Reader query provides insight into Sars’ duty policy for travellers

A frantic e-mail from an FTW reader detailing how she had been hammered at Durban International Airport for duty plus value-added tax (VAT) after bringing in some clothing items from a trip to Bombay in India prompted an immediate investigation. In addition, she felt that the customs officer had overvalued the goods, which she reckoned fell below the permitted R3 000 maximum value that you’re allowed into SA. The question was how much are you allowed to bring into SA duty-free. Riaan de Lange, MD of Tariff & Trade Intelligence (TTi) and the writer of our weekly Duty Calls column – and also a specialist adviser to SA Revenue Service – was our first stop. “This being the third story in FTW of people experiencing customs’ interventions,” he said, “indicates that Sars is starting to become more vigilant in its control, which I believe is a good thing.” As background information and clarification of the issue, De Lange explained that, in the past, when arriving back in SA you had to complete a DA331 ‘Customs Declaration’. “The four-page form required that you complete two pages,” he added, “with the other pages effectively explaining your rights and responsibilities in terms of the provisions of the Customs and Excise Act (‘the Act’).” He also said that readers should note that this form is still in use at SA’s land border posts, although our international airports do not require the completion of the DA331 form. At an airport, you are left with the responsibility of selecting either the ‘red channel’ where you have something to declare or the ‘green channel’ where you have nothing to declare. However, a Sars official can stop you if you go through the ‘green channel’ and request that you provide proof of compliance. “What South African citizens seem to forget,” De Lange emphasised, “is that by bringing in goods purchased overseas, they are effectively importing goods into the country. “Another thing that people seem to forget is that they take their own property (cellphone, laptops, and cameras etc) with them and then on their return they could pay customs duties (import tax) on these goods, unless they have completed a DA65 form – ‘Goods Registered for Re-Importation’. Meanwhile, the DA331 form – with its 13 questions which need to be answered ‘yes’ or ‘no’ – effectively addresses the goods and the quantities that you can bring into SA duty-free. According to the DA331 ‘any goods (new or used) obtained abroad worth more than R3 000 in total’ must have duty paid. It also defines the ‘flat rate assessment’. Said De Lange: “Over and above your allowance for consumables and your duty free allowance of R3 000, you may elect to pay customs duty at a flat rate of 20% on any additional goods which you have acquired abroad of a total value not exceeding R12 000.” Looking specifically at our reader’s case, De Lange pointed out, “It is important to state that ignorance of the Act and its rules is not a defence. Just because Sars may not have been as vigilant in its enforcement in the past, does not mean that they cannot be now.” Although he had to make some presumptions from what our reader, Nitasha Ashokumar, directly said in her correspondence with FTW, he made a personal analysis of each of the issues that she highlighted in her letter.