Export readiness checklist

Export readiness checklist

Worried you may be underprepared for you first export? Don’t be. We’ve created this export readiness checklist to cover the basics.

Before exporting make sure you have done the following:

  • Get your import export license.

    SARS requires you or your business to have an import export license under any of the following conditions:

    • You import or export goods more than 3 times in a year.
    • You import or export goods to the value of R150,000 in a year.
    • You pay or accept payment for imports and exports via a South African bank account.
    • You import any amount of goods for re-sale.

    Click here to get your import export license now.

  • Determine the tariff codes (HS codes) of all the goods in your shipment

    Tariff codes, or HS codes, are used by Customs to classify your exported goods. Customs duties, quotas and regulations are assigned to your goods according to this classification, so it is crucial to know what code you goods fall under.

    HS codes are internationally standardised up to the 6th digit. Thereafter counties may subdivide classification according to their preference. South African tariff codes go up to 8 digits.

    For assurance that you have the correct tariff code you can consult our tariff code directory, or get a professional classification report. If you export a variety of goods the ability to do your own tariff classification is vital. You can enroll for online training on the HS code and tariff classification here.

  • Determine whether you need an export permit

    In the case of regulated exports you will need a special permit from the International Trade Administration Commission (ITAC) or a department of government.

    To identify whether your goods require an export permit you can use this regulated exports directory or contact our office.

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  • Find out if your client can get a preferential duty rate with a certificate of origin

    Check whether South Africa has a trade agreement with your client’s country of import by consulting this guide to trade agreements.

    If there is a trade agreement, find out if your client’s country has a preferential (reduced) import duty rate for your goods. You’ll need to consult their tariff book, or ask your client to do so.

    If there is a preferential rate, it may only be claimed if the goods are accompanied with a certificate or declaration of origin. You may order the relevant certificates of origin here.

  • Determine whether you will need to charge VAT.

    If you are registered for VAT, you export transactions may incur VAT at the standard or zero VAT rate.

    Consult this guide to VAT and exports to find out which rate is more suitable to your export scenario.

  • Decide on an Incoterm for the delivery

    Incoterms, or international commercial terms, are used in international trade as a shorthand in sales agreements.

    The Incoterm of an export tell you where the risk of loss or damage to the goods, as well as the cost of carriage transfer from you to the foreign client. In some cases it also determines the insurance required to move the goods.

    You can read more in this Incoterms guide.

  • Get cargo insurance for your shipment

    Unless otherwise specified by the Incoterm, there is no legal obligation to insure the shipment. However, if you are the party carrying the risk (according to the Incoterm) it is in your best interest to do so.

    Read more in our guide to cargo insurance.

  • Decide on a payment method

    Payment for international transactions can happen before or after the goods are successfully delivered to your client, as long as the lag between payment and delivery does not exceed limits set by the South African Reserve Bank.

    The easiest and most cost effective way to manage incoming international payment is via a foreign exchange account. Learn more and open an account for yourself or your business by clicking here.

  • Ensure your commercial invoice meets international standards

    To be Customs compliant for SARS export clearance and import clearance in your clients country of import, you goods must be accompanied with a commercial invoice that meets specific international criteria.

    Consult our commercial invoice template to find out what these requirements are.

  • Get a freight quote

    Depending on the Incoterm, you may have to arrange freight (carriage) for your export shipment. This could apply to all, or just a part of its journey.

    To get a quote from a freight forwarder you will have to give them the following information:

    • The point, port or address of origin
    • The point, port or address of delivery
    • The Incoterm
    • The tariff (HS) code of the shipment as well as a description
    • The number of pieces in the shipment (eg. packed boxes)
    • The mode of transport
    • The type of packing (eg. boxes, pallets, crates)
    • The dimensions of the shipment or each piece
    • The weight of the shipment or each piece
    • Special shipping and packing requirements (eg. if the goods are hazardous, flammable or fragile)

    Click here to request your freight quote.

If you’ve followed all these steps you are ready for your export. However, if you have any questions or concerns we’re here to help. Contact our consultants for export and Customs advice ay time.