RESTRICTED  
  
WT/TPR/S/ 447 
20 September 2023 
(23-6237) Page: 1/352 
Trade Policy Review Body   
 
TRADE POLICY REVIEW  
REPORT BY THE SECRETARIAT  
SOUTHERN  AFRICAN  CUSTOMS  UNION  
This report, prepared for the fifth Trade Policy Review of the Southern African Customs Union , has 
been drawn up by the WTO Secretariat on its own responsibility. The Secretariat has, as required by 
the Agreement Establishing the Trade Policy Review Mechanism (Annex 3 of the Marrakesh 
Agreement Establishing the World Trade Organization), sought cl arification from the Southern 
African Customs Union on its trade policies and practices.  
 
Any technical questions arising from this report may be addressed to Jacques Degbelo 
(tel: 022 739 5583), Thomas Friedheim (tel: 022 739 5083 – Namibia), Arne Klau  
(tel: 022 739 5706 – Eswatini), Katie Waters  (tel: 022  739 5067 – Botswana , South Africa, 
SACU  Main Report ), Zheng Wang (tel: 022 739 5288 – Botswana, South Africa , SACU Main Report ), 
and Michael Kolie  (tel: 022  739 5931 – Lesotho ). 
 
Document WT/TPR/G/ 447 contains the policy statement submitted by the Southern African Customs 
Union . 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Note: This report is subject to restricted circulation and press embargo until the end of the 
first session of the meeting of the Trade Policy Review Body on the S outhern African Customs Union  
that is Member of the WTO. This report was drafted in English.  WT/TPR/S/ 447 • Southern African Customs Union  
 
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  CONTENTS  
SUMMARY  ................................ ................................ ................................ ........................  4 
1   ECONOMIC ENVIRONMENT  ................................ ................................ ..........................  8 
1.1   Main features of the economy  ................................ ................................ .....................  8 
1.2   Recent economic developments  ................................ ................................ ...................  9 
1.3   Trade and investment performance  ................................ ................................ .............  11 
2   COMMON REGIME  ................................ ................................ ................................ ...... 15 
2.1   Overview  ................................ ................................ ................................ .................  15 
2.2   Southern African Customs Union (SACU)  ................................ ................................ ...... 16 
2.2.1   Institutional structure  ................................ ................................ .............................  16 
2.2.2   Common revenue pool (CRP)  and revenue -sharing formula  ................................ ..........  16 
2.3   Participation in the WTO  ................................ ................................ ............................  17 
2.4   Regional trade agreements  ................................ ................................ ........................  17 
2.4.1   SACU -Mozambique -United  Kingdom EPA  ................................ ................................ ... 18 
2.4.2   Agreement Establishing the African Continental Free Trade Area (AfCFTA)  ......................  19 
2.4.3   EPA between the European  Union and its member States and the SADC EPA States  .........  20 
2.4.4   Preferential Trade Agreement between Mercosur and SACU ................................ ..........  21 
2.4.5   FTA between the EFTA States and the SACU States  ................................ ....................  22 
2.4.6   SADC protocols on trade in goods and services  ................................ ..........................  22 
2.5   Preferential trade agreements  ................................ ................................ ....................  23 
3   TRADE POLICIES AND PRACTICES BY MEASURE  ................................ ........................  25 
3.1   Customs procedures and valuation  ................................ ................................ ..............  25 
3.2   Rules of origin  ................................ ................................ ................................ ..........  26 
3.3   Tariffs and other charges  ................................ ................................ ...........................  26 
3.3.1   Applied MFN tariffs  ................................ ................................ ................................ . 27 
3.3.2   Bindings  ................................ ................................ ................................ ...............  29 
3.3.3   Tariff preferences  ................................ ................................ ................................ .. 31 
3.3.4   Excise duties  ................................ ................................ ................................ .........  32 
3.3.5   VAT ................................ ................................ ................................ .....................  32 
3.3.6   Duty and tax concessions and exemptions  ................................ ................................ . 32 
3.3.7   Contingen cy trade remedies  ................................ ................................ ....................  33 
3.3.7.1    Anti-dumping and countervailing measures  ................................ .............................  33 
3.3.7.2    Safeguard measures  ................................ ................................ ............................  34 
4   APPENDIX TABLES  ................................ ................................ ................................ .... 35 
ANNEX 1: BOSTWANA  ................................ ................................ ................................ .... 46 
ANNEX 2: ESWATINI  ................................ ................................ ................................ .... 113 
ANNEX 3: LESOTHO  ................................ ................................ ................................ ...... 158 
ANNEX 4: NAMIBIA  ................................ ................................ ................................ ...... 214 
ANNEX 5: SOUTH AFRICA  ................................ ................................ .............................  277 
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  CHARTS  
 
Chart  1.1 SACU GVA by economic activity (% of GVA at basic current prices), and unemployment 
situation, 2022  ................................ ................................ ................................ .................  9 
Chart  1.2 Real GDP growth (annual %), 2014 -22 ................................ ................................ . 10 
Chart  1.3 SACU members' revenue shares, FY2021/22  ................................ ..........................  11 
Chart  1.4 Intra - and extra -SACU trade of goods, 2014 -22 ................................ .....................  12 
Chart  1.5 Intra - and extra -SACU trade in goods, 2021  ................................ ..........................  13 
Chart  1.6 Foreign direct investment, 2014 -22 ................................ ................................ ...... 14 
Chart  2.1 SACU  memb ers' revenue shares: FY2014/15 -FY2023/24  ................................ .........  17 
Chart  3.1 Tariff escalation by 2 -digit ISIC industry,  2023 ................................ .......................  29 
 
TABLES  
 
Table  1.1 SACU's selected socio -economic indicators, 2014 -22 ................................ ................  8 
Table  1.2 EU and US imports from SACU by tariff regime, 2021 and 2022  ................................  13 
Table  2.1 SACU institutions, 2023  ................................ ................................ ......................  16 
Table  2.2 Subsectors subject to SACU member specific commitments under the SADC Protocol on 
Trade in Services  ................................ ................................ ................................ .............  23 
Table  2.3 SACU members' eligibility for unilateral preferences, 2023  ................................ ....... 23 
Table  3.1 MFN tariff distribution by type of duty, 2023  ................................ ..........................  27 
Table  3.2 Structure of SACU applied MFN tariffs, 2015 and 2023 ................................ .............  28 
Table  3.3 Product items with more than 50% tariff rates  ................................ .......................  28 
Table  3.4 Tariff lines where the applied MFN rates might be higher than their bound levels, 2023  30 
Table  3.5 Rebates, refunds, and drawbacks  ................................ ................................ .........  32 
 
APPENDIX TABLES  
 
Table  A1.1 Extra -SACU merchandise exports by destination, 2014 -21 ................................ ..... 35 
Table  A1.2 Extra SACU merchandise imports by origin, 2014 -21 ................................ .............  36 
Table  A1.3 Extra SACU merchandise exports by HS section/chapter/subheading, 2014 -21 ..........  37 
Table  A1.4 Extra SACU merchandise imports by HS section/chapter/subheading, 2014 -21 ..........  38 
Table  A3.1 SACU applied MFN tariff summary, 2023  ................................ ..............................  39 
Table  A3.2 Preferential tariff rates, 2023  ................................ ................................ .............  40 
Table  A3.3 Excise duties, 2023  ................................ ................................ ..........................  41 
Table  A3.4 Safeguard actions, 2014 - 20 July 2023 ................................ ...............................  44 
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  SUMMARY  
1. The five Southern African Customs Union ( SACU ) countries are at different levels of economic 
development and have different economic structures. Botswana, Namibia, and South  Africa are 
upper middle -income countries, Eswatini is lower middle -income, and Lesotho is an LDC. 
South  Africa is a relatively diversified economy, while the other four rely on a limited number of 
products. The mining and quarrying  sector dominates merchandise  production in  Botswana, 
while manufacturing accounts for relatively large share s in Eswatini and Lesotho. All f ive 
econom ies remain dominated by the services sector ( about 70% of SACU's GDP), and all have 
a large subsistence farming although agriculture accounts for about 3% of GDP on average.  
2. SACU countries  face common challenges including inequality, unemploymen t, governance 
issues,  infrastructural (most notably energy and transport) constraints, and climate change. 
According to the World Bank, SACU is the most unequal region globally  in terms of income 
distribution . South  Africa is the most unequal country in th e world, while Botswana, Eswatini, 
and Namibia are among the 15 most unequal, and Lesotho among the top 20% most unequal 
countries in the world. Unemployment rates are relatively high in these five countries, averaging 
24% in 2022  (42% for youth unemployme nt).  
3. SACU economies collectively grew by 1.2% annually on average from 2014 to 2022. The growth 
trend is biased towards South Africa's performance as it is the leading economy within SACU.  
Over the review period, economic growth has fluctuated, and all fi ve countries registered 
negative growth in 2020. Botswana's growth bounced back more robustly in 2021 and 2022 
from the COVID -19 pandemic than the other SACU countries.  
4. Monetary policy within SACU remains largely led by South  Africa. In fact, Eswatini, Le sotho, 
Namibia and South Africa form the Common Monetary Area where the South African rand is legal 
tender and circulates , and the currencies of the smaller economies are pegged to the rand . 
Botswana pegs its currency (pula) to a basket of currencies inclu ding the rand. Despite the 
implementation of a common external  tariff and of harmonized excise duties , SACU countries 
have not formally harmonized their fiscal policies .  
5. SACU's external trade in goods and services was about 68% of its GDP in 2022. A trade surplus 
was emerging as from 2020, reflecting mainly a robust recovery in exports because of increased 
demand and higher international prices for minerals. SACU countries  sourced 13.3% of their 
total imports within the Union  in 2021 (down from 14.5% in 2014) and supplied 11% of their 
total exports to each other in 2021  (down from 15.7% in 2014 ). Eswatini and Lesotho depend 
more on intra -SACU trade than the other members , particularly South Africa. This not only 
reflects greater diversification of South Africa's import sources and export markets, but also a 
relatively narrow export baskets of the other four SACU members. The largest extra -SACU trade 
partners include the E uropean Union, China, and the United States.  
6. Over the review period, new regional trade agreements ( RTAs) entered into force between SACU 
states, Mozambique and the United Kingdom in 2021; SACU states, Mozambique and the 
European Union in 2016; and SACU stat es and the Southern Common Market (MERCOSUR) in 
2016. All SACU states have ratified the AfCFTA agreement  but they are yet to trade  under it. A 
SADC Protocol on Trade in Services entered into force in 2022. Prefer ence utilization by  SACU 
countries varies  from one member  to another:  it is relatively low for countries  that lack product 
diversification  and with exports that mostly consist of MFN duty -free goods . 
7. The five SACU countries actively participate in the WTO. They continue to fulfil their notification 
obligations to the WTO with varying degrees of regularity. The authorities indicated being taking 
steps towards the ratification of the Agreement on Fisheries Subsidies. Of the five SACU 
countries, only South Africa has been active in WTO dispute settlemen t, requesting consultations 
with the European Union on measures on citrus fruit import s in 2022.  
8. Under the SACU treaty, the members have harmonized almost all customs -related matters 
(including the external  tariff), and excise duties.  To ensure single entr y and free circulation of 
merchandise within the Union, revenues from harmonized duties and taxes are pooled in a 
common fund and distributed to the five SACU member countries on the basis of a formula. They 
constitute a major source of revenue for the fou r smaller economies while accounting for less WT/TPR/S/ 447 • Southern African Customs Union  
 
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  than 3% of South  Africa's tax revenue. Moreover, a  series of reforms have been implemented 
over the review period, including modernization of customs legislation, risk management and its 
enforcement, the Author ized Economic Operator (AEO) Programme, IT connectivity, and 
transport and logistics programmes.  
9. Under the SACU treaty, a Regional Tariff Board is to be established after the entry on duty of 
national boards in each member State. So far, apart from South Arica, Botswana established its 
national board, while Eswatini, Lesotho, and Namibia are in the process of establishing theirs. 
In consequence , pending the establishment of the Regional Tariff Board, South  Africa's 
International Trade Administration Commis sion (ITAC) handles tariff and trade remedies 
applications.  
10. SACU's 2023 tariff contains 8,420 lines at the HS eight -digit level, of which 318 (3.8%) carry 
non-ad valorem  duties, i.e. specific (two types), mixed (two types), and formula (variable) 
duties. Over the review period, the tariff regime has been further complicated by the introduction 
of conditions under which one type of specific duties is affected by price chan ges, i.e. the 
differences between the moving average of international settlement prices and the established 
domestic prices.  
11. Overall, the simple average applied MFN tariff rate is 8.5% in 2023, slightly up from 8.3% in 
2015, reflecting a nomenclature chan ge. More than half (53.8%) of total tariff lines is duty free. 
Tariffs higher than 50% apply mainly to some poultry meat, cheddar and gouda, pineapples, 
and worn clothing. The highest ad valorem  rate (95%) applies to some dairy products, and the 
highest ad valorem  equivalent (AVE) (532.3%) applies to some worn textile articles.  
12. Under the WTO definition, agriculture remains the most tariff -protected sector (10.1%) ; tariff 
rates average  8.2% on non-agricultural products. Under ISIC, manufacturing is the most 
tariff-protected sector (8.9%), followed by agriculture (3.7%) and mining and quarrying (0.1%). 
In aggregate , tariff rates display positive escalation throughout the stages of production: from 
raw materials ( with an average tariff rate of 4.9%), to semi -finished products (5.6%), and then 
to fully processed products (10.7%).  
13. At the WTO, SACU members individually bound their tariffs a t ad valorem  rates.  Lesotho bound 
100% while the other four SACU members bound around 95% of their tariff lines. The imp osition 
of non -ad valorem  duties by SACU members while all their bindings are ad valorem  does not 
ensure compliance with their binding commitments . Falls in import price s may result in higher 
applied rates  (their AVEs)  than the corresponding bound level s. In fac t, around 15 tariff lines 
are likely to have their applied MFN rates higher than their binding levels. Lesotho bound its 
other duties and charges on all tariff lines at zero . Moreover, South  Africa has 53 WTO tariff 
quota commitments, all on agricultural p roducts.  Preferential tariff quotas  apply to  agricultural 
products under various RTAs.  
14. Harmonized under the SACU Agreement, excise duties  may be specific or ad valorem ; they apply 
at the same rate s to imported and domestically produced goods. Some excise duty rates are 
based on a formula where recommended retail prices are taken into consideration. Under the 
SACU Agreement, rebates, refunds and drawbacks of customs duties and excise duties on 
imported  goods are also harmonized. The VAT regimes (including the taxation base and the 
rates)  have not yet been harmonized. Botswana's standard VAT rate is 14% while the other four 
apply a standard rate of 15% . 
15. SACU members apply contingency trade remedies (anti -dumping, countervailing, and safeguard 
measures) imposed by South  Africa upon recommendation by ITAC and approval by the 
South  African Minister of Trade and Industry, pending the establishment of the Regional Tariff 
Board. Between 2014 and 2022 , 25 anti -dumping investigations were initiated, 40  anti-dumping 
measures in the form of duties were in force on 19 categories of products, while no countervailing 
duty was imposed. A number of safeguard investigations were initiated; provisional and final 
measures w ere adopted or extended; and investigations were terminated during this review 
period. A bilateral safeguard measure on frozen chicken cuts from the EU expired in 2022. 
Botswana, Eswatini, Namibia and South Africa reserve the right to take recourse to the special 
agricultur al safeguard, although no action was taken by them over the review period.  WT/TPR/S/ 447 • Southern African Customs Union  
 
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  16. Apart from Lesotho, all SACU countries have their national competition policies. The competition 
legislation s of Eswatini and Namibia have remain ed unchanged sinc e the previous Review, while 
Botswana's new Competition Act 2018 replaced the previous one and introduced a number of 
changes , including  institutional. South Africa's Competition Act 1998 was most recently amended 
in 2019  with a view to enhancing national security.  
17. SACU countries are n either signatories nor observers to the WTO plurilateral Agreement on 
Government Procurement . Their national government procurement legislation s provide for 
reservation or price preference schemes for local businesses. Over t he review period, Botswana 
and Lesotho have promulgated new legislation on government  procurement . Namibia has 
established a new  legal and institutional framework on government procurement .  
18. On intellectual property rights, all five countries ratified the Protocol Amending the TRIPS 
Agreement during the review period. Botswana has released its Intellectual Property Policy and 
acceded to the WIPO Marrakesh and Beijing treaties. Eswatini's new l egislation on patents, 
copyrights and its intellectual property rights tribunal entered into force in 2018. Namibia has 
also established an i ndustrial property tribunal . South Africa has released its Intellectual Property 
Consultative Framework to formulat e national IP policy. It also enacted the Protection, 
Promotion, Development and Management of Indigenous Knowledge Act , and created a 
geographical indications register.  
19. Apart from customs -related issues, SACU countries have not harmonized their sectoral t rade 
policies. Nonetheless, the CET and the related measures (including duty and tax rebates) remain 
a main sectoral trade policy instrument, mainly for the smaller countries. The larger economies, 
mainly South Africa and to a lesser extent Botswana, have developed sectoral policies that also 
rely on incentives.  
20. Botswana's economy, although dominated by services (more than half of gross value added), is 
highly dependent on the diamond industry (the bulk of merchandise exports and nearly one -
third of governm ent revenue). Diamond cutting and polishing are the main manufacturing 
activities . Through its various new trade and economic plans and strategies, Botswana is seeking 
to diversify its economy, and make it more competitive, export -oriented and focused on v alue-
chain development. In this regard, initial steps have been taken to identify gaps in Botswana's 
quality infrastructure and technical regulations framework; consider how its intellectual property 
assets can be leveraged; and rationalize, unbundle or pr ivatize non -performing SOEs particularly 
in the areas of financial services, transport, agriculture, and energy. Nevertheless, protection 
has somehow been enhanced for domestic farmers, small -scale manufacturing, and services 
businesses through, inter alia , FDI restrictions and non -automatic licensing requirements. On 
telecommunications, a new ICT licensing framework and termination rate methodology have 
been introduced, as has a universal service access fund. Financial services developments have 
included t he enactment of several new or amended laws covering banking, insurance, credit 
information, and virtual assets, as well as the creation of a Financial Stability Council and a 
deposit insurance scheme.  
21. During the period under review, Eswatini 's reforms wer e mostly in the energy and services 
sectors where new legislations were introduced on, inter alia , electricity, financial services, air 
transport and telecommunications.  After services (over 50% of GDP), manufacturing (about 
30%) remains the second largest  sector,  followed by  agriculture (about 9%) . Sugar (5% of GDP) 
remains the main industry; Eswatini is Africa's fourth  largest sugar producer . Its economy  
remains highly  integrated with South Africa , which is the destination for about 67% of its exports 
and the source of around 73% of its imports. Eswatini relies on South Africa for electricity, 
remittances, commercial banking, and FDI which is mainly directed towards  agribusiness ( i.e. 
sugarcane, beef, and forestry value chains) and manufacturing  (i.e. textile and apparel) .  Other 
African countries, in particular, Kenya, Nigeria, Mozambique, and Zimbabwe  are also important 
markets for Eswatini's exports.  
22. Lesotho's economy is dominated by the services sector (about 60% of GDP), followed by 
manufact uring (nearly 20% of GDP). The country is diamond rich, but value addition activities 
remain weak. The economy is confronted with pressing environmental issues;  hence the 
Government's major policy aims at addressing environmental deterioration and climate change . 
On agriculture, the Government's policy (including domestic support) aims to promote climate -
smart solutions for farmers, build environment -sensitive physical infrastructure and facilitate WT/TPR/S/ 447 • Southern African Customs Union  
 
