RESTRICTED  
  
WT/TPR/S/324  
30 September 2015  
(15-5063)  Page: 1/48  
Trade Policy Review Body   
 
TRADE POLICY REVIEW 
REPORT BY THE SECRETARIAT 
SOUTHERN  AFRICAN  CUSTOMS  UNION 
This report, prepared for the fourth Trade Policy Review of the Southern African Customs Union, 
has been drawn up by the WTO Secretariat on it s 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 clarification 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), Jo-Ann Crawford (tel: 022/739 5422 – Namibia), Eugenia Lizano 
(tel: 022/739 6578 – Botswana), Martha Lara Fernández (tel: 022/739 6033 – Swaziland), Michael Kolie (tel: 022/739 5931 – South Africa, SACU Main Report) and 
Ana Cristina Molina Herrera (tel: 022/739 6060 – Lesotho). 
 Document WT/TPR/G/324 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 Southern African Customs 
Union. This report was drafted in English. WT/TPR/S/324 • Southern African Customs Union 
 
- 2 - 
 
  CONTENTS 
SUMMARY ....................................................................................................................... . 4 
1   ECONOMIC ENVIRONMENT .......................................................................................... 8  
1.1   Main Features of the Economy ..................................................................................... 8  
1.2   Recent Econom ic Developments................................................................................... 9  
1.3   Trade and Investment Performance ............................................................................. 10 
2   THE COMMON REGIME ............................................................................................... 12  
2.1   Overview ................................................................................................................. 12 
2.2   Southern African Customs Union (SACU) ...................................................................... 13 
2.2.1   Institutional structure ............................................................................................. 13 
2.2.2   Common revenue pool and revenue-sharing formula ................................................... 13 
2.3   Trade Agreements and Arrangements .......................................................................... 14 
2.3.1   Participat ion in the WTO ......................................................................................... 15 
2.3.2   African Union (AU) ................................................................................................. 15 
2.3.3   Southern African Development Community (SADC) ..................................................... 16 
2.3.4   Relations with  the Europe an Un ion ........................................................................... 16 
2.3.5   Relations with  the United  States .............................................................................. 17 
2.3.6   Free trade agreement between SACU and EFTA .......................................................... 17 
2.3.7   Preferential trade agr eement between SACU and MERCOSUR ....................................... 18 
2.3.8   The Generalized System of Preferences ..................................................................... 18 
3   TRADE POLICIES AND PRACTICES BY MEASURE ........................................................ 19  
3.1   Introduction ............................................................................................................. 19 
3.2   Customs Procedures and Valuation .............................................................................. 19 
3.3   Rules of Origin .........................................................................................................  20 
3.4   Tariffs an d Other Charges .......................................................................................... 21 
3.4.1   MFN applied tariffs ................................................................................................. 21 
3.4.2   Bindings .............................................................................................................. . 25 
3.4.3   Tariff preferences .................................................................................................. 26 
3.4.4   Excise duties .........................................................................................................  27 
3.4.5   VAT ................................................................................................................... .. 28 
3.4.6   Duty and tax conc essions and ex emptions ................................................................. 28 
3.4.7   Contingenc y trade remedies .................................................................................... 28 
3.4.7.1   Anti-dumping and countervailing measures ............................................................. 28 
3.4.7.2   Safeguard measures ............................................................................................ 30 
REFERENCES .................................................................................................................. 3 2 
4   APPENDIX  TABLES .................................................................................................... 33  
 WT/TPR/S/324 • Southern African Customs Union 
 
- 3 - 
 
  CHARTS 
 Chart 3.1 Breakdown of applied MFN tariffs, 2015 ................................................................. 23
 
Chart 3.2 Tariff escalation, ISIC 2-digit industry , 2015 .......................................................... 24 
 
TABLES 
 
Table 1.1 SACU's selected soci o-economic indi cators, 2008-13 ................................................ 8  
Table 1.2 Overview of the business envi ronment in SACU count ries, 2008 an d 2015 .................. 10 
Table 3.1 Structure of SACU a pplied MFN tariffs , 2009 and 2015............................................. 21 
Table 3.2 MFN tariff distribution by type of duty , 2009 and 2015 ............................................ 22 
Table 3.3 Formula (var iable) duti es, 2015  ........................................................................... 22 
Table 3.4 SACU's applie d MFN tariff summary , 2015 ............................................................. 23 
Table 3.5 Tariff lines where the applied MFN rate might be higher than the bound rate, 
2015 25 
Table 3.6 Preferential tariff rate s, 2015  ............................................................................... 27 
Table 3.7 Definitive anti-dumping measures  in force, as of 31 December 2014 ......................... 29 
 
APPENDIX TABLES 
 Table A1.1 SACU trade, 2008-13 ........................................................................................ 33
 
Table A1.2 Intra-SACU im ports by or igin, 2008-13 ................................................................ 34 
Table A1.3 Intra-SACU export s by destinat ion, 2008- 13 ........................................................ 35 
Table A1.4 Extra-SACU merchandise imports by origin, 2008-13 ............................................. 36 
Table A1.5 Extra-SACU merchandise exports by destin ation, 2008-13  ..................................... 37 
Table A1.6 Merchandise imports by product group (ext ra-SACU) , 2008- 13 ............................... 38 
Table A1.7 Merchandise exports by product group (ext ra-SACU), 2008-13  ............................... 39 
 
Table A2.1 SACU country exports to the United  States under the preferential regimes, 
2008 and 20 14 ................................................................................................................ 40 
 
Table A3.1 MFN tariff averages by HS 2-digit level, 2015 ....................................................... 41 
Table A3.2 Excise  duties , 2015  .......................................................................................... 45 
 WT/TPR/S/324 • Southern African Customs Union 
 
