How to Master South Africa Customs: A Step-by-Step RCG Guide for Traders
- John Hall
- Customs Specialist at iCustoms.ai
South Africa customs is one of the most significant obstacles that traders face, where 65% of the businesses reported that they had been held up as a result of errors in documents. Such expensive hold-ups can have a severe impact on your bottom line and customer relationships, as customers wait to receive their shipments.
Understanding the South Africa Revenue Service (SARS) customs requirements isn’t just about compliance; it’s about gaining a competitive advantage. South Africa importers, exporters, and licensed customs brokers who are familiar with these processes typically clear goods within three days, compared to those who are not.
The key to achieving this efficiency lies in understanding the modern digital framework that drives the country’s customs operations—the Reporting of Conveyances and Goods (RCG) system. The RCG compliance framework in South Africa forms the backbone of SARS’s customs clearance process, requiring close collaboration between traders, carriers, and brokers to ensure accurate and timely submission of data.
This detailed guide provides a comprehensive breakdown of everything you need to know, whether you are an experienced importer, a licensed customs broker, or simply seeking to gain insight into the South African market. So, whether it comes to computing landed costs or creating perfect documentation, we will take you through every important process to make sure your goods can be transported easily through customs. We will describe the entire process of the RCG compliance, starting in the preparation of pre-shipment till its final release, in the following paragraphs to ensure that you can comfortably comply with the SARS requirements and facilitate your work at the customs.
Understanding the South Africa Customs Landscape
The South Africa Revenue Service (SARS) is the primary administrator of customs, with a mandate that spans border control, trade policy administration, and revenue collection. Over the past decade, SARS has undergone a massive digital transformation, culminating in the implementation of the Reporting of Conveyances and Goods (RCG) project.
What is RCG? In 2018, South Africa changed its reporting regime, which was a goods-based regime, to a conveyance-based regime under RCG. This implies that the triggering point of the law in reporting is the movement of the vessel, plane, or truck itself and not necessarily the goods. The basis of all contemporary SARS processes comprises this two-step process:
Stage 1: Conveyance Report (CCR): The carrier, i.e., shipping line, makes the Conveyance Report (CCR) long before the conveyance has arrived. It gives SARS a foreboding of the impending.
Stage 2: Cargo Report (Customs Declaration): This is a document submitted by the importer/exporter or the broker to declare the type of goods, calculate duties, and obtain release.
Why RCG Compliance is Non-Negotiable
Mastering RCG isn’t just about sticking to a new set of rules; it’s about tapping into a system that prioritises speed and security. Importers/exporters or brokers who sync their operations with RCG enjoy several advantages:
- Faster Clearance: With accurate, timely data, you can process shipments before they even arrive.
- Fewer Inspections: Shipments that are compliant and transparent get flagged as low-risk.
- Predictable Logistics: Knowing the two-stage process helps you avoid unexpected costs and delays.
If you don’t meet RCG timelines and data requirements, you’ll face automatic rejections and delays.
The RCG Step-by-Step: A Trader's Practical Guide
Step 1: Pre-Shipment Preparation (The Foundation)
- Identify Your HS Code: Find the right 8-digit Harmonised System (HS) code. Getting this right is crucial, as it determines your duty rate and is essential for the cargo report.
- Verify Restrictions: determine if your goods need an import permit from ITAC.
- Calculate Landed Costs: Include all expenses, like the 15% Import VAT (keep in mind that the ZAR 500 de minimis exemption is no longer in effect). Use this formula: [(Customs Value + 10%) + Duties] x 15% = VAT Payable.
Step 2: The RCG Conveyance Report (Your Carrier's Role)
Your Responsibility: Make sure your carrier has all the necessary information to file the Conveyance Report on time.
Timelines:
- Sea Cargo: 24 hours before departure for South Africa.
- Air Cargo: Before take-off.
- Road/Rail: Before arriving at the border.
Impact: Any mistake or delay at this point can create a ripple effect, making it impossible for you to submit your own declaration later.
