A full-process guide to importing goods from China to South Africa

A full-process guide to importing goods from China to South Africa

1. Documents required by South African importers
2. Documents required by Chinese exporters
3. Process of importing goods from China to South Africa
4. Tariff regulations in South Africa
5. Necessary certifications in South Africa
6. Goods prohibited and restricted from import into South Africa
7. Common imported goods and their market prospects

Documents required by South African importers

1. Customs clearance instructions: As an importer, you need to prepare a detailed customs clearance instruction and submit it to your customs broker or relevant government department. The document should contain all the necessary information in the “SAD500” form and be signed and confirmed by you or your authorized representative. The customs clearance instruction should include a detailed description of the goods, quantity, value, mode of transportation, etc.
2. Customs Clearance Declaration – SAD500: The SAD500 form is an important document for declaring imported goods to the South African Revenue Service (SARS). The form must list the value, quantity and type of goods in detail to obtain approval from SARS. At the same time, you need to declare that all goods imported from China will be released only after paying customs duties and VAT.
3. Commercial Invoice: The commercial invoice records the transaction details between the importer and the exporter, including proof of payment, information about the buyer and seller, description of the goods, payment method, insurance premiums and freight, etc. The commercial invoice is a necessary document for customs clearance. Without a commercial invoice, SARS will not allow you to complete the import.
4. Proforma Invoice: Proforma Invoice is provided by the exporter before shipment, estimating the transaction amount and terms, and is used by the importer to apply for import licenses, arrange pre-shipment inspections and currency exchange. Proforma Invoice can help importers understand the calculation of tariffs and VAT in advance.
5. Bill of Lading: The bill of lading is not only a proof of ownership of the goods, but also a receipt for the carrier to receive the goods, and it also lists the terms of transportation. The bill of lading is usually issued by the carrier and is an important certificate for the transportation of goods.
6. Certificate of Origin: The certificate of origin proves the place of production of the goods and is essential for enjoying specific tariff preferences or meeting the trade policy requirements of the importing country. The certificate of origin is usually issued by the relevant authorities of the exporting country.
7. Import License: Certain goods may require special import licenses to ensure the safety, quality and compliance with environmental protection standards of the imported goods. Import licenses are usually issued by relevant departments of the South African government.
8. Letter of Credit: A letter of credit is a payment guarantee provided by a bank, which helps reduce the risks of both parties to the transaction and ensure the safety and reliability of the transaction. The letter of credit is usually issued by the importer’s bank, and the exporter applies for payment from the bank based on the letter of credit.

Documents required by Chinese exporters

1. Bill of lading: Provided by Chinese exporters, it proves that the goods have been loaded on board and sent to the destination. The bill of lading is an important document for the transportation of goods and is usually issued by the carrier.
2. Export license: Depending on the type of goods, a specific export license may be required to ensure legal export. Export licenses are usually issued by relevant government departments in China.
3. Commercial invoice: It corresponds to the commercial invoice provided by the importer and records the specific information of the transaction, including price, quantity, description of goods, etc. The commercial invoice is a formal document issued by the exporter to the importer.
4. Manufacturer’s certificate: It proves that the manufacturing process of the product meets the relevant standards and ensures the quality of the product. The manufacturer’s certificate is usually issued by the manufacturer or a third-party testing agency.
5. Export packing list: It lists the items in each package in detail to facilitate customs clearance and transportation. The export packing list should include information such as the quantity, weight, and volume of each package.
6. Insurance certificate: It proves that the goods have been insured during transportation to reduce transportation risks. Insurance certificates are usually issued by insurance companies.
7. Inspection certificate: It is issued by a third-party testing agency to prove that the product quality is qualified and meets the standards of the importing country. Inspection certificates usually include the test results and certification of conformity of the product.
8. Certificate of Origin: Proof of the place of production of the goods, used to enjoy specific tariff preferences or meet the trade policy requirements of the importing country. Certificates of Origin are usually issued by relevant agencies in the exporting country.
9. Proforma Invoice: Used to estimate the transaction amount and terms to help importers prepare. Proforma invoices are usually provided by exporters before shipment.
10. Export Letter of Credit: Received by Chinese exporters as a payment guarantee to ensure the security of the transaction. Export Letter of Credit is usually issued by the importer’s bank.

