Importing hair from China to South Africa
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Common procedure when you are importing hair from China to South Africa
You can import Hair products using various modes of transport, like air, sea, road, rail and post. This means if your Chinese Supplier ships the hair by DHL or Fedex, you can expect to pay import duties. The importer, you, must declare to Customs what hair they have brought into South Africa and by what means of transport. If the hair arrives in South Africa via the post, a different process is followed.
The South African Customs Administration will check the declaration of the hair against the documents produced. Think of an invoice from the Chinese Supplier or a bill of lading and certificates of origin. The certificate’s of origin are important for the tariff. The administration can exam the goods if necessary and collect duties and value Added Tax (VAT). They can also ask you for additional information.
What is the value of the hair?
If you are importing hair from China to South Africa, the Chinese supplier will have to make up an invoice. The value on this invoice, for the hair purchased, is one, but not the only, valuation the customs will use to calculate the import duties.
Customs has to follow six methods of valuation which must be applied in strict hierarchical order. Thus, if the transaction value cannot be ascertained in terms of method 1, method 2 must be tried, and so on.
The methods, in order of precedence, are:
1. The transaction value of the hair, i.e. the price actually paid or payable (invoice)
2. The transaction value of identical goods
3. The transaction value of similar goods
4. The “deductive” method (where the customs value is derived from the selling price of the imported goods in the Republic)
5. The “computed” method (where the value is derived from the built-up cost of the imported goods);
6. The so-called “fall back” method, being one of the other five methods applied more flexibly.
The price on the invoice must be based on the actual value of the hair.
What should be the price on the invoice?
In doubt the price paid, or invoiced, for the hair is correct, for example too low, the customs have the obligation to check the prices of the same hair products imported before. If all requirements are full filled, method 1, or the transaction value method will be used.
The invoice must enable the customs to determine the:
• actual amounts paid for the service or goods;
• role and function of the parties involved (importer, middleman, manufacturer and supplier) and
• actual services performed or paid for
What if you agree with the Chinese Supplier to write down a lower price?
If you would ask the Chinese Supplier to write the lowest possible price on the invoice, and pay in a separate payment process another, most likely higher price, there is a chance customs will value the goods at a higher price.
To find the value they have the other alternative valuation methods as mentioned. But once they decided to use another method, They can not go back to a previous valuation method in case this value is lower.
Receiving hair in the post
If you are importing hair from China to South Africa by mail, it will be most likely registered mail. This will allow you to use a track and trace system.
What if you buy from a marketplace like Amazon?
Chinese Hair suppliers are active on Amazon and Aliexpress too. You don’t have to register as an importer if you buy from Amazon or Aliexpress if you meet the following conditions.
• You are allowed only three transactions (of less than R50 000 each) during any calendar year;
• You are only allowed to import goods for home consumption or personal use, not for resale or any other business;
• You must be located in South Africa;
• Your identity number/ Passport number or taxpayer reference number must be entered in the field provided in the declaration form.
Should the purchase falls outside these limitations, you will have to register and obtain an importer or exporter code.
What if you claim the purchase is a gift?
You can twice a calendar year receive a free gift. The gift should come from a person from flesh and blood and given to another person.
The value should not exceed R 1 400 per gift and should not be expected by the receiver.
Record keeping
If you import hair by post you must keep the following for record purposes for a period of five years:
Books, accounts and documents in respect of all transactions relating to the Rules for the purpose of any acquittal procedure; and
Any data related to such documents created by means of a computer.
The five year period is calculated from the end of the calendar year in which the document was created, lodged or required.
You can find the offices of Customs on the website or call the SARS Contact Centre on 0800 00 7277.
Paula told me she always started to google for Chinese Hair Suppliers, and based upon the first 5 pages of search results she made a long list. I personally think to go through 5 pages of search results is quite an effort, because that will give you 60 to 75 results.