Step 3: Preparing the Cargo Report (Your Declaration)
This step involves preparing your Customs Clearance Declaration (CCD), the formal submission to SARS that details the specific goods you are importing. The accuracy of this package is paramount to a swift release. You will need to gather the following documents:
Commercial Invoice: It is the most vital document to be valued. It should be detailed and encompass all details in the form of the buyer and seller, description of the goods, quantity, price per unit, total amount of the deal in the currency of transaction, and terms of sale (e.g., FOB, CIF).
Packing List: This should be in line with the commercial invoice and the actual shipment. It must include the contents, weight, and dimensions of each package, and this will allow the customs officers to check the consignment efficiently in case of any possible check.
Bill of Lading (in the case of sea freight) or Air Waybill (in the case of air freight): This is the contract of carriage and receipt of goods. The master bill number and consignment details have to be in total correspondence with the information presented by the carrier in the Conveyance Report (CCR). Any difference will lead to a rejection.
Declaration of Origin (DA59): This is a prescribed form necessary when you are claiming a preferential rate of duties under a trade agreement (e.g., the AfCFTA) or when the goods are liable to anti-dumping duties. An original copy of the signed commercial invoice should be attached to the original commercial invoice.
Import Permits and Licences: You need to have an import permit issued by the International Trade Administration Commission (ITAC) before the shipment can leave. Any restricted goods, namely, all used, second-hand goods, waste, and scrap goods. Failure to do this will lead to the goods being refused entry.
Step 4: Submission, Payment, and Release
After carefully preparing the Cargo Report, your customs broker (or you, in case of self-filing) will file it electronically through SARS, through their eFiling or EDI systems.
- Submission & Validation: When the data is received, it will be automatically validated by SARS on its completeness and consistency against the Conveyance Report and its tariff databases.
- Assessment: In case the submission is compliant, SARS will then determine the duties and VAT to be applicable and issue a payment advice.
- Payment and Release: Once it receives evidence of payment of the calculated duties and taxes, SARS will issue the final release. Goods are no longer under customs control and can be received at the port or warehouse.
Step 4.1: In case of failure to get the submission successful?
A failed submission will result in an automatic reaction by SARS, which will stop the clearance procedure. It is critical to act swiftly. The results are usually of two types:
Rejection: It is caused by some basic faults, including an invalid registration number of the trader, the absence of a Conveyance Report, or the wrong type of document. This whole declaration is rebuffed, and you have to make the fatal mistake right and make the declaration over again.
Suspension: This is more prevalent and implies certain data problems that need to be corrected. The queries will be notified by SARS, which may contain:
Valuation Enquiries: The challenges to the proclaimed customs value.
Tariff Classification Enquiries: Objection to the suggested HS code.
Documentation Requests: It will require more supporting documents, including a manufacturing invoice or a list of specifications of the product.
Role of SARS in import/export for South Africa
The South Africa Revenue Service (SARS) operates as a division of the Ministry of Finance and serves as the primary administrator of import duties and controls. With approximately 2,500 staff members across 37 customs offices nationwide—including sea, land, and air ports—SARS customs officials manage a comprehensive network.
SARS Customs Division serves three primary functions:
- Providing border control management and protection for both communities and industries
- Administering trade policy measures and industry schemes
- Collecting duties and taxes
Over the past decade, SARS has invested substantially in technology to enhance the customs experience for traders. This technological advancement has automated many processes, creating more efficient interactions between customs authorities and importers, exporters, and clearing agents.
SARS officials work diligently at ports of entry, conducting both documentary and physical inspections of cargo while handling registration, licensing, processing, and auditing functions. Moreover, specialised units with border control and enforcement activities.
Why South Africa (RCG) Customs compliance matters for traders
Compliance with the South Africa customs laws does not just mean that one will not be punished, and this establishes a real business benefit. Observance of customs trade laws is important due to a number of practical reasons.
In essence, compliance is what will make sure that you comply with the legal requirements of safeguarding the national security, as well as the health and intellectual property of the people. Nevertheless, during the RCG period, it turns into a moving shield. You avoid the legal sanctions, fines, and business disruptions that bring down those who are unprepared by filing correct Conveyance and Cargo Reports on schedule. It is not about obeying regulations; it is about creating a strong operational base.
