Temporary import of items into South Africa – without paying import duty

When goods are only temporarily imported into a country, paying import duties is not warranted in light of the administrative burden for customs to collect the taxes only to refund them again after the goods are exported. These goods are also not in competition with the domestic market when exported again in the same condition and in a set time frame. For these reasons, the World Customs Organization has published guidelines that allow for total or partial non-payment of import duty and taxes for the temporary import of certain goods,  imported for a specified purpose and re-exported in a set time frame without depreciation. These guidelines have been adopted in some way or form into local legislation by most countries.

In this article, we will cover the South African rebate provisions that allow for the duty-free temporary import of goods into South Africa.

Rebate provisions that allow for temporary import of goods:

A rebate is a full remission or part reduction of import duties, subject to the importer’s compliance with specific conditions as set out in the Tariff book. Schedule 4 of the tariff book covers circumstantial rebates including the temporary import of goods. Below is a summary of the most commonly used rebate items for temporary imports.

Rebate heading 470 covers goods temporarily admitted for processing, repair, cleaning, reconditioning or for the manufacture of goods exclusively for export.

Items imported under rebate code 470.03 require an additional permit from the International Trade Administration Commission (ITAC).

Rebate heading 480 covers goods temporarily admitted for specific purposes. Some commonly used rebate codes include:

Rebate item 480.05 covers containers and other articles used as packing

Rebate item 480.10 covers goods for display or use at exhibitions, fairs, meetings or similar events

Rebate item 480.15 covers professional equipment owned by persons resident abroad (for use solely by or under the supervision of a visiting person)

Rebate item 480.35 covers commercial samples owned abroad and imported for the purposes of being shown or demonstrated

Rebate heading 490 includes goods temporarily admitted subject to exportation in the same state such as motor vehicles, goods on loan or hire, sports equipment, and machinery used for contract work.

How to use the rebate provision

Each rebate heading and rebate item has its own set of conditions that must be adhered to, these are found next to the rebate heading and rebate item number in the Schedule. Here are some general guidelines that apply to most of the rebate items.

• Depending on the rebate required, you may need to be registered with Customs as an importer, exporter and rebate user.
• Upon clearing the goods into South Africa the rebate item number must be used.
• A security for the value of the duty not paid often needs to be provided, this can be claimed back upon exportation.
• International ATA carnets (for goods) or CPD carnets (for vehicles) may be used as security for certain specified rebate items.
• Items need to be readily identified by foreign seals, by marks, numbers or other identification permanently fixed to them, by description, by photographs or by sampling. If items do not have an identifiable mark then customs and excise marks or seals may be fixed to them.
• For re-exportation of the goods:
  • goods may be re-exported through any customs and excise office and may be made in more than one consignment;
  • the documents produced at the time of entry must be provided
  • Goods need to be exported within the following timeframes:
    • in the case of goods under an international carnet within the period of validity of such carnet;
    • in the case of other goods, within 6 months from the date of entry thereof or within such further period as the Commissioner may, in exceptional circumstances, allow.
  • The liability/security of the importer shall cease if he proves that the goods have been exported.
• On request by the importer, and subject to the permission of the Commissioner, temporary admission may be terminated by entering the goods for home consumption or by abandonment or destruction of the goods.

Making use of the temporary rebate provisions provided for in Schedule 4 of the Tariff book can help make the temporary import process easier and manage cashflows smoother.