PEJLS

Thanks Lexx!

No duty except the 10% AVT and 14% VAT i.e. Customs value x 1.154

Hi Rocklands You are quite correct in stating that proof of origin is key to obtaining a zero Rate of Duty when buying a complete bicycle from the EU. In order for a recognized EU exporter to export a complete bicycle to SA without incurring the 15% General Rate of Duty the onus is on the exporter to provide proof of origin such that any materials (raw materials, components, etc) that do not originate in the EU must not constitute more than 30% of the exworks value of the bike. The proof of origin declaration will be a component of the EURO1 certificate of movement. There are, however, provisos to the basic requirements regarding the percentage of the materials that make up the complete bike that relate to proving (declaring) that the materials were further worked, forged, reforged, machined, reamed, painted, complexly assembled as opposed to simply assembled, etc. which allow EU exporters to claim a greater percentage of a complete bike as having originated in the EU. I have had this confirmed by SARS officials and my own experience over the years of importing.

Hi Myles Thanks for the simplified formula. Just checking on the formula for a complete bike - should it read: (costx1.15)x((14%x1.1)+1) i.e. (costx1.15)x(1.154)? I have had the following confirmed by SARS customs officials and personal experience. If the company exporting the complete bike from the EU can show in the proof of origin certificate that any materials (i.e. raw materials and or components) used in the manufacture of the bike that do not originate in the EU constitute less than 30% of the exworks value then the General Rate of Duty of 15% falls away. The EURO1 Certificate of movement require this proof of origin.

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Sorry about the technical detail but as mentioned there is too much misinformation being presented as fact on various forums which puts people off buying bicycles or components from the EU in particular hence the attempt to direct people to the relevant SARS documents. If the formula presented in the previous post is applied then cost is still considerably less than the exact same bike bought in SA. CRC charge GBP133 for delivery of a complete bike via DHL which is at the current rate of exchange (1GBP = R16.81) = R2235. With the VAT calculated from the AVT as shown in my previous post and a small clearance fee this comes to a total of around 22% of the custom value as additional cost. Anyway, signing off on this now and it's up to you guys to decide whether to import or not! I will keep on importing! Cheers.

Certification under the EU free trade agreement applies to the exporter. Most recognized/registered big companies in the EU worth their salt such as CRC, Tweeks, Bike24, etc. have their Euro 1 certificates for movement of goods which is why on the manifesto they can declare the type of package as Zero Zero Zero One. But for sure check with the company before importing.

In terms of ad valorem tax this is dealt with in the SARS Customs and Excise document: http://www.sars.gov.za/AllDocs/LegalDoclib/SCEA1964/LAPD-LPrim-Tariff-2012-05%20-%20Schedule%20No%201%20Part%202A.pdf which is also attached. Page 9 of 10 refers: Tariff item 126.10 deals only with Tariff subheading 87.11 Motorcycles. There is no Tariff item for 8712 Bicycles or 8714.9 Other i.e. components. Therefore there is no ad valorem tax on bicycles and components. LAPD-LPrim-Tariff-2012-06 - Schedule No 1 Part 2B.pdf

Since bicycles and components from the EU attract zero import duty the only duty payable is VAT. However, there is a twist in the tale as the VAT is calculated from Added Value Tax as follows: [(Customs Value + 10% thereof) + (any non-rebated duties levied on the goods)] x 14% = [ATV] x 14% = VAT payable The 10% mark-up on the customs value in this calculation is applicable when goods are imported from a country outside the Customs Union. Therefore, if goods have their origin in any of the BLNS countries (Botswana, Lesotho, Namibia or Swaziland), the 10% will not be added to the calculation.

