How to import products into South Africa: a step-by-step guide

Before you speak to a single supplier, find out whether your product falls under any South African regulation. This decides which suppliers can work for you, what testing and paperwork you need, and how long you must allow before you can sell.

• Electrical and electronic goods. Many need a Letter of Authority (LOA) from the National Regulator for Compulsory Specifications (NRCS) before they can be sold in South Africa. Applying takes time, so start early.
• Food and beverages. Expect labelling, health, and in some cases import permit requirements. The rules differ by product category, so confirm them before you place an order.
• Cosmetics, toys, and products for children. These often carry safety and labelling standards. Ask suppliers for test reports, and check them against South African requirements rather than only the country of origin.
• Restricted or controlled goods. Some goods, including certain used goods and chemicals, need an import permit from the International Trade Administration Commission (ITAC) or another department.

To clear commercial goods through customs in your own name, your business must be registered with SARS Customs as an importer. Registration runs through SARS's registration, licensing, and accreditation process, and once approved you receive a customs client number that appears on every import declaration.

Allow time for registration before your first shipment lands. Goods that arrive before you are registered can sit at the port, building up storage charges while the paperwork catches up.

South Africa's customs tariff is based on the international Harmonized System (HS). Every product is classified under a tariff code, and that code sets the rate of customs duty, along with any permits or special conditions that apply.

• Customs duty depends on the tariff code and the origin of the goods. South Africa generally calculates duty on the free on board (FOB) value, which is one reason it pays to understand Incoterms.
• Trade agreements can reduce or remove duty on goods from qualifying countries, provided you hold a valid certificate of origin.
• Import VAT is charged at the standard rate of 15%. For most imports it is calculated on the customs value plus a 10% uplift and any duty payable. VAT-registered businesses can usually claim it back as input tax.

Getting the classification right matters. An incorrect tariff code can mean paying too much duty, or too little, which leads to penalties when SARS corrects it. A licensed clearing agent can confirm the code before you commit to an order.

Online marketplaces make it easy to find hundreds of suppliers for almost anything. The hard part is telling a capable, honest manufacturer from a trading company with good photographs. Before you pay anyone, confirm that the business is registered, find out whether it is the actual factory, and check that it can make your product at the quality and volume you need.

Always order samples, compare them side by side, and approve a final sample in writing. That approved sample becomes the benchmark the bulk order is measured against. Our 10-point supplier vetting checklist covers each check in detail.

A good purchase order leaves nothing to interpretation. Before production starts, agree and record:

• The full product specification: materials, dimensions, colours, finishes, and tolerances.
• Packaging and labelling requirements, including South African labelling rules and your own barcodes.
• Unit price, quantity, and currency.
• The Incoterm and named place, for example FOB Ningbo Incoterms 2020, which defines who pays for and carries the risk of each leg of the journey.
• Payment terms. A deposit before production with the balance before shipment is common for new relationships; letters of credit offer more protection on larger orders.
• The production lead time, the inspection standard, and what happens if goods fail inspection.

Problems found in the factory can be fixed. Problems found in Durban usually cannot, or only at great cost. Stay in contact through production, and book an independent pre-shipment inspection once goods are finished and mostly packed.

Inspectors check a statistically valid sample against your approved sample and specification, using AQL sampling. Our guide to pre-shipment inspections and AQL explains how it works.

For sea freight, a full container load (FCL) gives you a container to yourself and is usually the most economical choice once you have enough volume. A less-than-container load (LCL) shares space with other shippers, which suits smaller orders but adds handling time at each end. Durban is South Africa's busiest container port and the natural point of entry for goods bound for KwaZulu-Natal and much of the country.

Whichever mode you choose, insure the cargo. Standard carrier liability covers only a fraction of the value of most goods.

Most importers use a licensed clearing agent, who submits the customs declaration to SARS electronically, arranges payment of duty and VAT, and coordinates release and delivery. Have these documents ready before the goods arrive:

• Commercial invoice showing the true transaction value
• Packing list
• Bill of lading (sea) or air waybill (air)
• Certificate of origin, if you are claiming preferential duty
• Any permits, LOAs, or test certificates your product requires

SARS may select a shipment for document review or physical inspection. Complete, consistent paperwork is the best way to keep that quick.

The factory price is only the start. Your landed cost is what each unit really costs once it is in your warehouse, and it is the only sound basis for pricing.

• Ordering in bulk without approving a sample first.
• Discovering regulatory requirements after the goods have landed.
• Guessing the tariff code, or under-declaring value to reduce duty, which is illegal and heavily penalised.
• Skipping the pre-shipment inspection to save a small fee.
• Paying a supplier's bank account that does not match its registered company name.
• Pricing products on the factory price instead of the landed cost.

Hurugo manages this whole process for businesses that want the benefits of importing without building an import department. We handle sourcing, procurement, and logistics through our partner network in Asia, Europe, the United States, and Africa, and we use the same process for our own brands, Soshida and Balvaro.