- 4 - 
 
  SUMMARY 
1. Since the last Review in 2009, economic performance has fluctuated in the five countries of 
the Southern African Customs Union (SACU), i.e. Botswana, Lesotho, Namibia, South Africa and Swaziland, with a downward trend in their cons olidated (total) GDP growth rates. The highest 
growth of their consolidated GDP (3.4%) was reco rded in 2011 and the lowest (-1.7%) in 2009; it 
has been around 2.5% per year since 2012. This performance has largely resulted from the global economic crisis and its impact on the mining and manufacturing sectors. Economic growth has 
been uneven within SACU but the overall (consolidated) performance largely reflects South Africa's 
as the latter accounts for about 91% of the region's total GDP.  
2. In 2009, SACU countries individually recorded their lowest economic growth, negative in 
Botswana (-7.8%) and South Africa (-1.5%), but positive albeit weak in Namibia (0.6%) and 
Swaziland (1.3%). With annual GDP growth rates of respectively 3.4-7.8%, 0.6%-6% over the 
period, Lesotho and Namibia were the only SACU countries to weather the crisis rather well, without recording negative growth; the growth rates of Botswana and Namibia rebounded sharply 
after their poor performance in 2009 and have remained high since then. Swaziland's economic 
performance has been positive albeit moderate (1.3%-3% per year) over the period.  
3. As a result, the socio-economic features of the SACU countries have not changed 
significantly since 2009. Their economies remain dominated by their relatively large services sector 
(about 60% of their consolidated GDP). However, inequalities between and within the countries are still an issue and continue to be the focus of policy efforts. Botswana and South Africa remain upper middle-income countries – they have been joined by Namibia; Swaziland, a lower 
middle-income country; and Lesotho, a least developed country. South Africa's highly diversified 
economy contrasts with the narrow-based ones of its regional counterparts: diamonds and other minerals in Botswana and Namibia; textiles and clothing in Lesotho; and sugar in Swaziland. 
Intra-country inequalities within SACU are among the highest in the world, with unemployment 
and poverty common challenges; relatively high inflation during the review period, due to currency depreciation, high food and fuel prices, as well as an increase in the VAT rate in Botswana, has not 
helped. 
4. The SACU agreement does not provide for harmonization of macroeconomic policies. 
H o w e v e r ,  b y  v i r t u e  o f  t h e  m e m b e r s h i p  o f  L e s o t h o ,  N a m i b i a ,  a n d  S w a z i l a n d  o f  t h e  C o m m o n  Monetary Area (CMA), their curre ncies are pegged to the South African Rand, and their monetary 
policies are largely aligned on the policy pursued by the South African Reserve Bank (SARB).  
5. SACU countries source some 13% of their imports in the region, and supply the region in the 
same range. As the largest economy, South Africa is the main investor in the other SACU countries 
and also dominates regional trade, with over 95% of commercial flows within the customs union 
involving it as a destination or source. Extra-SACU imports originate mainly from the EU, China, and the United States, which are also among SACU's main export markets. EU countries, 
United States and China are also the leading investors in the region. 
6. All SACU countries are members of SADC and si gnatories to its Trade Protocol. They have 
RTAs with the members of the European Free Tr ade Association (EFTA) and a reciprocal trade 
agreement, signed but not in force, with the MERCOSUR countries. In 2008, SACU members 
signed a Trade, Investment, and Development Cooperation Agreement (TIDCA) with the 
United States, which entered into force immediately. Negotiations with the EU on a SADC-EU Economic Partnership Agreement (EPA) were completed in July 2014.  
7. Some SACU countries also maintain bilateral trade agreements, and their consensus to 
negotiate new trade agreements as a group has not refrained some of them from individually launching bilateral trade negotiations with third countries. Swaziland is the only SACU country that 
is also a member of COMESA, where it enjo ys unilateral preferential market access. 
SACU members continue to benefit from non-reciprocal preferential treatment under the Generalized System of Preferences (GSP); and, wi th the exception of Swaziland (since January 
2015), under the U.S. African Growth and Opportunity Act (AGOA). 
8. The applied MFN customs tariff, excise duties, duty and tax concessions (rebates, refunds 
and drawbacks), customs valuation, rules of origin, and contingency trade remedies remain WT/TPR/S/324 • Southern African Customs Union 
 
- 5 - 
 
  harmonized within SACU. For the time being, in the absence of a regional body, the International 
Trade Administration Commission (ITAC) of South Africa is responsible for managing the 
SACU common external tariff (CET); it is also mandated to recommend all rebates, refunds, and drawbacks in SACU. Efforts are ongoing within SACU  to facilitate trade by further streamlining 
customs procedures and documentation. 
9. The simple average applied MFN tariff (SACU CE T) rate is 8.3% in 2015, slightly up from 
8.1% in 2009. The tariff remains complex, still co mprising ad valorem, specific, mixed, formula 
(variable) duties, and their combination; non- ad valorem  duties represent about 3.8% (up from 
3.2% in 2009) of total tariff lines. Tariff rates display relatively high dispersion from zero to 624% (an ad valorem  equivalent). The modal rate (the most frequently applied) is zero and applies to 
about 57.5% of all tariff lines on, inter alia , live animals, products of animal origin, ores, fertilizers, 
cork, pulp of wood, silk, some minerals (e.g. nickel, lead, and zinc), and other base metals. The 
highest ad valorem  rate (96%) applies to 14 tariff lines, including mainly dairy products; and the 
highest ad valorem  equivalent (624%) applies to worn clothing and worn textile articles. 
10. Agriculture (WTO definition) remains the most tariff-protected sector (9.9% on average, 
slightly down from 10.1% in 2009), while tariff protection for non-agricultural goods is 8% (slightly up from 7.8% in 2009). Under ISIC (revision 2), manufacturing is the most 
tariff-protected sector (8.7%, slightly up from 8.5% in 2009), followed by agriculture (3.5%, 
slightly down from 3.7% in 2009), and mining and quarrying (0.1%, down from 0.8% in 2009). The presence of tariff escalation indicates high er effective protection for processed products. 
11. Namibia, South Africa and Swaziland have identical binding commitments (96.6% of all tariff 
lines), while those of Lesotho (on 100% of its tariff lines) and of Botswana (on 96.6%) are 
different. All tariff bindings by SACU members are ad valorem . Therefore, the imposition of 
non-ad valorem  duties under the SACU CET does not ensure compliance with the binding 
commitments. Contrary to the other SACU members,  South Africa's market access commitments 
include tariff quotas on 53 product groups which actually enter the country at the in-quota tariff rates. 
12. Contrary to excise duties, the VAT is not ha rmonized within SACU, and the taxation bases 
and the rates are different: the rate is 14% in Lesotho, South Africa and Swaziland; 12% in 
Botswana; and 15% in Namibia. Namibia is the only SACU country to impose export taxes/levies on selected products (e.g. unprocessed diamonds, raw hides and skins, and goat skins). 
13. In addition to duty and tax concessions (reb ates, refunds and drawbacks) provided for by 
the SACU Agreement, country-specific rebates on wheat and dairy products are used by Botswana, Lesotho, Namibia and Swaziland (BLNS). During the review period, the Automotive Production 
Development Program replaced the Motor Indust ry Development Programme, and the Textile and 
Clothing Industry Development Programme was discont inued. National legislations also provide for 
investment incentives aiming at economic and export diversification in BLNS, and at promoting 
exports and addressing social concerns in South Africa. 
14. As of end 2014, South Africa (on behalf of  SACU) maintained definitive anti-dumping 
measures on imports from 13 WTO Members. In November 2012, the ITAC initiated a safeguard investigation on imports of frozen potato chips, on which it imposed a provisional safeguard 
measure in July 2013 and a definitive safeguard measure on 11 December 2013. 
15. During the period under review, Botswana, Namibia and Swaziland fully enforced their 
national competition regimes; except for Lesotho, all SACU countries have by now their national 
competition policies in place. However, a regional competition regime is yet to be adopted. None of 
the SACU countries is party to the WTO plurilateral Agreement on Government Procurement; their government procurement legislations provide for price preferences to local suppliers/products. 
Except for Namibia where a new Industrial Property Act was passed in 2012, the national regimes 
on intellectual property rights in SACU countries have not significantly changed. 
16. Although the 2002 SACU Agreement calls for harm onization of agricultural and industrial 
policies, this has not yet materialized. Therefore, except for customs-related issues, sectoral 
policies remain country-specific.  WT/TPR/S/324 • Southern African Customs Union 
 