Second, the whole idea of RCG is enhanced risk control towards SARS, and you can utilise this to your advantage. Your shipments are considered low-risk when they are compliant and have transparent data in the RCG system. This translates directly to:
Reduced Physical Inspections: There is also a reduced likelihood of your goods being subjected to protracted and expensive physical inspections.
Anticipated Logistics: The RCG process will be in two stages, and its understanding will result in the removal of surprises. Proper scheduling of the process will lead to less demurrage and lower storage costs.
Strategy of Proactive Problem-Solving: The solution solves problems in advance before the arrival of the shipment and thereby enables you to solve problems rather than responding to a crisis.
Third, RCG compliance is not a cost centre; it is a profit optimiser. Once you know what is required, you have very accurate control of your financial expenditures.
Precise Costing: You can know the landed costs up to the cent, including duties and VAT, and avoid budget overruns.
Duty Optimisation: When you use proper HS code classification and trade agreements (such as AfCFTA) in your Cargo Report, you will never pay extra on duties.
Eradication of Delay Costs: This is the largest cost reducer of speed. Products that sell 3 days earlier save port charges and inventory shortages, and ensure your customers are satisfied.
Moreover, adherence strengthens your business image and association. The firms that value ethical practices of customs are regarded as professional and establish stronger connections in the world of trade.
Overview of South Africa import restrictions and permissions
South Africa has certain control over imports to safeguard a range of interests. SARS enforces some of the prohibitions or restrictions on behalf of various government departments and institutions, such as the Department of Agriculture, Forestry and Fisheries, the National Regulator of Compulsory Specifications, and the South Africa Reserve Bank.
Traders are required to secure importation permits before delivery of several restricted items. These permits are dealt with by the International Trade Administration Commission (ITAC). In essence, of about 6,650 tariff lines, 276 are in import and 177 in export control in South Africa. Secondly, import permits are required for all used or second-hand goods, no matter the category.
Prohibited items include:
- Habit-forming drugs and narcotics.
- Weapons and explosives are used in the military.
- Counterfeit goods
- Prison-made goods
The status of imported goods must also be declared specifically as:
- N for new goods
- U for used goods
- S for second-hand goods
Health, environmental security, and safety are the main concerns for which ITAC needs to have permits, which is in keeping with the international agreements such as the Montreal Protocol and the Basel Convention. The average processing time for permit applications is three to five working days.
How to calculate import duty in RCG
In South Africa, the computations of import duties are made with respect to some factors:
- Establish customs value: This is usually based on f.o.b. (free on board) in the home country, according to the WTO Customs Valuation Code.
- Determine the HS code: Every product bears an HS code, which is a unique code that denotes the duty rate to be paid.
- Calculate the relevant duty rate: Multiply the value of customs by the relevant ad valorem duty rate.
The general rates of import duties in South Africa would be 3-45, but the anti-dumping duties and the countervailing duties can be as high as 150. There are no customs duties from South Africa to other members of the Southern African Customs Union (Botswana, Lesotho, Namibia, and Swaziland).
Samples of product rates by products.
The duty rates of South Africa differ considerably in the categories of goods. Some typical examples are as follows:
The majority of office equipment and motorcycles are subject to a duty rate of 5 per cent, and the general consumer goods are subject to a duty rate of 10 per cent. The overall average duty rate of South Africa on all classes is 5.8, but some of the products may have a rate up to 50%.
Knowledge of these rates will enable the traders to forecast costs and have competitive prices in the South Africa market, without compromising profitability.
Understanding de minimis and VAT in South Africa
In the past, South Africa had a concession in which some imported goods valued below ZAR 500 were not subject to the Value-Added Tax (VAT), and only a flat rate of 20% was charged instead of the customs duties. This gave a price edge to the foreign sellers.
This exemption has, however, been abolished by SARS since September 2024. At present, any imported products of value or otherwise are charged 15 per cent of the import VAT on top of any duties. This was done to equalise the playing field between local suppliers who collect VAT on all purchases and offshore sellers whose small consignments had previously come into the country tax-free.
The formula for calculating the VAT on imported goods has a certain procedure:
- VAT payable = [(Customs Value + 10 per cent of the same) + (any duty not rebated) × 15 per cent]
It should be noted that the 10 per cent markup would only be on the goods imported outside the Customs Union. The 10 per cent is not added to the value of goods produced in the countries of BLNS (Botswana, Lesotho, Namibia, or Swaziland).
