What you actually pay (the four layers)
When you import from China to South Africa, four distinct charges land on your goods. Most first-time importers confuse them, so let's pull them apart up front.
- Customs duty — a percentage of the goods' CIF value, paid to SARS. Varies by product (HS code), typically 0–30%.
- Import VAT — 15% paid to SARS at the border, calculated on a slightly inflated base (we'll explain).
- Port handling & clearing fees — charged by the port/airport and your clearing agent, usually a few percent of CIF.
- Output VAT on your import agent's invoice — if your agent is SA VAT-registered, they charge 15% VAT on their total invoice to you. This is separate from import VAT.
If you're a VAT-registered importer using the goods in your enterprise, both the import VAT (#2) and output VAT (#4) become input VAT and you claim them back on your next VAT return. If you're not VAT-registered, both become real costs.
How SARS calculates customs value (CIF)
SARS calculates everything off your CIF value — an internationally recognised customs valuation defined as:
That is: the price you paid the Chinese supplier (converted to ZAR at the customs exchange rate on the date of clearance), plus the cost of marine/air insurance (even if you didn't take any — SARS may impute a nominal value), plus the international freight cost to bring it to South Africa.
The customs exchange rate is set weekly by SARS and is published on their website. It's usually within 1–2% of the market USD/ZAR rate. Critical: if you're quoting a customer, use the SARS rate, not the live forex rate — that's the number that hits your declaration.
Customs duty: HS codes and rates
Every product has an HS code (Harmonised System code) — an 8-digit international classifier that SARS uses to look up the duty rate. The duty rate is multiplied by your CIF value.
South Africa's duty rates are published in Schedule 1 of the Customs & Excise Act. Here are typical ranges for common imports from China:
| Product category | Typical duty rate |
|---|---|
| Industrial machinery & spare parts | 0% |
| Electronic components, raw materials | 0–5% |
| Consumer electronics (finished) | 0–15% |
| Tools, hardware, plumbing fittings | 5–20% |
| Kitchenware, home goods | 15–25% |
| Clothing & apparel | 22–45% |
| Footwear | 30–45% |
| Toys, sporting goods | 0–25% |
Import VAT and the 10% upliftment
This is the part that catches everyone. South African import VAT is 15%, but it is not charged on CIF directly. SARS adds two things first:
- The customs duty you just calculated — so VAT is charged on top of duty (yes, tax on tax)
- A 10% "upliftment" of CIF — an automatic deemed mark-up that SARS adds to the customs value
Import VAT = ATV × 15%
That 10% upliftment is the surprise charge most first-time importers miss. It adds roughly 1.5% to your total bill on every shipment, no matter what. It's not negotiable, it's not waivable for most categories, and it applies to all commercial imports.
Worked example: a real shipment
Let's run the numbers on a typical Storm media client shipment. The figures below use indicative duty (20% for kitchenware) and a working USD/ZAR rate of R19.00.
| Line | Calculation | Amount (ZAR) |
|---|---|---|
| Goods value (FOB Shenzhen) | US$10,000 × R19.00 | R190,000 |
| International sea freight | US$1,500 × R19.00 | R28,500 |
| Insurance (nominal 0.5%) | 0.5% of goods value | R950 |
| CIF value | Cost + Insurance + Freight | R219,450 |
| Customs duty | R219,450 × 20% | R43,890 |
| ATV (Added Tax Value) | (R219,450 × 1.10) + R43,890 | R285,285 |
| Import VAT | R285,285 × 15% | R42,793 |
| Port handling & clearing fees | ~3% of CIF | R6,584 |
| Local delivery (Durban → Benoni) | Per trailer | R4,500 |
| Landed cost in your warehouse | — | R317,217 |
So a US$10,000 order at FOB ends up costing R317,217 landed in Benoni — about 1.67× the FOB rand value. That ratio is broadly representative for medium-duty consumer goods. Machinery (0% duty) lands at ~1.30×; clothing (40% duty) at ~2.0×.
If you're VAT-registered, the R42,793 import VAT comes back to you as input VAT, so your real cost is R317,217 - R42,793 = R274,424. Non-VAT-registered buyers carry the full amount.
ITAC permits and anti-dumping
ITAC — the International Trade Administration Commission of South Africa — controls two things relevant to importers:
Import permits
A small list of products requires an ITAC import permit before they can enter South Africa. The most commonly affected categories are: used goods, second-hand clothing, used tyres, used vehicles, scrap metal, certain agricultural products, gambling machines, and some controlled chemicals. New commercial goods imported from China for resale (machinery, electronics, kitchenware, tools, etc.) almost never need an ITAC permit. You apply for the permit before the goods leave China — doing it after shipment is too late and the shipment will be detained.
Anti-dumping duties
Where South African producers have proven to ITAC that a specific Chinese product is being sold below cost into the SA market and harming local industry, ITAC imposes anti-dumping duties on top of the normal customs duty. Current examples on Chinese-origin goods include some screw fittings, certain footwear, glass products, steel products, and a handful of textile categories. Anti-dumping rates can be very high — sometimes 200% or more of CIF. Always check anti-dumping status against your HS code before ordering. ITAC publishes the current list on their website (itac.org.za).
The SARS clearance process step-by-step
Here is what actually happens when your shipment arrives in South Africa:
- Arrival notification — The shipping line or airline notifies the clearing agent that the goods have landed at Durban, Cape Town, or OR Tambo.
- Document collection — The clearing agent gathers the Commercial Invoice, Packing List, Bill of Lading (or Air Waybill), and any required Certificates of Origin or permits.
- SAD500 declaration — A SAD500 customs declaration is submitted to SARS electronically. It includes HS classification, declared value, duty calculation and import VAT calculation.
- Risk channel assignment — SARS assigns the declaration to a Green (auto-clear), Yellow (document review) or Red (physical inspection) channel. Green takes hours, Yellow takes 1–3 days, Red can take 1–3 weeks.
- Payment — Duty and import VAT are paid to SARS by the clearing agent (who later recovers from you).
- Release — SARS releases the goods. The clearing agent collects them from the port/airport and arranges local transport.
- Delivery — Goods arrive at your premises.
The full process from arrival to delivery in Gauteng is typically 5–10 working days for sea freight (Durban → Benoni) and 2–4 working days for air freight (OR Tambo → door).
How DDP simplifies everything
DDP — Delivery Duty Paid — is an Incoterm where the freight forwarder takes responsibility for getting goods to your door, with duty and import VAT already paid. From the buyer's perspective, DDP means one all-in number instead of separate bills for freight, duty, port handling and import VAT.
Storm media's sea freight rate of $305/CBM (DDP) bundles all of the following into one figure:
- Collection from our consolidation warehouse in China
- Export documentation and Chinese customs
- Ocean freight to Durban or Cape Town
- SA customs duty
- SA import VAT
- Port handling and clearing
- Delivery to your door anywhere in South Africa
The only thing you add on top is 15% output VAT on the Storm media invoice (recoverable if you're VAT-registered). For buyers who don't want to manage a clearing agent, learn HS codes, or run multi-stage calculations, DDP turns importing into a single line item.
For full pricing details and a live calculator, see our freight forwarding page. To see how this fits into the wider import process, read our step-by-step import guide.