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  access to climate finance. The authorities are also aiming to improve economic livelihood in the 
diamond mining through, inter alia , the implementation of a tax incentive regime and the 
promotion of sustainable practices. On the energy sector, the Government has adopted a 
comprehensive energy policy which seeks to  promote environmentally friendly energy supply . 
The challenges to the manufacturing sector (notably the textiles industry) include preference 
erosion and domestic constraints such as low -skilled labour and poor infrastructure. The Lesotho 
Standards Instit utions Act entered into force in 2020, and the Lesotho Standards Institution was 
established in the same year as the body in charge of developing national standards.  
23. In Namibia , agriculture  accounts for about 7% of GDP , against around 11% for  mining, 15% for 
tourism  services, and 12% for manufacturing . A few mineral commodities  (diamonds, uranium, 
and gold ) account for close to 60%  of exports ; there is a significant re -export trade in Namibia. 
The country is a net-importer of agricultural products . In 2016 , Namibia introduced export levies 
on forestry products, fish, minerals, natural gas  and crude oil, and hides and skins.  Its export 
processing zone  regime and the entire tax-based incentives regime have been suspended  since 
2021, while there are plans to m ove to a special economic zone  regime. In addition to the 
SACU  CET, Namibia applies various trade policy instruments on imports of agricultural products  
such as q uantitative restrictions  and seasonal bans combined with local purchase requirements . 
The fish eries management regime was amended to allow for auctioning of some fishing quotas. 
Legislation to modernize the non -bank financial services regime was passed but is not yet in 
force.   
24. The South African  economy is dominated by the services sector (about 70% of GDP), with 
financial services  playing a critical role. Over the review period, a Prudential Authority and a 
Financial Sector Conduct Authority  were established, and various legislative reforms were  
introduced . South Africa has the largest travel and tourism economy in Africa  but challenges 
such as poor security and load -shedding in the electricity sector pose serious threats to this and 
other sectors.  South Africa remains a net exporter  of agricultu ral products and is  among the 
world's biggest exporters of citrus fruit, sugar, and wine.  Land reform efforts continue. Poultry 
remains a "sensitive industry" for South Africa with specific trade concerns raised by the 
European Union; the country applies a nti-dumping duties on frozen chicken portions (especially 
from Brazil). All TBT -related specific trade concerns relate to labelling requirements. In 2014, 
South Africa issued a Mining Charter which aims to ensure broad -based and meaningful 
transformation o f the industry, including shareholding requirements for historically 
disadvantaged persons/companies. Changes to foreign investment legislation, inter alia , provide 
that investor -state disputes are first handled through domestic courts, and amendments to t he 
Competition Act have introduced a prior review mechanism for mergers involving a foreign 
acquiring firm. South Africa has a myriad of incentive schemes, many of which have localization 
requirements and must be compliant with the country's Broad -Based Bl ack Economic 
Empowerment legislation. It has also introduced various sectoral master plans to help boost 
economic growth and create employment. Among the  key challenges that hinder economic 
growth in South Africa  are severe shortages and outages of  electri city, undermaintained 
transport infrastructure, high telecommunications costs, and high debt levels  of underperforming 
SOEs.  The absence of a cadastral system for mining licences is seen to impede investment in 
this important economic sector.  WT/TPR/S/ 447 • Southern African Customs Union  
 
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  1  ECONOMIC ENVIRONMENT  
1.1  Main features of the economy  
1.1.  Botswana, Eswatini, Lesotho, Namibia, and South  Africa form the Southern African Customs 
Union (SACU), with a combined population of 68  million , of which nearly two thirds were living in 
urban areas in  2022 (Table  1.1). South  Africa is by far the largest economy within SACU, with 89% 
of total population and 91% of aggregate GDP.  
1.2.  The five countries are at different  levels of economic development and have different economic 
structures. In fact, Botswana, Namibia, and South  Africa are upper middle -income countries, 
Eswatini is lower middle -income, and Lesotho is an LDC. South  Africa is a relatively diversified 
economy , while the other four rely on a limited number of products. The mining and quarrying sector 
accounts for a much larger share of GDP in Botswana than in the other SACU members , while 
manufacturing accounts for a larger share in Eswatini and Lesotho (Chart  1.1). At the SACU  level, 
the services sector accounts for about 70% of GDP, followed by manufacturing (about  13%), and 
mining and quarrying (8.9%) (Table  1.1). With a large subsistence farming, agriculture accounts for 
about  3% of GDP (on average).1 
1.3.  The S ACU members  face common challenges, including inequality and unemployment. SACU  is 
the most unequal region globally, and South  Africa the most unequal country in the world.2 
Botswana, Eswatini, and Namibia are among the 15 most unequal, and Lesotho among the top  20% 
most unequal countries in the world.3 In the five countries, unemployment rates, and youth 
unemployment in particular, are relatively high (Chart  1.1), although the situation in Lesotho and to 
a lesser extent in Namibia is less severe than the  others.4 
Table  1.1 SACU's selected socio -economic indicators, 2014 -22 
  2014  2015  2016  2017  2018  2019  2020  2021  2022  
Area ('000  sq. km)  2,651  2,651  2,651  2,651  2,651  2,651  2,651  2,651  2,651  
Population (million)a 62.5 63.7 64.4 64.7 65.6 66.4 67.3 68.0 68.6 
Share of urban population (%)  61.7 62.3 62.8 63.3 63.8 64.4 64.9 65.4 65.9 
Density (per km2) 23.6 24.0 24.3 24.4 24.7 25.1 25.4 25.6 25.9 
Growth rate (per year)  1.6 2.0 1.0 0.5 1.3 1.3 1.3 1.1 0.9 
Life expectancy  62.6 63.2 64.1 64.8 65.0 65.5 64.7 61.8 .. 
Nominal GDP (USD  billion)  415.7  377.8  355.3  416.8  443.2  425.5  369.9  458.4  445.2  
GDP per capita (USD, current prices)  6,656  5,929  5,518  6,440  6,761  6,406  5,499  6,743  6,490  
Real GDP (constant 2015 
USD billion)a  373.5  378.0  381.4  385.9  392.2  393.7  368.4  387.3  396.3  
Annual percentage change  1.7 1.2 0.9 1.2 1.6 0.4 -6.4 5.2 2.3 
Gross value added (GVA) by economic activity (% of GVA at basic current prices)b 
Agriculture, forestry and fishing  2.5 2.6 2.8 2.9 2.7 2.3 3.0 3.0 3.3 
Mining & quarrying  7.2 6.4 6.8 6.5 6.5 6.7 7.2 8.9 8.9 
Manufacturing  13.5 13.6 13.5 13.5 13.5 13.5 12.6 12.8 13.2 
Water, electricity, and gas  2.7 2.8 2.9 2.9 2.9 2.9 3.1 3.0 3.1 
Construction  4.2 4.2 4.0 3.8 3.7 3.6 3.1 2.9 2.9 
 
1 See Annexes to this report on Botswana, Namibia, and South  Africa . For Eswatini, see World Food 
Programme (2020), Eswatini Annual Country Report 2020 – Country Strategic Plan 2020 -2024. Viewed  at: 
https://docs.wfp.org/api/documents/WFP -0000125459/download/ ; and  for Lesotho, see World Food 
Programme, Lesotho . Viewed  at: https://www.wfp.org/countries/lesotho . 
2 World Bank (2022), Inequality in Southern Africa: An Assessment of the Southern African 
Customs  Union. Viewed  at: 
https://documents1.worldbank.org/curated/en/099125303072236903/pdf/P1649270c02a1f06b0a3a e02e57ead
d7a82.pdf . 
3 World Bank (2022), Inequality in Southern Africa: An Assessment of the Southern African 
Customs  Union.  
4 IMF (2022), Botswana: Staff Report for the Article  IV Consultation , IMF Country Report No.  22/247. 
Viewed  at: https://www.imf.org/en/Publications/CR/Issues/2022/07/25/Botswana -2022-Article -IV-
Consultation -Press -Release -Staff-Report -and-Statement -by-the-
521327#:~:text=This%202022%20Article%20IV%20Consultation,its%20pre%2Dpandemic%20output%20lev
el. WT/TPR/S/ 447 • Southern African Customs Union  
 
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    2014  2015  2016  2017  2018  2019  2020  2021  2022  
Services  69.9 70.4 70.0 70.4 70.7 71.0 71.0 69.4 68.6 
Exports of goods and services 
(USD  billion)  127.6  110 105.7  118.6  127.1  119.9  104.3  146.1  153.1  
Imports of goods and services 
(USD  billion)  137.0  119.4  106.5  116.5  127.6  121.6  94.4 125 148.3  
Trade in goods and services (% of GDP)  63.6 60.7 59.7 56.4 57.5 56.7 53.7 59.1 67.7 
.. Not available.  
a Figures from the World Bank's World Development Indicators.  
b Eswatini is not taken into account in the calculations for the period 2020 -22. 
Source:  World Bank, Databank. Viewed  at: https://databank.worldbank.org/home ; Statistics Botswana, 
Statistical Publications . Viewed  at: https://www.statsbots.org.bw/latest -publications ; Bank of 
Botsw ana, Botswana Economic and Financial Statistics – May 2023. Viewed  at: 
https://www.bankofbotswana.bw/publications ; Lesotho Bureau of Statistics. Viewed  at: 
https://www.bos.gov.ls ; Namibia Statistics Agency,  Publications . Viewed  at: 
https://nsa.nsa.org.na/publications/ ; Bank of Namibia, Balance of Payments . Viewed  at: 
https://www.bon.com.na/Economic -information/Statistical -information/Balance -of-payments.aspx ; 
Bureau of Statistics, South  Africa,  Statistical Publications . Viewed  at: https://www.stat ssa.gov.za/ ; 
South  African Reserve Bank, Full Quarterly Bulletin – No. 308 – June 2023. Viewed  at: 
https://www.resbank.co.za/en/home/publications/publication -detail -pages/quarter ly-
bulletins/quarterly -bulletin -publications/2023/FullQuarterlyBulletinNo307March2023 ; African 
Development Bank (2021), African Statistical Yearbook ; and IMF, IMF Data, Balance of Payments. 
Viewed  at: https://data.imf.org/ ; and information provided by the authorities.  
Chart  1.1 SACU GVA by economic activity (% of GVA at basic current prices),  and 
unemploym ent situation, 2022  
 
a Eswatini figures refer to 2019.  
Source:  WTO Secretariat calculations, based on the information from Statistics Botswana, Central Bank of 
Eswatini, Lesotho Bureau of Statistics, Namibia Statistics Agency, South  African Reserve Bank, 
Statistics South  Africa; and World Bank, Databank. Viewed  at: 
https://databank.worldbank.org/home . 
1.2  Recent economic developments  
1.4.  Dominated by South  Africa (Annex  5), SACU economies collectively grew by  1.2% annually 
from 2014 to  2022 ( Table  1.1). At the country level, Botswana's growth rates were more volatile 
than those in the other  SACU  members , and bounced back more robustly in  2021 from the COVID -19 
pandemic (Chart  1.2). 
0%10%20%30%40%50%60%70%80%90%100%
Botswana Eswatini Lesotho Namibia South Africa
Agriculture, forestry and fishing Mining & quarrying
Manufacturing Water, electricity, and gas
Construction ServicesGross value added by economic activity 
(% of GVA at basic prices), 2022
a.   Eswatini figures refer to the year 2019.
Source: WTO secretariat calculations, based on the information from Statistics Botswana, Central Bank of Eswatini, Lesotho Bu reau of Statistics, Namibia 
Statistics Agency, South African Reserve Bank Statistics South Africa ;and World Bank, Databank. Viewed at: https://databank.worldbank.org/home.  0%5%10%15%20%25%30%35%40%45%50%
Botswana Eswatini Lesotho Namibia South
Africa
Total unemployment (% of total labor force)
Total youth unemployment (% of total labor force ages 15-24)SACU: 
average
total youth 
unemploy -
ment 
(42.0%) 
SACU: 
average 
total 
unemploy -
ment rate 
(24.1%) aUnemployment, 2022Chart 1. [SACU]  GDP and unemploymentWT/TPR/S/ 447 • Southern African Customs Union  
 
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  Chart  1.2 Real GDP growth (annual %), 2014 -22 
 
Source:  WTO Secretariat calculations, based on Statistics Botswana, Central Bank of Eswatini, Lesotho 
Bureau of Statistics, Namibia Statistics Agency, South  African Reserve Bank, and World Bank 
Databank. Viewed  at: https://databank.worldbank.org/ . 
1.5.  Monetary policy within SACU remains largely led by South  Africa. SACU  members (except 
Botswana) participate in the Common Monetary Area (CMA)5, whic h provides for free capital 
movement (with limited exceptions6) within the zone. Eswatini, Lesotho, and Namibia may access 
South  Africa's capital and money markets. Their currencies (i.e.  the lilangeni for Eswatini, the loti of 
Lesotho, and the Namibia do llar) are pegged to the South  African rand at par. The rand is legal 
tender and circulates in the three countries.  
1.6.  Botswana pegs its currency (pula) to a basket of currencies including the rand (Annex  1). In 
practice, the effective implementation of moneta ry policy and its implications for macroeconomic 
stability in the other four SACU economies depend, to a large extent, on the policies pursued by the 
South  African Reserve Bank (SARB).  
1.7.  There is no formal harmonization of fiscal policies in SACU. Under the revenue -sharing 
arrangement, revenues from customs and excise duties (which have been harmonized at the 
regional level) are pooled in a common fund and distributed to SACU member s according to a formula 
(Main Report, Section  2.2.2). In FY2021/22, t hese constitute d a major source of revenue for the 
four economies (23.8% -46.8% of their total tax revenue at the country level), although they 
represent ed only 2.9% of South  Africa's tax revenue (Chart  1.3). 
 
5 WTO document WT/TPR/S/324/Rev.1, 5  February  2016. 
6 Exceptions include those to safeguard domestic prudential requirements, as indicated in the provisions 
on exchange control.  
WT/TPR/S/ 447 • Southern African Customs Union  
 
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  Chart  1.3 SACU members' revenue shares, FY2021/22  
 
Source:  Bank of Botswana, Botswana Economic and Financial Statistics , February  2023; Central Bank of 
Eswatini, Quarterly Review Reports , December  2021 and December  2022; Central Bank of Lesotho, 
Macroeconomic S tatistics ; Republic of Namibia Ministry of Finance and Public Enterprises, Estimates 
of Revenue, Income & Expenditure, 2022/23 -2024/25 , March  2022; South  African Reserve Bank, 
Full Quarterly Bulletin − No. 307, March  2023; and SACU Secretariat, Annual Repo rt 2022 . 
1.3  Trade and investment performance  
1.8.  SACU's aggregate trade in goods and services as a percentage of its GDP declined from 63.6% 
in 2014 to 53.7% in 2020 due to the pandemic, and then recovered to 59.2% in  2021 and 67.7 % 
in 2022 (Table  1.1). In 2020, SACU's trade deficit changed to a surplus, which continued in  2021 
and 2022, reflecting mainly a robust recovery in exports (Table  1.1). This might be related to the 
increased demand and higher international prices for minerals. Lesotho and Namibia each ha d a 
trade deficit over the review period, while Botswana, Eswatini, and South  Africa posted a deficit for 
some years and a surplus for others (Chart  1.4). 
1.9.  The level of intra -SACU trade, both imports and exports, declined slightly over the review 
period (Ch art 1.4). SACU members  sourced 13.3% of their total imports in the region in  2021 (down 
from 14.5% in  2014), and supplied to each other 11% of their total exports (down from  15.7% 
in 2014). Significant disparities between members  remain. Eswatini and Lesot ho depend more on 
intra-SACU trade than the other members (Chart  1.5). The combined shares of the other 
SACU  members in South  Africa's total trade are less significant than South  Africa's share in their 
total trade  (Chart  1.5); this reflects greater diversification of South  Africa's import sources and 
export markets, and the relatively narrow export baskets of the other four SACU  members.  
49.3%
2.9%20.7%23.8%
16.3%29.9%
7.0%36.2%
6.6%46.8%
Revenue sharing
(% of total shared revenue from customs and excise duties)Share of distributed revenue to
SACU member's total tax revenue (%)South Africa Botswana Namibia Eswatini LesothoChart 1. [SACU] Revenue sharing of customs and excise duties
Source: Bank of Botswana, Botswana Economic and Financial Statistics, February 2023; Central Bank of Eswatini, Quarterly Review 
Reports , December 2021 and December 2022; Central Bank of Lesotho, Macroeconomic Statistics ; Republic of Namibia Ministry of 
Finance and public enterprises, Estimates of Revenue, Income & Expenditure, 2022/23 -2024-25, March 2022; South African 
Reserve Bank, Full Quarterly Bulletin -No 307, March 2023 ; and SACU Secretariat, Annual Report 2022.WT/TPR/S/ 447 • Southern African Customs Union  
 
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  Chart  1.4 Intra - and extra -SACU trade of goods, 2014 -22 
 
Note:  The left bar shows export figures; the right shows import figures. Year 2022 trade data for Eswatini 
and Lesotho are not available.  
Source:  WTO Secretariat calculations, based on UN Comtrade database and data provided by the authorities.  
WT/TPR/S/ 447 • Southern African Customs Union  
 
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  Chart  1.5 Intra - and extra -SACU trade in goods, 2021  
Source:  WTO Secretariat calculations, based on UN Comtrade database and data provided by the authorities.  
1.10.  The EU -27 is the lar gest market for SACU exports, and the largest supplier of its imports 
(Tables  A1.1 and A1.2). At the country level, China is the largest export market, followed by the 
United  States, Germany, the United  Kingdom, and Japan (Table  A1.1). China is also the la rgest 
single source of imports into SACU, followed by Germany, the United  States, India, and the 
Kingdom  of Saudi  Arabia (Table  A1.2). SACU's main export products are precious stones and 
metals; mineral products; base metals and products; transport equipme nt; and machinery and 
electrical equipment (Table  A1.3). Its imports consist mainly of machinery and electrical equipment; 
mineral products (mainly fuel); chemicals and products thereof; transport equipment; and base 
metals and articles thereof (Table  A1.4). 
1.11.  The significance and relevance of SACU's RTAs to exports by SACU  members  vary. For 
example, SACU's preference utilization rates under its RTAs with the European  Union and with the 
United  States are relatively high. In 2021, 92.9% of SACU's exports enter ed the EU market duty -free 
under the EPA with the European  Union, and 90.4% entered the US  market duty -free under the 
African Growth and Opportunity Act (AGOA) and GSP schemes (Table  1.2). Botswana's preference 
utilization rate is the lowest. In fact, clos e to 100% of its exports enter both the EU and US  markets 
at the MFN duty -free level; this might have resulted from the lack of product diversification and the 
nature of the goods. Eswatini's preference utilization rate is relatively high.  
Table  1.2 EU and US imports from SACU by tariff regime, 2021  and 2022  
 
SACU  Botswana  Eswatini  Lesotho  Namibia  South  
Africa  
EU imports from SACU by tariff regime, 2021 (EUR  million)  
Total 24,181.0  1,077.6  71.0 219.7  1,291.7  21,520.9  
MFN duty -free 14,052.9  1,074.7  3.1 215.1  892.5  11,867.6  
MFN dutiable (no 
preferential rate)  733.1  0.1 0.1 0.0 18.0 715.0  
Preference eligible, but 
entering MFN dutiable  670.9  1.6 1.5 0.7 10.6 656.6  
Preference used  8,724.0  1.2 66.4 3.9 370.7  8,281.7  
Memo:        
MFN duty -free (percentage of 
total imports)  58.1%  99.7%  4.3%  97.9%  69.1%  55.1%  
Preference utilizationa 92.9%  42.9%  97.9%  85.7%  97.2%  92.7%  
US imports from SACU by tariff regime, 2022 (USD  million)  
Total 15,406.2  487.5  22.6 372.1  236.5  14,287.5  
MFN duty -free 11,046.7  487.1  2.2 104.5  224.7  10,228.2  
WT/TPR/S/ 447 • Southern African Customs Union  
 
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SACU  Botswana  Eswatini  Lesotho  Namibia  South  
Africa  
MFN dutiable (no 
preferential rate)  38.2 0.0 0.0 0.0 0.1 38.1 
Preference eligible, but 
entering MFN dutiable  413.9  0.2 2.6 7.9 2.3 400.9  
Preference used:        
 AGOA  3,299.0  0.0 17.7 259.7  6.3 3,015.3  
 GSP 601.1  0.0 0.0 0.0 3.2 597.9  
Memo:         
MFN duty -free (percentage of 
total imports)  71.7%  99.9%  9.7%  28.1%  95.0%  71.6%  
Preference utilizationa 90.4%  1.6%  87.4%  97.0%  80.4%  90.0%  
Civil aircraft  7.3 0.2 0.0 0.0 0.0 7.2 
a The preference utilization rate is calculated by dividing "preference used" by the sum of "preference 
used" and "preference eligible but entering MFN dutiable".  
Source:  WTO Secretariat calculations, based on Eurostat. Viewed  at: 
https://ec.europa.eu/eurostat/comext/newxtweb/ ; USITC database. Viewed  at: 
https://dataweb.usitc.gov/ ; and WTO IDB. 
1.12.  Foreign direct investment (FDI) inflows into SACU members  have been on an upward trend 
over the review period (Chart  1.6). The peak of FDI i nflows in 2021 was mainly due to a single 
intra-firm financial transaction in South  Africa in the second half of the year.7 
Chart  1.6 Foreign direct investment, 2014 -22 
 
Note:  Overall SACU figures are calcul ated by dividing the aggregate FDI inflow by aggregate GDP.  
2022 FDI data for Eswatini and Lesotho are not available.  
Source  UNCTAD Stat. Viewed  at: https://unctadstat.unctad.org/EN ; Statistics Botswana; Bank of Namibia; 
and South  African Reserve Bank.  
 
