No matter how your goods enter South Africa, be it sea freight, air freight, courier or anything in between, they must be cleared through customs. There’s no way around it.
How Customs Duty Works
Customs duty isn’t one-size-fits-all. It’s calculated based on the tariff heading of the product and can fall into a few categories:
- Free – No import duty payable
- Specific (Rated) – A fixed amount (e.g. cents per kg, per unit, per m²)
- Ad Valorem – A percentage of the goods’ value (e.g. 10%, 20%, 25%)
- Compound Duty – A combination of both (e.g. 20% + R0.08/kg)
Don’t Forget VAT
Every import into South Africa attracts VAT, even if the duty is zero.
Here’s how it works in simple terms:
Example (With Duty)
- Invoice Value: R100
- Duty (20%): R20
Now calculate VAT:
- Customs adds 10% uplift → R110 (called the ATV – Added Tax Value)
- Add duty → R130
- VAT (15%) = R19.5
Example (Duty-Free Goods)
- Invoice Value: R1,000
- No duty
VAT:
- R100 + 10% = R110
- VAT (15%) = R16.5
Good News for VAT Vendors
If you’re VAT registered, you can claim the import VAT back on your return – so it’s not a final cost, just a cash flow consideration.