Cigarettes and Alcohol
“The import of ‘Sin Products’ (i.e. liquor and tobacco) are subject to specific Customs Duties based on either weight or litreage (measurement of liquid capacity). Providing regulations are followed to the letter you can import these products into South Africa.
On cigarettes you have to pay duty at source, meaning that you pay duty before you can sell the product. Because of this you need to have enough start-up capital for it to work,” says spokesperson, Una van Zyl, The Tobacco Institute of South Africa.
All the customs regulations that apply can be found on the SARS Website, under ‘Legal & Policy’, ‘Legislation’, ‘Harmonised Tariff System’, ‘Schedule 1 Part 1 – Ordinary Customs Duty’, p. 456 of 1023.
Duties on tobacco products
Excise duties are also available on website of National Treasury under these headings, ‘Budget Information’, ‘National Budget’, ‘2010’, ‘Chapter 5’ p.80.
Health Warnings
Tobacco control legislation (health warnings, tar and nicotine readings etc) must be adhered to. This information is available on The Tobacco Institute of South Africa’s website under ‘Legislation’.
“If there are particular issues you would like to check contact the Department of Health who are the custodians of the tobacco control legislation,” advises van Zyl. Contact the Health Promotion section by clicking on www.tobaccosa.co.za.
Draft regulations
Late last year draft regulations were published on Reduced Ignition Propensity (RIP) Cigarettes. The introduction of reduced ignition propensity cigarettes means that the cigarette paper has to be changed to a slow burning paper.
This will reduce the pleasure from smoking since cigarettes won’t burn as easily. See draft regulations on www.gov.za, ‘Documents’, ‘Notices’, ‘2009’, ‘Dec’, 4 December 2009. The final regulations can be found here.
Trademark Registration
If you are intending to import a brand into South Africa, it is advisable that you register the trademark in South Africa through trademark lawyers if this has not been done. For more information contact the Tobacco Institute of South Africa offices on +27 21 421 0011.
Importing Liquor
You will require a permit to import liquor into South Africa. You will also need an import certificate.
An import certificate is required in order to import a liquor product (excluding beer) to South Africa. The import certificate or a copy will be required before a consignment can be released from the port of entry.
An importer applies for an import certificate only once in the lifetime of a product. After that, the same import certificate number can be used if the composition, content, bottle size and label of that product do not change.
Importing Diesel
You have to have a license to import petroleum products from oil producing nations such as Russia and Saudi Arabia to South Africa. The term “petroleum products” refers to aviation gasoline, bio-fuels, diesel, jet fuel, liquefied petroleum gas, paraffin and petrol.
Diesel is classified as 1D, 2D and 4D. Key differences between these are the pour point, the lowest temperature a liquid will flow; and differences in viscosity, or the resistance of a liquid to flowing.
1D diesel fuel has lower viscosity and a lower pour point than 2D, so is preferred for use in cold weather areas. 4D fuels are only used in very low-speed engines such as stationary units.
Who issues Petroleum licences?
Wholesale, retail, import and export petroleum licenses are issued through the Department of Energy. Call the Controller of Petroleum Products +27 12 317 8982 or visit http://www.energy.gov.za/ or www.dem.gov.za
The application process is complicated
It is easier to deal through a consulting firm who has the necessary expertise in dealing with complicated petroleum licensing requirements in South Africa. Tour Media is a consultancy that helps individuals apply for new wholesale and retail petroleum licences.
Duty and surcharges may apply
If you are importing in “bulk” (1 500 litres or more), per transaction you require a wholesale licence. Duties, excise taxes and import surcharges levied on goods can be obtained from the International Trade Admission Commission of South Africa by clicking on: http://www.itac.org.za/guidelinesofpetrolium.asp