7 UNCTAD (2022), World Investment Report 2022 . Viewed  at: https://unctad.org/system/files/official -
document/wir2022_overview_en.pdf .  
WT/TPR/S/ 447 • Southern African Customs Union  
 
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  2  COMMON REGIME  
2.1  Overview  
2.1.  The Southern African Customs Union  (SACU) continues to operate based on its 
2002 Agreement, as most recently amended in April  2013.8 The SACU  Agreement so far covers trade 
in goods only. Under the Agreement, the five SACU  members have harmonized almost all as pects 
of their customs regime, including the common external tariff (Section  3.3). 
2.2.  SACU's objectives are set out in Article  2 of the 2002  Agreement and relate to facilitating trade; 
ensuring equitable trade benefits; promoting fair competition; increasing investment; enhancing 
economic development, diversification, industrialization, and competitiveness of member s; 
promoting members' integration into the global economy; ensuring equitable revenue -sharing from 
duties levied; and developing common strategies.  The SACU  Agreement also has provisions on, 
inter alia, cooperation in the enforcement of competition laws and regulations and harmonization of 
product standards and technical regulations. In 2012, the SACU Council of Ministers approved the 
inclusion of tr ade in services as one of the priority areas in the SACU Work Programme. While a 
Technical Committee on Trade in Services was subsequently established to undertake a situational 
analysis of the services sector and trade in services in SACU, this initiative  has not advanced. This 
notwithstanding, SACU member s agreed to advance trade in services negotiations in the context of 
the S outhern African Development Community (SADC)  Protocol on Services to which all 
SACU  member s are signatories (Section  2.4.7).  
2.3.  At the Fourth SACU Ministerial Council Retreat in September  2020, SACU members agreed on 
a refocused Work Programme with industrialization as an overarching objective; this streamlines the 
2010 SACU Work Programme9 to focus on areas that could deliver immediat e, positive results.10 
2.4.  SACU has now adopted its Strategic Plan for the period 2022 -27; this incorporates the 
objectives of the refocused Work Programme and sets out the orientation of SACU's work over the 
next five years.11 It sets out strategic pillars to  guide actions by SACU over this period with a view 
to positioning it as an industrial, investment, manufacturing, and innovation hub for the African 
continent and globally. These are (i)  industrialization, export, and investment promotion; (ii)  trade 
facilitation and logistics; (iii)  implementation and leveraging of the Af rican Continental Free Trade 
Area (AfCFTA) ; (iv) trade relations/unified engagement with third parties; (v)  finance and resource 
mobilization; and (vi)  effectiveness of SACU instituti ons. The pillars are based on the horizontal 
foundations of governance and accountability, and SACU institutional arrangements.  
2.5.  As indicated in the SACU Strategic Plan 2022 -27, some of the achievements in implementing 
the SACU Work Programme since 2020 hav e included (i)  identifying priority sectors for the 
development of regional value chains as well as agreeing on a vision for these sectors 
(agro -processing industries (such as leather and leather products, fruits and vegetables, meat and 
meat products); te xtiles and clothing; and cosmetics and essential oils) and public policy 
interventions to support them; (ii)  steps to improve the determination of revenue shares from the 
common revenue pool (Section  2.2.2), through better and more harmonized data collecti on; 
(iii) various trade facilitation initiatives including the development of a SACU customs policy, an 
annex to the SACU  Agreement, 2002 on Mutual Administrative Assistance, the development of a 
Single Administrative Document for customs declarations, imp roved connections between customs 
management systems, and implementation of national AEO compliance programmes; (iv)  the 
adoption of rules of procedure for the SACU Summit (see below); (v)  unified engagement in the 
various RTAs that have recently entered i nto force, including the development of systems to manage 
 
8 The 2002  SACU  Agreement was notified to the WTO under Article  XXIV of the GATT  1994 and was 
considered by Members at the Committ ee on Regional Trade Agreements (CRTA) on 20  April 2009. 
WTO document WT/REG231/2/Rev.1, 24  April 2009. The 2013 amendments institutionalized the 
SACU  Summit.  
9 The 2010 Work Programme set the following  priorities: focusing on  regional industrial development 
policy; reviewing the revenue -sharing arrangement; facilitating trade; developing SACU institutions; ensuring 
unified engagement in trade negotiations; and strengthening the capacity of the Secretariat. In 2013, 
cooperating  in trade in services was added as an additional priority.  
10 This marks a shift from earlier efforts to develop regional industrial policy; this was deemed 
unfeasible due to the different sizes of the SACU economies.  
11 SACU Strategic Plan 2022 -2027. Viewed  at: https://www.sacu.int/docs/publications/2022/SACU -
Strategic -Plan-Final-Digital.pdf . WT/TPR/S/ 447 • Southern African Customs Union  
 
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  tariff quotas under some of these RTAs (Section  2.4); and (vi)  the implementation of several 
initiatives to strengthen the capacity of the SACU  Secretariat.12 
2.6.  A Sub -Committee on Financing for Indust rialization has been established to consider and 
identify financial resource requirements and propose options for funding industrialization, including 
the regional value chain projects and infrastructure development in SACU. In addition, the SACU 
Trade Fac ilitation and Logistics Programme was adopted in April  2021 to support the industrialization 
and trade agenda in SACU (Section  3.1). 
2.2  Southern African Customs Union (SACU)  
2.2.1   Institutional structure  
2.7.  SACU's institutional framework did not change during the revi ew period (Table  2.1). The Tariff 
Board has not yet been established and its work continues to be undertaken on an interim basis by 
South  Africa 's International Trade Administration Commission  (ITAC), with the South  Africa n Trade 
Minister remaining the dec ision-making authority on customs tariffs and trade remedies 
(Sections  3.3 and 3.3.7). Reportedly, the establishment of the Tariff Board will be considered during 
the mid -term review of the SACU Strategic Plan (2022 -2027). The Tribunal as provided for in 
Article 13 of the SACU  Agreement has also not yet been established. In this regard, the authorities 
note that there have been no disputes regarding the interpretation or application of the Agreement 
among the SACU member s since the last review period that would necessitate the application of 
Article  13 of the Agreement.  
Table  2.1 SACU institutions, 2023  
Institution  Mandate  
Summit of Heads of 
State or Government  Provides political and strategic direction to SACU, receives reports on the work of 
the Council of Ministers. Meets once per year and may hold extraordinary 
meetings.  
Council of Ministers  Decision -making on the overall policy direction and functioning of SACU 
institutions, including form ulation of policy mandates, procedures, and guidelines 
for SACU institutions.  
Customs Union 
Commission  Responsible for implementing the SACU  Agreement, overseeing the management 
of the common revenue pool (Section  2.2.2), and supervising the work of the 
SACU Secretariat.  
SACU Secretariat  Responsible for the day -to-day administration of the SACU  Agreement, including 
implementing decisions of the Summit, Council , and Commission. It provides 
technical support for SACU initiatives.  
Tariff Board  Once est ablished, it will be responsible for making recommendations to the 
Council of Ministers on customs tariffs and related issues, such as anti -dumping, 
countervailing and safeguard measures on goods imported from outside the 
Common Customs Area, and rebates, refunds , or duty drawback, based on 
Council directives.  
Technical Liaison 
Committees  (TLCs)  Assist and advise the Commission. There are five TLCs in the areas of agriculture, 
customs, trade and industry, transport, and finance.  
Ad hoc Tribunal  Once established, it will be responsible for settling disputes on the interpretation 
or application of the SACU  Agreement.  
Source:  WTO document WT/TPR/S/324/Rev.1, 5  February  2016. 
2.2.2   Common revenue pool (CRP) and revenue -sharing formula  
2.8.  The SACU  CRP and the revenue -sharing formula are governed by Articles  32 to 37 of , and 
Annex  A to, the 2002  SACU  Agreement. All customs, excise , and additional duties collected in the 
Common Customs Area are paid into the CRP. The CRP account is held and managed by So uth Africa . 
2.9.  The formula for sharing revenue among SACU  members has not changed since the previous 
Review. It has three components: (i)  the customs component is allocated based on intra -SACU 
imports; (ii)  the excise component is allocated based on each country's share of SACU's GDP; and 
(iii) the development component, which is fixed at 15% of total excise revenue, is distributed 
 
12 SACU Strategic Plan 2022 -2027. View ed at: https://www.sacu.int/docs/publications/2022/SACU -
Strategic -Plan-Final-Digital.pdf . WT/TPR/S/ 447 • Southern African Customs Union  
 
- 17 - 
 
  according to the reverse of each country's GDP per capita.13 Chart  2.1 shows the revenue accruing 
to each SACU member over the  review period. A review of the revenue -sharing agreement was 
launched in 2011 and there has been limited progress to date. It is planned to include the review of 
the revenue -sharing formula within the mid -term review of the SACU Strategic Plan 2022 -2027.  
Chart  2.1 SACU  members' revenue shares: FY2014/15 -FY2023/24  
(ZAR billion ) 
 
Note:  The figures in the bar represent the percentage of total SACU shared revenues.  
Source:  Information provided by the authorities.  
2.3  Participation in the WTO  
2.10.  All SACU  members  are WTO Members in their individual capacities and accord at least MFN 
treatment to all WTO Members. Lesotho is designated by the United Nations as a "least developed 
country  (LDC)" and, thus, is eligible for the WTO's Enhanced Integrated Framework  (EIF). None of 
the SACU Members have either joined or requested to be an observer to any of the WTO plurilateral 
agreements.  
2.11.  Over the review period, only South  Africa  has been active in WTO dispute settlement. It 
request ed consultations with the European  Union  on measures concerning the importation of citrus 
fruit on 27  July 2022.14 It also reserved its right to participate as a third party in several cases.15 
2.12.  SACU  members  continue to fulfil their notification obligations  at the WTO with varying degrees 
of regularity (see Annexes).  
2.4  Regional trade agreements  
2.13.  Pursuant to Article  31 of the 2002  SACU  Agreement, no SACU  member can negotiate or 
amend a trade agreement without consent from the other members. An annex establishing  a 
Common Negotiating Mechanism  (CNM) has not yet entered into force.16 This notwithstanding, 
SACU  member s are allowed to maintain pre -existing RTAs. In this regard, Eswatini participates in 
 
13 WTO document WT/TPR/S/324/Rev.1, 5 February  2016. 
14 WTO document WT/DS613/1, G/L/1430, and G/SPS/GEN/2056, 29  July 2022.  
15 Canada – Measures Governing the Sale of Wine in Grocery Stores (second complaint)  (WT/DS531); 
Canada – Measures Governing the Sale of Wine  (WT/DS537); United  States – Certain Measures on Steel and 
Aluminium Products  (WT/DS544, WT/DS547, WT/DS548, WT/DS550, WT/DS551, WT/DS552, WT/DS554, 
WT/DS556, WT/DS564); Canada – Additional Duties on Certain Products from the United  States  (WT/DS557); 
China – Additiona l Duties on Certain Products from the United  States  (WT/DS558); and European  Union – 
Additional Duties on Certain Products from the United  States  (WT/DS559).  
16 WTO document WT/TPR/S/324/Rev.1, 5  February  2016. 
41.3 43.4 50.343.9 47.247.947.7
49.3
44.150.021.622.5 19.623.121.319.519.6
20.7
23.321.0
20.619.3
17.719.7
19.019.618.4
16.3
18.215.3
8.5 7.7
6.67.1
6.46.66.9
7.0
7.57.4
8.0 7.1
5.76.2
6.16.57.4
6.6
6.96.4
020406080100120140160
 2014/15  2015/16  2016/17  2017/18  2018/19  2019/20  2020/21  2021/22  2022/23  2023/24Lesotho
Eswatini
Namibia
Botswana
South Africa(ZAR billion)Char t 2.[SACU] SACU revenue shares, including adjustments, FY 2014/15 -
FY2023/24 
Note: The figures in the bar represent the percentage of total SACU shared revenues.
Source: Information provided by the authorities.WT/TPR/S/ 447 • Southern African Customs Union  
 
- 18 - 
 
  the Common Market for Eastern and Southern Africa  (COMESA) (Annex  2), Botswana has bilateral 
trade agreements with Malawi and Zimbabwe (Annex  1), and Namibia has a bilater al trade 
agreement with Zimbabwe (Annex  4). 
2.14.  SACU member s participate in the AfCFTA and SADC. They have been implementing the EPA 
with the United  Kingdom  together with Mozambique; the EPA with the European  Union  together with 
Mozambique; and RTAs with the S outhern Common Market ( Mercosur ), and with the European Free 
Trade Association  (EFTA). All of these agreements except for those with EFTA and SADC (under the 
Trade Protocol) entered into force over this joint SACU review period. Key features of these 
agree ments are summarized in subsections 2.4.1 to 2.4.6.  
2.15.  The Tripartite Free Trade Area  (TFTA) between the S ADC, COMESA,  and the East African 
Community  (EAC) was signed on 10  June 2015.17 All SACU  members  are parties to this Agreement 
through their membership in SADC. However, the Agreement is not yet in force pending the required 
ratification by three additional members, and the fact that negotiations under the AfCFTA have 
progressed more rapidly.18 Specific objectives of the Agreement include progressive elimi nation of 
tariffs and non -tariff barriers to trade in goods and liberalization of trade in services through a phased 
approach. Phase  I is focused on the three pillars of market integration, industrial development, and 
infrastructure development. The pillar s on industrial and infrastructure development have not 
progressed much due to lack of financing. In terms of market integration, the focus has been on 
trade in goods.19 Work in this area has been concluded except exchange of tariff offers and 
finalization  of rules of origin on automotives and clothing and textile products.20 A Draft 
Tripartite  Agreement on Movement of Businesspersons has also been concluded , and as of 
June 2023 it was undergoing legal scrubbing. Phase  II involves negotiations of protocols on trade in 
services and trade -related matters (including competition policy, cross -border investment, trade and 
development , and intellectual property rights  (IPRs) ). A draft Tripartite Protocol on Competition 
Policy has been concluded and is un dergoing legal scrubbing, while work on trade in services and 
other trade -related areas is still in the initial stages.  
2.16.  Negotiations on a partial scope RTA between SACU and India resumed in 2020. They originally 
started in 2007 but have been stalled for some time. A review of the modalities for the negotiations 
are ongoing.21 
2.4.1   SACU -Mozambique -United  Kingdom  EPA 
2.17.  The RTA between SACU, Mozambique, and the United  Kingdom  (SACUM -UK EPA) entered into 
force on 1  January  2021.22 It enabled trade to flow uninterrup ted after the departure of the 
United  Kingdom  from the European  Union . Most of the provisions from the EPA between the 
European  Union , SACU , and Mozambique (Section  2.4.3) were largely transposed into the 
SACUM -UK EPA. The main changes were in (i)  tariff q uotas, where new shares were calculated based 
on historical trade and annual increases of the quotas; (ii)  rules of origin involving inputs from the 
European  Union  into products traded between the United  Kingdom  and SACUM; (iii)  the built -in 
agenda on issu es to be considered post -entry into force (Article  117) such as updates of tariff 
schedules in Annexes  I, II, and III to HS17 nomenclature; disciplines on export taxes ; multilateral 
safeguards extension; review of cumulation limitations among SACU  member s and with 
Mozambique; scope and volume of the automatic derogations provided in Article  43(10) and (11) of 
Protocol 1; (iv)  transitional arrangements as listed in Article  118, including the continuation of the 
 
17 Agreement Establishing a Tripartite Free Tra de Area Among the Common Market for Eastern and 
Southern Africa, the East African Community, and the Southern African Development Community. Viewed  at: 
https://www.ceja.ch/images/CEJA/DOCS/Bibliotheque/Legislation/Africaine/Textes%20Regionaux/DB/DB1.pdf . 
18 As indicated by the authorities, the original plan was for the TFTA to act as a launching pad for the 
AfCFTA. However, the latter has evolved at a faster pace.  
19 This work includes elimination of customs duties  and related matters such as trade remedies, customs 
cooperation, transit facilitation, non -tariff barriers, technical barriers to trade, sanitary an d phytosanitary 
measures, dispute settlement, and rules of origin.  
20 Tariff negotiations took a differentiated approach whereby only States with no RTAs were to negotiate 
tariff reductions. In this case , SACU  member s were to engage with the EAC and other c ountries that are not 
party to the SADC FTA. The SACU -EAC bilateral negotiations were completed in 2019 but not implemented.  
21 SACU , Annual Report 2021 . Viewed  at: https://www.sacu.int/docs/reports_annual/2022/SACU -
Annual -Report -2021-Final.pdf . 
22 The RTA was notified to the WTO's C RTA on 8 January  2021. WTO document WT/REG443/N/1, 
21 January  2021.  WT/TPR/S/ 447 • Southern African Customs Union  
 
