Export Regulations. These are sanctioned by governments to regulate exports for a number of reasons amongst which are health, environment and strategic

Export Regulations

Export Regulations

These are sanctioned by governments to

regulate exports for a number of reasons amongst which are health, environment and strategic values.

Health

• In order to prevent spread of desease infection as a result of contaminated products being exported to other countries governments may impose certain restrictions.

• Exporters may therefore need to obtain health certificate (phytosanitary certificate) before an export is effected.

Health... • This control is done through the

issuance of export permit by the exporting country and import permit by the importing country.

• This is usually applicable for the export of meat and other animal by products which are susceptible to disease infection that may pose as a health risk in the importing country.

Environment• Some importing countries

would like to request an importer to produce documentary evidence that shows that the product was produced in conformity with environmental requirements.

Strategic Values

• A government may sometimes wish to control the export of certain products due to their strategic values such as endangered species e.g. Mulanje cedar, diamonds and other rare products and items.

Trade with South Africa

• South Africa is a member of the World Trade Organization (WTO) and follows the Harmonized System (HS) of import classification.

• Traders are subject to exchange control approval, administered by the South African Reserve Bank. The Department of Trade and Industry is also empowered to regulate, prohibit or ration imports to South Africa in the national interest but most goods may be imported into South Africa without restrictions.

Trade with South Africa…

• Import permits are required only for specific categories of goods and are obtainable from the Director of Import and Export.

• Importers must possess an import permit prior to the date of shipment. Failure to produce a required permit could result in the imposition of penalties. A summary of main import regulations are:


• Certain goods imported into South Africa require an import permit, which may be obtained from the Director of Imports and Exports Control.

• The list of goods requiring import permits is specified each year in the annual Import Control Program.

• Permits are valid for imports from any country.


• Foreign Trade Zones: No Foreign Trade Zones or Free Ports are established in South Africa.

• South Africa uses the Harmonised System of Classification (HSC).


• Samples are dutiable unless they are cut samples of cloth, leather, linoleum and wallpaper in book form and not for distribution as advertising matter. Samples that have no commercial value because of mutilation in some way are also allowed duty-free access.

• The South African Government has viewed countertrade as a second-best alternative to be engaged in only when normal trade cannot be conducted.


• Bonded warehouses are available at various points of entry.

• South African banks can accommodate all international transactions and are situated throughout the country.

• General rebates of duty are available for specific situations, and duties may be rebated on goods on re-export.


• The Reserve Bank plays a pivotal role in the economic and financial sectors.

• Some imports may require permission from the Department of Agriculture, Health or Environment Affairs.


• Specific excise taxes are levied on alcoholic and non-alcoholic beverages, tobacco and tobacco products, mineral waters, some petroleum products and motor vehicles. South Africa is an adherent to the Customs Valuation Agreement negotiated under GATT/WTO.

• The dutiable value of goods imported into South Africa is calculated on the F.O.B. price in the country of export. In conformance with its WTO commitments, South Africa has lifted import surcharges.

Tariffs, taxes and exchange control

Tariffs

• As a result of its market access offer for the Uruguay Round, South Africa has significantly reduced its number of tariff lines and bound most to WTO binding levels.

Tariffs…

• It has cut back tariff lines from the 80 different levels of the past to eight levels ranging from zero to 30% with a few exceptions- notably in clothing and textiles and motor industry manufacturers.

• The general trend has been for tariffs to be reduced to encourage industries to become more competitive and also to reduce cost structures.

Customs Valuation

• The dutiable value of goods imported into South Africa is calculated on the F.O.B. price in the country of export, in accordance with the GATT Customs Valuation Code.

• The value for customs duty purposes is the transaction value - the price actually paid or payable.

Value Added Tax

• The value-added tax (VAT) is 14 percent. VAT is payable on nearly all imports. However, goods imported for use in manufacturing or resale by registered traders may be exempt from VAT.

Excise Tax

• Specific excise duties are levied on alcoholic and nonalcoholic beverages, tobacco and tobacco products, and petroleum products. Ad valorem excise duties are levied on a range of "up market" consumer goods.

• The current statutory (2001) rate is 10% except that most office machinery, as well as motorcycles, have a duty at 5%.

Tariff Rebates

• Various provisions for rebate of duty exist for specific materials used in domestic manufacturing.

• The importer must consult the relevant schedules to the Customs and Excise Act to determine whether the potential imports are eligible for rebate of duty.



Documents

Export Regulations. These are sanctioned by governments to regulate exports for a number of reasons amongst which are health, environment and strategic