.za/documents/notices http://www.saflii.org/za/gaz/ZAGovGaz/)
2a. Is there an opportunity to comment on new regulations and changes to existing ones prior to implementation? (Art 2.1.1 TFA)
Yes (https://www.sars.gov.za/legal-counsel/preparation-of-legislation/draft-documents-for-public-comment/ https://www.sars.gov.za/legal-counsel/preparation-of-legislation/discussion-papers/ https://www.gov.za/documents/public-comment https://www.justice.gov.za/legislation/legprocess.htm)
2b. After the authorities have decided on new or changed regulations is there advance notice of the effective date (or a delayed effective date) to allow traders to make necessary changes and arrangements? (Art 2.1.2 TFA)
Yes (https://www.justice.gov.za/legislation/legprocess.htm )
3. Does Customs issue advance (pre-entry) rulings, binding on all Customs ports, on classification and valuation questions?
Yes (Advance rulings under the Customs and Excise Act - There are currently no provisions in the Customs and Excise Act, 1964 enabling the South African Revenue Service (SARS) Commissioner to issue advance rulings. It was proposed in the 2022 budget speech that an enabling framework for advance rulings be provided in the Act. Additionally there is currently an Advance Tax Ruling (ATR) system seeks to promote clarity, consistency and certainty about the interpretation and application of the applicable tax laws. Clarity and certainty on the Commissioner’s interpretation and application of the tax laws about proposed transactions can be obtained through a binding private ruling (BPR) or a binding class ruling (BCR). https://www.sars.gov.za/legal-counsel/legal-advisory/advance-tax-rulings-atr/)
4. Is there a public and regularly updated website available with
- a. Laws and regulations? (Art 1 TFA)
  Yes (https://www.gov.za/documents/notices https://www.gpwonline.co.za/GPWGazettes.htm https://www.sars.gov.za/legal-counsel/primary-legislation/)
- b. full description of all Customs procedures? (Art 2 TFA)
  Yes (https://www.sars.gov.za/customs-and-excise/)
- c. access to appeal procedure? (Art 2 TFA)
  Yes (https://www.sars.gov.za/individuals/what-if-i-do-not-agree/appeals/ Alternative Dispute Resolution:After submission of a valid appeal SARS and the taxpayer may, by mutual agreement, attempt to resolve the appeal through the Alternative Dispute Resolution (ADR) process specified in the rules. This process creates a framework within which appeals may be resolved by way of agreement or settlement. The ADR process is less formal and inexpensive than the court process and allows appeals to be resolved within a much shorter period. Furthermore, it creates a more cost-effective remedy for resolving tax appeals. The taxpayer must indicate in the Notice of Appeal whether he/she wishes to make use of the ADR procedures. SARS must, if satisfied that the matter is appropriate for ADR, inform the taxpayer accordingly within 30 days of the date of appeal. If the taxpayer did not indicate a willingness for ADR procedures, but SARS is satisfied that the appeal is appropriate, then SARS must inform that taxpayer accordingly within 30 business days. The taxpayer must within 30 days of receipt of such a notice inform SARS whether or not they agree to follow the ADR process. Should the ADR proceedings be terminated the taxpayer must within 20 days of such termination request the clerk of the tax board or registrar of the tax court to set the matter down for formal hearing. )
- d. all forms and documents required for import and export? (Art 2 TFA)
  Yes (https://www.sars.gov.za/find-a-form/)
5a. Are there other rules or procedures by Customs or any other government entity that in your experience restrict the operation of express delivery services in your country, such as:
- a. Restrict the use of clearance procedures for express items by weight, quantity or value? (Art 7.8.2c TFA)
  Yes (Courier consignments up to a value of ZAR50 000 can be cleared for EXPORT on a consolidated manifest. Import consignments up to a value of ZAR500 limited to (10KG and non-commercial goods) can be cleared on a consolidated manifest and on such manifest entry a flat rate duty charge of 20% will apply to the manifest value. Not all shipments are permitted to be cleared at a manifest level such as restricted commodities and which may be subject to other government agency clearance authorizations. Additionally goods subject to Excise tax are excluded from import manifest clearances)
- b. Other? Please specify:
5b. If the answer to Q5a-a is "yes", what is the
- a. weight
  10KG
- b. quantity
  10 + (As a note 10 or more of the same items are seen as commercial quantities. Sample policy also stipulate certain requirements and importers should check the SARS samples policy at www.sars.)
- c. and/or value (local currency / USD)
  ZAR50 000(approx. USD$3500) Exports/ZAR500 (Approx. USD$35) Imports (Shipments exceeding these values is subject to individual formal Import/Export entries and the associated regulatory requirements)
6. URL for Customs website
www.sars.gov.za

