On 24 November the South African Revenue Service (SARS) updated its “External Policy - Valuation of Exports Policy”.
It has:
- Inserted the charges and expenses that must be included when determining the Free on Board (FOB) value of exported goods.
- Inserted the requirements when accredited clients may:
- Request priority treatment when applying for a VDN by notifying the CRM of their case; and
- Upload a copy of the accreditation certificate to facilitate the prioritisation of the case.
According to the “SUMMARY OF MAIN POINTS” of the External Policy:
- The export value declared for Customs purposes is the price of the goods FOB at the place of dispatch from South Africa.
- If the invoice is not on an FOB terms of sale, the appropriate costs and charges must be added or subtracted to calculate an FOB price in South African rand.
- Where the value of goods exported or to be exported is in a foreign currency the amount must be converted to South African rand. The selling rate published by the Commissioner for SARS on the date prior to the submission of the export declaration must be used.
A copy of the External Policy is available on request.
Story by: Riaan de Lange