Importers of products into South Africa are governed by the Exchange control regulations of the South Africa Reserve Bank. Under certain circumstances, importers may import products into South Africa without holding an importers license which are up to certain maximums.

You are entitled to import up to 3 shipments of products and make payment for these shipments without an importers permit if the transaction value is less than R20 000 up to a maximum of 3 times per annum. Once you exceed these maximums it is important to apply for an importers permit from SARS to avoid having your shipments held by the Port authorities and attracting penalties. In some cases where these maximum allowances are exceeded, the Port authorities may return your goods to the exporter and it would very much depend on your relationship with the exporter as to whether or not you would receive a credit for returned goods.

I am a small business which does not need to register as a VAT vendor because my turnover is below the threshold, do I still need to register for an import permit?

This question is often asked by small businesses and the simple answer is that in order to import for profit, you need to be registered as an importer and have an import permit from SARS. In order to obtain an import permit you are required to be a VAT vendor as you cannot apply for an import permit without a VAT number.

An application for an import permit takes approximately 14 days from date of filing your papers.

The following declaration which all private importers (importing in your name) explains the parameters and is required to be signed by a private importer.

In respect of private importers, only 3 consignments, imported for non-commercial purposes with a value not exceeding ZAR20 000.00 per consignment is permitted to be imported per calendar year without the importer having to register with customs. A signed declaration to this effect is required of the importer to substantiate this claim. Should the importer exceed any one of these thresholds, the importer is compelled to make an application to the Dept. of Customs & Excise for a customs code number failing which customs reserves the right to impose a penalty for the contravention of the Act and detain any current and future imports until such registration requirements are complied with.

What is the most cost effective way for me to pay for my imports?

Most small business pay for their imports by using a credit card and are charged a premium for the foreign exchange transaction by the bank handling the transaction. It may be a good idea for you to consider opening a CFC account with your bank.