Import & Export Solutions

An Import and an Export License is simply an assigned code that informs the government what kind of goods you’re important and/or exporting. This code is also sometimes referred to as a customs code or a CNN number.

You get an Import Licence or an Export Licence when you register as an Importer or an Exporter in South Africa.

Almost all goods that leave or enter South Africa are checked and taxed, that’s why they first need to be evaluated at customs. Customs are designated points, at points of entry (like postoffices or airports) that are used to check goods and to determine appropriate tax for them before they enter or exit the country.

You use a CNN number or a customs code to clear goods through customs or to make and receive international payments for goods.

The South African government needs to keep track of what items are imported and exported firstly to ensure it is only legal goods that enter or exit the country.

Secondly, it’s important to ensure that no goods enter or exit South Africa that could be harmful to the natural environment. Natural products like fruit or meat could for e.g. have bacteria or pests on it that could be threatening to other plants and animals and put the natural resources of our or other countries in danger. That’s why it’s really important to regulate imports and exports.

Thirdly, it’s important for the South African government to ensure the economy stays competitive to the rest of the world. Essentially that means that we don’t want to export or import too much or too little, or it can affect the resources and job opportunities in South Africa.

That’s why certain products are more heavily taxed than others. The government may not be able to stop the free trade of goods, but it can limit it by making it more expensive for people to do so with specific products that can harm the economy if done on a large scale.

Products that aren’t readily available in South Africa, usually have a lower tax rate. Products that are readily available usually face higher import tax; it would be better for the economy to use local suppliers. That’s why it’s really important to do your research on the customs costs, before importing or exporting.

The government also keeps track of all the goods that move through South Africa to other parts of the world.

An Import or an Export Licence is really helpful when you import or export goods in and out of the country multiple times.

It’s helpful simply because your registration serves as a form of pre-approval of the goods you want to import or export. It makes the whole import and export process much simpler.

Without registration, the government needs to assess every import or export individually.

If your import or export value is over R10 000, customs will most probably ask for a license. So that means if your business relies on regular or significant imports or exports, you probably need an import or an export license.

Here are the specifics.

Import or export license apply in the following cases:

• If you need to import or export a batch of products more than 3 times a year you have to have an import or an export licence.
• If your imports or exports are under the value of R50 000 per batch you still need an import or an export license (after R50 000 other compliance documentation is needed)

If you want to make or receive international payments you will probably also need a license. You could use your credit card; however, that often means you have really high forex costs to pay. You could also use 3rd parties like PayPal, however that also has high costs linked to it.

A customs code allows payments in an out of your normal bank account without those extremely high rates. It’s just much easier.