Do I Need An Importer’s Code When I Import Goods?

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Do I Need An Importer’s Code When I Import Goods?

We are always willing to answer your questions regarding the import and export of goods. Someone stopped me this morning and asked: “Do I need an importer’s code when I import goods?”

I realize that many may wonder about this, so I’m going to lay out for you under which circumstances you do need an importer’s code.

What is an Importer’s Code?

An Importer’s Code is issued by the South African Revenue Service (SARS) under the Customs and Excise Act of 1964, section 59A. The code allows anyone who is registered to participate in activities regulated by the Customs Act. This means that, if you are the holder of an Importer’s Code, you are allowed to import goods from other countries into South Africa.

When should I register for an Importer’s Code?

Rule 59A.03(1) stipulates persons who are obliged to register, and persons who may apply for registration.

In terms of rule 59A.01(1)(a)(i), any person who is an importer or exporter shall, if not already registered with a code number other than 70707070, apply for registration. However, there are certain exceptions.

You do not have to register for an Importer’s Code if:

  • You have a business in or reside in Botswana, Lesotho, Namibia or Swaziland;
  • You import or export goods of which the value for each consignment is less than R50 000 (up to three consignments annually).
  • The goods are not commercial goods as defined in rule 120A.04.

In terms of Rule 120A.04, commercial goods are defined as all goods other than:

  • Personal effects, sporting- and recreational equipment, new or used, imported as accompanied or unaccompanied passenger’s baggage by nonresidents of SA for their own use during their stay in the country;
  • Personal effects, sporting- and recreational equipment, new or used, exported by residents of SA for their own use to Botswana, Lesotho, Namibia or Swaziland, and subsequently reimported as accompanied or unaccompanied passenger’s luggage by such residents;
  • Goods imported as accompanied passenger’s baggage by nonresidents or residents of SA in specific limited quantities, for example, wine, spirits and other alcoholic beverages, cigarettes, pipe tobacco and perfumery;
  • Other goods, new or used with a total value not exceeding R1 250, excluding goods of the class listed above.

People who wish to register must complete form DA 185, together with the relevant annexures and submit the completed forms to SARS’ customs offices. When registering as an importer with SARS, you don’t have to pay any licence fee. You will be issued a code 70707070, which is a general code and issued to anyone not registered as an importer and who imports goods worth less than R50 000 in value, less than three times a year.

Once you have complied with all these regulations, you should be issued with an Importer’s Code in less than 10 working days. Always retain your stamped copy of the application, since SARS will allow, under certain circumstances, this document to be used when goods arrive. However, you may have to make a provisional payment to cover any duty or Value-Added Tax (VAT) that may be payable on importation.

This exception to the general rule will only be allowed upon proof that a duly completed application has been submitted for consideration to SARS. Once the application has been granted, SARS must be approached to have the provisional payment refunded or made final, depending on the circumstances. It will be worth your while to negotiate the lowest possible provisional payment, as many in the past have experienced significant difficulty in obtaining such refunds.

Do I need an Importer’s Code when ordering books or CD’s from overseas?

When online shopping started, there was a period of time during which some confusion occurred on whether one was allowed to receive goods you ordered from overseas companies without an Importer’s Code. This is actually a very easy question to answer.

In short, it depends whether the goods are for personal use. As long as you can prove that the goods are for your or your family’s personal use only, you should not have any problems.

If you are still unsure about the use of an Importer’s Code or how to apply for one, contact us – we are always here to help.