Duty deduction tip comes with a cautionary

IMPORTERS WHO buy on CFR, CPT, CIF or CIP terms are entitled to deduct the prepaid freight and insurance charges in calculating the customs duty value (CDV) of the goods imported - the amount on which duties and VAT are paid, says Safcor Panalpina’s internal auditor, Jeff Epstein.
But Epstein cautioned: “SA Revenue Services (SARS) does not have to accept the amounts shown by suppliers on their invoices as correct and can ask for proof of the actual amounts paid.”
The authorities can also approach carriers directly for confirmation of prepaid freight amounts.
“If deductions are found to be incorrect it is the SA importer who is held liable for the error irrespective of who actually made the mistake.”
It is also the SA importer who can be penalised - or even prosecuted - if duties are found to have been underpaid, he added. “Those buying on any of the named terms,” said Epstein, “should insist on being provided with a detailed freight statement, together with the other documents relating to the transaction.”