Customs duty is a tax the government charges on imported goods. South Africa is part of the Southern African Customs Union (SACU), alongside Botswana, Lesotho, Namibia and Eswatini, and all five countries apply the same Customs duty rates. The rate that applies to your product depends on how it’s classified.
There are three types of Customs Duty:
Tariff classification is the process of categorising your product against a detailed list called the tariff. That list covers tariff chapters, headings and subheadings, the rules for rebates, refunds and drawbacks, and the applicable duty rates.
Classification is complex and follows international rules, but expert knowledge can uncover opportunities to reduce your duty costs relative to competitors. It also affects other duties and your eligibility for rebates, refunds and drawbacks. The tariff and its rules were created by the World Customs Organization (WCO), and South Africa and SACU adopted them on 1 January 1988.
Yes. Customs routinely detain shipments to verify declarations. If they believe yours is incorrect, they may instruct you to amend it and pay the additional duty, and a penalty may apply.
You’ll be given the chance to dispute their findings. Customs usually issue a Letter of Intent first, which you can contest. If it isn’t resolved, a Letter of Demand follows, requiring payment within a set period. The key is to respond to the Letter of Intent with a well-researched, fact-based argument supported by past determinations and Customs guides. We can handle that dispute for you.
Yes. You can apply for a Tariff Determination, a legally binding decision issued by the Commissioner that fixes the correct classification for your goods and the duty rate that applies. It also ensures consistent classification across the industry, so you’re paying the correct duty, no more, no less.
Yes. Customs aims to collect only the correct amount, but overpayments happen. Common causes include incorrect tariff classification, the wrong Customs value, duty paid on goods that qualified for a rebate, and a preferential rate under a trade agreement not being applied. If you’ve overpaid, you can apply to Customs for a refund. We identify and recover overpaid duty for importers.