Preparing the Right Documentation for RCG
Successful customs clearance in South Africa is based on proper documentation. Proper paperwork aids the avoidance of expensive delays that would otherwise paralyse your trading activities.
1. Packing list and commercial invoice
The most important document for customs clearance in South Africa is the commercial invoice. It should have detailed information, including:
- Complete knowledge of the buyer and seller.
- Detailed description of goods.
- volume, unit price, and total price.
- Cash transacted in.
It has four copies and one original commercial invoice needed by the customs. This is in addition to the three copies of a comprehensive packing list that you should accompany your shipment with, and which contains details on what is contained in each package. This will be of assistance to customs officers in the process of inspection and will have to match perfectly with the information in other documents that accompany it.
2. Bill of lading or airway bill
A bill of lading is a receipt of shipped goods, as well as a contract between shipper and carrier. Two non-negotiable copies are required for South Africa customs purposes.
The document must contain:
- Shippers’ and consignees’ names.
- Type and quantity of goods
- Port of exit and entry.
- Expected arrival date
In the case of air shipments, it is executed with the help of an air waybill, which serves as one of the primary documents needed by customs.
3. Proclamation of source and authorisation.
The declaration of origin form (DA59) arises in cases where a claim of preferential rates of duty is to be made or in cases where anti-dumping duties are to be paid on the goods. This prescribed form should be annexed to the original commercial invoice using one copy, which is signed. It does not require Chamber of Commerce certification, unlike many other documentation requirements.
Restricted items, used goods, second-hand goods, waste, or scrap require import permits. The International Trade Administration Commission (ITAC) should have these permits before the shipment.
Documentation errors are to be avoided.
Unfinished/wrong documentation is the most common cause of clearance delays.
Typical errors include:
- Lost or faulty invoices and permits.
- A lack of description of goods (just writing of samples or parts)
- Understating goods (which governments deem as tax evasion)
- Absence of proper tariff classifications.
- Failure to harmonise the information in various documents.
New traders are likely to commit the error of handing in invoices of zero value, and this is unacceptable to the South Africa Customs Authorities.
How iCustoms Simplifies Your RCG Documentation Process
Navigating the complexities of SARS and the RCG system can be quite a challenge, but with iCustoms, you can turn that challenge into a competitive edge thanks to our integrated AI platform.
Intelligent Document Processing (IDP)
Our system automatically pulls out essential data from intricate documents like commercial invoices and bills of lading. This means no more tedious manual entry, saving you time and nearly eliminating human error right from the get-go.
Perfect HS Code Accuracy
We harness the power of AI to accurately identify the correct HS code for your products, ensuring you stay fully compliant. This helps you avoid costly penalties, shipment delays, and overpaying on duties.
iCalculate Precise Landed Costing
Get real-time calculations for all duties, VAT, and landed costs. This gives you complete financial transparency, making budgeting and cost optimisation a breeze.
iSecurity Advanced Compliance Safeguards
Denied Parties Screening: Our system automatically checks all parties against global sanctions lists to help you steer clear of illegal trade.
Restricted Goods Screening: We flag controlled and prohibited items before submission, ensuring you stay on the right side of regulations.
Don’t let the complexity of documentation hold your business back. With iCustoms’ all-in-one AI-powered platform, you’re not just meeting regulations—you’re enhancing your entire supply chain for speed, efficiency, and profitability in the South Africa market.
Conclusion
To succeed in the South Africa market, one has to master their customs, and iCustoms helps to turn this complicated process into a strategic benefit. With our AI-driven platform, there will be full compliance with SARS due to the automated document processing, correct classification of the HS code, and the calculation of landed costs in real-time, taking into consideration the fact that all the shipments are subject to the 15% VAT.
The result of using iCustoms is the elimination of any clearance delays and penalties, and the establishment of a better business image based on improved efficiency in the supply chain. With our ever-changing system, as regulations change, you stay on track of the changes, which will guarantee your success over the long term in the dynamic South Africa trade environment with accuracy and automation.
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