How Customs Value Is Determined in South Africa and How SSS Keeps Your Landed Costs Predictable

Import margins live or die on customs value. In South Africa, SARS uses the WTO Valuation Agreement to decide what your shipment is “worth” for tax. That number drives duty and the Added Tax Value that VAT is calculated on. Scott’s Shipping Services (SSS) turns all of this into an up-front, all-in quote so you never get stung at delivery.

Short on time? Jump to: The quick version • GATT methods • FOB in South Africa • VAT via ATV • When SARS uplifts value • Tariff codes • Why import with SSS • FAQs

The quick version

Customs value is the base SARS uses to calculate duty and the Added Tax Value (ATV) for VAT.
South Africa values most shipments on an FOB basis (goods + costs up to loading on the export carrier; not international freight or insurance).
SARS follows the WTO Agreement on Customs Valuation in a strict order of six methods.
VAT uses the ATV: Customs Value + Duty + 10% of Customs Value, then × 15% VAT.
If SARS thinks your declared price is too low, it can switch methods or apply an uplift to reach a fair value.

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What “customs value” means

Customs value is the number SARS trusts for tax. It might be your invoice price, but it can also be a value derived from market data if the invoice looks out of line. South Africa implements the WTO Valuation Agreement with six methods applied in sequence.

The six valuation methods (applied in order)

Article 1: Transaction value — price paid or payable for the goods, on an FOB basis. Most common.
Article 2: Identical goods — compares to imports of the same goods.
Article 3: Similar goods — uses goods with similar characteristics and functions.
Article 4: Deductive method — works back from the local selling price.
Article 5: Computed method — builds value from production inputs plus profit and overheads.
Article 6: Fall-back — flexible application of the above when needed (rare).

Reference: SARS valuation overview and rules (see SARS: Valuation).

FOB: the valuation base South Africa uses

South Africa values most imports on an FOB basis. FOB includes the goods and all costs up to loading on the export carrier in the country of export. It excludes international freight and cargo insurance. If your supplier invoice bundles shipping or insurance, those are not part of the FOB value for duty.

Learn more: How import duty works in South Africa • Importer’s Code

Import VAT: meet the ATV

Import VAT is 15%, but it applies to the Added Tax Value (ATV), not just the invoice.

ATV = Customs Value + Duty + 10% of Customs Value
VAT = ATV × 15%

There are exceptions for certain BLNS movements. See SARS import VAT notes here: SARS: Valuation.

What if the price looks “too low”

If SARS believes your declared price is abnormally low, it can move down the methods list (identical, similar, deductive, computed) or apply an uplift to reach a fair customs value. Even if the tariff line is duty-free, an uplift can still increase VAT via the ATV.

Where tariff codes fit in

Your tariff classification (HS code) decides the duty rate that gets applied to your customs value. The right code means predictable duty, VAT, and lead times. The wrong code means delays, overpaying, or penalties.

The SSS value proposition: fewer surprises, faster decisions

All-inclusive quotes that reflect FOB, duty, and VAT the way SARS applies them. Try the Quick Estimate before you buy.
Correct tariff codes from day one. We document the rationale for clean clearance.
Bulletproof paperwork — invoices, Incoterms, packing lists aligned to the chosen valuation method.
Transparent timelines — clear status updates you can forward to a client as-is.
End-to-end accountability — one team from seller pickup to your door in SA.

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FAQs

Is international shipping and insurance included in customs value?

No. Under South Africa’s FOB basis, costs after loading on the export carrier are excluded from customs value.

Why did SARS ignore my invoice price?

If the declared price looks out of sync with normal trade values, SARS can use identical or similar goods, deductive or computed methods, or apply an uplift to reach a fair value.

How do I calculate VAT on imports?

Use the ATV formula: Customs Value + Duty + 10% of Customs Value, then apply 15% VAT.

Do low-value online orders get special treatment?

Rules have tightened to ensure proper VAT is collected, with extra scrutiny on sensitive categories. Plan for VAT and correct classification even on small parcels.

Useful resources

If you’re planning your next import, don’t leave it to chance. Scott’s Shipping Services is here to make the process smooth, cost-effective, and fully compliant. Get your quick estimate today using our online calculator, or contact us for expert advice on your shipment.

About the Author

Written by Scott Kirby, Director of Scott’s Shipping Services.

Scott is the founder and director of Scott’s Shipping Services, a trusted name in international shipping and customs clearance in South Africa. With over a decade of experience helping hundreds of individuals and businesses import goods safely and efficiently, Scott combines technical expertise with practical know-how. His team has managed over 5000 successful shipments globally, earning a reputation for reliability, transparency, and hassle-free service.