FAQ

  • WHAT ARE INCOTERMS?

    An incoterm represents a universal term that defines a transaction between importer and exporter, so that both parties understand the tasks, costs, risks and responsibilities, as well as the logistics and transportation management from the exit of the product to the reception by the importing country. Incoterms are all the possible ways of distributing responsibilities and obligations between two parties. It is important for buyer and seller to pre-define the responsibilities and obligations for transport of the goods.

    Here are the main responsibilities and obligations:

    • Point of delivery: here, the incoterms defines the point of change of hands from seller to buyer.
    • Transportation costs: here, the incoterms defines who pays for whichever transportation is required.
    • Export and import formalities: here, incoterms defines which party arranges for import and export formalities.
    • Insurance cost: here, incoterms define who takes charge of the insurance cost.

    Download our PDF easy reference guide HERE.

  • HOW IS VAT CALCULATED ON IMPORTED GOODS?

    VAT on imported goods is paid on the Added Tax Value (ATV) and this is determined as follows:

    Customs Value, plus any duty levied on the goods, plus 10 per cent of the Customs Value.

    VAT on imported goods from BLNS – Where imported goods have their origin in Botswana, Swaziland, Lesotho or Namibia (BLNS) and are imported from that country the Customs Value must not be increased by the 10 percent.

    Customs Value, plus any duty levied on the goods.

    The rate payable for VAT, calculated on the ATV increased from 14% to 15% from 1 April 2018.

  • HOW ARE THE DUTIES CALCULATED FOR GOODS THAT HAVE BEEN IMPORTED?
    All items that are cleared through Customs are determined by a tariff heading (classification of the item). Once this has been done the rate of duty applicable for the item will apply. This is usually a percentage of the Customs value.
  • DO I NEED TO REGISTER AS AN IMPORTER IF I BUY PERSONAL GOODS FROM ABROAD E.G. FROM AMAZON?

    No, you don’t have to register as an importer if you meet certain conditions.

    Personal goods can be cleared with Customs under the generic code 70707070. However, you must meet the following conditions:

    • You are allowed only three transactions (of less than R50 000 each) during any calendar year
    • You are only allowed to import goods for home consumption or personal use, not for resale or any other business
    • You must be located in South Africa
    • Your identity number/ Passport number or taxpayer reference number must be entered in the field provided in the declaration form.

    Should the purchase falls outside these limitations, you will have to register and obtain an importer or exporter code.

  • I WANT TO IMPORT MY PERSONAL EFFECTS AND/OR HOUSEHOLD GOODS. WHAT DO I REQUIRE?

    The goods or effects may be imported into the RSA without the payment of customs duty and VAT in terms of rebate item 407.06 of Schedule No. 4 to the Customs and Excise Act, provided that you have been out of the Republic of South Africa for a period of 6 months or longer.

    The following will be required for the importation of personal effects and household goods:

    • Inventory of the goods
    • Form P1.160 – Declaration in respect of unaccompanied manifested household effects
    • Form DA 304 – Item 407.06 of Schedule No. 4 to the Customs and Excise Act
    • SAD 500 – Customs Declaration Form
  • WHAT IS THE DIFFERENCE BETWEEN DEMURRAGE, STORAGE, DETENTION & OVERSTAY?

    The definition of these terms varies from country to country , however, in SA in an FCL context demurrage and storage are the same, it refers to cost of storing the container at either the port or other facility, and is billed at a fixed rate by the shipping line. Usually 4 free days are allowed after vessel discharge, and is not negotiable.

    Detention on the other hand, relates to equipment (while the container is empty after unpacking or before packing). 5 days free time is standard, however, additional free days can be negotiated with the line. Detention is usually billed at a flat rate per in USD.

    Overstay usually refers to the process of moving uncleared containers into a customs bonded/authorised depot for storage purposes till the consignee is ready to clear the container and take delivery.This is generally done after the expiry of the standard free days offered at the port of discharge and carried out by the shipping line.

  • WHAT IS THE DIFFERENCE BETWEEN DEMURRAGE, STORAGE, DETENTION & OVERSTAY?

    The definition of these terms varies from country to country , however, in SA in an FCL context demurrage and storage are the same, it refers to cost of storing the container at either the port or other facility, and is billed at a fixed rate by the shipping line. Usually 4 free days are allowed after vessel discharge, and is not negotiable.

    Detention on the other hand, relates to equipment (while the container is empty after unpacking or before packing). 5 days free time is standard, however, additional free days can be negotiated with the line. Detention is usually billed at a flat rate per in USD.

    Overstay usually refers to the process of moving uncleared containers into a customs bonded/authorised depot for storage purposes till the consignee is ready to clear the container and take delivery.This is generally done after the expiry of the standard free days offered at the port of discharge and carried out by the shipping line.

  • WHAT IS MARINE INSURANCE?

    Marine Insurance is a type of insurance that covers cargo losses or damage caused to ships, cargo vessels, terminals, and any transport in which goods are transferred or acquired between different points of origin and their final destination. Providing protection against transport-related losses, this voyage policy provides a haven for shipping companies and cargo owners because it protects them from costly potential losses while transporting goods by water.

  • WHAT IS AN MSDS?

    A Material Safety Data Sheet (MSDS) is a document that provides health and safety information about products, substances or chemicals that are classified as hazardous substances or dangerous goods.

    MSDS’s provide information on:

    • the manufacturer or importing supplier
    • the product (e.g. its name, ingredients and properties)
    • how the product can affect people’s health
    • precautions for using or storing it safely