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  current safeguard on imports of poultry; (v)  geographic indications  (GIs); and (vi)  enhanced 
cooperation on TBT and SPS matters.  
2.18.  The SACUM -UK EPA has provisions on, inter alia, trade and sustainable development, 
including labour and environment aspects; cooperation on development, customs, trade facili tation, 
fiscal adjustment, protection of IPRs, public procurement, competition, and tax governance; trade 
in goods, including rules of origin, trade remedies, specific provisions on safeguard measures for 
industrial goods, agricultural products, food secur ity considerations, transitional safeguards, infant 
industry safeguards; good practices on customs legislation and procedures; technical assistance for 
customs administrations; TBT and SPS disciplines beyond the respective WTO  agreements; current 
payments and capital movement exemption from restrictions; dispute avoidance and settlement 
procedures, including consultations and mediation; general exemptions beyond Article  XX of GATT; 
a Joint Council between the parties to oversee and monitor the implementatio n of the EPA; and trade 
and development disciplines.  
2.4.2   Agreement Establishing the African Continental Free Trade Area (AfCFTA)  
2.19.  The AfCFTA was approved by the African  Union's Heads of States and Governments in 
January  2012.23 The Agreement entered into force on 30  May 2019 once the requisite 24  member 
States ( including all 5 SACU  members) deposited their instruments of ratification.24 Trading under 
the AfCFTA started on 1  January  2021 for some parties (although not SACU members (see below)). 
The Agreement brings together the 55  countries of the African  Union including the continent's 
8 regional economic communities  (RECs) and Customs Unions.25 The notification of AfCFTA to the 
WTO was pending as of April  2023. 
2.20.  AfCFTA's general objectives, as conta ined in Article  3 of the Agreement, include creating a 
single market for goods and services, facilitated by the movement of persons to deepen the economic 
integration within the African continent; contributing to the movement of capital and natural 
resourc es and facilitating investments; laying the foundations for a Continental Customs Union; 
sustainable and inclusive socio -economic development, gender equality , and structural 
transformation; enhancing parties' competitiveness; promoting industrial developm ent; resolving 
the challenges of multiple and overlapping memberships; and expediting the regional and 
continental integration process.  
2.21.  Six protocols are part of the agreement establishing the AfCFTA. They cover (i)  trade in goods; 
(ii) trade in services; (iii) rules and procedures on the settlement of disputes; (iv)  investment; 
(v) IPRs; and (vi)  competition policy. Two additional protocols were added in 2020 on Digital Trade 
and on Women and Youth in Trade. Two new committees  – one on IPRs and one on 
investment  – were set up in 2021. The protocols on IPRs, competition, and investment were finalized 
and adopted in February  2023. As of June  2023, work was ongoing in the areas of women and youth 
and digital trade.  The AfCFTA's Dispute Settlement Body and Appe llate Body were established 
in 2021.26 
2.22.  In February  2023, SACU submitted to the AfCFTA Secretariat and the AfCFTA Council of 
Ministers its common tariff offer covering 90% of its tariff lines.27 It was technically verified in 
May 2023 to ensure compliance w ith the agreed modalities for tariff liberalization. As of June  2023, 
SACU  members were awaiting the consideration and the adoption by the AfCFTA institutions. Once 
 
23 African  Union, Agreement Establishing the African Continental Free Trade Area . Viewed  at: https://au -
afcfta.org/wp -content/uploads/2022/06/AfCFTA -Agreement -Legally -scrubbed -signed -16-May-2018.pdf . 
24 As at March  2023, 54 member States had signed the AfCFTA Agreement and 46 had deposited their 
instruments of ratification.  
25 AfCFTA , About the AfCFTA . Viewed  at: https://au -afcfta.org/about/ . 
26 The establishment of the Dispute Settlement Mechanism is provided for in Article  20 of the 
AfCFTA  Agreement. The Agreement further indicates that the Mechanism will be administered by the 
Dispute  Settlement Body, established under Article  5 of the Protocol on Rules and Procedures on the 
Settlement of Disputes.  
27 As indicated by the authorities, regarding the remaining 10% of tariff lines, 3% of all tariff lines are to 
be excluded from liberalization (although a sector cannot be excluded entirely) and the other 7% of all tariff 
lines on so -called "sensitive products" are to be phased in over a 10 -to-13-year period. As of June 2023, this 
phase of negotiations had not yet started.  WT/TPR/S/ 447 • Southern African Customs Union  
 
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  approved by the Council of Ministers for provisional implementation, SACU will be able to t rade 
preferentially with the other AfCFTA State Parties that have implemented their approved tariff offers.  
2.23.  The Protocol on Trade in Services outlines the mandate for the negotiations at the AfCFTA. 
The first phase of the services negotiations is still ong oing and covers five priority services sectors: 
(i) business ; (ii) communication ; (iii) financial ; (iv) tourism ; and (v)  transport. Work on the 
additional services sectors is planned for the second phase once the negotiations on the five sectors 
have been completed. SACU member s negotiate trade in services commitments as individual 
member States.  
2.24.  The Agreement has five operational instruments that have been or are in the process of being 
developed: (i)  an AfCFTA e -tariff book, which is in the process o f being developed, and will enable 
easy access for users to tariff concessions schedules28; (ii) a mechanism for traders to report online 
specific trade obstacles encountered in moving goods and services across borders , which has been 
fully operational sin ce January  202029; (iii) a Pan -African Payments and Settlement System designed 
to enable efficient, low -cost, and secure financial transactions across African borders , which should 
be fully operational by end -202530; (iv)  an AfCFTA Adjustment Fund to suppo rt state parties and 
their private -sector operators to adjust to a more open and integrated trading environment31; and 
(v) an Automotive Fund, financed by Afreximbank, to support African investments in the automotive 
value chain and to provide consumer fin ancing (loans) and insurance products.32 
2.4.3   EPA between the European  Union  and its member States and the SADC EPA States  
2.25.  Under the SADC, SACU  members and Mozambique signed an E PA with the EU in June  2016. 
The Agreement does not cover all SADC members.33 It entered into force on a provisional basis on 
10 October  2016 between the European  Union  and the five  SACU  members  (Botswana, Eswatini, 
Lesotho, Namibia, and South  Africa ), and in February  2018 between the European  Union  and 
Mozambique.34 This EPA replaces the trade chapter of the Trade, Development and Cooperation 
Agreement between the European  Union  and South  Africa . The Agreement was notified to the 
WTO under Article  XXIV of the GATT  1994 and considered by Members at the CRTA on 
18 November 2020.35 
2.26.  Upon entry into force of the Agreement, the European  Union  granted duty -free access 
to 98.5% of its total tariff lines on imports from Mozambique and all SACU Members except 
South  Africa ; the remaining tariff lines are still subject to import duties by the European  Union . 
Reportedly, the level of market access granted by the European  Union  under the Agreement is 
equivalent to the access it provides under the European  Union 's Everything But Arms programme. 
For South  Africa , the European  Union  is undertaking phased tariff liberalization over a transition 
 
28 AfCFTA , E-tariff Book . Viewed  at: https://etariff.au -afcfta.org . 
29 The reporti ng mechanism was viewed at: https://www.tradebarriers.africa . 
30 Pan-African Payment and Settlement System. Viewed  at: https://papss.com . 
31 As indicated by the authorities, the Adjustment Fund consists of a Base Fund, a General Fund, and a 
Credit Fund, which will work together to support African countries and the private sector in their adjustment 
process. The Base Fund will consist of contributions from State Parties, grants, and technical assistance funds 
to address tariff revenue losses as tariffs are progressively eliminated. It will also support countries to 
implement various provisions of the AfCFTA Agreem ent, its Protocols, and Annexes. The General Fund will 
mobilize concessional funding, while the Credit Fund will mobilize commercial funding to support both the 
public and private sectors, enabling them to adjust and take advantage of the opportunities cre ated by 
the AfCFTA.  
32 AfCFTA , The Automotive Fund . Viewed  at: https://au -afcfta.org/operational -instruments/the -
automotive -fund. According t o the authorities, this fund is operational.  
33 Other SADC members are part of  or are negotiating EPAs with the European  Union  as part of other 
regional groups.  
34 European Commission , EPA SADC - Southern African Development Community . Viewed  at: 
https://trade.ec.europa.eu/access -to-markets/en/content/epa -sadc-southern -african -development -community . 
Article  113(4) of the EPA provides that the Agreement shall be applied provisionally between the 
European  Union  and a SADC EPA state 10 days after either the receipt of notification of provisional application 
from the European  Union  or of ratification or provisional application from that SADC  EPA State, whichever is 
the later. All the SADC  EPA States deposited their instruments of ratification, whereas the European  Union  
notified provisional application of the EPA. The EPA will be considered as having ente red into force provisionally 
until all EU member  States have deposited their respective instruments of ratification of the EPA.  
35 The Factual Presentation on this Agreement prepared for the CRTA meeting can be found in 
WTO document WT/REG381/1/Rev.1, 27  November  2020.  WT/TPR/S/ 447 • Southern African Customs Union  
 
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  period ending in 2025; at that date, 401 of the European  Union's  tariff lines (i.e. 4.3% of the total) 
will remain subject to duties on imports from South  Africa . The European  Union  liberalized it s 
minimum entry price system for imports of fruits and vegetables for SACU  members and 
Mozambique but not for South  Africa .36 
2.27.  Tariff liberalization by SACU  members  is implemented over a transitional period ending 
in 2025. At the end of the transition perio d, 13.9% of the total lines in SACU's tariff schedule will 
remain dutiable for imports from the European  Union . For Mozambique, the transition period for 
tariff liberalization is 2028, at which point 44.5% of tariff lines will remain dutiable to imports fr om 
the European  Union . 
2.28.  The agreement provides for negotiations on trade in services; these have already been started 
by Botswana, Lesotho, Mozambique , and Eswatini, and by the E uropean  Union37; however, 
reportedly no meaningful progress had been made as of  June 2023. 
2.29.  The EPA includes provisions on (i)  trade and sustainable development, covering labour and 
environment aspects; (ii)  cooperation in the areas of development, customs, trade facilitation, fiscal 
adjustment, protection of IPRs, public procurement, competition, tax governance , and investment; 
(iii) trade in goods, including rules of origin, trade remedies, specific provisions on safeguard 
measures for industrial goods, agricultural products, food security considerations, transitional 
safeguards, and infant industry safeguards; (iv)  good practices on customs legislation and 
procedures; (iv)  technical assistance for customs administrations; (v)  TBT and SPS disciplines that 
go beyond the respective WTO agreements; (vi)  current payments and c apital movement exemption 
from restrictions; (vii)  dispute avoidance and settlement procedures; (viii)  general exemptions 
beyond Article  XX of the GATT; and (ix)  the establishment of a Joint Council between the parties to 
oversee and monitor the EPA's impl ementation.38 
2.4.4   Preferential Trade Agreement between M ercosur  and SACU  
2.30.  The RTA between M ercosur  and SACU was signed by the parties in 2008 and 2009 , 
respectively , and entered into force on 1  April 2016.39 The Agreement was notified to the WTO under 
paragraph  4(a) of the Enabling Clause and was considered by the WTO  Committee on Trade and 
Development based on a factual presentation prepared by the WTO  Secretariat.40 
2.31.  The Agreement aims to promote trade between the parties in selected products by granting 
prefer ence margins of 10%, 25%, 50% , and 100% for tariff lines covered by the respective parties. 
Mercosur  offer covered 1,064 product lines and SACU's 1,052 product lines, both at the HS  6-digit 
level using the 2007 nomenclature. This is seen as a first step to wards creating an RTA between the 
two regional groups. These tariff lines mainly cover chemicals, textiles, steel, plastic, automotive  
products,  electronics, capital goods, and agricultural products. The tariff reductions and elimination 
took effect upon e ntry into force of the Agreement. The Agreement comprises a main text and 
seven  annexes. The main text sets out the principles, legal provisions, and procedures for the 
relations under the Agreement. It also establishes a Joint Administration Committee  (JAC) to 
manage the administration of the Agreement. Annexes cover M ercosur  and SACU tariff concessions , 
general rules of origin , trade remedies, dispute settlement, sanitary and phytosanitary measures, 
and cooperation on Customs Administration. A factual pre sentation on this Agreement was issued 
by the WTO  Committee on Trade and Development in 2019.41 
 
36 As indicated by the authorities , the entry price system establishes a minimum price threshold above 
which the price of imported produce should remain and applies to 15  kinds of fresh fruits and vegetables.  
37 WTO document WT/REG381/1/Rev.1, 27 November  2020. 
38 WTO document WT/REG381/1/Rev.1, 27  November  2020. 
39 The parties to Mercosur  are Argentina, Brazil, Paraguay , and Uruguay.  
40 The Agreement was notified to the WTO Committee on Trade and Development in 2017, 
WTO document WT/COMTD/N/55, 20  July 2017. The Factual Presentation is contained in WTO  document 
WT/COMTD/RTA11/1, 7  November  2019. 
41 WTO document WT/COMTD/RTA11/1, 7  November  2019. WT/TPR/S/ 447 • Southern African Customs Union  
 
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  2.4.5   FTA between the EFTA States and the SACU States  
2.32.  The RTA between SACU and EFTA entered into force on 1  May 2008. It was notified to the 
WTO in 2008 under Article  XXIV of GATT  199442, and was considered by the CRTA in 2010 based on 
a WTO Secretariat factual presentation.43 The Agreement covers trade in non -agricultural products, 
including fish and other marine pro ducts, and processed agricultural products. Trade in basic 
agricultural products is governed by bilateral agreements between SACU and the respective EFTA 
member States. Upon entry into force of the Agreement, EFTA states granted SACU  members 
duty-free entr y for all non -agricultural goods. SACU parties completed their phased liberalization 
process in 2017. 
2.33.  The Agreement contains provisions on, inter alia, mutual assistance in customs matters; 
IP protection and progressive harmonization of the legal framework , with a provision for a review 
after five years; cooperation and information exchange in the area of government procurement as 
well as an agreement to discuss further liberalization within five years; and provisions on future 
liberalization of trade in se rvices and investment. In accordance with Article  38 of the FTA, the 
Parties agreed to review the Agreement in November  2016. The review focuses on improved market 
access on processed agricultural products  and b asic agricultural products , and covers Custom s and 
origin matters to improve and harmonize rules and procedures. The review also includes new areas 
such as trade facilitation and trade and sustainable development  (TSD). The negotiations on the 
review of the FTA are still ongoing.  
2.4.6   SADC protocols on tr ade in goods and services  
2.34.  All SACU member s are signatories to the SADC Protocol on Trade (in goods), which entered 
into force in 2001.44 SACU  members completed their tariff liberalization process under the Protocol 
in 2007, and the SADC Free Trade Area was launched in 2008.45 Fourteen  of the 16  SADC  members 
are part of the Free Trade Area, while Angola and the Democratic  Republic  of the Congo  remain 
outside.46 
2.35.  A SADC Protocol on Trade in Services entered into force on 13  January  2022 having been 
ratified by 11 out of the 16 members.47 The Protocol has been notified to the WTO.48 Sector -specific 
commitments have been scheduled by the parties, using a positive list approach in four services 
sectors (communication, financial, tourism , and transport services) (Table  2.2). The schedules of 
specific commitments differ for each SACU member. Horizontal commitments apply to, inter alia, 
measur es affecting the entry and temporary stay of certain categories of natural persons and/or 
requirements related to the establishment of foreign -owned or joint venture companies. 
MFN exemptions are maintained by Eswatini for financial services and road trans portation.  
 
42 WTO document WT/REG256/N/1, 3  November  2008. 
43 WTO document WT/REG256/1/Rev.1, 24  March  2010. 
44 SADC was notified to the WTO under Article  XXIV of the GATT  1994, and was considered by Members 
at the CRTA on 15 and 16  May 2007. The text of the SADC Protocol on Trade was viewed at: 
https://www.sadc.int/sites/default/files/2021 -11/Protocol_on_Trade1996.pdf . 
45 The launch of the SADC Free Trade Area followed a phased programme of tarif f reductions that 
commenced in 2001 and resulted in the attainment of minimum conditions for the Free Trade Area, namely 
that 85% of intra -regional trade among the partner states attained zero duty. For SACU  members , this process 
was completed in January  2007. While the minimum conditions were met, maximum tariff liberali zation was 
only attained in January  2012, when the tariff phase -down process for sensitive products was completed.  
46 As at mid -2023, Angola had ratified the Protocol but not yet submitted its scheduled of tariff 
concessions. SADC members are Angola, Botswana, Comoros, Democratic Republic of Congo, Eswatini, 
Lesotho, Madagascar, Malawi, Mauritius, Mozambique, Namibia, Seychelles, South  Africa , Tanzania, Zambia , 
and Zimbabwe.  
47 SADC  (2022), " SADC Protocol on Trade in Services Enters into Force", 27  January . Viewed  at: 
https://www.sadc.int/latest -news/sadc -protocol -trade -services -enters -force.  
48 WTO document S/C/N/1108, 14  September  2022. WT/TPR/S/ 447 • Southern African Customs Union  
 
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  Table  2.2 Subsectors subject to SACU member specific commitments under the SADC 
Protocol on Trade in Services  
 Botswana  Eswatini  Lesotho  Namibia  South  Africa  
Communication services       
Courier services  X  X  X 
Telecommunication services  X  X X X 
Audiovisual services   X X   
Financial services       
Insurance and insurance -related 
services  X X X X X 
Banking and other financial services   X X X X 
Tourism and related services       
Hotels and restaurants (including 
catering)  X X X X X 
Travel agencies and tour operators' 
services  X X X X X 
Tourist guide services  X X X  X 
Transport services       
Air transport services  X X X X X 
Space transport      X 
Rail transport services  X    X 
Road transport services  X X X X X 
Pipeline transport      X 
Services auxiliary to all modes of 
transport    X X X 
Note:  This table includes the subsectors for which specific commitments have been taken. However, it 
does not cover the level of commitments taken (i.e.  the extent of limitations on market access and 
national treatment).  
Source : Final lists of specific commitments under the SADC Protocol on Trade in Services. Not available  
online.  
2.5  Preferential trade agreements  
2.36.  SACU  members  continue to be eligible for several non -reciprocal preferences under the 
Generalized System of Preferences  (GSP) schemes of developed countries and of some developing 
countries. Lesotho is, in addition, eligible for various unilateral preferences schemes granted to 
LDCs (Table  2.3). 
2.37.  All SACU  members  continue to be eligible for trade preferences under the United  States ' 
African Growth and Opportunity Act  (AGOA) initiative. Eswatini's eligibility was terminated in 2014, 
due to issues related to worker rights , but it was reinstated in 2017.49 AGOA has been extended 
until 30  September  2025. 
Table  2.3 SACU members ' eligibility for unilateral preferences, 2023  
Provider (scheme)  Botswana  Eswatini  Lesotho  Namibia  South  
Africa  
General GSP schemes  
Armenia  X X X X X 
Australia  X X X X  
Canada   X X X  
European  Union    X   
Iceland    X   
Japan  X X X X X 
Kazakhstan  X X X X X 
Kyrgyz  Republic  X X X X X 
New Zealand  X X X X  
Norway  X X X X X 
Russian  Federation  X X X X X 
Türkiye    X   
United  Kingdom    X   
United  States  X X X X X 
Africa -specific GSP schemes  
United  States  (AGOA)  X X X X X 
 
49 More information available in WTO document WT/TPR/S/324/Rev.1, 5  February  2016. WT/TPR/S/ 447 • Southern African Customs Union  
 
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  Provider (scheme)  Botswana  Eswatini  Lesotho  Namibia  South  
Africa  
Schemes for LDCs  
Chile   X   
China    X   
European  Union    X   
India   X   
Korea, Rep . of   X   
Montenegro    X   
Morocco    X   
Chinese  Taipei    X   
Tajikistan    X   
Thailand    X   
Source:  WTO Preferential Trade Arrangements database. Viewed  at: http://ptadb.wto.org/default.aspx . 
  WT/TPR/S/ 447 • Southern African Customs Union  
 
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  3  TRADE POLICIES AND PRACTICES BY MEASURE  
3.1  Customs procedures and valuation  
3.1.  Customs procedures in Southern African Customs Union (SACU) members have not yet been 
fully harmonized. The authorities state that over the review period, SACU members have been 
implementing the SACU Customs Policy50 through the Cu stoms Modernisation Programme (CMP). 
The CMP focuses on, inter alia, modernization of customs legislation, the Authorised Economic 
Operator  (AEO) Programme, risk management and its enforcement, IT connectivity, and transport 
and logistics programmes.  
3.2.  On cu stoms and excise duties, Article  22 of the Southern African Customs Union Agreement 
of 2002 (SACU  Agreement) requires the application of similar legislation within the Customs  Union. 
Against this background, a customs control bill (regulating the import an d export of goods) and a 
customs duty bill (regulating the levying, payment, and recovery of customs duties) were published 
in the Government Gazette  in South  Africa in 2014. The two bills, together with South  Africa's 
Customs and Excise Act, are used as m odels by the other SACU  members to develop their national 
laws. In this regard, a new Customs Act and a new Excise Act were enacted in 2018 in Botswana, 
and in Eswatini a review of its Customs Act is ongoing following a major amendment to enable 
alignment with the region. In Lesotho, a Customs amendment bill was submitted to the Parliament 
while in Namibia a Customs and Excise amendment bill is in the process of being reviewed. According 
to the authorities, the Customs Acts implemented by SACU  members are s imilar and are all aligned 
to international best practices such as the World Customs Organization's (WCO) revised 
Kyoto  Convention.  
3.3.  Progress made under the Customs legislative framework also includes the development and 
implementation of Annex  E to the SAC U Agreement on Mutual Administrative Assistance in 
March  2017, and the development of a regional arrangement to facilitate the automatic exchange of 
customs information in SACU. According to the authorities, in December  2022, this regional 
arrangement repl aced the bilateral arrangements that the revenue service authorities in Botswana, 
Eswatini, Lesotho, and Namibia have signed with the South  African Revenue Service (SARS).  
3.4.  The revenue service authorities also developed a regional arrangement for the Mutual  
Recognition of Customs Accreditation Programmes, aligned with the WCO SAFE Framework of 
Standards and the SACU Regional AEO Programme.51 This is to facilitate mutual recognition of AEOs 
within the common customs area. On 31  May 2023, SACU  members signed a  mutual recognition 
agreement to recognize each other's traders with the status of an AEO.52 The authorities state that, 
as of mid -June 2023, a total of 176 traders were accredited under the AEO Compliance Programme.  
3.5.  The Risk Management and Compliance Stra tegy developed at the regional level is used to 
support implementation of the AEO Programme. SACU is also implementing joint customs 
enforcement operations, with a view to preventing the entry and circulation of illegal trade.53 
3.6.  Regarding IT connectivity o f Customs processes, the SACU  Secretariat developed an 
IT Connectivity Utility Block (named "Your export is my entry") in 2014, and initiated a SACU Unique 
Consignment Reference (UCR) number and structure in 2015. The revenue authorities of Botswana, 
Eswat ini, Lesotho, and Namibia have started exchanging export information in real time with 
South  Africa.54 Currently, the rate of UCR matching between South  Africa and Botswana remains 
below 50%, while the matching rates between South  Africa and Eswatini, Leso tho, and Namibia 
stand above 70%.  
 
