Customs Transit Procedures

          The difference between National Transit and International Transit is knowing the difference between RIB (Removal In Bond) and RIT (Removal In Transit). The RIB and RIT codes form part of the old terminology still used extensively today; now replaced by Procedure Category Code B discussed in former blog posts.

Customs Tax Status of Goods

            The Customs Procedure Codes (CPC) and the Tax Status of goods are inextricably linked. The CPC codes indicate what the Tax Status of goods are.

“export taxes from South Africa may become levied for the first time…”

The following definitions are important in understanding the concept of Tax Status in the new Customs Control Act:

What Are Customs Procedure Codes?

            Customs Procedure Codes (CPC) are not easily explained yet, how they work is fairly simple.

            “Procedure” Codes replace the old “Purpose” Codes. The codes follow a common format and common set of rules which all parties can follow. They are designed to indicate the “Purpose” of an import or export Customs declaration. For example, if you intend importing goods for domestic consumption in a free market environment (i.e. free movement of goods), we term this as Duty Paid (Code DP) goods. In the new Customs Acts the corresponding CPC is Home Use (Code A11.00) goods. The tax status of such goods (in this example) is that duty and VAT will be paid upon clearance for importation.

Invoices for Postal Clearances

          I have seeing countless private individuals on the short end of the stick when it comes to postal clearances. Just stand at the receiving counter of any post office where foreign parcels are received. You will hear the horror expressed by mostly elderly people who have to pay excessive duties and Vat for parcels sent as gifts from abroad.