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South Africa

Business Environment
Market Information
Doing Business in South Africa

Customs Class
South Africa uses the Harmonised System of Tariff Classification, which is recognised in most countries of the world. It is important for a company contemplating entering the South African market to check the customs and import restrictions applicable to its products.

Points to bear in mind
Prior to trading with South Africa, it is important to bear the following points in mind:
-Total classification of product, as this will determine duties and import
permit requirements. Most goods may be imported without restriction.

-Industrial rebates of duties are available for importation of certain
materials for further manufacturing.

- General rebates of duty are available for specific situations, and duties
may be rebated on goods re-exported.

-Bonded warehouses are available at various points of entry.


Selling Through an Agent or Distributor
In South Africa, the terms "Agent" and "Distributor" have a very specific meaning: Agents work on a commission basis after obtaining orders from customers; Distributors buy and sell products directly to customers. Agents are often used for the distribution of durable and non-durable consumer goods, as well as some industrial raw materials. They may be particularly appropriate when products are highly competitive and lack a large market. It is common to appoint a single agent capable of providing national coverage either through one office or a network of branch offices. In addition to their role as the local representatives of exporters, agents should be able to handle the necessary customs clearances, port and rail charges, documentation, warehousing, and financing arrangements.

Local agents representing foreign exporters, manufacturers, shippers, or other principals outside South Africa who export goods to South Africa, are fully liable, under South African import control law, for all regulations and controls which are imposed on the foreign exporters. Local agents are required to register with the Director of Import and Export Control of the Department of Trade and Industry. It is important for a U.S. exporter to maintain close contact with the local agent to track changes in importing procedures and to ensure that the agent is effectively representing the sales interest of the exporter.

Business Hours
Normal office hours in South Africa are between 08:30 and 16:30/17:00 - Monday to Friday. Some offices close between 13:00 and 14:00. Government offices close at 16:00 - Monday to Friday, and most manufacturing concerns close at 15:00 on Fridays.
Some Useful Sources of Information
Markets and Sectors
http://tradeport.org/ts/countries/safrica/sectors.html

Market Access
http://www.tradeport.org/ts/countries/safrica/market.html

Investment climate
http://www.isa.org.za/
http://mbendi.co.za/werksmns/sabus02.htm
http://www.tradeport.org/ts/countries/safrica/climate.html

Other Sources of information

Braby's EasyInfo: Information on Business in Southern Africa and
Indian Ocean Islands
http://www.brabys.co.za/

Chamber of Mines South Africa
Includes mining directories, daily news, and industry agreements.
http://www.bullion.org.za/

ExiNet: South African trade information WWW resource
http://www.exinet.co.za/

Exhibitions Association of South Africa (EXSA)
Major trade shows, exhibitions and conventions in Africa.
http://www.infodoor.co.za/exhibitions/exsa/

MBendi Information Services - South Africa Profile
Includes a collection of business information.
http://mbendi.co.za/cysacy.htm

SABTIN: South African Business and Tourism Information Network
http://www.sabtin.co.za
 

 

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