Import duties - the real deal

OK, after a couple of roundabout conversations with SARS, I have got the final word on what the real costs are of importing a camera from overseas. The reason I'm putting this in here is that every post I read on the subject seems to have a different answer to every other post, and NO-ONE seems to agree.

We know that cameras aren't liable for import duties; only for an ad valorem duty and a VAT payment. The ad valorem excise applicable to cameras is 7%. VAT is still 14%.

There are 4 terms used to describe parts of the formula. One is the Customs Value which is basically the cost of the item. VPB is the value on which the 7% ad valorem must be paid (I forget what it stands for - Value Payable on something, I think). This total (of VPB x 7%) is called the Schedule 1 Part 2B total. ATV is the Added Tax Value on which VAT must be paid.. Flippin confusing.

So, to begin with you calculate the VPB. This is always equal to the Customs Value plus 15% (rounded to the nearest rand, as they don't apply cents to this equation). The Schedule 1 Part 2B value is then the VPB multiplied by 7%.

Then you calculate the ATV by taking the Customs Value, adding 10% and then adding the Schedule 1 Part 2B amount. Multiply the ATV by 14% (ie 0.14) and you have the VAT total.

The total duties payable are then the VAT added to the Schedule 1 Part 2B total.

So the formula, as far as I can see, is (where C is the initial (Customs) value):

duties payable = ( ( ((C x 1.15) x 0.07) + C x 1.1 ) x 0.14 ) + ((C x 1.15) x 0.07)

So that's a formula for the total taxes.

An example (copied and pasted directly from a document SARS sent me) follows:

Example of calculation:

Customs Value: R 50 000
-------------------------------------------------------------------------------------------------------
VPB Value (which is also B): = Customs Value + 15% + all non-rebated duties
= 50 000 + 7500 + 0
= R 57 500


Schedule 1 part 2B: = 57 500 × 7%
= R 4025.00

-------------------------------------------------------------------------------------------------------
ATV: = Customs Value + 10% + all non-rebated duties
= 50 000 + 5 000 + 4025
= R 59025


VAT: = 59025 × 14%
= R 8263.50

-------------------------------------------------------------------------------------------------------

Total duties payable: = R 4025 + R 8263.50
= R 12 288.50

Click to expand...

On lenses, the excise duty is 0% so the only fee that applies is the 14% VAT on the Customs Value + 10%, ie the ATV.

Also, these equations apply to both used and second hand goods. The only difference between them is that if you're buying a second hand camera, you apparently need to apply to the DTI for an import permit. Don't see how they'd be able to tell whether your goods are new or not, but the customs people stressed that they would not release second hand goods till you have that permit.

Finally, the 7% is applicable to cameras and they say it is subject to change without notice. Even SARS will only be informed when it is changed, and not notified of impending changes, so call before ordering to make sure that the amount hasn't gone up or down...

I hope this makes sense in some way. I had to go through it a few times before the mists finally cleared...

Cheers.

One day we'll live in a world without these ridiculous import duties. They are just another tax for greedy government departments to line their dirty greasy pockets with.

Thank you for this.

I have struggled now a few days in regards to getting this information.

DotKomrade said:

Also, these equations apply to both used and second hand goods. The only difference between them is that if you're buying a second hand camera, you apparently need to apply to the DTI for an import permit. Don't see how they'd be able to tell whether your goods are new or not, but the customs people stressed that they would not release second hand goods till you have that permit.

Click to expand...

DTI?

Why should you need a permit to import a piece of electronics because it was pre-used?

South African government is fekked up Nazi wanna be.

Morons.

Anyway I've bought stuff from Ebay and not had issues, the stuff could have been second hand. I don't think they are as anally retentive as their rules suggest - they never held anything back except for an invoice to prove value.

If South Africa is a member of WTO or has trade agreements with whichever country you're buying from, these DTI rules may be illegal. It may be possible to report SARS and get a hefty fine imposed on SA for this BS.