Rules of Origin

What's New?

  • 24 November 2016 - Calculation of National Currencies for the SACU-EFTA Trade Agreement

    In terms of Article 21 to Annex V of the SACU-EFTA Trade Agreement, amounts expressed in the national currencies equivalent to the amounts expressed in Euros shall be fixed annually by the parties concerned from the 1st January 2017 to 31st December 2017.

    The applicable rate of exchange for Euro amount as of 01 October 2016 is 0.063426 as per Article 29 (3) and shall be considered as a conversion rate for amounts expressed in Article 19 (1) (b) and Article 24 (3).

    Country
    Currency
    Rates of exchange
    Invoice Declaration (6 000 Euro)
    Traveller’s Personal Luggage (1 200 Euros)
    Small Packages
    (500 Euros)
    Republic of South
     Africa
    Rand
    0.063426
    R94 598
    R18 920
    R7883

 

  • 24 November 2016 - Calculation of the National Currencies for the SADC-EU-Economic Partnership Agreement (EPA)

    In terms of Article 34 of Protocol 1 to the SADC-EU Economic Partnership Agreement, amounts expressed in the national currencies equivalent to the amounts expressed in Euros shall be fixed annually by the parties concerned from the 1st January 2017 to 31st December 2017.

    The applicable rate of exchange for Euro amount as of 01 October 2016 is 0.063426 as per Article 29 (3) and shall be considered as a conversion rate for amounts expressed in Article 24(1) (b) and Article 29 (3).

     
    Country
    Currency
    Rates of exchange
    Invoice Declaration (6 000 Euro)
    Traveller’s Personal Luggage (1 200 Euros)
    Small Packages
    (500 Euros)
    Republic of South
     Africa
    Rand
    0.063426
    R94 598
    R18 920
    R7883

 

  • 24 November 2016 - Management of Cheese Quota under the provisions of the trade, development and co-operation (TDCA) between the European Union (EU) and the Republic of South Africa

    The letters SC-RO-01-L33 dated 14 May 2010 and SC-RO-01-L48 dated 31 May 2013 have reference.

    Article 15 paragraph 5 which refers to Annex VI list 4, provides for import quotas of cheese from the EU into South Africa. In Accordance with Notice 2904 of 1999 published by the South African National Department of Agriculture, the quota will be administered by SARS on a first-come-first-serve basis subject to a declaration on the EUR 1 certificate that the goods in question, namely Gouda (TH 0406.90.78), Cheddar (TH 0406.90.21) and processed cheese not grated or powdered (TH 0406.30) have not benefitted from any export refunds extended by the European Commission or EC Member State scheme.

    Reference is again made to the European Union Commission Regulation No 386/2008 of 29 April 2008, Article 1 and 2 of this regulation states that no export refunds shall be granted on the goods in question by the European Commission or EC Member States as from 30 April 2008.

    It is against this background that the declaration on the proof of origin (EUR 1 and invoice declaration) is no longer a requirement when cheese is imported into South Africa. The above-mentioned letters SC-RO-01-L33 dated 14 May 2010 and SC-RO-01-L48 dated 31 May 2013 are therefore withdrawn.

What are Rules of Origin?

Rules of origin are the criteria that are used to define where a product was made. They are an essential part of international trade rules because of policies that “discriminate” between exporting countries.
 
The origin of a product is used to determine the import duty payable and whether it is subject to an antidumping or countervailing duty. It is also used for the compilation of trade statistics and for “Made in …” Labels.
 
In other words, the origin of a product is important because it will determine how it is treated at the border of an importing country and the origin may impact on the import duty payable and admissibility into the country.
 
In addition, rules of origin may also determine whether goods are entitled to the payment of less or no Import duties. For this reason, there is a distinction between non-preferential and preferential rules of origin.
 
The non-preferential rules are applied for “Most-favoured Nation” (MFN) trade purposes (i.e. where goods are subject to the general rates of duty) and the preferential rules of origin are applied in the case of Free Trade Agreements and other preferential duty schemes (e.g. agreements where countries have agreed to eliminate or reduce import duties on goods produced in each other’s territories).
 
South Africa has signed a number of trade agreements with its trading partners in the past few years, including the TDCA, SADC and EFTA trade agreements. More information on these and other trade agreements can be found under Trade Agreements.

Apart from trade agreements, South Africa also benefits from other international instruments or agreements, such as the African Growth and Opportunity Act (AGOA) and the different Generalized Systems of Preferences (GSPs), of which you will find more information under Other International Agreements. 

For additional information, email rulesoforigin@sars.gov.za.

 

Last Updated: 24/02/2017 11:34 AM     print this page
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 Top FAQs

AGOA - What proof of origin must be submitted by an importer in the USA for goods exported from South Africa under the AGOA arrangement? Would a Form A be issued for such exports?
Under the African Growth and Opportunity Act (AGOA) Customs in South Africa only issue visas for clothing and textiles.For this purpose Customs will include the visa stamp on the invoice which is then presented to the US Customs

Origin - Are there any user guides available on rules of origin?
The following documents pertaining to matters of preferential origin is available on the SARS website www.sars.gov.za:i) Guide to understanding preferential origin.

Origin - Do all products have an origin?
It is a requirement of Section 39 that importers and exporters must submit a Customs declarations for goods imported or exported in the prescribed form and providing the particulars as indicated thereon.

Origin - How does Preferential Duty work?
Preferential duties are in essence a means between parties to promote trade with each other in products originating in their respective countries.

Origin - How would an importer go about to claim a preferential rate of Customs duty on goods imported under a trade agreement?
On importation of goods importers will declare goods in compliance with origin criteria at the preferential rate of Customs duty provided in Schedule 1 instead of the general rate which is applied to non-preferential trade.