- 6 - 
 
  17. In Botswana, sectoral policies aim at sustainable economic growth, to be led by diversified 
production by the private sector which is expected to play an enhanced role in a more competitive 
environment. The diversification efforts have not been successful as Botswana continues to rely heavily on the mining sector, specifically on diamonds exports (82.3% of total merchandise 
exports (including re-exports) in 2013). Moreover, the intervention of the State in Botswana's 
economy continues to be significant. For instance, Botswana's two major export products (diamonds and beef) are traded by state-owne d companies. Indeed, Debswana, the diamond 
mining company (50% state ownership), holds a de facto monopoly over exports of rough 
diamonds, and the Botswana Meat Commission (BMC), which is fully state-owned, has a statutory monopoly on beef exports. Agriculture remains one of the most important economic activities. 
Even though the sector's contribution to GDP has decreased from over 40% in 1966 to 2.4% in 
2014, it remains the mainstay of the rural economy, where it is the major source of livelihood, and 
thus plays a major role in poverty reduction. In addition, livestock's contribution to exports is substantial; meat and meat products accounted for 70.3% of the country's agricultural exports. 
Agriculture continues to be highly protected (by tariff and non-tariff measures) on food security 
grounds (according to the authorities), one of the country's main socio-economic goals.  
18. Lesotho's economy relies mainly on apparel industry (59% of total exports), and on 
agriculture, the backbone of the rural economy and the main employer. Mining, electricity and 
tourism have been identified by the government as activities facing significant challenges but with great potential for  growth. Accordingly, during the period  under review, Lesotho enacted many 
new laws to modernize its institutional and legal framework on, inter alia, telecommunications, 
electricity and financial services; their implementation is mostly ongoing. In 2010, it reformed its 
land system by allowing foreigners to hold a land title subject to certain conditions. In the mining sector (dominated by diamonds) the Government  reserves the right to acquire at least 20% 
ownership in any large-scale mine. Currently, all mines are jointly owned by the state and a 
foreign company, with the state's participation ranging from 20% to 30%. Although Lesotho has a strong potential for the generation of electricity because of its relatively abundant water, it is 
obliged to import power from Mozambique and South Africa, its current infrastructure being very 
limited. The performance of the tourism sector also remains weak due to poor or inexistent infrastructure, poor brand image, and a li mited marketing and communication strategy. 
19. Namibia's economy is highly dependent on exports of mining products, particularly 
diamonds. Livestock and fish are also important earners of foreign exchange. In the agricultural 
sector, Namibia aims to stimulate downstream agro-industries, improve competitiveness of agricultural industries, and increase local products' share of the domestic market and the 
contribution of agriculture to the national econ omy. Based on Vision 2030, the industrial policy 
promotes value addition: it outlines the specif ic principles and objectives that will guide 
manufacturing in terms of production structure and standards. Namibia has updated its 
information and communication technology framework since 2008 in response to growing demand. 
The penetration rate of telephones has more than doubled since 2008, with the main source of growth being mobile telephony. Namibia has one of  the most developed financial systems in Africa, 
though significant limitations remain. It is among the world's fastest growing tourist destinations 
and tourism makes a significant contribution to its GDP and employment. 
20. South Africa has the most technologically advanced and diversified economy in Africa, with a 
large services sector generally open to foreign investment. Agriculture is characterized by its 
dualism, i.e. the coexistence of a well-devel oped export-oriented system and a subsistence 
production one. The mining policy has not changed since the last Review; the performance of the sector has been negatively affected mainly by repeated workers strikes. Automotive and textiles 
are the main manufacturing industries and absorb most of Government incentives. Manufacturing 
is further protected by the escalatory structure of the SACU CET. However, recent frequent power 
outages are a challenge to the sector and to the whole economy. South Africa maintains a solid and relatively stable financial services subsector. Tourism is a key foreign exchange earner.  
21. In Swaziland, sugar and sugar-based products make up almost 50% of merchandise 
exports. The country is a net importer of food, fuels and services. Agriculture still provides the 
livelihood for 80% of the population. The Government seeks to ensure food security, increase 
productivity, and diversify and enhance commercial agriculture. Land fragmentation, high input 
costs, poor infrastructure and insufficient access to credit remain major challenges. Swaziland is a 
net importer of energy and electricity is more expensive than in any other SACU country. Mining 
has expanded in the past years owing to new iron ore production and improvements in coal WT/TPR/S/324 • Southern African Customs Union 
 
