Exports

Controlling Authorities:

Certain export control measures are exercised to comply with the provisions of the international agreements. It is also prohibited to export certain goods from South Africa, such as spent batteries and spent electric accumulators. Some other products subject to export control measures include:

• Precious stones, such as Tiger’s Eye and Sugulite
• Ferrous and non-ferrous waste and scrap
• Used motor vehicles

Controlling Authorities for Exports from South Africa include:

• The Department of Agriculture, Forestry and Fisheries
• The International Trade Administration Commission of South Africa
• The Department of Mineral Resources
• The Department of Health
• The Department of Energy
• The South African Police Service
• The Department of Environmental Affairs.

Export Permits:

• An export permit is only applicable to goods specified in the permit. The permit may not be transferred in any manner by the holder thereof and may not be used to benefit anyone not referred to in the permit.
• Export permits are valid for a maximum period of six months from the date of issue, or for a shorter period if indicated on the permit.
• An export permit does not absolve the exporter from any other legal obligations when exporting goods from South Africa.

According to the Government Gazette dated 10 February 2012, an export permit is not required for the following goods:

• Goods landed for transit through the RSA;
• Personal effects (excluding motor vehicles) for personal use by a person leaving South Africa permanently;
• Goods (excluding motor vehicles) exported as bona fide gifts at own cost by a natural person in South Africa to a designated person living outside the common customs area;
• Samples of no commercial value;
• Goods imported into South Africa for repairs or maintenance, to be exported to the original consignor after such repairs or maintenance;
• Vehicles imported as new into South Africa or against a valid import permit and then exported to any member of SACU

Cost Structure:

The final delivery price of your goods in the receiving country will impact the competitiveness of your product in the destination country.

The following factors will impact your bottom line:

• Are you sourcing raw materials locally or from abroad? Locally sourced raw materials will benefit your export pricing as the South African Rand has deteriorated against major currencies, but if you are importing the raw materials, you may lose your competitive edge.
• Is your manufacturing facility capable of increasing productivity and is there room to improve efficiency?
• What is the value of your product? The lower the value, the more sensitive the product is to changes in the international market.
• What is the proportion of your costs do you allocate for logistics? Is there a possibility that you can negotiate better shipping terms because of high volumes?
• Establish the Tariff Heading for your product and research applicable Customs Duties and other taxes in the destination country.

Market potential:

Research the market to ensure that there is a need for your product before trying to sell your product in another country. If you are already meeting a need in the domestic market, chances are that the same needs exist elsewhere. Understand rules and regulations in the destination country, and consider the cost en feasibility of any required adaptions to your product beforehand. Another country may, for example, stipulate language used on labels and in manuals, safety features in electrical equipment, etc.

Do a thorough calculation of your cost structure and ensure that all direct and indirect costs are included in the price structure. Research existing competitors in the market and look for advantages and disadvantages your product has over the competitor’s product. Look for possible substitutions for your product and ensure that your product is the preferred product. Check your manufacturing licence and existing patents (if applicable) for possible limitations to export to other markets.