Please refer to Chapter 87 of Schedule 1/ Part 1 of the Customs and Excise Tarrif Guideline (http://www.sars.gov....Excise-Act.aspx more specifically http://www.sars.gov....s 1 to 99.pdf). Specifically refer to subheading 8714.9 Other for bicycle components and subheading 8712.00 for complete bicycles. There are five columns under Rate of Duty depending on origin of goods: (1) General which indicates 15% Rate of Duty for 8712.00 Bicycles and other cycles (including delivery tri-cycles) not motorized and for 8714.9 Other which incudes frames, forks, wheelsets, etc. the Rate of Duty is FREE; (2) EU, (3) EFTA and (4) SADC for which the Rate of Duty for complete bicycles AND components is FREE; and lastly (5) MERCOSUR for which the Rate of Duty for complete bicycles is 11.25% and for components the Rate of Duty is FREE. The requirement for country of origin is stated on Page 97 of 316 of the SARS Customs and Excise General Notes document: http://www.sars.gov.za/AllDocs/LegalDoclib/SCEA1964/LAPD-LPrim-Tariff-2012-03%20-%20General%20Notes.pdf under Section ex 8712 Bicycles without ball bearings (!) as follows: Manufacture in which the value of all the materials used does not exceed 30% of the exworks price of the product. Exworks price of the final product is the price the seller sets excluding shipment costs which are the responsibility of the buyer. Since the value of the materials used to assemble a bike whether manufactured in Asia, USA, UK, Europe, etc. are unlikely to exceed 30% of the final value of the fully assembled bike this requirement is met. Please see my first post for the calculation of VAT on imported bicycles and components from EU member states.

There seems to be much myth and mystery surrounding the importation of bicycle components and complete bikes from the UK which is still part of the EU. Please refer to Chapter 87 of Schedule 1/ Part 1 of the Customs and Excise Tarrif Guideline (http://www.sars.gov.za/Legal/Primary-Legislation/Pages/Schedules-to-the-Customs-and-Excise-Act.aspx more specifically http://www.sars.gov.za/AllDocs/LegalDoclib/SCEA1964/LAPD-LPrim-Tariff-2012-04%20-%20Schedule%20No%201%20Part%201%20Chapters%201%20to%2099.pdf). Specifically refer to subheading 8714.9 Other for bicycle components and subheading 8712.00 for complete bicycles. The Rate of Duty for both categories when importing from the EU is FREE. I have imported both bicycle components and complete bikes from CRC and Tweeks UK and have paid only South African VAT. VAT on imported good that do not incur an ad valorem duty is calculated as follows: To calculate VAT on imported goods, the ATV (added tax value) needs to be determined first.This is done as follows: [(Customs Value + 10% thereof) + (any non-rebated duties levied on the goods)] x 14% = [ATV] x 14% = VAT payableThe 10% mark-up on the customs value in this calculation is applicable when goods are imported from a country outside the Customs Union. Therefore, if goods have their origin in any of the BLNS countries (Botswana, Lesotho, Namibia or Swaziland), the 10% will not be added to the calculation. REFER TO THE FOLLOWING SARS GUIDELINED FOR CALCULATING DUTIES AND VAT: http://www.sars.gov.za/ClientSegments/Customs-Excise/Processing/Assessment/Pages/Duties.aspx If the item is sent by DHL they charge an additional "disbursement" fee to expedite the transfer of the imported through customs at Jhb. Whether this is morally correct for DHL to add a second charge to the shipment costs one has already paid is debatable but they certainly get the parcels through customs within the shortest time possible. If the parcel arrives via Parcelforce it is left in the hands of our completely dysfunctional SAPO and parcels can be held up at the Jhb Importation hub for a week or two depending on the luck of the draw. I would plead with those members of the The Hub SA who have not had personal experience of importing bicycles or bicycle components from the EU member states to South Africa to not perpetuate incorrect advice/information to anyone intending to import components and bicycles. There are amazing savings to be had by importing bicycle components and complete bikes from the EU even after the exchange rate is taken into consideration. For cycle gear (clothing, shoes, helmets, etc.) refer to the specific chapters within the Import Schedule. If you are incorrectly charged duty on bikes and components or any other items you may enter into a dispute with SARS Customs and Excise by filling in the appropriate form available from the SARS Customs and Excise website. Hope this helps those who want to obtain or build up the bike of their dreams but cannot afford the price chain in South Africa. NOTE: There is an ad valorem duty charged on various items such as motorcycles (see http://www.sars.gov.za/AllDocs/LegalDoclib/SCEA1964/LAPD-LPrim-Tariff-2012-06%20-%20Schedule%20No%201%20Part%202B.pdf).