- 7 - 
 
  production; this has resulted in increased mineral exports. Under the Mines and Minerals Act 
passed in 2011, a 50% cap applies on foreign investment in mining activities. Manufacturing remains focused on value-added sugar products (confectionery and soft drinks). In the telecommunications subsector, new legislation was passed in 2013 and an independent regulator 
was established. This should enable market access for new entrants, thereby promoting 
competition and price reductions.  
 WT/TPR/S/324 • Southern African Customs Union 
 
- 8 - 
 
  1  ECONOMIC ENVIRONMENT 
1.1  Main Features of the Economy  1.1.  Botswana, Lesotho, Namibia, South Africa, and Swaziland form the Southern African Customs 
Union (SACU). With the exception of Botswana, SACU members also participate in a 
Common Monetary Area (CMA) which integrates Lesotho, Namibia and Swaziland into the 
South African currency system. 
1.2.  Since the previous Review in 2009, inequality between SACU countries remains striking in 
several respects, including the level of development, economic structures, and broad 
macroeconomic indicators. South Africa has, by far, the largest economy with a nominal GDP of US$350 billion in 2013, i.e. over 91% of the region's  total (US$380 billion); while, with a nominal 
GDP of US$2.1 billion, Lesotho accounted for on ly 0.6% of the total. In addition, while 
South Africa, Botswana, and Namibia are upper-middle-income countries, Lesotho and Swaziland 
are lower-middle-income countries; Lesotho is the only SACU country listed as a least developed country (LDC). Intra-country inequality is al so an issue, as SACU members are among those 
countries with the highest income inequality in the world.
1 
1.3.  The economic base of SACU did not significan tly change during the review period. Apart from 
South Africa, which has a large industrial base and serves as a trade hub in the region, the 
economies of SACU countries are narrow-based and vulnerable. The services sector remains the 
largest sector of the economies, its share of SACU's GDP averaging over 60% during the review period (Table 1.1). 
Table 1.1 SACU's selected socio-economic indicators, 2008-13 
 2008  2009  2010  2011 2012 2013  
Area ('000 sq. km) 2,651 2,651 2,651 2,651 2,651 2,651 
Population (million)a 56.5 57.3 58.1 59.0 59.9 60.8 
  Urban (million) 32.8 33.6 34.4 35.2 36.0 36.9 
  Density (per km2) 21.3 21.6 21.9 22.3 22.6 22.9 
  Growth rate (per year) 1.4 1.4 1.4 1.5 1.5 1.5 
Life expectancy 52.4 53.2 54.1 54.9 55.7 56.3 
GDP at market price (US$ billion, current prices) 311 320 406 451 431 401 
GDP per capita (US$, current prices) 5,503 5,579 6,984 7,639 7,198 6,594 
Real GDP (constant 2005 US$ billion) 321 316 326 337 345 354 
 Annual percentage change 3.3 -1.7 3.3 3.4 2.4 2.6 
 Per capita GDP 5,683 5,510 5,613 5,717 5,769 5,830 
   Growth 1.9 -3.0 1.9 1.9 0.9 1.1 
Share of GDP (c urrent prices)b,c         Agriculture, forestry and fishing 3.0 2.9 2.6 2.5 2.4 2.2 
  Mining & quarrying  9.1 8.2 8.9 9.1 8.8 8.7 
  Manufacturing 14.2 13.6 13.0 12.0 11.9 11.6 
  Water, electricity, and gas 1.6 2.1 2.4 2.7 3.1 3.2 
  Construction 3.9 3.9 3.5 3.5 3.5 3.7 
  Services 58.2 60.0 60.4 60.2 60.6 60.5 
  Other itemsd 9.8 9.4 9.2 9.8 9.8 10.0 
Exports of goods and services (constant 2005 US$ billion)c 92 76 82 87 87 90 
Imports of goods and services (constant 2005 US$ billion)c 107 91 99 108 117 118 
Trade in goods and services (percentage of GDP)c 61.9 53.0 55.4 57.9 58.8 59.3 
a Figures from World Development Indicators. 
b The definition of agriculture varies according to each country. c 2013 data do not include Swaziland. d Including indirect taxes. 
Source: World Bank's World Developm ent Indicator database. Viewed at: 
http://databank.worldbank.org/dat a/views/variableselection/selectvariables.aspx?source=world-
development-indicators ; Bank of Botswana (2015) , Botswana Financial Statistics, February Issue ; 
Lesotho's Central Bank, Annual Report 2013 ; Statistics South Africa, Gross Domestic Product (GDP), 
4th Quarter 2014 . Viewed at: http://beta2.statssa.gov.za/?page_id=1854&PPN=P0441 ; and African 
Development Bank, African Statistical Yearbook 2014 . 
                                               
1 Online information. Viewed at: https://www.imf.org/external/pubs/ft/wp/2012/wp12290.pdf .  WT/TPR/S/324 • Southern African Customs Union 
 