Customs Efficiency

1a. Does Customs accept and process electronically the data required for release of shipments in advance of their actual arrival so that they can be released either prior to or immediately after arrival? (Art 7.1 TFA)
Yes
1b. Can formalities for final clearance be completed through electronic means post-release?
Yes
2a. When are the following shipments typically released (WCO Immediate Release Guidelines)?
- a. Letters and Documents (Cat. 1 of IRG)
  Before noon (Depending on the time of submission and flight arrival. Shipments can be cleared prior to arrival )
- b. Low-value non dutiable items (e.g de minimis) (Cat 2 of IRG)
  Other (add remark) (For imports effective 1/9/2024 15% VAT is payable on ATV (Absolute tax value) on all low values under ZAR500 therefore Cat 2 is no longer applicable)
- c. Low value dutiable items (Cat. 3 of IRG)
  Before noon
- d. High value dutiable items (Cat. 4 of IRG)
  Before noon
3. Is physical release of goods separate from clearance? (Will Customs release goods prior to completion of all formalities and final settlement of accounts?) (Art 7.3 TFA)
Yes
4. Is full-time (24/7) automated processing for the customs ports at which you operate available?
Yes
5a. Are the official working hours of the Customs office and personnel adapted to commercial needs and applied at local level? (RKC Std 3.1)
Yes
5b. Are there fees for Customs services during normal working hours?
No
5c. Does Customs and other agencies provide clearance services outside of the official office hours?
Yes (https://www.sars.gov.za/wp-content/uploads/Ops/Policies/SC-CF-22-Special-and-Extra-attendance-External-Policy.pdf)
- and if so, is there a published set of fees?
5d. Will Customs provide dedicated clearance services away from the Customs office for a fee? (e.g. clearance at Express Consignment Facilities and Hubs)
No
6. For shipments arriving by air, does Customs inspect and release goods at the operator's facility or require their transfer to another facility? (Art 7.8.1a TFA)
Both
7a. Does Customs apply risk-management and risk-based selectivity to select items for documentary and/or physical examination? (Art 7.4 TFA)
Yes (SARS have a very well developed risk engine that factors in a number of risk elements to detmerine whether shipments will be selected for inspection. Certain commodities are designated for mandatory inspections and temporary exports/imports or reimports/rexports are usually subject to inspection to validate the serial numbersa and other unique identifiers)
7b. Does any other agency apply risk-management and risk-based selectivity to select items for documentary and/or physical examination? (Art 7.4 TFA)
Yes
8a. Are there multiple inspections (inspections by agencies other than Customs)?
Yes (Department of Agriculture Department of Health State Vet ITAC)
8b. Are they fully coordinated? (Art 8.1 TFA; RKC Std 3.35)
Sometimes / Other (add remark)
9a. Does the customs administration apply a de minimis regime that allows goods the value of which does not exceed a certain amount to be exempted from duties and taxes? (Art 7.8.2d TFA; RKC Std 4.13)
No (Whilst the 2014 Customs Legislation has made provision for a ZAR500 (approx. USD$35) de minimis there is no current formal de minimis. A consolidated manifest clearance for consignments up to ZAR500 with a flat rate of 20% duty charged is currently permitted. For imports effective 1/9/2024, an additional 15% VAT is payable on ATV (Absolute tax value) on all low values under ZAR500)
9b. If the answer above is "yes" what is that amount in local currency?
- What is the rough equivalent in USD?
  Not applicable
9c. Is de minimis based on intrinsic value (i. e. the cost of the goods without transport and insurance costs)?
Yes (When the 2014 provision is implemented it will be based on the intrinsic value as it does currently for the consolidated manifest entry)
9d. If the answer to 9a is "yes", are those goods subject to simplified procedures e.g. consolidated release/clearance or 'off manifest'? (Art 7.8.2a TFA)
Not applicable
10a. Does the customs administration apply an informal/simplified entry threshold that allows dutiable goods the value of which does not exceed a certain amount to be exempted from formal declaration procedures (WCO IRG Cat 3) e.g. as in the US for goods valued between $800 and $2500?
Yes
10b. If the answer above is "yes" what is that amount in local currency?
ZAR500 for imports and ZAR50 000 for exports
- What is the rough equivalent in USD?
  30 USD (USD$35 on imports USD$3500 on exports)
11a. Does Customs or any other agency require in connection with importation of goods that the importer provide any of the following items:
- a. a consular invoice or a consular visa for a commercial invoice or other trade document (as evidence that particular goods are of a particular origin, or have arrived in a particular importing country, or have been applied to a particular end use)?
  No
- b. a certificate from a pre-shipment inspection agency? (Art 10.5 TFA)
  No
- c. a certificate of origin from a chamber of commerce or similar agency?
  Yes (Where goods are treated under a preferential trade agreement a certificate of origin will be required to substantiate the origin once a certain value is exceeded)
11b. Does Customs or any other agency accept electronic supporting documents? (Art 10.2 TFA)
Sometimes (SARS as the customs entity will do so but other regulatory agency may require originals)
11c. Does Customs or any other agency accept scanned copies of supporting documents?
Other (add remark) (Sometimes originals must be provided but in general scanned documents are permitted)
12. Is the express carrier allowed to clear import shipments on behalf of the consignee without having to use a third-party licensed customs broker? (RKC Std 8.1)
Yes (Subject to the express carrier being registered as a customs broker with SARS)
13a. Are there processing fees for:
- a. express clearance?
  No
- b. on-site Customs facilities?
  No
- c. IT systems?
  No
- d. electronic transmissions by number or volume?
  No
- e. other?
  Yes (https://www.sars.gov.za/wp-content/uploads/Ops/Policies/SC-CF-22-Special-and-Extra-attendance-External-Policy.pdf State Vet )
13b. Are these fees based on the value of the goods? (Art 6.2 (ii) TFA)
No

