Tariff

What’s New

1 July 2024 – Tariff Determination search engine

The SARS Tariff Determination enhancement project, which includes the publication of Tariff Determinations is divided into two phases: the first phase involves the online processing, issuing and publication of new applications by relevant internal users only, the publication will exclude old cases which were finalised before the implementation of the new system in May 2024. Traders will not be able to submit applications electronically as yet. Electronic submission of new applications by traders will follow in the second phase of the project which is planned for around September 2024. The abridged version of the finalised tariff determinations can be viewed via our search engine from the 1st of July 2024.

What is it?

Top Tip: Click here to access the Tariff Book which consist of the Schedules to the Customs & Excise Act, 1964.  

All import and export commercial transactions require commodities on Customs declarations to be classified according to an appropriate tariff heading. The tariff classification code is directly linked to the rate of duty payable on that commodity. Classification operates as part of the international Harmonised Commodity and Coding System, under the WCO Harmonised System Convention.  

Tariff classification of goods is one of the more complex issues under the Customs and Excise Act. Tariff classification relates to the proper classification of goods within the Harmonized Commodity Description and Coding System (tariff book). The Tariff Book indicates the normal customs duties (Schedule No 1, Part 1), excise duties (Schedule No 1, Part 2A), ad valorem duties (Schedule No 1, Part 2B), anti-dumping duties (Schedule No 2, Part 1) and countervailing duties (Schedule No 2, Part 2) that would be payable on importing goods into South Africa. Tariff classification of goods also determines the necessity for import control permits, the rules of origin obligations, and the applicability of any customs rebate provisions.  

The World Customs Organisation (WCO) issued the general rules of interpretation that are used as a guide in the correct classification of goods. It is crucial for an importer to have sufficient knowledge of these rules to ensure the correct classification of imported goods. It is important to ensure that an importer has a proper description of goods before the goods are imported into South Africa as the tariff code identified has to be inserted on the customs declaration. The customs duties and VAT payable will be calculated based on the rate of duty dictated by the specific tariff code. Failure to correctly classify goods within the tariff book could result in either under or over payment of Customs Duties and Value-Added Tax (VAT) on importation.  

In cases where the tariff classification of goods is complex, i.e. the goods could easily be classified under two tariff headings or there is no clearly identifiable appropriate tariff heading, it is the duty of the importer to approach the local SARS office and apply for a written tariff determination. If you do not agree with the Tariff , you can follow the dispute process.