- 9 - 
 
  1.4.  The Common Monetary Area (CMA) agreement provides for free capital movement within the 
monetary area (with limited exceptions to safeguard domestic prudential requirements, as indicated in the provisions on exchange control)  and a right of access by Lesotho, Namibia, and 
Swaziland (LNS) to South Africa's capital and money markets. The loti (Lesotho's currency), the 
Namibian dollar, and the lilangeni (the Swazi currency) are pegged to the South African rand 
(ZAR), and banknotes issued by LNS are freely conv ertible into the ZAR. LNS must support the peg 
by maintaining net international reserves (NIRs) equivalent to a minimum of individual member 
State's money supply. The rand is legal tender in Lesotho, Namibia, and Swaziland, and circulates 
widely in all three. 
1.5.  Lesotho, Namibia, and Swaziland have en tered into a bilateral monetary agreement with 
South Africa to supplement the CMA. According to  the authorities, this was done mainly for 
flexibility purposes, and to accommodate country-s pecific needs. Although they belong to this 
monetary arrangement, each member is responsible for managing its own monetary policy, and supervising its financial institutions. However, by virtue of their membership of the CMA and 
pegging their currencies to the rand, effective implementation of monetary policy and its 
implications for macroeconomic stability depend, to a large extent, on the policies pursued by the South African Reserve Bank (SARB). The administering organ is the Common Monetary Area 
Commission, comprising a representative of each  member country and any advisers the country 
may appoint.  
1.6.  SACU members' social indicators continue to  present a challenge. The share of the population 
living below the poverty line in 2009 was 19.3% in Botswana (the lowest), 57.1% in Lesotho 
(2010), 28.7% in Namibia (2009), 53.8% in South Africa (2011), and 63% in Swaziland (2010) 
(the highest level).
2  
1.2  Recent Economic Developments 
1.7.  The GDP growth in SACU economies fluctuated during the review period. The recent global 
economic crisis had a detrimental effect on almost all economic activities, mainly with a significant contraction in the region's aggregate output in 2009 (-1.7%). However, SACU economies 
collectively grew by 3.4% in 2010 and 3.7% in 2011 (Table 1.1), driven by strong GDP growth 
rates (over 3%) in Botswana, Namibia, and Lesotho, while South Africa and Swaziland's economies grew by less than 3%. The recovery resulted mainly from a sharp pickup in mining activities throughout the region; the manufacturing sector in Botswana, Namibia, and Lesotho also played 
its part. 
1.8.  Over the years following 2011, the resurgence of the debt crisis in the EU (the main trade 
partner of SACU), coupled with economic uncertainty in several major industrialized countries 
impaired the continuation of SACU's good economic  performance. In the aggregate, the region's 
GDP growth rate decelerated in 2011 and in 2012; and this weak performance persisted in 2013.  
1.9.  The core mandate of all the central banks in SACU is price stability, which implicitly 
contributes to coordinated monetary policies within the region. There is no formal consultation 
framework in place between monetary authorities;  h o w e v e r ,  t h e y  m e e t  f r o m  t i m e  t o  t i m e  a t  
SADC level. 
1.10.  Overall, inflation remained relatively high (over 5% per year on average) in all SACU 
countries. In fact a significant part of inflationary pressure in SACU is from increases in global food 
and fuel prices, together with currency depreciation. South Africa and Botswana pursue an inflation objective of 3-6% per year. During the review period, inflation, measured as percentage changes 
in the consumer price index (CPI), remained predominantly erratic, despite efforts from Central 
Banks to contain it. The noticeable high inflation in Botswana, with rates exceeding the upper band of the inflation target range, was due to an increase in the VAT rate from 10% to 12%, together 
with an increase in certain administered prices (Annex 1, Section 1.1).  
1.11.  The SACU agreement does not provide for the harmonization of members' fiscal policies. 
However the revenue-sharing arrangement has import ant fiscal implications for BLNS countries, as 
payments in this respect account for over half of total government income in Lesotho and 
                                               
2 Online information. Viewed at: http://data.worldbank.org/country .  WT/TPR/S/324 • Southern African Customs Union 
 
- 10 - 
 
  Swaziland, while the corresponding figures for Namibia, Botswana, and South Africa are on 
average in the order of 33%, 30%, and 3%, respectively.  
1.3  Trade and Investment Performance  1.12.  During the review period, SACU's aggregate trade in goods and services as a percentage of 
its GDP remained high, nearly 60% on average; however, it decreased noticeably from 61.9% in 
2008 to 53.0% in 2009 during the economic crisis (Table 1.1). 
1.13.  SACU continues to display a trade deficit since the previous Trade Policy Review (TPR). The 
widening deficit is mainly due to declining exports, and high demand for imports of motor vehicles 
and machinery in connection with South Africa's infrastructural development (Annex 4). Botswana is the only SACU country with trade surpluses throughout the review period, whereas Lesotho, Namibia, South Africa, and Swaziland continued to post deficits. 
1.14.  The level of intra-SACU trade did not chan ge significantly during the review period. In 
aggregate, SACU countries sourced some 13% of their imports in the region, and supplied the region in the same range (with an exception in 2009 when intra-SACU exports displayed a 
considerably weaker ratio). However, significant disparities remain between the countries.  
1.15.  Over 95% of commercial flows within the customs union involved South Africa as a 
destination or source. Some 90% (on average) of Lesotho and Swaziland's imports originated from 
SACU countries (mostly South Africa); while South Africa covered barely 3% of its import demands 
through regional supply (Tables A1.1, A1.2, and A1.3). 
1.16.  The direction of extra-SACU trade has not changed since 2009. Imports originate mainly 
from the EU, China, the United States, Middle East and other African countries. The same countries 
are also among SACU's main export markets. Chin a was the fastest growing export market; with a 
share of 13% in 2013, it has become the top sing le market for SACU's exports (Tables A1.4 and 
A1.5). 
1.17.  Imports continue to be dominated by fuels, and machinery and transport equipment. 
Primary products, mainly minerals and non-ferrous minerals, as well as manufactures are the main 
export products of SACU (Tables A1.6 and A1.7). 
1.18.  FDI inflows benefit mainly mining and qu arrying, manufacturing (notably the clothing 
industry), telecommunications, financial services, and retail trade. EU countries are the leading investors in the region followed by the United States, China, and a number of Asian countries (see Annexes). In addition, South Africa is a significant investor in other SACU members. According to 
the World Bank's report on ease of doing business, the business environments in SACU countries 
collectively underperformed in 2015 in comparison  with 2008 (Table 1.2); this may constrain FDI 
inflows and the economic performance. 
Table 1.2 Overview of the business envi ronment in SACU countries, 2008 and 2015 
 Namibia Botswana Lesotho South Africa Swaziland 
2008 2015 2008  2015  2008  2015  2008  2015 2008 2015  
Ease of doing 
business (ranka) 43 88 51 74 124 128 35 43 95 110 
Starting a business            
- Ranka 101 156 99 149 126 108 53 61 142 145 
- Costb 22.3 13.1 9.9 1.0 37.4 9.4 7.1 0.3 38.7 23.3 
- Number of days 99 66 108 60 73 29 31 19 61 30 
Trading across 
borders            
Ranka 144 136 145 157 129 147 134 100 146 127 
Number of export 
documents 11 8 6 6 6 7 8 5 9 7 
Time to export 
(days) 29 24 33 27 44 31 30 16 21 17 
Cost to exportc 1,539 1,650 2,328 3,145 1,188 1,795 1,087 1,830 1,798 1,980 
Documents to import 
(number) 9 7 9 6 8 7 9 6 11 6 WT/TPR/S/324 • Southern African Customs Union 
 