Process of importing goods from China to South Africa

1. Market research:
   • Research the demand of the South African market for the goods to be imported.
   • Understand the competitors and consumer preferences of the target market.
   • Determine the appropriate sales channels and marketing strategies.
2. Supplier selection:
   • Find reliable Chinese suppliers through trade platforms, exhibitions or recommendations.
   • Investigate the qualifications, production capacity, product quality and delivery time of suppliers.
   • Sign a formal purchase contract to clarify the rights and obligations of both parties.
3. Obtain necessary licenses and certificates:
   • Apply for the corresponding import license according to the type of goods.
   • Obtain necessary documents such as certificate of origin and inspection certificate.
4. Cargo inspection:
   • Before shipment, entrust a third-party inspection agency to conduct quality inspection of the goods to ensure that they meet South Africa’s import standards.
   • Obtain an inspection certificate as one of the necessary documents for customs clearance.
5. Packing and shipping:
   • Consult with Chinese suppliers to ensure that the packaging of the goods meets international transportation standards.
   • Prepare an export packing list with a detailed list of items in each package.
   • Arrange the mode of transportation of the goods, such as sea or air, and obtain a bill of lading.
6. Insurance:
   • Insure the goods to reduce risks during transportation.
   • Obtain an insurance certificate as one of the necessary documents for customs clearance.
7. Customs clearance and tax payment:
   • Prepare customs clearance documents, including commercial invoice, pro forma invoice, bill of lading, certificate of origin, inspection certificate, export packing list, insurance certificate, etc.
   • Fill out and submit the “SAD500” form to declare imported goods to the South African Revenue Service (SARS).
   • Pay customs duties and VAT and obtain customs clearance release notice.
8. Goods release:
   • After all taxes and fees are paid, the goods will be released and can be arranged for pickup or delivery.
9. Goods arrival and distribution:
   • After the goods arrive in South Africa, contact the logistics company in time to confirm the arrival time and status of the goods.
   • Check whether the goods are damaged or short, and communicate with the supplier in time to solve any problems.
   • Store the goods in a suitable warehouse to ensure safety and storage conditions.
   • Develop a distribution plan to distribute the goods to various sales channels.
10. After-sales service and market feedback:
    • Provide high-quality after-sales service, including returns, exchanges, repairs, etc.
    • Establish a customer feedback mechanism to understand customer satisfaction and improvement suggestions in a timely manner.
    • Collect market feedback regularly, analyze sales data, and adjust product lines and marketing strategies.
    • Maintain good communication with suppliers to ensure the stability and reliability of the supply chain.

Tariff regulations in South Africa

The import tariffs in South Africa vary according to the different categories of goods, ranging from 0% to 60%. The calculation of tariffs is based on the customs value of the goods, which is the cost of the goods plus the shipping costs and insurance premiums. Some goods can enjoy zero tariff treatment, such as agricultural products such as natural honey and fresh sweet potatoes. In addition, importers are required to pay a 15% value-added tax (VAT), which is calculated as follows:

• Tariff = Customs value × Tariff rate
• VAT = (Customs value + Tariff) × 15%

For example, if you import 100 women’s jackets from China, each costing ZAR10, totaling ZAR10,000, with a tariff rate of 45%, no anti-dumping duties, and a VAT rate of 15%, the overall tariff is calculated as follows:

• Tariff = ZAR10,000 × 45% = ZAR4,500
• VAT = (ZAR10,000 + ZAR4,500) × 15% = ZAR2,175

Therefore, the total tariff for importing 100 women’s jackets is ZAR6,675.

Necessary certifications in South Africa

1. South African Bureau of Standards (SABS) certification: Many imported goods need to be certified by the South African Bureau of Standards (SABS) to ensure that the products meet South Africa’s safety and quality standards. Especially electronic and electrical products, building materials and auto parts.
2. South African Department of Health certification: Food, medicines and medical equipment need to be certified by the South African Department of Health to ensure their safety.
3. South African Department of Agriculture, Land Reform and Rural Development certification: Agricultural products and animal and plant products need to be certified by this department to ensure that they meet relevant quarantine and health standards.
4. South African Department of Transport certification: Automobiles and their parts need to be certified by the Department of Transport to ensure that they meet safety and environmental standards.

