South African customs has its own vocabulary — terms like ATV, CIF, SAD500, and rebate item appear on every clearance document, but few importers know exactly what they mean. This glossary defines every import charge and customs term you are likely to encounter when bringing goods into South Africa, in plain English.
A–Z of South African import charges and customs terms
FOB — Free on Board
The price you paid the supplier, delivered to the port of export and loaded onto the vessel or aircraft. FOB does not include international freight or insurance. It is often the price on your supplier invoice. In South Africa the FOB customs value — the transaction value of the goods determined on an FOB basis — is the base SARS uses to calculate import duty and VAT.
CIF — Cost, Insurance and Freight
A commercial Incoterm: the seller’s price including international freight and insurance to the destination port. CIF describes who pays for shipping and insurance — it is not the customs valuation base in South Africa. SARS values imports on the FOB customs value (the goods, on an FOB basis); do not confuse the CIF commercial price with the SARS duty base.
Customs value
The declared value of goods at the South African border — the FOB customs value (the transaction value of the goods on an FOB basis). All import duties and the ATV (VAT base) are calculated on this figure. Declaring a lower customs value than the real transaction value is a customs offence under the SARS Customs and Excise Act.
Tariff / duty rate
The percentage rate published in SARS Schedule 1 for a specific HS code. Rates range from 0% (electronics, books, machinery) to 45% (most clothing). The rate depends on your HS code — not on the description you write on the invoice.
Import duty
The tax SARS charges at the border when goods enter South Africa. Calculated as: FOB customs value × tariff rate. Import duty is paid to SARS at the time of clearance and is separate from VAT.
ATV — Ad Valorem Tax value
The base on which SARS calculates import VAT. The formula is: ATV = (FOB customs value × 1.10) + duty payable. The 10% uplift is built into the formula — it is not a separate charge — but it means you pay VAT on a higher figure than your customs value alone.
VAT on imports
15% charged on the ATV at the time of customs clearance. Paid directly to SARS alongside the import duty. VAT-registered businesses can claim this back on their next VAT201 return. Private (non-VAT-registered) importers cannot reclaim it.
HS code — Harmonised System code
A 6- to 8-digit international product classification number used by all WTO member countries. The first 6 digits are universal; the last 2 are country-specific. In South Africa, the 8-digit HS code determines your duty rate, VAT treatment, and any import permits required. Getting the HS code wrong is one of the most common (and costly) customs mistakes.
SARS Schedule 1
The South African import tariff schedule — a legal document listing every HS code alongside its applicable duty rates: the general (MFN) rate, the SADC preferential rate, the AGOA rate, the EU EPA rate, and others. Published and updated by SARS. Your duty calculation begins here.
General rate (MFN rate)
The default duty rate that applies when importing from a country that does not have a preferential trade agreement with South Africa. MFN stands for Most Favoured Nation — a WTO term meaning all non-preference trading partners are treated equally at this rate.
SADC rate
The preferential duty rate for goods originating in SADC (Southern African Development Community) member states — including Zimbabwe, Mozambique, Tanzania, Zambia, and others. SADC rates are often 0% or significantly below the general rate, but a valid certificate of origin (typically a SADC certificate) must accompany the shipment.
Rebate item
A product or use-case listed in SARS Schedule 4 where SARS grants a full or partial rebate of customs duty, subject to qualifying conditions. Personal effects of returning residents (rebate item 412.07) and goods for manufacturing under rebate are common examples. The rebate is not automatic — conditions must be met and documented at clearance.
Bill of Entry — SAD500
The official SARS customs declaration form submitted by your clearing agent at the time of import. The SAD500 lists the importer, goods description, HS codes, customs values, duties, and VAT payable. It is the legal document that governs the clearance. SARS may audit SAD500s for up to three years after clearance.
DA 306
A SARS form issued when SARS detains your goods or requires additional supporting documents — such as a certificate of origin, import permit, or NRCS certificate — before releasing the shipment. Receiving a DA 306 does not mean your goods are seized; it means SARS needs more information before it will release them.
Release notification
Confirmation from SARS (via the EDI system) that your shipment has been cleared and released from the port, airport, or bonded warehouse. The release notification is the final step in the clearance process — without it, the port or terminal will not hand over your goods.
Customs agent / clearing agent
A licensed professional registered with SARS to submit SAD500 declarations on behalf of importers and exporters. Also called a customs broker. Your clearing agent calculates the duty and VAT, submits the entry to SARS, coordinates with the port, and obtains the release notification. Using an experienced clearing agent for the first time you import a new product category can save significant time, cost, and compliance risk.
Still unsure about a customs term or your import costs?