- 11 - 
 
   Namibia Botswana Lesotho South Africa Swaziland 
2008 2015 2008  2015  2008  2015  2008  2015 2008 2015  
Time to import 
(days) 24 20 43 35 49 33 35 21 34 23 
Cost to importc 1,550 1,805 2,595 3,710 1,210 2,045 1,195 2,080 1,820 2,245 
Getting credit 36 61 26 61 115 151 26 52 36 61 
R e g i s t e r i n g  p r o p e r t y            
- Rank 128 173 36 51 132 93 76 97 142 129 
- Number of 
procedures 9 8 4 4 6 4 6 7 11 9 
- Costd 9.9 13.8 5.0 5.1 8.2 8.4 8.8 6.2 7.1 7.1 
a The 2008 rankings are based on 178 countries and economies, and the 2015 rankings on 
189 countries and economies. 
b Percentage of income per capita. c US$ per container. d Percentage of property value. 
Source: World Bank (2008); and World Bank (2015), "Doing Business". Viewed at: 
http://www.doingbusiness.org/reports /global-reports/doing-business-2015  . 
 WT/TPR/S/324 • Southern African Customs Union 
 
- 12 - 
 
  2  THE COMMON REGIME 
2.1  Overview 2.1.  The Southern African Customs Union (SACU), the oldest existing customs union in the world, 
functions mainly on the basis of the 2002 SACU Agreement. 
2.2.  The objectives of SACU, as contained in Arti cle 2 of the 2002 Agreement are: (a) to facilitate 
the cross-border movement of goods between the territories of the member States; (b) to create effective, transparent and democratic institutions which will ensure equitable trade benefits to 
member States; (c) to promote conditions of fair competition in the Common Customs Area; (d) to 
substantially increase investment opportunities in the Common Customs Area; (e) to enhance the economic development, diversification, industrialization and competitiveness of member States; (f) to promote the integration of its members into the global economy through enhanced trade and 
investment; (g) to facilitate the equitable sharin g of revenue arising from customs, excise and 
additional duties levied by member States; and (h) to facilitate the development of common policies and strategies.
1 
2.3.  Article 31 of the SACU Agreement allows member  States to maintain pre-existing preferential 
trade arrangements; as a consequence, they are al so individually members of other preferential 
trade arrangements. Goods admitted duty-free by a SACU member under its individual trade 
agreement with a third country, should have the duty imposed when removed to another SACU 
country. However, this is not always the case in practice; as an example, once goods enter South Africa under the Trade, Development and Coop eration Agreement (TDCA), they may also be 
removed to BLNS countries duty-f ree. Swaziland participates in the Common Market for Eastern 
and Southern Africa (COMESA) (Annex 4), while South Africa and the EU maintain trade 
preferences under the Trade, Development and Cooperation Agreement (Annex 4) – the trade component of the TDCA is to be replaced by the EPA upon its entry into force. In addition, South 
Africa has bilateral trade agreements with Mala wi and Zimbabwe (Annex 4). Botswana also has 
bilateral trade agreements with Malawi and Zimbabwe (Annex 1), while Namibia has a bilateral trade agreement with Zimbabwe (Annex 3). 
2.4.  SACU members are eligible for non-reciprocal preferential treatment under the Generalized 
System of Preferences (GSP) and, with the exception of Swaziland (since January 2015), under the U.S. African Growth and Opportunity Act (AGOA). None of the SACU members is a signatory to the 
Agreement on the Global System of Trade Pref erences among Developing Countries (GSTP). All 
SACU countries are members of the Southern African Development Community (SADC), in their 
respective individual capacities. 
2.5.   The 2002 SACU Agreement requires member States to develop common policies and 
strategies with respect to industrial development (Article 38); cooperate in the development of 
agriculture policies (Article 39); cooperate in the enforcement of competition laws and regulations (Article 40); and develop policies and instruments to address unfair trade practices between 
member States (Article 41). According to the authorities, the agreement also calls for 
harmonization of product standards and technical regulations (Article 28).  
2.6.  SACU member States have initiated work to develop the regional industrial development 
policy as well as the Annexes on Competition Policy and Unfair Trade Practices. Areas so far 
harmonized under the SACU Agreement are in general customs related: mainly the tariff, and 
trade remedies. Non-tariff measures are not harmonized. The 2002 SACU Agreement, while recognizing the need for the Customs Union to be aligned with developments in international 
trade, is limited to the liberalization of tr ade in goods. The Agreement does not establish 
provisions for trade in services. However, in 2012, SACU member States decided to make trade in services a priority area in the Union's work programme. Work in this area is still at infancy stage. 
                                               