Goods prohibited and restricted from import into South Africa

• Goods prohibited from import:
  • Weapons and ammunition
  • Drugs and narcotics
  • Goods that infringe intellectual property rights
  • Endangered animals and plants and their products
  • Unquarantined animal and plant products
• Goods restricted from import:
  • Certain chemicals and dangerous goods
  • Second-hand cars and motorcycles
  • Second-hand home appliances and electronic products
  • Second-hand textiles and clothing
  • Certain medical equipment and medicines

Common imported goods and their market prospects

1. Machinery and equipment: South Africa has a certain manufacturing base and has a large demand for production machinery and equipment. Machinery and equipment imported from China have the advantages of high cost-effectiveness and stable performance, and have huge market potential.
2. Tires: South Africa’s automobile manufacturing industry is relatively developed, and the demand for low-cost tires continues to grow. Tires imported from China can meet the needs of existing vehicles and new vehicles.
3. Auto parts: With the increase in the number of cars in South Africa, the demand for auto parts is also rising. Auto parts imported from China are reliable in quality and reasonably priced, with broad market prospects.
4. Toys: South Africa’s toy market is very active, from large chain stores to shopping malls, various toy sales points emerge in an endless stream. Toys imported from China are rich in variety and affordable, and are deeply loved by consumers.
5. Furniture: With the booming real estate market in South Africa, the demand for furniture is growing. Furniture imported from China has a variety of styles and high cost-effectiveness, and has great market potential.
6. Clothing: South African consumers have a high demand for fashionable clothing, especially women’s clothing, men’s clothing and children’s clothing. Clothing imported from China is novel in style and moderately priced, and has a good market performance.
7. Cars: Although cars imported from China are expensive due to high tariffs, some high-end models are still favored by consumers. Cars imported from China are reliable in quality, superior in performance, and have a certain market share.
8. Electronic products: South Africa’s demand for electronic products continues to grow, from mobile phones, computers to home appliances, and the market potential is huge. Electronic products imported from China are cost-effective and popular among consumers.
9. Solar panels: As the energy crisis intensifies, more and more South African families and businesses are beginning to seek renewable energy solutions. Solar panels imported from China are reliable in quality, reasonably priced, and have a promising market prospect.
10. Handbags: South Africa’s handbag market is very active, with strong market demand for everything from casual backpacks to high-end designer handbags. Handbags imported from China are diverse in style and reasonably priced, with great market potential.
11. Cosmetics: With the rise of the younger generation in Africa, the cosmetics market is expanding rapidly. Cosmetics imported from China are rich in variety, covering a wide range of fields from hair care to skin whitening, and have broad market prospects.
12. Jewelry: South Africa’s jewelry market is very active, with demand continuing to grow from simple cheap accessories to expensive high-end jewelry. Jewelry imported from China are diverse in style and reasonably priced, with great market potential.
13. Wedding dresses: South Africa’s wedding culture attaches great importance to the sense of ceremony, and white wedding dresses are becoming more and more common. Wedding dresses imported from China are diverse in style and moderately priced, with huge market potential.
14. Building materials: As a growing economy, South Africa’s demand for building materials continues to increase. Doors, roof panels, tiles, shutters and other products imported from China have a high cost-effectiveness and a promising market prospect.

Risks and Countermeasures

1. Wrong orders or deliveries: If the goods received are defective or missing, it can be very troublesome to handle refunds. It is recommended to complain through a reliable broker to get a better solution.
2. High costs: Finding the best price can be time-consuming and wasteful of opportunities. It is recommended to work with local companies that understand industry pricing to avoid missing business opportunities.
3. High freight costs: Air freight is always more expensive than sea freight. If the goods are less than one container, you can choose to share the container with other importers to share the freight costs.
4. Intellectual property protection: Intellectual property protection is very important when building a relationship with a manufacturer to ensure that your product meets specific needs. It is recommended to use a reputable manufacturer and work with an agent who is familiar with intellectual property protection

Onestopimport is a top sourcing provider in China, committed to assisting our clients in finding quality products from China at the most competitive prices while also providing reliable shipping services that alleviate the stress of importing DG. If you are interested in wholesale or dropshipping goods, including dangerous goods (document, declaration) from China, please don’t hesitate to contact us.