50 SACU, SACU Customs Policy . Viewed  at: https://www.sacu.int/docs/policy/2012/customspolicy.pdf .  
51 Before FY 2021/22, the AEO Programme was called the Preferred Trader Programme (PTP).  
52 SACU  (2023), "SACU Members Sign Mutual Recognition Agreement", 31  May. Viewed  at: 
https://www.sacu.int/docs/pr/2023/SACU -AEO-Media -Release.pdf .  
53 SACU (2020), Southern African Customs Union Insights: A 15 Years Journey from 2004 -2019. 
Between 2012 and 2018, three joint operations were conducted, targeting tobacco and tobacco products, 
alcohol, and textiles and clothing. These operations detected illeg al trade transactions with a potential revenue 
loss of ZAR  309 million, 266  undervalued transactions, 71  misdeclarations, 14  arrests for smuggling cigarettes 
and tobacco, and seizures of 9,400  cigarette master cases and 40,000  litres of undenatured alcohol . 
54 SARS (2022),  Annual Report 2021/22 . Viewed  at: https://www.sars.gov.za/wp -
content/uploads/Docs/StratAnnualPerfplans/SARS -AR-27-Annual-Report -2021-2022.pdf . WT/TPR/S/ 447 • Southern African Customs Union  
 
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  3.7.  The SACU Council of Ministers adopted a Trade Facilitation and Logistics Programme on 
21 April 2021. The authorities indicate that the SACU CMP is to migrate to this Programme, which 
includes harmonization of behind -border  administrative measures, formalities, documentary 
requirements, procedures, charges and fees in the areas of standards, SPS, and other non -tariff 
barriers, as well as the following projects:  
a. Trade Digitalization and Digital Transformation Project : supporting migration from 
paper -based and manual transactions to paperless cross -border transactions; streamlining 
processes for the issuance of permits and licences for imports, exports, and transit goods; 
and streamlining procedures across all governmen t agencies to facilitate trade.  
b. Infrastructure Development Project: including building  one-stop border posts , developing 
single windows and regional cargo conveyance decontamination centres, restoring roads 
and border infrastructure at key commercial borde r posts, and setting up biometric data 
systems such as facial recognition and cargo monitoring and tracking systems.  
3.8.  The authorities identified key reasons behind the delayed harmonization of the customs 
procedures as the lack of common regional systems to  manage cross -border trade flows, limited 
collaboration, administrative inefficiencies, inadequate soft and hard infrastructure, and lack of 
regional performance measurement systems.55 Eswatini, Lesotho, and Namibia use ASYCUDA 
systems, while South  Africa uses the Interfront Customs and Border Management Solution (ICBS) 
system, and Botswana uses a customized web application developed by Crimsonlogic Pte Ltd.  
3.9.  There have been no significant changes to the customs valuation regime since 2014. According 
to the authorities, the regime derives from the WTO  Agreement on Customs Valuation. The primary 
valuation method is the transaction value. If the transaction value cannot be ascertained at the time 
of entry, the customs value will be assessed following alternativ e valuation methods, i.e.  the 
identical goods method, the similar goods method, the deductive method, the computed method, 
the fall -back method.56 
3.2  Rules of origin  
3.10.  SACU  members have both non -preferential and preferential rules of origin. The 
non-preferentia l rules of origin are set in each member's Customs Act, modelled on South  Africa's 
Act. A good is considered as having been produced or manufactured in any particular territory if at 
least 25% (or other percentage as determined by the Commissioner for Cust oms) of its production 
cost is represented by materials produced and labour performed in that territory, and if the last 
process in its production or manufacture has taken place in that territory.  
3.11.  Preferential rules of origin are applied by all SACU  member s under the SADC Protocol on 
Trade; the EPA between the SADC  EPA Group (comprising the five SACU  members, Mozambique), 
and the European  Union; the FTA between the European Free Trade Association (EFTA) States and 
SACU  members; the SACU -Mercosur Preferentia l Trade Agreement; the FTA signed by SACU and 
Mozambique with the United  Kingdom; and the African Continental Free Trade Agreement (AfCFTA) 
(not yet effective). The origin criteria in general require the entire production of goods, or their 
substantial tra nsformation that is subject to various criteria.  
3.12.  Preferential rules of origin are also applied under individual SACU members' bilateral trade 
agreements (see Annexes).  
3.3  Tariffs and other charges  
3.13.  Pending the establishment of a Tariff Board at the regional level, South  Africa's International 
Trade Administration Commission (ITAC) was mandated by the SACU Council of Ministers to handle 
tariff and trade remedies applications on behalf of SACU. In 2013 , Botswana established its national 
 
55 Presentation made by the SACU  Secretariat during the first regional TPR workshop, Windhoek, 
September  2022.  
56 Customs Duty Act, No.  30 of 2014, Government Gazette  (2014), No.  37821, 10  July. Viewed  at: 
https://www.gov.za/sites/default/files/gcis_document/201409/37821gon552act30of2014.pdf .  WT/TPR/S/ 447 • Southern African Customs Union  
 
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  body – the Botswana Trade Commission (BOTC); however, the BOTC is not yet involved in setting 
SACU  CET. Eswatini, Lesotho, and Namibia are in the process of establishing their national bodies.  
3.3.1   Applied MFN tariffs  
3.14.  The 202 3 tariff is based on HS22. It contains 8,420  lines at the HS  8-digit level, of which 
318 (3.8%) carry non -ad valorem  duties, i.e.  specific (2  types), mixed (2  types), and formula duties 
(Table  3.1). 
Table  3.1 MFN tariff distribution by type of duty, 2023  
 
Number of tariff lines  
Total  8,420a 
Ad valorem  duty 8,102a 
Duty free  4,519a 
Non-ad valorem  duties  318 
Specific duties  182 
Type 1 (e.g.  8 cents/kg)  166 
Type 2 (they are changed following developments in prices on the 
basis of a recommended pricing formula)b 16c 
Mixed duties  131 
Type 1 (e.g.  40% or 240  cents/kg)  91 
Type 2 (e.g.  450 cents/kg with a maximum of 96%)  40 
Formula dutiesd, they apply to:  5 
Corn flour (HS 19019010)  10% or 55 cents/kg less 90%  
Other tomatoes prepared or preserved otherwise than by vinegar or 
acetic acid (HS 20021090)  110 cents/kg less 80% with a 
maximum of 37%  
Cherries, drained or glacé (HS 20060030)  20% or 215 cents/kg less 80%  
Tobacco, not stemmed or stripped (HS 24011000)  860 cents/kg less 85%, with a 
maximum of 44%  
Tobacco, partly or wholly stemmed or stripped (HS 24012000)  15% or 860 cents/kg less 85%  
a These numbers are based on HS  Chapters  01-97. The authorities indicate that the number of total 
tariff lines is 8,453, of which 8,135 carry ad valorem  duties, and 4,542 are duty free. Their numbers 
are different as they include tariff codes under Chapters  98-99. 
b Type 2 specific duties are referred to by SARS as "variable formula tariffs", and apply to selected 
agricultural products.  
c Eleven of the 16 lines are currently duty free.  
d Formula duties combine a reference price, and a formula that makes the d uty inversely proportional 
to the import price.  
Source:  WTO Secretariat calculations based on tariff information from SARS.  
3.15.  Two types of specific duties are applied. Type  1 is expressed in rands per unit (kilo, litre, etc.). 
It applies to,  inter alia, fish and fish products, alcoholic beverages, vegetables, and nut products. 
Type 2 specific duties are identical to those of Type  1, except that they are changed on the basis of 
a difference between the moving average of an international settle ment price and an established 
domestic price. They apply to maize, wheat, and sugar. Mixed duties apply to meat, dairy products, 
footwear, and fish products. Formula duties remain on five categories of products: corn flour, other 
tomatoes, cherries, and tw o types of tobacco. Formula duties aim at ensuring that import prices be 
at least equal (i.e.  higher or equal) to the reference price set by the authorities for each category of 
product. The ultimate objective is to protect local industries against lower i nternational prices. As 
their name indicates, formula duties are based on a formula that makes them inversely proportional 
to import prices.57 
3.16.  The simple average applied MFN tariff rate is 8.5% in 2023, slightly up from 8.3% 
in 2015 (Table  3.2). The slight  increase may reflect a nomenclature change. In fact, the 2015  tariff 
schedule was based on HS12  nomenclature, and the number of tariff lines was 7,426. The move to 
the HS22 nomenclature increased the number of lines of the 2023 tariff to 8,420. Tariff rat e 
dispersion reduced slightly, with the coefficient of variation down from 1.7 in 2015 to 1.5 in 2023.  
 
57 See WTO (1998), WT/TPR/S/34, 6  April 1998, for further details.  WT/TPR/S/ 447 • Southern African Customs Union  
 
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  Table  3.2 Structure of SACU applied MFN tariffs, 2015 and 2023  
 
MFN applied  Final bounda 
2015  2023  BWA  LSO NAM SWZ ZAF 
Bound tariff lines (% of all tariff lines)  n.a. n.a. 94.6 100.0  94.6 94.6 94.6 
Simple average tariff rate  8.3 8.5 19.5 79.5 19.9 19.9 19.9 
Agricultural products (WTO definition)  9.9 10.1 38.5 198.3  40.5 40.6 40.4 
Non-agricultural products (WTO definition)  8.0 8.2 15.9 60.1 15.9 15.9 15.9 
Duty-free tariff lines (% of all tariff lines)  55.7 53.8 13.2 0.0 13.3 13.3 13.3 
Simple average rate of dutiable lines only  18.9 18.5 22.7 79.5 23.1 23.1 23.1 
Tariff quotas (% of all tariff lines)  n.a. n.a. 0.0 0.0 0.0 0.0 5.8e 
Non-ad valorem  tariffs (% of all tariff lines)  3.8 3.6 0.0 0.0 0.0 0.0 0.0 
Non-ad valorem  tariffs with no AVEs (% of tariff 
lines)  1.0 1.0 0.0 0.0 0.0 0.0 0.0 
Domestic tariff peaks (% of all tariff lines)b 9.9 6.8 3.3 0.0 3.7 3.8 3.7 
International tariff peaks (% of all tariff lines)c 21.4 21.9 39.9 100.0  39.8 39.9 39.8 
Coefficient of variation  1.7 1.5 1.3 0.6 1.3 1.3 1.3 
Nuisance applied rates (% of all tariff lines)d 1.4 1.3 0.0 0.0 0.0 0.0 0.0 
n.a. Not applicable.  
a Final bound rates are based on the CTS schedule in HS17 nomenclature. Due to different 
HS nomenclatures between 2023 applied and final bound tariff schedules, the figures are not strictly 
comparable.  
b Domestic tariff peaks are defined as those exceeding three times the overall simple average applied 
rate. 
c International tariff peaks are defined as those exceeding 15%.  
d Nuisance rates are those greater than zero, but less than or equal to 2%.  
e South  Africa notified to the WTO that it continues to apply tariff quotas on 53 types of agricultural 
products (Annex  5). 
Note:  The 2015 and 2023 tariffs consist of 7,426 (HS12) and 8,420 (HS22) lines, respectively, at the 
8-digit tariff line level.  
 2015 and 202 3 ad valorem equivalents (AVEs) were estimated based on 2014 and 2022 
South  African import data (at the 8 -digit tariff line level), respectively.  
 In case of unavailability, the ad valorem  part of the tariff is used for mixed duties.  
 BWA: Botswana; LSO: Lesotho; NAM: Namibia; SWZ: Eswatini; and ZAF: South  Africa.  
Source:  WTO Secretariat calculations based on tariff information from SARS; and WTO, CTS database.  
3.17.  Duty-free tariff lines account for more than half of the total (53.8% in 2023, down from 55.7% 
in 2015). Products subject to tariffs higher than 50% include some poultry meat, cheddar and gouda, 
pineapples, and worn clothing (Table  3.3). The highest ad valorem  rate (95%) applies  mainly to 
some dairy products; the highest ad valorem  equivalent (AVE) (532.3%) applies to some worn 
textile articles.  
Table  3.3 Product items with more than 50% tariff rates  
Tariff line  Product description  Duty rate (%)  
02071290  Meat and edible offal, of poultry, not cut in pieces, frozen  82 
02071491  Whole bird cut in half  62 
02071493  Leg quarters  62 
02071495  Wings  62 
02071496  Breasts  62 
02071497  Thighs  62 
02071498  Drumsticks  62 
02071499  Other  62 
04069011  Cheddar  500 cents/kg with a 
maximum of 95%  
04069021  Gouda  500 cents/kg with a 
maximum of 95%  
20082000  Pineapples, prepared or preserved  55 
63090013  Worn clothing and other worn articles: worn overcoats, car -coats, 
raincoats, anoraks, ski-jackets, duffle coats, mantles, three -quarter 
coats, greatcoats, hooded caps, trench coats, gabardines, padded 
waistcoats and parkas  60% or 2,500  cents/kga 
63090017  Other worn clothing  60% or 2,500 cents/kgb 
a The corresponding AVE is estimated at 191.2%.  
b The corresponding AVE is estimated at 532.2%.  
Source:  WTO Secretariat calculations based on tariff information from South  African Revenue Service 
(SARS).  WT/TPR/S/ 447 • Southern African Customs Union  
 
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  3.18.  The ISIC sector with the highest tariff protection is manufacturing (8.9%, up f rom 8.7% 
in 2015), followed by agriculture (3.7%, slightly up from 3.5% in 2015), and mining and quarrying 
(0.1%, same as in 2015) (Table  A3.1). Agriculture (WTO  definition) has the highest average tariff 
protection at 10.1% (9.6% in 2015), against 8.2% (8 .0% in 2015) for non -agricultural products.  
3.19.  In 2023, aggregate tariff figures display positive escalation throughout the stages of 
production from raw materials, with an average tariff rate of 4.9%, to semi -finished products 
(5.6%), to fully processed prod ucts on which tariffs average 10.7% (Table  A3.1). Further 
disaggregation of the tariff at ISIC (Revision 2) 2 -digit level shows positive escalation mainly in 
industries such as food, beverages, and tobacco; paper, printing, and publishing; non -metallic 
mineral products; and metal products. All the other industries show mixed escalation (Table  A3.1 
and Chart  3.1). 
Chart  3.1 Tariff escalation by 2 -digit ISIC industry, 2023  
 
n.a. Not applicable.  
Source:  WTO Secretariat calculations based on tariff information from SARS.  
3.3.2   Bindings  
3.20.  Tariff bindings by SACU members remain the same as at the time of the previous Review 
in 2015. Lesotho has bound 100% of its tariff lines, while other SACU members bind more than 90% 
(Table  3.2). As all tariff bindings are ad valorem , the imposition of non -ad valorem  duties does not 
ensure compliance by SACU members with their binding commitments since fluctuations of import 
prices may result in higher applied rates than the correspond ing bound levels (Table  3.4). Tariff 
quotas were included in the commitments made by South  Africa and apply to imports of selected 
agricultural products (Annex  5). 
3.21.  Lesotho bound other duties and charges (ODCs) on all tariff lines at zero; Botswana, Eswatin i, 
Namibia, and South  Africa bound them for all tariff lines at zero, with the exception of 50 tariff lines 
(at the HS  8-digit level) that have higher bound rates.  
Chart 3.[SACU]    Tariff escalation by 2 -digit ISIC industry, 2023
0%5%10%15%20%25%30%35%
Food,
beverages
and tobaccoTextiles and
leatherWood and
furniturePaper,
printing and
publishingChemicals Non-metallic
mineral
productsBasic metal Fabricated
metal
products and
machineryOtherFirst stage of processing Semi-processed Fully processed
Average applied rate in manufacturing
(8.9%)
n.a.   Not applicable.
Source:  WTO Secretariat calculations based on tariff information from the South African Revenue Service (SARS).
n.a.
n.a.WT/TPR/S/ 447 • Southern African Customs Union  
 
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  Table  3.4 Tariff lines where the applied MFN rates might be higher than their bound 
levels, 2023  
Tariff code  Product description  SACU applied MFN rates  Bound rates (%)  As reported  AVEsa (%) 
Botswana, Eswatini, Namibia, and South  Africa  
04069011/  
04069021b Cheddar  500 cents/kg with a 
maximum of 95%  95c 20 
12119020  Other, basil, borage, 
hyssop, mint, rosemary, 
rue and sage, neither 
ground nor crushed  0.45 cents/kg   0.01 0 
12119030  Other, basil, borage, 
hyssop, mint, rosemary, 
rue and sage, ground or 
crushed  4 cents/kg 0.1 0 
16010090  Sausages and similar 
products, of meat, meat 
offal, blood or insects 
(other than paté de fois 
gras and foie gras, 
containing insects, 
mortadella bologna)  40% or 240  cents/kg 40.0 37/60d  
19059010  Gluten bread  3.6 cents/kg with a 
maximum of 25%  0.1 0 
20060040  Sweet corn (Zea mays 
var. saccharata)  30% or 7.25  cents/kg 30 22 
22021010  Waters, including 
mineral waters and 
aerated waters, 
containing added sugar 
or other sweetening 
matter or flavoured: in 
sealed containers 
holding 2.5 li or less  4.36 cents/L 0.3 0 
22021090  Waters, including 
mineral waters and 
aerated waters, 
containing added sugar 
or other sweetening 
matter or flavoured: in 
sealed containers 
holding more than 
2.5 litres 3.3 cents/L 0.4 0 
73181526  Socket screws  30.0%  
15 
73202010  Helical springs: With a 
wire diameter of more 
than 1.32  mm but not 
exceeding 2.43  mm 30.0%  
15/30e 
84212330  Oil or petrol -filters for 
internal combustion 
engines: suitable for use 
with motor vehicle 
engines (including 
motorcycle engines)  16.0%  
15/30f 
84502010  Machines, each of a dry 
linen capacity exceeding 
10 kg: not fully 
automatic, with built -in 
centrifugal drier  30.0%  
0 
85285290  Other monitors, capable 
of directly connecting to 
and designed for use 
with an automatic data 
processing machine  25.0%  
0/30g WT/TPR/S/ 447 • Southern African Customs Union  
 
