Some of the questions importers ask most often about Customs duties, tariff classification, compliance, refunds, drawbacks and disputes.
If your question is not covered here, get in touch and we will answer it directly.
Many importers assume that because their goods were cleared successfully through Customs, the correct amount of duty was paid. Unfortunately, this is not always the case.
Incorrect tariff classification, valuation errors and failure to use available rebates or trade agreements can all result in unnecessary duty being paid. A specialist review can identify whether opportunities exist to reduce your duty liability or recover overpaid duties.
Yes, provided the legal requirements are met and the claim is lodged within the prescribed time limit.
Common causes of overpayment include incorrect tariff classification, incorrect Customs valuation, duty paid on goods that qualified for a rebate and failure to apply a preferential rate available under a trade agreement.
Typically, the supporting documents include:
Yes. Customs may conduct post-clearance audits and request supporting documentation for historic importations going back two years from the date the audit begins. Importers should therefore maintain comprehensive records and periodically review their Customs compliance.
Typically, we require:
Yes. A comprehensive Customs review identifies both opportunities to recover overpaid duties and areas where underpayments or compliance risks may exist, enabling businesses to manage those risks proactively.
A Tariff Determination is a formal decision issued by the Commissioner for Customs and Excise confirming the correct tariff classification of specified goods.
It provides certainty regarding future imports and can be used to support refund claims where goods were previously classified incorrectly.
Yes. You can formally apply for a Tariff Determination, which is a legally binding decision issued by the Commissioner confirming the correct classification of your goods and the duty rate that applies.
It also promotes consistent classification across the industry, so you pay the correct duty, no more and no less.
Every product can only have one correct tariff heading. However, identifying that heading is not always straightforward.
Tariff classification is governed by the General Rules for the Interpretation of the Harmonized System, the wording of the headings, legal notes and the Harmonized System Explanatory Notes.
As a result, different importers may sometimes classify identical or similar goods under different headings until the correct classification is determined.
Yes. Customs may take a different view of the correct tariff classification at any time.
This is why importers should periodically review their classifications, particularly where products have changed, legislation has been amended or new Customs interpretations have developed.
A Tariff Determination is often worthwhile where the classification is uncertain or commercially significant.
It can provide an official decision before importing a new product or settle uncertainty over goods that are already being imported.
Do not ignore it.
A Letter of Intent is issued by Customs where it proposes taking action, such as demanding additional duties or imposing penalties.
The importer is given an opportunity to respond before a final decision is made and the Letter of Demand is issued.
Do not ignore it.
Professional advice should be obtained as soon as possible. In many cases, the legal basis for the demand should first be carefully reviewed before deciding how to respond.
Yes. Depending on the circumstances, Customs decisions may be challenged through:
Customs routinely detains shipments to verify declarations. If Customs believes the declaration is incorrect, it may instruct the importer to amend it, pay additional duty and, in some cases, pay a penalty.
The importer will usually be given an opportunity to dispute the findings. Customs commonly issues a Letter of Intent first, which can be contested before a Letter of Demand is issued.
Yes. Customs can demand duty and penalties on shipments going back up to two years from the date of its query.
Where fraud or misrepresentation is involved, Customs may be able to review records going back as far as you have records.
A drawback allows Customs duties paid on imported materials or components to be refunded where those goods have been used in the manufacture of products exported, subject to the applicable legislative requirements.
Eligibility depends on:
A review of your operations can determine whether drawback opportunities exist.
An ITAC Drawback Permit authorises manufacturers to use certain drawback provisions available under the Customs and Excise Act.
The permit is generally required before drawback claims can be submitted.
Yes. Duty paid on imported goods may be recoverable where the goods are later exported, provided the relevant legislative requirements are met, such as registration under 521.00, and having a valid Permit from ITAC.
This may apply where imported materials are used to manufacture exported goods, or where imported goods are exported in the same condition.
This depends on the nature of the goods, how they are used and the relevant rebate provision.
A technical review is needed to determine whether a rebate or drawback applies.
Typically, supporting documentation may include:
Certain registrations, permits and compliance requirements must be in place before export.
Missing one of these steps may prevent the claim from succeeding, so eligibility and procedural requirements should be checked before the goods leave South Africa.
CRS provides specialist advice on issues including:
Yes. Obtaining advice before importing can help confirm the likely tariff classification, duty rate and any relevant Customs requirements before you commit to the shipment.
A Tariff Determination may also be appropriate where formal certainty is needed.
The supplier’s tariff heading may be useful background information, but it does not automatically determine the correct South African classification.
South African imports must be classified according to the technical characteristics of the goods, and applicable tariff, legal notes and interpretation rules as applicable according to South Africa law.
Yes. CRS can assess the proposed heading against the applicable classification rules, product information, legal notes and relevant Customs guidance.
Different importers sometimes use different headings for identical or similar goods, particularly where the classification is open to interpretation.
However, every product ultimately has one correct tariff classification.
Clearing agents provide an essential service, but complex tariff classification, valuation and compliance matters may require specialist Customs advice.
CRS works alongside the clearing agent rather than replacing them.