Post-Release Processes

1a. Is there a limit on the time within which Customs is allowed to demand additional duties? (RKC Std 4.2)
Yes (Customs can audit up to 5 years post clearance including the imposition of additional duties and taxes were substantiated )
1b. If the answer above is "yes", what is the time limit?
5 years (Customs liabilities have a prescription period of 30 years)
2a. May decisions of local Customs officials be appealed to a higher administrative level? (Art 4 TFA)
Yes (https://www.sars.gov.za/legal-counsel/dispute-resolution-judgments/dispute-resolution-process/ https://www.sars.gov.za/customs-and-excise/offences-penalties-and-disputes/dispute-resolution/ https://www.sars.gov.za/wp-content/uploads/Ops/Guides/LAPD-TAdm-G06-Quick-Guide-on-Alternative-Dispute-Resolution.pdf )
2b. May decisions of local Customs officials be appealed to an independent court? (Art 4 TFA)
Yes (https://www.sars.gov.za/legal-counsel/dispute-resolution-judgments/tax-court/ )
2c. If the answer to either question 2a or 2b above is "yes" is there a time limit for filing such appeals?
Yes (for 2 (b) information pending.)
2d. If the answer to question 2c is "yes" what is the time limit?
30 days (30 days for 2 (a))
2e. If the answer to either question 2a or 2b is "yes", is there a time limit to rule on such appeals? (Art 4.4 TFA)
Yes (ADR: Finalise the ADR proceedings within 90 business days unless agreed otherwise. Where an agreement or settlement is concluded issue an assessment to give effect to thereto within a period of 45 business days after the date of the last signing of the agreement. Tax Board: The chairperson to issue a decision by the tax board within 60 business days after the conclusion of the hearing.The clerk to deliver a copy of the decision to the parties within 10 business days of receipt of the decision Issue the assessment to give effect to the decision of the tax board within 45 business days after the receipt of the decision of the tax board.)
2f. If yes, what is the time limit?
Other (add remark) (ADR hearings - finalise within 90 days Tax board - 60 business days after conclusion of the hearing )
3. Does Customs regularly use valuation databases with reference prices or other arbitrary uplifts to invoice values? (WCO Guidelines on the use of valuation databases)
No
4a. In case of seizures of illicit items (e.g. IPR), does Customs or any other agency require the express carrier to store the seized goods at its own premises and cost?
Sometimes / Other (add remark) (Whilist awaiting the colleciton of such goods the regulatory agency may required the express carrier to hold the goods in secure conditions until arrangements are finalised to collect them. )
4b. If the answer to question 4a is "yes", how long is the period that the carrier is required to store the goods?
Other (add remark) (It depends on a number of eternal factors and there are no stipulated time periods.)
4c. If the answer to 4a is yes, does Customs take care of the final disposition of the goods...
Yes (However in certain circumstance the authority based on the type of commodity instruct the express operator to arrange for legal destruction of the shipments/goods.)
- ...or is the express carrier required to destroy them?
  No (See comment above)

RKC

1. Signatory to the Revised Kyoto Convention (Customs Reform)
Yes (https://tfig.unece.org/contents/revised-kyoto-convention.htm https://www.wcoomd.org/-/media/wco/public/global/pdf/about-us/legal-instruments/conventions-and-agreements/contracting-parties-and-instruments/south-africa/za-200404-instrument-of-accession.pdf?la=en https://www.wcoomd.org/-/media/wco/public/global/pdf/about-us/legal-instruments/conventions-and-agreements/contracting-parties-and-instruments/south-africa/pg0074_ef.pdf?la=en )

TFA

1. TFA ratified?
Yes (https://tfadatabase.org/en/members/south-africa https://www.tfafacility.org/country/south-africa )
2. Has the country set up a National Trade Facilitation Committee?
Yes (https://unctad.org/system/files/non-official-document/TFC_ZA_EN.pdf)
- a. Who leads it?
  Jointly co-ordinated by the Department of Trade and Industry and the South Africa Revenue Services
- b. Is the private sector part of it?
  Yes (Curently comprising various private stakeholders including The National Economic Development and Labour Council (NEDLAC) – vehicle by which government comes together with organised labour, business and community groupings on a national level. The Committee has information sharing sessions with the private sector pre-COVID about twice a year and ad-hoc as and when required.)

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