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  Tariff code  Product description  SACU applied MFN rates  Bound rates (%)  As reported  AVEsa (%) 
Lesotho  
63090013  Worn overcoats, 
car-coats, raincoats, 
anoraks, ski -jackets, 
duffle coats, mantles, 
three -quarter coats, 
greatcoats, hooded caps, 
trench coats, 
gabardines, padded 
waistcoats and parkas  60% or 2 ,500 cents/kg 191.2  60 
63090017  Other worn clothing  60% or 2 ,500 cents/kg 532.2  60 
a AVEs were estimated based on 2022 South  African import data at the HS 8 -digit level.  
b This only applies to Botswana. The bound rate applied by Eswatini, Namibia, and 
South  Africa  is95%.  
c The ad valorem  part is used for mixed duty rates if no AVEs could be estimated.  
d Tariffs are bound at 37% on other sausages and similar products of meat  (other than paté de foie 
gras and foie gras). The applied tariff on these products is higher than the corresponding bound 
level.  
e Tariffs are bound at 15% on locomotives, railway rolling -stock, motor cycles, furniture, upholstery, 
mattresses, and stationary engines or factory machinery, except other vehicles. The applied tariff on 
these products is higher than the corresponding bound level.  
f Tariffs are bound at 15% on o il or petrol -filters  suitable for use with motorcycle engines. The applied 
tariff on these products is higher than the corresponding bound level.  
g Tariffs are bound at zero on a kind solely or principally used in an automatic data processing system. 
The applied tariff on these products is higher than the corresponding bound level.  
Source:  WTO Secretariat calculations based on tariff information from SARS; and WTO, CTS database.  
3.3.3   Tariff preferences  
3.22.  Preferential tariffs apply under RTAs concluded by SACU, and by individual SACU members 
(Table  A3.2). The simple average tariff rate on im ports from SADC countries is the lowest (0.1%), 
with 99.8% of tariff lines duty free. This is followed by the RTAs with the European  Union and the 
United  Kingdom (average tariff rate of 2.4%, with 86.2% of tariff lines duty free), and with 
EFTA States (ave rage rate of 3.5%, with 77.4% tariff lines duty free).  
3.23.  Under the SADC Protocol on Trade, all SACU members grant duty -free access to imports from 
the other members. When goods imported from countries with which SACU members individually 
maintain preferentia l agreements are exported to another SACU member (not party to the 
agreement), the normal import duty is charged.  
3.24.  Preferential tariff quotas, all on agricultural products, are maintained under:  
• The EPA between the European  Union and its member States and t he SADC EPA States, 
and cover 17 tariff lines;  
• The FTA between EFTA States and SACU, and cover 5 lines on some meat and cheese;  
• The Preferential Trade Agreement between Mercosur and SACU, and cover 4 lines for 
products originating from Paraguay and 2 origi nating from Uruguay; and  
• The SACU -Mozambique -United  Kingdom EPA, and cover 16 lines.  
3.25.  Information on  tariff quota allocation is contained in the Schedule 1 to the Customs and 
Excise  Act, 1964 (Tariff Book).58 The allocation system under preferential agreeme nts is different 
from that under the MFN regime, and the allocation systems for preferential tariff quotas are 
agreement -specific. This makes the regime quite complicated.  For instance, Annex II, Section B, 
paragraph 9 of the Agreements with the EU and the  UK respectively provide for administration of 
the related tariff quotas.  
 
58 SARS online information, Schedules to the Customs and Excise Act, 1964 . Viewed at: 
https://www.sars.gov.za/legal -counsel/primary -legislation/schedules -to-the-customs -and-excise -act-1964/ .  WT/TPR/S/ 447 • Southern African Customs Union  
 
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  3.3.4   Excise duties  
3.26.  The regimes on excise duties (including the rates and products covered) are harmonized 
within SACU. They may be specific or ad valorem , and are applied at the same rate  on imported and 
domestically produced goods. Specific duties apply to prepared foodstuffs, alcoholic beverages and 
spirits, tobacco products, petroleum products, and products of the chemical or allied industries. 
Ad valorem  duties are levied on perfumes a nd certain electronic apparatuses (Table  A3.3). Formula 
excise duties remain in place for motor vehicles and their components.  
3.27.  During the review period, excise duties on most items were increased. The products subject 
to excise duties remain more or less t he same, except that food preparations (HS tariff line 2106), 
products containing tobacco (2404), mixtures containing halogenated derivatives of 
methane/ethane/propane (3827), automated data processing machines and units thereof (8471), 
and articles for fu nfair, table, or parlour games (9504) were added to the list.  
3.3.5   VAT 
3.28.  Value added tax (VAT) is not harmonized within SACU, and each SACU member sets its own 
VAT (country Annexes). The VAT bases and rates differ from one member to another (country 
Annexes).  
3.3.6   Duty and tax concessions and exemptions  
3.29.  According to Articles 20 and 21 of the SACU Agreement, SACU members are required to apply 
identical rebates, refunds59, or drawbacks60 of customs duties and excise duties on imported goods.61 
In practice, these rebates, refunds, and drawbacks are specified in Schedule Nos.  3 to 6 of 
South  Africa's Customs and Excise Act.62 In particular, Schedules No.  3, No.  4, and No.  6 list goods 
that qualify for rebates, while Schedule No.  5 lists goods that qualify for drawback (Table  3.5). The 
majority of goods are fully rebated, while a few are partially rebated.  
Table  3.5 Rebates, refunds, and drawbacks  
Schedule  Description  
Rebates and refunds  
Schedule 3  Industrial rebates of all customs duties, excise duties, and levies with the exception of VAT. They are 
granted to businesses registered with customs authorities for their imported raw materials from 
outside SACU region.  
Part 1  Goods used in the manufacture for home use.  
Part 2  Goods used in the manufacture for export.  
Schedule 4  General rebates of all customs duties, excise duties, and levies, including VAT.  
They cover manufacturing industries, and are granted to businesses registered with customs 
authorities for their imported raw materials that cannot be obtained within the region. Once these 
raw materials become available locally, the  rebate ceases.  
Under Item No.  470.03, specific rebates are granted to imported raw materials used in the 
manufacture for export.  
Gautrain Rapid Rail Link project is also listed here.  
Schedule 6  Rebates and refunds of excise duties on excisable products. They are granted to registered importers 
of excisable products to manufacture other excisable products, and to licensed warehouses for 
manufacture purposes. The goods must be subsequently exported.  
 
59 A rebate is a full remission or partial reduction of import duties, subject to the importe r's compliance 
to specific conditions set out in the Act, at the time of import. Refunds are paid in respect of duty or levy 
overpaid, or where goods are exported in the same condition as they are imported. SARS (2021), Customs 
External Policy: Refunds and  Drawbacks . Viewed  at: https://www.sars.gov.za/wp -
content/uploads/Ops/Policies/SC -DT-C-13-Refunds -and-Drawbacks -External -Policy.pdf .  
60 Drawbacks are paid in respect of specified materials used in the manufacture, processing, and 
packing of goods that are subsequently exported. SARS (2021), Customs External Policy: Refunds and 
Drawbacks . 
61 SACU Agreement, as amended on 12  April 2013. Viewed  at: 
https://www.sacu.int/docs/agreements/2017/SACU -Agreement.pdf .  
62 SARS, Schedules to the C ustoms and Excise Act, 1964 . Viewed  at: https://www.sars.gov.za/legal -
counsel/primary -legislation/schedules -to-the-customs -and-excise -act-1964/ .  WT/TPR/S/ 447 • Southern African Customs Union  
 
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  Schedule  Description  
Drawbacks and refunds  
Schedule 5  Specific drawbacks and refunds of customs duties and levies. They are granted on imported raw 
materials used in the manufacture for exports.  
Source:  SARS, Schedules to the Customs and Excise Act, 1964 . Viewed  at: https://www.sars.gov.za/legal -
counsel/primary -legislation/schedules -to-the-customs -and-excise -act-1964/ . 
3.30.  In addition, there are some country -specific rebate programmes, such as the one for the 
Gautrain Rapid Rail Link project only used by South  Africa.  
3.3.7   Contingency trade remedies  
3.31.  There have been no significant changes to the legal and institutional framework on 
contingency trade remedies in SACU.63 SACU members apply anti -dumping, countervailing, or 
safeguard measures imposed by South  Africa upon recommendation by ITAC and approval by the 
South  African Minister of Trade and Industry. The Trade Remedies Unit of ITAC investigates 
applications for anti -dumping, countervailing, and safeguard actions.  
3.32.  Relevant legislation includes South  Africa's International Trade Administration Act, No.  71 
of 2002; the Customs and Excise Act, No.  91 of 1964, as amended; the Anti -Dumping Regulations 
of 14  November  2003; the Countervailing Regulations of 30  March  2005; and the International 
Trade Administration Commission Safeguard Regulations of 8  July 2005. At the regional level, there 
have been no changes to the contingency trade remedies legislative or institutional fr amework 
since 2014.  
3.3.7.1   Anti-dumping and countervailing measures  
3.33.  The procedures on anti -dumping and countervailing investigations remain the same as at the 
time of the previous Review.64 
3.34.  Between 2014 and 2022, South  Africa initiated 25 anti -dumping investigati ons, including 
13 in 2021.65 It notified to the WTO that, as of 31  December  2022, 40  anti-dumping measures in 
the form of duties were in force on 19  types of products, including some types of glass products 
(unframed glass mirrors, float and flat glass, an d clear float glass), wire ropes, stainless steel sinks, 
PET, PVC rigid, pasta, and frozen bone -in chicken portions.66 Three of these measures were 
extensions of existing measures beyond their sunset period. The anti -dumping actions mostly 
affected product s originating in China  (9) and India  (3). 
3.35.  During the review period, South  Africa terminated its anti -dumping measures on:  
• Ropes and cables from China, Germany, the Republic  of Korea, and the United  Kingdom, 
in April  2014;  
• Tall oil fatty acid from Sweden, in December  2014;  
• Welded link steel chain from China, in May  2015;  
• Staple polyester fibre from China, in July  2015;  
• Blankets from China and Türkiye, in April  2016;  
• Bolts and nuts of iron or steel from China, in August  2016;  
• Paper -insulated lead -covered electric cable from India, in September  2016;  
• Solar glass from Indonesia, in October  2017;  
• Fully threaded screws with hexagon heads from China, in May  2018; and  
 
63 WTO documents WT/TPR/S/324/Rev.1, 5  February  2016.  
64 WTO documents WT/TPR/S/324/Rev.1, 5  February  2016; and WT/TPR/S/222/Rev.1, 
14 December  2009.  
65 WTO, Anti-dumping : Anti-dumping Initiations: by Reporting Memb er. Viewed  at: 
https://www.wto.org/english/tratop_e/adp_e/adp_e.htm . 
66 WTO document G/ADP/N/377/ZAF, 14  April 2023.  WT/TPR/S/ 447 • Southern African Customs Union  
 
- 34 - 
 
  • Frozen potato chips from Belgium and the Netherlands, in July  2021.67 
3.36.  During the review pe riod (from 2014 to December  2022), SACU members notified to the 
WTO Committee on Subsidies and Countervailing Measures that they have not taken any 
countervailing duty actions.68 Rather, the countervailing measures on the imports of ropes and 
cables of iro n or steel, not electrically insulated, of a diameter exceeding 8  mm, and standard wire 
of iron or steel not electrically insulated of a diameter exceeding 8  mm, from India, were terminated 
on 14  April 2014, at the request of the applicant.69 
3.3.7.2   Safeguard mea sures  
3.37.  The procedures on the investigation and application of safeguard measures remain the same 
as at the time of the previous Review.70 During the review period, South  Africa submitted 
notifications to the WTO regarding the safeguard investigations initia ted, provisional and final 
measures adopted, measures extended, and investigations terminated (Table  A3.4).  
3.38.  In September  2018, SACU adopted a bilateral safeguard measure on frozen chicken cuts from 
the European  Union in the form of increased import duties.  This safeguard measure expired in 
March  2022.71 This measure had also been applied under the SACUM -UK agreement72, and was also 
terminated.  
3.39.  Botswana, Eswatini, Namibia, and South  Africa have reserved the right to take special 
safeguard (SSG) actions under Article  5 of the WTO Agreement on Agriculture. South  Africa notified 
to the WTO that it did not invoke this Article  during the review period.73
 
 
67 WTO documents G/ADP/N/259/ZAF, 27  August 2014; G/ADP/N/265/ZAF, 17  February  2015; 
G/ADP/N/280/ZAF, 25  January  2016; G/ADP/N/286/ZAF, 7  September  2016; G/ADP/N/294/ZAF, 
13 March  2017; G/ADP/N/308/ZAF, 14  February  2018; G/ADP/N/314/ZAF, 26  July 2018; and 
G/ADP/N/364/ZAF, 9  May 2022.  
68 WTO doc uments G/SCM/N/274/ZAF, 27  August  2014; G/SCM/N/281/Add.1, 24  April 2015; 
G/SCM/N/289/Add.1, 22  October  2015; G/SCM/N/298/Add.1, 22  April 2016; G/SCM/N/305/Add.1, 
21 October  2016; G/SCM/N/313/Add.1, 21  April 2017; G/SCM/N/321/Add.1, 23  October  2017; 
G/SCM/ N/328/Add.1, 20  April 2018; G/SCM/N/334/Add.1, 19  October  2018; G/SCM/N/342/Add.1, 
24 April 2019; G/SCM/N/349/Add.1, 15  November  2019; G/SCM/N/356/Add.1, 04  May 2020; 
G/SCM/N/363/Add.1, 14  October  2020; G/SCM/N/371/Add.1, 15  April 2021; G/SCM/N/392/Add.1, 
13 October  2022; and G/SCM/N/399/Add.1, 20 April  2023. 
69 WTO document G/SCM/N/274/ZAF, 27  August  2014.  
70 WTO document WT/TPR/S/324/Rev.1, 5  February  2016.  
71 European Commission  (2022), " Panel Rules in Favour of EU on Southern African Customs Union 's 
Safeguard on EU Poultry Cuts", 3 August . Viewed  at: https://policy.trade.ec.europa.eu/news/panel -rules-
favour -eu-southern -african -customs -unions -safeguard -eu-poultry -cuts-2022-08-03_en .  
72 UK Government , Guidance: Trade with Southern African Customs Union Member States and 
Mozambique (SACUM) . Viewed  at: https://www.gov.uk/guidance/summary -of-the-sacum -uk-economic -
partnership -agreement -epa.  
73 WTO documents G/AG/N/ZAF/84, 7  September  2015; and G/A G/N/ZAF/97 -101, 10  May 2021.  WT/TPR/S/ 447 • Southern African Customs Union  
 
- 35 - 
 4  APPENDIX TABLES  
Table  A1.1 Extra -SACU merchandise exports by destination, 2014 -21 
  2014  2015  2016  2017  2018  2019  2020  2021  
Total exports (USD billion)  92.6 77.9 75.3 86.8 93.4 88.0 84.4 121.3   
(% of total)  
Americas  11.1 11.3 10.7 10.1 9.4 9.4 10.5 12.5 
United  States  7.8 8.5 8.1 8.3 7.5 7.7 8.9 11.1 
Other America  3.3 2.8 2.6 1.8 1.9 1.7 1.6 1.4 
Europe  27.1 28.7 29.1 27.4 29.0 29.4 28.5 29.4 
EU-27 19.2 20.1 21.3 20.9 21.5 22.2 21.6 21.3 
Germany  4.7 6.5 7.2 6.8 7.2 8.2 7.7 7.8 
Belgium  5.3 4.9 5.1 4.6 4.7 4.8 4.5 4.7 
Netherlands  3.4 2.7 2.7 3.3 3.5 3.5 4.1 3.6 
Spain  1.4 1.5 1.5 1.7 1.8 1.6 1.4 1.4 
Italy 1.4 1.6 1.7 1.5 1.3 1.0 0.9 1.0 
France  1.1 1.1 1.2 1.2 1.2 1.0 0.7 0.8 
EFTA 3.1 3.4 2.6 1.6 1.5 1.3 1.3 0.9 
Switzerland  2.7 2.9 2.3 1.4 1.3 1.1 1.0 0.7 
Other Europe  4.7 5.2 5.1 4.8 6.0 5.8 5.7 7.3 
United  Kingdom  3.9 4.4 4.5 4.1 5.3 5.4 5.1 6.8 
Commonwealth of Independent States 
(CIS)a 0.4 0.4 0.4 0.5 0.5 0.5 0.5 0.4 
Africa  18.3 18.0 17.2 16.3 16.7 16.8 15.1 13.6 
Mozambique  3.4 3.1 3.2 3.4 3.5 4.3 3.8 3.7 
Zimbabwe  2.7 2.7 2.8 2.5 2.6 2.3 2.7 2.5 
Zambia  3.2 3.3 3.3 2.9 2.9 2.7 2.4 2.2 
Democratic  Republic  of the  Congo  1.5 1.5 1.2 1.2 1.6 1.4 1.1 1.1 
Middle East  4.4 4.2 5.0 5.5 5.2 4.8 4.4 4.9 
United  Arab Emirates  2.0 2.0 3.0 3.5 3.3 3.2 3.1 3.6 
Asia 30.6 29.6 30.3 33.0 32.2 32.6 31.7 32.7 
China  9.8 9.8 9.4 10.3 9.7 11.6 12.4 11.8 
Japan  5.3 5.2 4.6 4.8 4.8 4.9 4.5 6.8 
Other Asia  15.6 14.7 16.3 17.9 17.7 16.0 14.7 14.0 
India 5.3 5.1 5.8 6.1 6.2 5.9 4.9 4.5 
Hong Kong,  China  2.3 2.4 2.6 2.2 2.0 2.0 2.0 2.3 
Korea, Republic of  2.0 1.4 1.8 2.3 2.0 1.7 1.7 1.8 
Pakistan  0.4 0.4 0.5 1.0 1.0 1.0 0.9 1.0 
Singapore  1.4 1.0 1.2 1.2 1.1 1.0 1.0 0.8 
Australia  0.9 1.1 1.0 1.1 1.0 0.9 0.9 0.7 
Other  8.1 7.7 7.2 7.2 7.0 6.5 9.4 6.6 
Memo:         
  
EU-28 23.2 24.5 25.8 25.0 26.8 27.6 26.7 28.1 
a Commonwealth of Independent States, including certain associate and former member States.  
Source:  WTO Secretariat calculations, based on UN Comtrade database and data provided by the authorities.  WT/TPR/S/ 447 • Southern African Customs Union  
 
