import readiness checklist

Your Import Readiness Checklist

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

Before importing make sure you have done the following:

  • Get your import export license.

    SARS requires your 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.

  • Find out what the tariff codes (HS codes) of all the goods in your shipment

    Tariff codes, or HS codes, are used by Customs to classify your imported 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.

    Your supplier will likely be able to help you with a code, but only to a certain extent. 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 import 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 import permit

    In the case of regulated imports 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 import permit you can use this regulated imports directory or contact our office.

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

    Find out if you can benefit from a preferential (reduced) import duty rate. Preferential rates are listed in the tariff book according to duty tax grouping (origin). These rates may only be claimed if the import is accompanied with a certificate or declaration of origin.

    If your tariff code shows a preferential rate in the column relevant to its origin, you can ask your supplier to provide a certificate of origin.

    coutires of orign according to the tariff book

  • Calculate you import tax

    Use our import duty directory to establish the general and additional import duty rates that apply to your goods.

    Use our import duty and VAT calculator to determine the amount if import tax that will be levied on your import.

    Import duties are part of the cost of introducing goods to the local market and are therefore non-refundable. If you are a VAT registered entity, import VAT can be factored into your VAT returns.

  • 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 import tell you where the risk of loss or damage to the goods, as well as the cost of carriage transfer from the supplier to you. 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 your shipment. However, if you are the party carrying the risk (according to the Incoterm) it is in your best interest to do so.

    If you are paying for the shipment and your supplier is carrying the risk you can insist that they insure the shipment or get a policy in your name. 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 the importer, 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 make international payment is via a foreign exchange account. Learn more and open an account for yourself or your business by clicking here.

  • Get a freight quote

    Depending on the Incoterm, you may have to arrange freight (carriage) for your import 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 (HD) 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 of each piece
    • Special shipping and packing requirements (eg. if the goods are hazardous, flammable or fragile)

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