1 Online information. Viewed at: http://www.sacu.int/about.php?id=397 .  WT/TPR/S/324 • Southern African Customs Union 
 
- 13 - 
 
  2.2  Southern African Customs Union (SACU) 
2.2.1  Institutional structure 2.7.  The 2002 SACU Agreement provides for the establishment of certain designated institutions 
essential for the implementation of the Customs Union: the Council of Ministers; the Customs 
Union Commission; the Secretariat; the Tariff Board; the Technical Liaison Committees; and the 
ad hoc Tribunal. The SACU Agreement was amended during the review period to institutionalize 
the SACU Summit, through a decision of the Council of Ministers. The amendments were signed by 
the heads of state and government of SACU on the 12 April 2013, in Gaborone, Botswana. 
2.8.  In accordance with the amendments, the Summit shall: provide political and strategic 
direction to SACU; receive reports on the work of the Council; and meet once a year, with the 
possibility of holding extraordinary meetings at  the request of any member. The amendments to 
the 2002 SACU Agreement will enter into force up on ratification by all SACU member States. 
2.9.  The Council of Ministers is "responsible fo r decision-making on the overall policy direction and 
functioning of SACU institutions, including the formulation of policy mandates, procedures and 
guidelines for the SACU institutions". The Council consists of at least one Minister from each 
member State and is chaired in turn by ea ch member State for a period of one year. 
2.10.  The SACU Tariff Board is responsible for making recommendations to the SACU Council of 
Ministers on customs tariffs and related issues, such as anti-dumping, countervailing, and 
safeguard duties on goods imported from outside the Common Customs Area, and rebates, refunds or duty drawbacks, based on directives by the Council. In making its recommendations, the Tariff Board will review the customs tariff investigations initiated by member States' national 
bodies. 
2.11.  Efforts are under way to establish the Tariff Board and its national bodies. Since 
South Africa already has a fully functional National Body, the International Trade Administration 
Commission (ITAC), the SACU Council has mandated IT AC to act as the interim SACU Tariff Board. 
In the absence of the SACU Tariff Board, the South African Trade Minister still remains the decision-making authority when it comes to adjusting SACU's customs tariffs and trade remedies. 
2.12.  Botswana too has legislation that establishes the Botswana Trade Commission (BTC). As of 
October 2014, BTC was in the process of being established. Lesotho, Namibia and Swaziland are still developing legislation that would establish their national bodies.  
2.13.  Article 7 of the 2002 SACU Agreement provides for an ad hoc Tribunal. In terms of 
Article 13, the Tribunal will settle disputes on the interpretation or application of the 
SACU Agreement. A draft annex on the SACU Trib unal is to operationalize Article 13 of the 
Agreement, which will address, inter alia : the jurisdiction of the Tribunal; the appointment of 
members of the Tribunal; implementation of th e decisions of the Tribunal; and procedures 
necessary for the functioning of the Tribunal. 
2.14.  The Customs Union Commission is responsible for the implementation of the 
SACU Agreement; overseeing the management of the common revenue pool in accordance with 
the policy guidelines decided by the Council; an d supervising the work of the Secretariat.  
2.15.  The Secretariat is responsible for the day-to -day administration of the Agreement, including 
implementing the decisions of the Summit, Council  and of the Commission, and providing technical 
support for all SACU initiatives. 
2.16.  The Technical Liaison Committees (TLCs) are mandated to assist and advise the Commission 
in its work. There are five TLCs in the areas of: agriculture, customs, trade and industry, 
transport, and finance. 
2.2.2  Common revenue pool and revenue-sharing formula 2.17.  The SACU revenue-sharing formula and the common revenue pool (CRP) continue to be 
governed by Articles 32 to 37, and Annex A to the 2002 SACU Agreement. The current formula WT/TPR/S/324 • Southern African Customs Union 
 
- 14 - 
 
  was implemented for the first time in December 2004 to calculate revenue shares for 2005/06. 
Under Article 32, all customs, excise, and additional duties collected in the Common Customs Area are to be paid into the common revenue pool, within three months of the end of each quarter of a financial year (commencing on 1 April).  
2.18.  Before any sharing of the pooled revenue, the financial needs (budgeted cost of financing) 
of the Secretariat, the Tariff Board, and the Tribunal must be met. From the remaining net 
amount, each member's share is calculated and has three basic components. The customs 
component is allocated on the basis of intra-SACU  imports. The excise component is allocated on 
the basis of each country's share of SACU's gr oss domestic product (GDP). The development 
component, which is fixed at 15% of total excise revenue, is distributed according to the reverse of each country's GDP per capita, to guarantee greater benefits to the least developed 
SACU members.
2 
2.19.  On the basis of the current revenue-sharing  formula, South Africa receives about 45% of 
total customs and excise revenues collected, and BLNS the remaining 55%. South Africa receives 
about 80% of its SACU revenue through the excise component, and BLNS receive about 85% of 
their revenue from the customs component. This leaves BLNS vulnerable to fluctuations in the customs component of their share of the pooled revenue.
3  
2.20.  In 2011, the SACU Council of Ministers launched a regional task force to review the 
revenue-sharing arrangement in order to identify areas requiring improvement and develop options. In 2012, a statistical database was launched to develop data generating systems with a view to ascertaining data quality and reliability. The statistical database covers merchandise trade, 
national accounts, balance of payment, government financial statistics, monetary/financial 
statistics, and consumer price index.
4  
2.21.  South Africa is currently the manager of  the CRP and provides quarterly reporting of 
collection and performance of the CRP. The Se cretariat has oversight functions over all 
transactions into and out of the common revenue pool. The pool is also subject to annual statutory audits by South Africa as the manager of the CRP.  
2.3  Trade Agreements and Arrangements  
2.22.  No new trade agreements were signed or implemented by SACU countries during the review 
period. 
2.23.  In accordance with Article 31 of the 2002 SACU Agreement, no SACU member State can 
negotiate or amend a trade agreement without consent from the others. SACU members currently 
have a unified approach towards negotiations with third parties on an ad hoc basis. An annex establishing a Common Negotiating Mechanism (CNM) has been drafted and awaits adoption.  
2.24.  Since the implementation of the 2002 SACU  Agreement, SACU has concluded a free trade 
agreement with the member States of the European Free Trade Association (EFTA) – Iceland, Liechtenstein, Norway and Switzerland – and a reci procal trade agreement with the member states 
of MERCOSUR. In addition, in 2008, SACU member States signed a Trade, Investment and 
Development Cooperation Agreement (TIDCA) with the United States, which entered into force immediately. Negotiations with the EU on a SA DC-EU Economic Partnership Agreement (EPA) were 
completed in July 2014. 
2.25.  SACU is currently negotiating a PTA with India. In addition, it is participating in the 
negotiations on the Tripartite Free Trade Agreement between COMESA, the EAC and SADC. 
                                               
