On 1 October 2009 South Africa brought some of its customs legislation in conformity with the World Trade Organisation's Agreement on the Implementation of Article VII of the General Agreement on Tariffs and Trade (?GATT?) which deals with customs valuation.

In terms of the amended Customs and Excises Act, the full costs of the goods transported from the exporter's premises are now to be included in the customs value of the goods. This added value will thus increase the amount of duty payable on those goods. Thus all inland freight charges from the exporter's premises to the port or place of export where the goods are loaded on the ship will be included in the customs value of those goods.

Previously the FOB (Free on Board) price was used for as the basis for the customs valuation. This was due to the fact that a shipping container was regarded as an exporting vehicle and hence once placed inside the container, whether the goods were placed in the container at the port of shipment or at the exporter's premises, any charge incurred thereafter would not be added to the value of the goods for customs valuation purposes.

For any further information on customs matter, kindly contact ,Rian Geldenhuys.