- 36 - 
 
  Table  A1.2 Extra SACU merchandise imports by origin, 2014 -21 
  2014  2015  2016  2017  2018  2019  2020  2021  
Total imports (USD billion)  103.2  87.9 77.0 84.9 94.9 90.3 71.8 97.3 
 (% of total)  
Americas  11.4 11.9 12.4 11.5 10.5 10.9 10.6 10.9 
United  States  6.8 7.1 6.8 6.8 6.1 6.8 6.5 7.0 
Other America  4.6 4.9 5.6 4.7 4.4 4.1 4.0 3.9 
Brazil  1.3 1.6 1.8 1.9 1.6 1.3 1.5 1.4 
Europe  30.2 32.0 33.9 33.5 31.0 32.7 32.3 30.4 
EU-27 25.0 26.8 28.6 28.5 25.9 27.2 27.1 25.8 
Germany  10.0 11.2 11.8 11.4 9.8 9.8 8.9 7.9 
Italy 2.7 2.7 2.6 2.7 2.8 2.6 2.5 2.7 
Belgium  1.4 1.4 1.3 1.2 1.3 1.3 2.0 2.7 
France  2.2 2.3 3.0 2.5 2.3 2.5 2.4 2.2 
Netherlands  1.5 1.5 1.7 1.5 1.3 1.3 1.4 1.7 
Spain  1.7 1.7 1.8 1.9 1.6 1.9 2.2 1.7 
EFTA 1.1 1.2 1.5 1.1 1.1 1.2 1.7 1.4 
Switzerland  0.9 1.1 1.0 1.0 0.9 1.0 1.6 1.3 
Other Europe  4.1 4.1 3.8 4.0 4.0 4.3 3.5 3.2 
United  Kingdom  3.3 3.2 3.0 3.1 3.2 3.4 2.5 2.1 
Commonwealth of Independent 
States (CIS)a 0.5 0.7 0.4 0.5 0.7 0.8 1.0 0.9 
Africa  10.7 8.3 7.6 6.7 9.0 8.2 6.5 5.9 
Nigeria  5.0 3.4 2.7 2.0 4.0 4.0 3.0 2.3 
Middle East  10.4 6.6 7.0 8.2 9.8 8.6 7.7 9.9 
Saudi Arabia, Kingdom of  6.9 3.1 3.7 4.6 5.7 4.1 3.8 4.3 
United  Arab Emirates  1.4 1.3 1.5 1.6 1.7 2.5 2.2 2.4 
Oman  0.5 0.5 0.5 0.7 1.2 1.1 1.0 2.1 
Asia 36.3 40.0 38.1 38.9 37.8 38.1 40.5 41.0 
China  15.5 18.7 18.3 18.9 18.8 18.7 20.9 20.8 
Japan  3.8 3.7 3.5 3.5 3.2 3.3 2.9 2.9 
Other Asia  17.1 17.7 16.3 16.5 15.9 16.1 16.8 17.3 
India 4.5 5.0 4.4 4.9 4.4 5.2 5.4 6.0 
Thailand  2.3 2.4 2.8 2.9 3.1 3.0 3.0 3.1 
Australia  1.1 1.1 1.0 1.2 1.4 1.2 1.1 1.2 
Korea, Republic of  2.0 1.5 1.4 1.2 1.1 1.0 1.0 1.2 
Viet Nam 1.0 1.5 1.6 1.2 1.0 1.1 1.2 1.1 
Malaysia  1.0 1.0 1.0 1.0 1.1 1.0 1.1 1.1 
Indonesia  0.8 0.8 0.9 0.9 0.8 0.8 0.9 1.0 
Other  0.6 0.5 0.6 0.8 1.2 0.8 1.4 1.0 
Memo:           
EU-28 28.3 30.0 31.6 31.5 29.1 30.6 29.6 27.9 
a Commonwealth of Independent States, including certain associate and former member States.  
Source:  WTO Secretariat calculations, based on UN Comtrade database and data provided by the authorities.  WT/TPR/S/ 447 • Southern African Customs Union  
 
- 37 - 
 
  Table  A1.3 Extra SACU merchand ise exports by HS section/chapter/subheading, 
2014 -21 
  2014  2015  2016  2017  2018  2019  2020  2021  
Total exports (USD  billion)  92.6 77.9 75.3 86.8 93.4 88.0 84.4 121.3  
  (% of total)  
1-Live animals and products  1.7 1.8 2.0 1.7 1.7 1.7 1.7 1.4 
2-Vegetable products  4.2 4.6 4.8 5.0 5.0 4.9 6.0 4.9 
HS 08 Edible fruit and nuts; 
peel of citrus fruit or melons  3.0 3.7 3.8 3.9 3.9 3.9 4.5 3.6 
3-Fats and oils  0.2 0.2 0.2 0.2 0.1 0.1 0.2 0.2 
4-Prepared food, beverages and 
tobacco  3.6 3.7 3.5 3.2 3.3 3.4 3.3 2.5 
5-Mineral products  22.3 19.8 20.0 24.8 23.0 24.3 23.3 23.5 
HS 26 Ores, slag and ash  13.7 11.3 11.3 13.7 13.3 15.8 16.0 15.6 
HS 2601 Iron ores and 
concentrates  7.5 5.3 4.8 5.5 4.6 6.6 7.2 8.1 
HS 2602 Manganese ores 
and concentrates  1.8 1.5 1.9 2.9 3.8 3.6 2.9 2.3 
HS 27 Mineral fuels  8.2 8.1 8.3 10.7 9.1 8.0 6.9 7.5 
6-Chemicals and products thereof  5.6 6.1 5.6 5.7 5.7 5.8 6.1 5.9 
7-Plastics and rubber  1.8 1.6 1.6 1.6 1.7 1.7 1.6 1.3 
8-Raw hides and skins; leather, fur 
skins and articles thereof  0.5 0.5 0.4 0.4 0.3 0.2 0.2 0.2 
9-Wood, cork, straw  0.4 0.5 0.5 0.5 0.5 0.5 0.4 0.4 
10-Pulp of wood; paper and 
paperboard  1.5 1.8 1.8 1.7 1.6 1.2 1.5 1.1 
11-Textiles and textile articles  1.1 1.2 1.3 1.3 1.4 1.2 1.1 1.0 
12-Footwear, headgear, etc.  0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 
13-Articles of stone, plaster, cement  0.4 0.4 0.4 0.3 0.4 0.4 0.3 0.3 
14-Precious stones and metals  23.8 22.8 24.1 22.1 23.5 22.6 27.5 32.9 
HS 71 Natural or cultured 
pearls, precious or semi - 
precious stones, precious 
metals, metals clad with 
precious metal, and articles 
thereof; imitation jewellery; 
coins 23.8 22.8 24.1 22.1 23.5 22.6 27.5 32.9 
HS 7110 Platinum, 
unwrought or in 
semi-manufactured forms, 
or in powder form  7.0 8.7 8.0 7.6 8.4 9.4 12.7 19.1 
15-Base metals and articles thereof  13.1 13.0 11.9 11.7 12.1 11.1 9.2 9.2 
HS 72 Iron and steel  7.5 6.9 6.8 6.7 6.5 5.9 4.6 5.0 
16-Machinery, electrical equipment  8.2 8.3 7.6 6.7 6.7 6.7 6.4 5.7 
HS 84 Machinery and 
mechanical appliances; parts 
thereof  6.2 6.2 5.8 5.2 5.3 5.3 5.1 4.7 
17-Transport equipment  9.9 11.7 12.0 11.1 11.4 12.8 9.9 8.7 
HS 87 Vehicles  8.1 10.4 10.9 10.2 10.7 12.0 9.2 8.1 
18-Precision equipment  0.6 0.7 0.7 0.5 0.5 0.5 0.5 0.4 
19-Arms and ammunition  0.2 0.4 0.4 0.3 0.3 0.1 0.0 0.1 
20-Miscellaneous manufactured 
articles  0.6 0.5 0.5 0.4 0.4 0.4 0.3 0.2 
21-Works of art, etc.  0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 
Other  0.1 0.3 0.3 0.5 0.3 0.2 0.3 0.1 
Source:  WTO Secretariat calculations, based on UN Comtrade database and data provided by the authorities.  
  WT/TPR/S/ 447 • Southern African Customs Union  
 
- 38 - 
 
  Table  A1.4 Extra SACU merchandise imports by HS section/chapter/subheading, 
2014 -21 
  2014  2015  2016  2017  2018  2019  2020  2021  
Total imports (USD  billion)  103.2  87.9 77.0 84.9 94.9 90.3 71.8 97.3 
  (% of total)  
1-Live animals and products  0.9 1.1 1.2 1.4 1.4 1.3 1.4 1.3 
2-Vegetable products  1.8 2.2 3.0 2.1 1.9 2.0 2.7 2.0 
3-Fats and oils  0.7 0.7 0.9 0.9 0.7 0.7 1.0 0.9 
4-Prepared food, beverages and 
tobacco  2.3 2.5 2.7 2.9 2.7 2.7 2.8 2.6 
5-Mineral products  23.5 16.6 14.9 16.3 19.7 18.2 15.2 17.6 
HS 27 Mineral fuels  22.8 15.7 14.1 15.2 18.8 17.3 14.1 16.7 
HS 2710 Petroleum oils 
and oils obtained from 
bituminous minerals, 
other than crude  6.0 5.8 4.3 5.9 5.6 5.8 5.7 9.5 
HS 2709 Petroleum oils 
and oils obtained from 
bituminous minerals, 
crude  15.7 8.8 8.5 7.6 11.5 9.9 7.1 5.5 
6-Chemicals and products 
thereof  8.8 9.9 10.1 10.5 10.5 10.2 12.6 12.1 
HS 30 Pharmaceutical 
products  2.1 2.6 2.8 2.9 2.8 2.9 3.7 3.4 
7-Plastics and rubber  3.8 4.1 4.4 4.4 4.5 4.3 4.4 4.6 
HS 39 Plastics and articles 
thereof  2.5 2.8 3.0 3.0 3.0 2.8 2.9 3.1 
8-Raw hides and skins; leather, 
fur skins and articles thereof  0.3 0.4 0.4 0.3 0.3 0.3 0.3 0.2 
9-Wood, cork, straw  0.3 0.4 0.4 0.3 0.3 0.3 0.3 0.3 
10-Pulp of wood; paper and 
paperboard  1.4 1.5 1.6 1.8 2.5 2.7 2.9 2.7 
11-Textiles and textile articles  3.0 3.6 3.7 3.5 3.5 3.5 4.3 3.5 
12-Footwear, headgear, etc.  1.0 1.2 1.3 1.2 1.1 1.1 1.1 1.0 
13-Articles of stone, plaster, 
cement  1.0 1.2 1.2 1.1 1.2 1.2 1.1 1.1 
14-Precious stones and metals  2.3 1.6 1.6 1.9 2.0 2.1 2.6 3.3 
15-Base metals and articles 
thereof  4.7 5.9 5.3 5.2 4.8 5.0 5.1 6.1 
16-Machinery, electrical 
equipment  22.9 24.8 24.4 23.3 21.7 22.3 23.1 21.1 
HS 84 Machinery and 
mechanical appliances; 
parts thereof  13.4 13.8 13.7 13.2 12.5 12.7 13.1 12.0 
17-Transport equipment  10.5 10.8 10.0 10.1 8.8 9.3 7.5 7.6 
HS 87 Vehicles  8.2 8.4 7.7 8.4 7.6 8.0 6.7 6.9 
18-Precision equipment  2.4 2.7 2.9 2.7 2.6 2.7 3.0 2.5 
19-Arms and ammunition  0.1 0.1 0.2 0.1 0.1 0.1 0.1 0.1 
20-Miscellaneous manufactured 
articles  1.6 1.8 1.8 1.7 1.7 1.7 1.5 1.5 
21-Works of art, etc.  0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 
Other  6.3 7.1 7.9 8.0 7.8 8.2 7.1 7.7 
Source:  WTO Secretariat calculations, based on UN Comtrade database and data provided by the authorities.  
  WT/TPR/S/ 447 • Southern African Customs Union  
 
- 39 - 
 
  Table  A3.1 SACU applied MFN tariff summary, 2023  
 Number 
of lines  Simple 
average 
(%) Tariff 
range 
(%) Share of 
duty-
free 
lines 
(%) Share of 
non-
ad valor
em lines 
(%) CoVa 
Total 8,420  8.5 0-532.3  53.8 3.6 1.5 
HS 01 -24 1,516  9.8 0-95 41.4 17.0 1.3 
HS 25 -97 6,904  8.2 0-532.3  56.5 0.7 1.6 
By WTO category       
  
WTO agricultural products  1,219  10.1 0-95 39.2 14.6 1.3 
Animals and products thereof  155 17.0 0-82 50.3 36.8 1.2 
Dairy products  42 9.7 0-95 31.0 69.0 2.1 
Fruit, vegetables, and plants  342 9.4 0-55 31.9 8.8 1.0 
Coffee and tea  35 8.2 0-25 42.9 20.0 1.2 
Cereals and preparations  164 8.0 0-40 38.4 12.2 1.2 
Oils seeds, fats, oil and their products  132 7.9 0-20 18.2 0.0 0.5 
Sugars and confectionery  19 7.5 0-37 63.2 26.3 1.5 
Beverages, spirits and tobacco  127 19.9 0-45 4.7 22.8 0.7 
Cotton  7 4.8 0-15 57.1 14.3 1.4 
Other agricultural products, n.e.s.  196 3.4 0-25 78.6 0.0 2.1 
WTO non -agricultural products  7,201  8.2 0-532.3  56.3 1.8 1.6 
Fish and fishery products  389 7.1 0-30 55.8 20.6 1.6 
Minerals and metals  1,288  6.2 0-30 53.4 0.2 1.2 
Chemicals and photographic supplies  1,621  2.7 0-30 78.8 0.2 2.1 
Wood, pulp, paper and furniture  534 9.0 0-45 47.6 0.0 1.1 
Textiles  786 16.6 0-532.3  21.5 0.5 1.3 
Clothing  264 40.7 0-45 3.0 0.0 0.2 
Leather, rubber, footwear and travel 
goods  272 14.3 0-43 34.9 9.9 0.9 
Non-electric machinery  703 3.0 0-30 80.4 0.0 2.2 
Electric machinery  466 5.9 0-25 57.7 0.0 1.3 
Transport equipment  344 11.0 0-30 43.0 0.0 1.0 
Non-agricultural products, n.e.s.  506 5.2 0-30 69.2 0.0 1.5 
Petroleum  28 2.2 0-15 42.9 42.9 2.3 
By ISIC sector       
  
ISIC 1 – Agriculture, hunting and 
fishing  494 3.7 0-44 69.4 3.2 1.9 
ISIC 2 – Mining  103 0.1 0-10 99.0 0.0 10.1 
ISIC 3 – Manufacturing  7,822  8.9 0-532.3  52.2 3.7 1.5 
ISIC 4 – Electrical energy  1 0.0 0.0 100.0  0.0 0.0 
By stage of processing       
  
First stage of processing  974 4.9 0-532.3  70.6 2.2 4.0 
Semi-processed products  2,613  5.6 0-30 60.9 0.9 1.4 
Fully processed products  4,833  10.7 0-95 46.6 5.4 1.2 
By HS section       
  
 01 Live animals and products  507 9.8 0-95 60.2 19.7 1.6 
 02 Vegetable products  452 6.7 0-35 45.6 4.9 1.2 
 03 Fats and oils  96 7.8 0-10 21.9 0.0 0.5 
04 Prepared food, beverages and 
tobacco  461 13.3 0-55 20.6 29.3 1.0 
 05 Mineral products  188 1.4 0-20 82.4 7.4 3.1 
 06 Chemicals and products thereof  1,389  1.8 0-20 86.0 0.3 2.7 
07 Plastics, rubber, and articles thereof  474 7.6 0-43 45.4 0.0 1.1 
 08 Raw hides and skins, leather, and its 
products  92 11.1 0-30 45.7 0.0 1.1 
 09 Wood and articles of wood  195 7.8 0-30 46.7 0.0 1.1 
10 Pulp of wood, paper and  paperboard  211 3.5 0-20 75.4 0.0 1.9 
 11 Textiles and textile articles  996 22.9 0-532.3  18.1 0.5 1.0 
 12 Footwear, headgear, etc.  105 22.7 0-30 15.2 25.7 0.5 
 13 Articles of stone, plaster, cement  233 7.7 0-30 39.1 0.0 0.9 
 14 Precious stones and metals, pearls  64 4.0 0-20 79.7 0.0 2.0 
 15 Base metals and articles thereof  837 7.4 0-30 44.9 0.0 1.1 
 16 Machinery, electrical equipment,  etc. 1,177  4.0 0-30 72.2 0.0 1.8 
 17 Transport equipment  355 10.8 0-30 44.2 0.0 1.0 
 18 Precision equipment  220 0.9 0-20 94.1 0.0 4.0 
 19 Arms and ammunition  66 13.4 0-15 10.6 0.0 0.3 
20 Miscellaneous manufactured articles  283 13.3 0-45 32.9 0.0 0.7 
 21 Works of art, etc.  19 0.0 0.0 100.0  0.0 0.0 
a Coefficient of variation.  
Note:  Calculations of averages are based on the national 8 -digit tariff -line level. Tariff schedule is based 
on HS22.  
Source:  WTO Secretariat calculations based on tariff information from SARS.  
  
  WT/TPR/S/324 • SOUTHERN AFRICAN CUSTOMS UNION  
 
- 40 - Table  A3.2 Preferential tariff rates, 2023  
  Simple average (%)  Share of duty -free lines (%)  
  Applied 
MFN AfCFTA  EFTA  European  Union 
and the 
United  Kngdom  Mercosura SADC  Applied 
MFN AfCFTA  EFTA  European  Union 
and the 
United  Kingdom  Mercosura SADC  
Total  8.5 7.7 3.5 2.4 8.2 0.1 53.8 54.2 77.4 86.2 54.5 99.8 
By WTO category  
WTO agricultural products  10.1 9.2 8.2 2.0 9.8 0.1 39.2 39.2 51.3 91.8 41.2 99.6 
  Animals and products thereof  17.0 16.8 16.7 10.9 17.0 0.0 50.3 50.3 51.6 65.8 50.3 100.0  
  Dairy products  9.7 8.9 9.5 8.9 9.7 0.0 31.0 31.0 33.3 40.5 31.0 100.0  
  Fruit, vegetables, and plants  9.4 8.6 8.2 0.0 9.1 0.0 31.9 31.9 39.2 100.0  36.0 100.0  
  Coffee and tea  8.2 6.7 4.4 0.0 8.2 0.0 42.9 42.9 71.4 100.0  45.7 100.0  
  Cereals and preparations  8.0 6.9 3.9 1.4 7.9 0.0 38.4 38.4 60.4 90.9 42.7 100.0  
  Oils seeds, fats, oil and their products  7.9 6.9 7.1 0.0 7.2 0.0 18.2 18.2 26.5 100.0  18.2 100.0  
  Sugars and confectionery  7.5 7.5 7.5 6.8 7.5 4.2 63.2 63.2 63.2 63.2 63.2 73.7 
  Beverages, spirits and tobacco  19.9 18.1 15.3 0.0 19.9 0.0 4.7 4.7 39.4 100.0  4.7 100.0  
  Cotton  4.8 3.8 4.8 0.0 4.8 0.0 57.1 57.1 57.1 100.0  57.1 100.0  
  Other agricultural products, n.e.s.  3.4 2.9 2.2 0.0 3.2 0.0 78.6 78.6 87.8 100.0  79.6 100.0  
WTO non -agricultural products  8.2 7.4 2.8 2.4 7.9 0.1 56.3 56.8 81.8 85.2 56.7 99.9 
  Fish and fishery products  7.1 7.1 0.1 0.8 7.0 0.0 55.8 55.8 99.5 84.3 55.8 100.0  
  Minerals and metals  6.2 4.7 1.8 0.1 5.7 0.0 53.4 55.7 90.1 99.3 54.5 100.0  
  Chemicals and photographic supplies  2.7 2.3 0.0 0.0 2.6 0.0 78.8 79.0 99.7 99.7 79.6 100.0  
  Wood, pulp, paper and furniture  9.0 7.8 1.7 0.4 8.6 0.1 47.6 47.6 91.2 98.1 47.6 99.6 
  Textiles  16.6 15.9 6.9 8.7 16.5 0.9 21.5 21.5 37.3 38.0 21.5 99.4 
  Clothing  40.7 40.7 17.9 23.0 40.7 0.2 3.0 3.0 10.2 10.6 3.0 99.6 
Leather, rubber, footwear and travel 
goods  14.3 13.4 6.1 5.8 14.3 0.0 34.9 34.9 66.2 68.4 34.9 100.0  
  Non-electric machinery  3.0 2.3 0.8 0.2 2.7 0.0 80.4 80.7 94.9 98.4 80.4 100.0  
  Electric machinery  5.9 4.7 1.1 0.0 5.2 0.0 57.7 57.7 92.7 99.6 58.2 100.0  
  Transport equipment  11.0 11.0 7.5 5.9 10.9 0.0 43.0 43.0 55.5 59.6 43.0 100.0  
  Non-agricultural products, n.e.s.  5.2 4.6 2.1 0.1 4.9 0.0 69.2 69.2 86.8 99.4 70.0 99.8 
  Petroleum  2.2 1.7 2.2 2.2 2.2 0.0 42.9 42.9 42.9 50.0 42.9 100.0  
The AfCFTA has not been implemented yet. SACU's offer is under verification by the AfCFTA Secretariat.  
a Certain clothing items imported only from Paraguay and Uruguay are subject to preferential rates. These items refer to tariff codes 61032200, 61034210 (with 
a Mercosur rate of 36%, instead of the applied MFN rate of 40%), 61034220, 61034290, 61044200, and 61051000 (with a Mercosur rate of 40.5%, instead of 
the applied MFN rate of 45%). The MFN rates applied to these items are taken into account in the calculations.  
Note:  Calculations for averages are based on the national 8 -digit tariff -line level. Tariff schedule is based on HS22.  
Source:  WTO Secretariat calcu lations based on tariff information from SARS.  WT/TPR/S/ 447 • Southern African Customs Union  
 
