Customs clearance occurs when goods are imported or exported and are declared to Customs as they are brought into the country or exported from it. This is so that the South African Revenue Service (SARS) can determine if any revenue is due to the State. There are a lot of terms that relate to customs clearance that you should be aware of as an importer or exporter.

Terms used in Customs Clearance

Ad Valorem – a tax that is based on the value of imported cargo.

Bonded Goods – if duties or taxes are payable on cargo the imports will be stored under the supervision of customs authorities in a bonded warehouse.

Bonded Warehouse – the building or secure location where bonded goods are stored under the supervision of customs authorities until the duties that are payable have been paid.

Cargo Manifest – used by a Customs official. It summarizes all the cargo in a shipment from the point of origin.

Certificate of Origin (COO) – a document that states what the point of origin is of cargo for a shipment.

Commercial Invoice – a document between the supplier and the customer of a product. It has information on it about what amount is due to the customer and is a very important document in determining what customs duties are due.

Customs Bond – a form of insurance between the Importer and the State that guarantees that the State will be paid for duties and taxes on imported cargo. This is to secure duty and taxes that are suspended and also is between a customs broker and SARS.

Customs Broker –an expert in tariff and customs laws that helps an importer meet the State requirements for importing and exporting cargo. A Customs Broker is the go-between the importer and the State’s Customs department.

Customs Brokerage – helps streamline the process of shipping goods by applying expertise regarding rules and regulations of a country to transfer goods in and out of a country.

Customs Declaration – lists goods that are being imported or exported by tariff heading and reflects the procedure code under which the goods are being entered i.e. bonded, duty paid, rebate, etc, and also gives a summary of duty and taxes due.

Customs Duties – in South Africa these are imposed by schedules to the Customs and Excise Act 91 of 1964. The intended purpose of customs duties is to raise revenue for the State and to protect the local industry.

Customs Executive – a Bidvest International Logistics employee, dedicated to providing assistance and advice to clients so that they can navigate the New Customs Act and other Customs regulations. 

Customs Import Value – the total Free-On-Board (FOB) value of all items in a shipment. Based on this the value of the import duty is determined.

Customs Inspection – occurs when a Customs officer detains a shipment for inspection.

Customs Specialist – a Bidvest International Logistics employee who has extensive knowledge and working relationships with the International Trade Association of SA (ITAC), National Regulator for Compulsory Specifications (NRCS), and Customs and Excise.

Free-Trade Zone – a geographic area where goods are not subjected to customs duty.

Goods and Services Tax – a tax that is levied on the consumption of goods and services. In South Africa, this is known as VAT and the rate is 15%.

Incoterms –International Commercial Terms are pre-defined commercial terms of sale that relate to international commercial law. They define where responsibility lies between Suppliers and Buyers of goods.

New Customs Act – SARS rewrote the Customs Act and drafted it into three pieces of legislation. BIL understands the New Customs Act, along with its intricacies relating to Customs Tariffs. 

Tariffs – the tax that is agreed upon on imports or exports between countries.

Tariff Book – states what normal customs duties, excise duties, ad valorem duties, anti-dumping duties, and countervailing duties are that would be payable on importing goods into South Africa.

Tariff Classification – All good that is imported or exported must be classified under the Harmonized Commodity Description and Coding System (tariff book).

Tariff Classification Code – a code that determines what the rate of duty payable is on goods.

Does Bidvest International Logistics Do Customs Clearance?

BIL is an accredited Customs clearing agent with the South African Revenue Services.  The comprehensive menu of our customs services incorporates preparation of all necessary declarations and reporting to authorities, electronic pre-filing, customs consultancy and documentation processing, as well as security sealing and certification.  This extensive service range includes imports and exports by air, sea, and land, managing all information relating to clients’ products and presenting the information to Customs and Port authorities.

Our Customs Team doesn’t only help clients with tariffs but also encompasses the various Customs functions such as postponement of payment of duty and VAT through bonded storage and incentive schemes available as they relate to the Customs Act and other legislation. We offer a bond registration and management service as well as tariff determinations and related Customs brokerage services.