Non-Tariff Barriers

Complaint

Complaint number

NTB-000-477  

NTB Type

7.4. Costly procedures  

Complaint

With effect from the 1st of January 2012 SARS will no longer be accepting bank guaranteed cheques as a mode of payment for the 14% VAT on imports into South Africa. A note from SARS reports that the reason for this major is due to modernization that SARS customs is currently under going and has impact on various areas of business including revenue division whereby every process will be automated.

With SARS having stopped allowing foreign clients to participate in the deferment in 2007 and with SARS having on its cards at some point in 2012 they will discontinue those foreign clients who registered fro a deferment account prior 2007. This means foreign companies importing into South Africa will effectively have to pay cash or make use of a South African clearing agent with a deferred account at the boarders. Other alternatives given would be 1. Establish a company in SA which will be invoiced for all products sent to SA and would be liable for the 14% VAT and then on - sell to our current customers. 2. Approach SARS clearing agent, who would then pay the VAT and charge for it as well as clearing our products, note that current monthly VAT payments can go up to a million rands. 3. Approach our SA customers to open VAT deferred accounts with SARS which as proven difficult. further more SARS no longer accepts export documents that are filled in by individual companies, the requirement is that companies use the services of the SA clearing agents, of which a charge of 150 per document in rands is required. An average truck carrying various products for various clients could easily run into thousands of rands per truck load. It is increasingly becoming difficult to export into South Africa.  

Status note

In their letter dated 28 August 2012 to Focal Point South Africa, Sout Africa Revenue Services reported that the NTB had been resolved bilaterally.  

Progress update note

1. On 26th June 2012, South Africa focal point reported that this NTB no.477 (Delay of exports from Botswana to South Africa at South African Border posts) had been resolved. A letter dated 25 may 2012 was sent to Botswana Unified Revenue Services (BURS). It was resolved at a bilateral level between the two revenue agencies.
2. The NTB shall be marked resolved upon receipt of documentary evidence  

Policy or regulatory NTB

Yes 

Location

South Africa: Kopfontein (Border post)  

Reporting Country or Region

Botswana  

Country specific trade issue

No  

Date of incident

2011-12-02  

Status

Resolved  

Date of resolution

2012-08-28  

Product Description

All products

Computer-assisted translation

• English
• Arabic
• French
• Portuguese

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Total value

R20 000.00  

Date reported

2011-12-05 17:15  

Modified

2012-10-15 12:37