There are a number of duties that are payable on imports, namely: customs duty (specific duty or formula duty), ad valorem customs duty ('contra duty'), value added tax (VAT), anti-dumping duty, countervailing duty, safeguard duty and a surcharge.
Customs duty
This duty is leviable under Part 1 to Schedule No.1 of the Customs
and Excise Act ('the Act') (except Parts 4 and 5 thereof) on all goods imported into the Southern African Customs Union (SACU). In the majority of instances the customs duty is an ad valorem duty i.e. payable on the value of the goods, and is applied on the 'value for customs duty purposes'. The duties can also be in the form of a specific duty or a formula duty.
Specific duty
Leviable under Part 1 to Schedule No.1 of the Act per unit i.e. in litres, kilograms or even a value expressed as a percentage.
Formula duty
Used to address disruptive competition, by increasing the price of the imported product to that of the local ex-factory selling price. Leviable under Part 1 of Schedule No.1.
Ad valorem customs duty ('contra duty')
Imposed under Part 2A and 2B to ScheduleNo.1 of the Act on
certain specified imported goods which are of a similar class or kind to those on which excise duty is levied. This duty is payable in addition to the customs duty and the rates range between 5% and 20%.