- 41 - 
 
  Table  A3.3 Excise duties, 2023  
Tariff 
heading  Product description  Rates  
Specific excise duties  
Prepared foodstuffs  
1901 Malt extract; food preparations of flour, groats, meal, starch or malt extract, 
not containing cocoa or containing less than 40% by mass of cocoa calculated 
on a totally defatted basis, not elsewhere specified or included; food 
preparations of goods of headings 04.01 to 04.04, not containing cocoa or 
containing less than 5% by mass of cocoa calculated on a t otally defatted 
basis not elsewhere specified or included:    
 Preparations for making alcoholic beverages (excluding those of subheading 
1901.90.20) as defined in Additional Note 2 to Chapter  19 ZAR 0.347/kg  
  Traditional African beer powder as defined in Additional Note 1 to Chapter 19  ZAR 0.347/kg  
Beverages and spirits  
2106 Food preparations not elsewhere specified or included:   
 Preparations for making alcoholic beverages as defined in Additional Note 1 to 
Chapter 21  ZAR 0.347/kg  
2203 Beer made from malt:    
  Traditional African beer as defined in Additional Note 1 to Chapter 22  ZAR 0.0782/L  
  Other  ZAR 121.41/La 
2204 Wine of fresh grapes, including fortified wines; grape must (excluding that of 
heading 20.09):    
  Sparkling wine  ZAR 16.52/L  
  Unfortified wine    
  With an alcoholic strength  of at least  4.5% by vol. but not exceeding 16.5% 
by vol.  ZAR 4.96/L  
  Other  ZAR 245.15/La 
  Fortified wine    
  With an alcoholic strength of at least 15% by vol. but not exceeding 22% 
by vol.  ZAR 8.36/L  
  Other  ZAR 245.15/La 
2205 Vermouth and other wine of fresh grapes flavoured with plants or aromatic 
substances:    
  Sparkling  ZAR 16.52/L  
  Unfortified    
  With an alcoholic strength of at least 4.5% by vol. but not exceeding 15% 
by vol.  ZAR 4.96/L  
  Other  ZAR 245.15/La 
  Fortified    
  With an alcoholic strength  of at least 15% by vol. but not exceeding 22% 
by vol.  ZAR 8.36/L  
  Other  ZAR 245.15/La 
2206 Other fermented beverages (e.g.  cider, perry, mead); mixtures of fermented 
beverages and mixtures of fermented beverages and non -alcoholic 
beverages, not elsewhere specified or included:    
  Sparkling fruit beverages and sparkling mead  ZAR 16.52/L  
  Traditional African beer  ZAR 0.0782/L  
  Other fermented beverages, unfortified  ZAR 121.41/La 
  Other fermented beverages, fortified  ZAR 98.06/La 
  Other  ZAR 245.15/La 
2207 Undenatured ethyl alcohol of an alcoholic strength by volume of 80% vol. or 
higher; ethyl alcohol and other spirits, denatured, of any strength:  ZAR 245.15/La 
2208 Undenatured ethyl alcohol of an alcoholic strength by volume of less 
than 80% vol.; spirits, liqueurs and other spirituous beverages:    
  Spirits obtained by distilling grape wine or grape marc:   
 Brandy as defined in Additional Note 7 to Chapter 22  ZAR 220.63/La 
 Other  ZAR 245.15/La 
  Whiskies  ZAR 245.15/La 
  Rum and other spirits obtained by distilling fermented sugarcane products  ZAR 245.15/La 
  Gin and Geneva  ZAR 245.15/La 
  Vodka  ZAR 245.15/La 
  Liqueurs and cordials    
  With an alcoholic strength by volume exceeding 15% by vol. but not 
exceeding 23% by vol.  ZAR 98.06/La 
  Other  ZAR 245.15/La 
Tobacco products  
2402 Cigars, cheroots, cigarillos and cigarettes, of tobacco or of tobacco 
substitutes:    
  Cigars, cheroots and cigarillos, containing tobacco  ZAR 4,823.22/kg 
net 
  Cigarettes containing tobacco  ZAR 9.91/  
10 cigarettes  WT/TPR/S/ 447 • Southern African Customs Union  
 
- 42 - 
 
  Tariff 
heading  Product description  Rates  
  Cigars, cheroots and cigarillos of tobacco substitutes  ZAR 4,823.22/kg net  
  Cigarettes of tobacco substitutes  ZAR 9.91/  
10 cigarettes  
2403 Other manufactured tobacco and manufactured tobacco substitutes; 
"homogenized" or "reconstituted" tobacco; tobacco extracts and essences:    
  Smoking tobacco, whether or not containing tobacco substitutes in any 
proportions  ZAR 265.24/kg net  
  Cigarette tobacco  ZAR 445.57/kg  
 "Homogenized" or "reconstituted" tobacco  ZAR 929.33/kg  
  Other:    
  Other cigarette tobacco substitutes  ZAR 445.57/kg  
  Other pipe tobacco substitutes  ZAR 265.24/kg net  
 Other  ZAR 929.33/kg  
2404 Products containing tobacco, reconstituted tobacco, nicotine, or tobacco or 
nicotine substitutes, intended for inhalation without combustion; other 
nicotine containing products intended for the intake of nicotine into the 
human body:   
 Containing tobacco or reconstituted tobacco:   
 Put up for retail sale in the form of sticks  ZAR 7.43/10 sticks  
 Other  ZAR 929.33/kg  
Petroleum products  
2710 Petroleum oils and oils obtained from bituminous minerals (excluding crude); 
preparations not elsewhere specified or included, containing by mass 70% or 
more of petroleum oils or of oils obtained from bituminous minerals, these 
oils being the basic constituents of the preparation s:   
  Light oils and preparations:    
  Petrol  ZAR 0.03909/L  
  Aviation kerosene  Free 
  Illuminating kerosene, marked  Free 
  Illuminating kerosene, unmarked  ZAR 0.03817/L  
  Distillate fuel  ZAR 0.03817/L  
  Specified aliphatic hydrocarbon solvents, marked  free 
  Specified aliphatic hydrocarbon solvents, unmarked  ZAR 0.03817/L  
Products of the chemical or allied industries   
2903 Halogenated derivatives of hydrocarbons:    
  Carbon tetrachloride  ZAR 5/kg 
  1,1,1 -Trichloroethane (methyl chloroform)  ZAR 5/kg 
  Bromochlorodifluoromethane, bromotrifluoromethane and 
dibromotetrafluoroethanes  ZAR 5/kg 
  Trichlorofluoromethane  ZAR 5/kg 
  Dichlorodifluoromethane  ZAR 5/kg 
  Trichlorotrifluoroethanes  ZAR 5/kg 
  Dichlorotetrafluoroethanes and chloropentafluoroethane  ZAR 5/kg 
  Chlorotrifluoromethane  ZAR 5/kg 
  Pentachlorofluoroethane  ZAR 5/kg 
  Tetrachlorodifluoroethanes  ZAR 5/kg 
  Heptachlorofluoropropanes  ZAR 5/kg 
  Hexachlorodifluoropropanes  ZAR 5/kg 
  Pentachlorotrifluoropropane  ZAR 5/kg 
  Tetrachlorotetrafluoropropanes  ZAR 5/kg 
  Trichloropentafluoropropanes  ZAR 5/kg 
  Dichlorohexafluoropropanes  ZAR 5/kg 
  Chloroheptafluoropropanes  ZAR 5/kg 
3824 Prepared binders for foundry moulds or cores; chemical products and 
preparations of the chemical or allied industries (including those consisting of 
mixtures of natural products), not elsewhere specified or included; residual 
products of the chemical or allied industries, not elsewhere specified or 
included  ZAR 5/kg 
3827 Mixtures containing halogenated derivatives of methane, ethane, or propane, 
not elsewhere specified or included  ZAR 5/kg 
3826 Biodiesel and mixtures thereof, not containing or containing less than 70% by 
mass of petroleum oils or oils obtained from bituminous minerals  ZAR 0.03817/L  
Ad valorem  excise duties  
3303 Perfumes and toilet waters: Other  9% 
3304 Beauty or make -up preparations and preparations for the care of the skin 
(excluding medicaments), including sunscreen or sun tan preparations; 
manicure or pedicure preparations  7% 
3604 Fireworks  9% 
4303 Articles of apparel and clothing accessories and other articles of fur skin  9% 
4304 Artificial fur and articles of apparel and clothing accessories  9% 
8415 Air conditioning machines, comprising a motor -driven fan and elements for 
changing the temperature and humidity, including those machines in which 
the humidity cannot be separately regulated  9% WT/TPR/S/ 447 • Southern African Customs Union  
 
- 43 - 
 
  Tariff 
heading  Product description  Rates  
8471 Automated data processing machines and units thereof; magnetic or optical 
readers, machines for transcribing data onto data media in coded form and 
machines for processing such data, not elsewhere specified or included  9% 
8517 Telephone sets, including telephones for cellular networks or for other 
wireless networks  9% 
8518 Microphones, loudspeakers, amplifiers  9% 
8519 Sound recording or reproducing apparatus  9% 
8521 Video recording or reproducing apparatus  9% 
8525 Television cameras, digital cameras and video camera recorders  9% 
8527 Reception apparatus for radio -broadcasting  9% 
8528 Monitors and projectors, not incorporating television reception apparatus; 
reception apparatus for television  9% 
8702 Motor vehicles for the transport of 10 or more persons, including the driver  ((0.00003 x A) - 
0.75)% with a 
maximum of 25%b 
((0.00003 x B) - 
0.75)% with a 
maximum of 25%c 
8703 Motor cars and other motor vehicles specifically designed for the transport of 
persons (excluding those of heading 87.02), including station wagons and 
racing cars  ((0.00003 x A) - 
0.75)% with a 
maximum of 25%b 
((0.00003 x B) - 
0.75)% with a 
maximum of 25%c 
8704 Motor vehicles for the transport of goods  ((0.00003 x A) - 
0.75)% with a 
maximum of 25%b 
((0.00003 x B) - 
0.75)% with a 
maximum of 25%c 
8706 Chassis fitted with engines, for motor vehicles of headings 87.01 to 87.05  ((0.00003 x A) - 
0.75)% with a 
maximum of 25%b 
((0.00003 x B) - 
0.75)% with a 
maximum of 25%c 
8711 Motorcycles (including mopeds) and cycles fitted with an auxiliary motor, with 
or without sidecars; sidecars  7%d 
8903 Yachts and other vessels for pleasure or sports; rowing boats and canoes  9% 
9302 Revolvers and pistols (excluding those of headings 93.03 and 93.04)  9% 
9303 Other firearms and similar devices  9% 
9304 Other arms  9% 
9504 Articles for funfair, table or parlour games  9% 
9506 Golf balls  9% 
a Absolute alcohol.  
b Vehicles manufactured in South  Africa. "A" means the recommended retail price, exclusive of VAT, 
less 20%.  
c Vehicles imported into South  Africa. "B" means the value for the ad valorem  excise duty on imported 
goods.  
d Excise duties for HS 871150 and 871190 30 are 9%.  
Source:  SARS, Schedules to the Customs and Excise Act, 1964  (Tariff Book), Schedule 1, Part 2A and 2B. 
Viewed  at: https://ww w.sars.gov.za/wp -content/uploads/Legal/SCEA1964/Legal -LPrim -CE-Sch1P2A -
Schedule -No-1-Part-2A.pdf ; and https://www.sars.gov.za/wp -
content/uploads/Legal/SCEA1964/LAPD -LPrim -Tariff-2012-06-Schedule -No-1-Part-2B.pdf . WT/TPR/S/ 447 • Southern African Customs Union  
 
- 44 - 
 
  Table  A3.4 Safeguard actions, 2014  - 20 July 2023  
Date of initiation 
or termination of 
investigation, or 
beginning of SG 
measures  Goods  Measures  Notification  to the WTO  
5 July 2013 Frozen potato chips  Provisional safeguard 
duty: 61.42% from 
5 July 2013 to 
4 July 2014; and 
40.92% and 20.45% in 
the following two years  G/SG/N/8/ZAF/2,  
G/SG/N/10/ZAF/2,  
G/SG/N/11/ZAF/2/ Suppl.2 , 
16 December  2013 
4 July 2014 Same as above  A definitive measure of 
40.92% to 4  July 2015, 
and 20.45% from 
5 July 2015 to 
5 June 2016 G/SG/N/8/ZAF/2/Suppl.1  
G/SG/N/10/ZAF/2/Suppl.1  
G/SG/N/11/ZAF/2/Suppl.3,  
18 August  2014 
24 March  2016 Certain flat -rolled products of 
iron, non -alloy steel or other 
alloy steel  Initiation of 
investigation  G/SG/N/6/ZAF/4,  
4 April 2016 
24 July 2020 Same as above  Investigation int o the 
extension of safeguard 
measures  G/SG/N/6/ZAF/4/Suppl.1,  
3 August  2020 
n.a. Same as above  Not to impose 
provisional measures  G/SG/N/8/ZAF/3,  
19 July 2016 
Between 
June-July 2017, for 
3 years  Same as above  A definitive measure 
of 12% on the imports  G/SG/N/8/ZAF/3/Suppl.1,  
G/SG/N/10/ZAF/3,  
G/SG/N/11/ZAF/3,  
27 April 2017 
11 August  2017, for 
3 years  Same as above  A definitive measure 
of 12% on the imports  G/SG/N/8/ZAF/3/Suppl.2,  
G/SG/N/10/ZAF/3/Suppl.1,  
G/SG/N/11/ZAF/3/Suppl.1,  
17 August  2017 
29 July 2016 Flat-rolled products of iron or 
non-alloy steel, or other alloy 
steel but excluding stainless 
steel Initiation of 
investigation  G/SG/N/6/ZAF/5,  
1 August  2016 
29 September  2017 Same as above  Terminated without 
measure  G/SG/N/9/ZAF/2,  
6 October  2017 
n.a. Same as above  Not to impose a 
provisional payment  G/SG/N/8/ZAF/4,  
7 November  2016 
20 April 2018 Other screws fully threaded with 
hexagon heads made of steel, 
classifiable under tariff 
subheading 7318.15.39  Initiation of 
investigation  G/SG/N/6/ZAF/6,  
24 April 2018 
3 August  2018,  
for 200 days  Same as above  Provisional safeguard 
duty: ad valorem  duty 
of 42.09%  G/SG/N/7/ZAF/3,  
G/SG/N/11/ZAF/4,  
1 August  2018 
3 August  2018- 
18 February  2019 Same as above  Provisional safeguard 
duty G/SG/N/7/ZAF/3/Suppl.1,  
G/SG/N/11/ZAF/4/Suppl.1,  
7 August  2018 
Mid-February  2019, 
for 3 years  Same as above  A definitive measure of 
50.54%  G/SG/N/8/ZAF/5,  
G/SG/N/10/ZAF/4,  
G/SG/N/11/ZAF/4/Suppl.2  
6 February  2019 
15 February  2019 Same as above  A definitive measure of 
50.54% and progressive 
liberalization within 
3 years  G/SG/N/8/ZAF/5/Suppl.1,  
G/SG/N/10/ZAF/4/Suppl.1 , 
27 February  2019 
3 August  2021- 
2 August  2024 Same as above  Decision to extend a 
safeguard measure  G/SG/N/8/ZAF/5/Suppl.2,  
G/SG/N/10/ZAF/4/Suppl.2 , 
29 June 2021 
3 August  2021- 
2 August  2024 Same as above  Decision to extend a 
safeguard measure  G/SG/N/8/ZAF/5/Suppl.3,  
3 August  2021 
2 August  2021 Same as above  An ad valorem  
safeguard duty 
of 35.6%  G/SG/N/10/ZAF/4/Suppl.3 , 
4 August  2021 
1 March  2019 Threaded fasteners of iron or 
steel: bolt ends & screw studs, 
screw studding and other 
hexagon nuts  Initiation of 
investigation  G/SG/N/6/ZAF/7,  
4 March  2019 
19 July 2019,  
for 200 days  Same as above  Provisional safeguard 
duty: ad valorem  duty 
of 102.10%  G/SG/N/7/ZAF/4,  
G/SG/N/11/ZAF/5,  
11 July 2019 WT/TPR/S/ 447 • Southern African Customs Union  
 
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  Date of initiation 
or termination of 
investigation, or 
beginning of SG 
measures  Goods  Measures  Notification  to the WTO  
Between 
March  2020 and 
April 2020, for 
3 years  Same as above  A definitive measure of 
54.04%  G/SG/N/8/ZAF/6,  
G/SG/N/10/ZAF/5,  
G/SG/N/11/ZAF/5/Suppl.1 , 
10 February  2020 
Between 
March  2020 and 
April 2020, for 
3 years  Same as above  A definitive measure of 
54.04%  G/SG/N/8/ZAF/6/Suppl.1,  
G/SG/N/10/ZAF/5/Suppl.1,  
G/SG/N/11/ZAF/5/Suppl.2 , 
2 September  2020 
24 March  2023 Same as above  Initiation of 
investigation into the 
extension of safeguard 
measures  G/SG/N/6/ZAF/7/Suppl.1,  
3 April 2023 
Between 
24 July 2023 and 
23 July 2026 Same as above  Extension of the 
definitive measure  G/SG/N/8/ZAF/6/Suppl.2,  
G/SG/N/10/ZAF/5/Suppl.2,  
G/SG/N/11/ZAF/5/Suppl.5 , 
20 June 2023 
15 May 2020 Bolts with hexagon heads of iron 
or steel  Initiation of 
investigation  G/SG/N/6/ZAF/8,  
25 May 2020 
2 October  2020, for 
200 days  Same as above  Provisional safeguard 
duty: ad valorem  duty 
of 31.8%  G/SG/N/7/ZAF/5,  
G/SG/N/11/ZAF/7,  
16 September  2020 
December  2021, for 
3 years  Same as above  A definitive measure 
of 31.8%  G/SG/N/8/ZAF/9,  
G/SG/N/10/ZAF/7,  
G/SG/N/11/ZAF/7/Suppl.1 , 
9 November  2021 
19 June 2020 U, I, H, L and T sections of iron 
or non -alloy steel  Initiation of 
investigation  G/SG/N/6/ZAF/9,  
23 June 2020 
n.a. Same as above  The investigation be 
terminated  G/SG/N/8/ZAF/8,  
9 November  2020 
n.a. Same as above  The investigation be 
terminated  G/SG/N/8/ZAF/8/Rev.1 , 
11 November  2020 
17 September  2021 Same as above  Termi nated without 
measure  G/SG/N/9/ZAF/3,  
23 September  2021 
Other  
Notification on amendment of developing country members  G/SG/N/11/ZAF/3/Suppl.2, 
15 April 2019 
Notification on amendment of developing country members  G/SG/N/11/ZAF/5/Suppl.3, 
9 November  2021 
Notification on amendment of developing country members  G/SG/N/11/ZAF/5/Suppl.4, 
22 July 2022 
n.a. Not applicable.  
Source:  South  Africa's notifications to the WTO Committee on Safeguards.