Customs and Duties on imports

[Heel Drop]

I posted here a while back on importing and duties and some one from SARS customs mailed me - if you read this please PM me I have a issue and need help.

 

I imported a Event Tent from Germany - a demo

 

The value on the invoice 1199.25 Euros and 270 Euros for Insurance .

 

SO Dawn King Charge me and I asked them to explain the charges.

 

 

I attached the document and the last page has the charges on . I phoned and asked they must explain to me the charges so that I can understand how they manage to get the two values ( customs duty and VAT) and they could not .

 

The agents tells me

 

1.I must take the total value of the good and add 10% customs levy multiply by 14% then you will have the total VAT amount

2.When calculating duty you take the total value of the goods add 10% customs levy and multiply by duty 20% (depending on the type of commodity .) mine is 20%

 

 

So when doing the above the numbers juts don't add up

I keep asking that he must explain and he says we are doing it manually and therefore it will never work, the system does it automatically and it will never match.

 

Can any one assist on explaining this that does imports?

 

I understood I will pay 10% AVT then 20% duty ( for the type of import) and then 14% VAT

 

His calculation has another 10% thrown in and none of the figures he can support with a calculation .

 

Any one with experience in this assistance will be appreciated

dawnking.pdf

Edited July 21, 2013 by Heel Drop

[brad890]

here we go.

 

https://community.bikehub.co.za/topic/75887-import-duties-on-cycling-goods/

 

specifically look at post 10 from minion, I think that might explain what your asking.

[brad890]

its quite a nifty page to bookmark especially if your wanting to import cycling related goods, as final %'s are indicated after vat and all the other little percentages have been added

[Cippo]

Was €270 just for insurance or does it include postage?

[Cippo]

I see from invoice you paid R6106.20 in total for custom, duties and vat. I punched the Euro value plus insurance into a Duty Calculator app on Istore and it kicks back duties of R3101 (20%) and vat R2822 (15%) which normally includes handling fees and come up with R5923 which is close to your figures considering the exchange rate. I placed the tent under sport and leisure category where tents are listed with camping.

[Lexx]

What Tarrif Code did they use? Remember, they could stil charge you extra in Schedule 1 P2A or Schedule 1 P2B. Thats an extra duty that only applies to certain goods being imported.

[Heel Drop]

Was €270 just for insurance or does it include postage?

must be wit postage

[Heel Drop]

What Tarrif Code did they use? Remember, they could stil charge you extra in Schedule 1 P2A or Schedule 1 P2B. Thats an extra duty that only applies to certain goods being imported.

its falls under tents and all investigation I did prior did not idicate any special duties - i used the customs 650 odd page document

[Heel Drop]

I see from invoice you paid R6106.20 in total for custom, duties and vat. I punched the Euro value plus insurance into a Duty Calculator app on Istore and it kicks back duties of R3101 (20%) and vat R2822 (15%) which normally includes handling fees and come up with R5923 which is close to your figures considering the exchange rate. I placed the tent under sport and leisure category where tents are listed with camping.

 

there cuculation indicate the duty is only applied to the product not the insurace - which is correct no duty paid on insurace

so that through the calcs off

I am trying to understand how they worked it out

but they tell me one thing and when I apply it it does not work out

frustrating but ill get to the bottom of it

[Lexx]

What Tarrif Code did they use to Charge you the Duties? Because that's Important. Remember the tents of synthetic Material is 20% Duties, But the Lady, that got the Documents could've classified it under "other" and that "other"(of non-woven textile material) is charge at 25% duties.

So just make sure they did classified it correctly.

[GrumpyOldGuy]

Its correct, I assume you understand the Duty bit its only the Vat bit that concerns you.?

 

Basically you are not adding the 10% that customs requires added to the total value before they calculate Vat, so your Total Customs Value is R19584. plus the 10% customs additional levy, (its not reflected) but its calculated by the system, so your vat calculation will be on R19584. X 10% = R21542. X 0.14 = R2940.00 Vat payable - theres a few rand's in the calculation variance but thats because I am just doing it quickly here.

 

All freight forwarders work like this, its not a shown value, but thats what it is.

Edited July 21, 2013 by GrumpyOldGuy

[GrumpyOldGuy]

its falls under tents and all investigation I did prior did not idicate any special duties - i used the customs 650 odd page document

 

Theres no special duty charged, its correct as it stands.