2 For further details, please refer to WTO document WT/TPR/S/222/Rev.1, 14 December 2009. 
3 Flatters and Stern (2005). 
4 Online information. Viewed at: 
http://www.sacu.int/publications/reports/annual/2012/annualreport2012.pdf .  WT/TPR/S/324 • Southern African Customs Union 
 
- 15 - 
 
  2.3.1  Participation in the WTO 
2.26.  SACU countries are original WTO Members in their individual capacities. All SACU countries 
accord at least MFN treatment to all WTO Members. Botswana joined the GATT on 28 August 1987, Lesotho on 8 January 1988, Namibia on 15 September 1992, South Africa on 13 June 1948, and 
Swaziland on 8 February 1993. Due to its "least  developed country (LDC)" status, Lesotho is 
eligible for the WTO's Enhanced Integrated Framework (EIF). None of the SACU members are signatories or observers to any of the WTO Plurilateral Agreements. 
2.27.  On 21 June 2012, Brazil requested consultations with South Africa with regard to its 
preliminary determination and the imposition of provisional anti-dumping duties by South Africa's International Trade Administration Commission (ITAC) (which acts on behalf of SACU) on frozen meat of fowls of the Gallus Domesticus  species, whole bird and boneless cuts, originating in or 
imported from Brazil.
5 In addition, in July 2014, South Africa reserved its right to participate as a 
third party in a complaint by the EU on the Russian Federation's measures on the importation of live pigs, pork and other pig products from the European Union.
6 
2.28.  SACU countries continue to fulfil their notification obligations at the WTO; though with 
varying degrees of regularity (see Annexes). 
2.3.2  African Union (AU) 
2.29.  The five SACU countries are members of the AU, which succeeded the Organization of 
African Unity (OAU) in July 2002. Its organs comprise the Assembly, composed of heads of states and governments (decisional body); the Council of Ministers (executive body); the Pan-African Parliament (consultative body); the Commission (including eight commissioners, each responsible 
for a portfolio); and the Peace and Security Council (PSC). The aims of the AU include accelerating 
the political and socio-economic integration of the continent.  
2.30.  The economic objectives are to be attain ed through the African Economic Community (AEC), 
established in Abuja (Nigeria) in June 1991. The AEC was officially brought into operation in 
May 1994. 
2.31.  The AEC aims to become a monetary and economic union on a continental scale by 2028. 
The integration process envisages, firstly, the strengthening of the main regional economic 
communities (REC), of which eight have been designated as pillars of the AEC. SACU countries are represented through the SADC group. 
2.32.  Regional economic integration has long been recognized as critical in promoting Africa's 
endogenous growth and development, particular ly in promoting economies of scale, enabling 
competitiveness, promoting diversification and addressing supply side constraints, through market integration, infrastructure developm ent, and industrial development. 
2.33.  The regional economic integration agenda of the five countries is being driven through the 
Southern African Customs Union (SACU), the So uthern African Development Community (SADC), 
and the Tripartite Free Trade Area (T-FTA). 
2.34.  The New Partnership for African Development (NEPAD) is the AU's programme for economic 
and social development in Africa. It has its own Agency, based in South Africa. NEPAD aims to address the critical challenges of poverty, development and Africa's marginalization. NEPAD's programmes are aligned with the aspirations of the African Union's Agenda 2063. It recognizes the 
pivotal role of the private sector in meeting Africa's developmental imperatives.  
2.35.  NEPAD also aims to promote the regional ec onomic integration priorities of the continent. 
NEPAD projects are currently in place in the following domains: agriculture and food security; 
climate change and natural resource management; regional integration and infrastructure; human 
development; and economic and corporate governance, as well as some cross-cutting issues, such as gender and ICT development. 
                                               
5 WTO document WT/DS439/1, G/L/990, G/ADP/D92/1, 25 June 2012.  
6 WTO document WT/DS475/2, 30 June 2014. WT/TPR/S/324 • Southern African Customs Union 
 
- 16 - 
 
  2.3.3  Southern African De velopment Community (SADC) 
2.36.  All SACU members are signatories to the SADC Protocol on Trade, which entered into force 
on 25 January 2000. The protocol aims to further liberalize intra-regional trade in goods and services on the basis of fair, mutually equitabl e and beneficial trade arrangements. The SADC free 
trade area (FTA) was launched in August 2008. Article 23 of its Protocol on Trade provides for 
services liberalization. SADC States have since developed a specific Protocol on Trade in Services. Most member States have now signed the Protocol, with a few having completed the ratification 
processes. 
2.37.  SADC has been notified to the WTO under Article XXIV of the GATT 1994, and was 
considered by Members at the Committee on Regional Trade Agreements (CRTA) on 15 and 16 May 2007.  
2.38.  The roadmap for SADC as regards regional integration was originally to establish a customs 
union in 2010, common market in 2015, monetary union in 2016, and an economic union in 2018. To date, except for the progress made towards the free trade area, other integration stages have 
yet to be brought into operation. In 2007, SACU countries completed their tariff liberalization 
process in the framework of the SADC free trade ar ea. Although Angola, the Democratic Republic 
of the Congo and Seychelles are SADC members, they have not yet acceded to the free trade area 
protocol. Seychelles is in the final stages of its accession. Malawi, Tanzania, and Zimbabwe 
experience various difficulties in fully complying with the free trade area protocol. 
2.39.  In 2012, in order to provide for smooth  transition towards a customs union, the SADC 
Ministerial Task Force on Regional Economic Integration recommended actions to further 
consolidate the SADC FTA in terms of an agreed action plan matrix, as well as to address the issue 
of overlapping membership of various regional economic communities.  
2.40.  SADC is involved in negotiations on a tripartite arrangement with COMESA and the EAC, 
with the main objective of rationalizing the integration processes in the Southern and Eastern 
Africa region, in line with the African Union Action  Plan for the harmonization of regional economic 
communities throughout the continent. The Tripartite Free Trade Area initiative is working towards 
establishing a free trade area among the 26 countries of the three regional blocs. The 
2
nd COMESA-EAC-SADC Tripartite Summit of Heads of State and Government was held in 
Johannesburg in June 2011. It initiated negotiations for the establishment of the Tripartite Free Trade Area, and adopted the roadmap, as well as the negotiating principles, processes, and 
institutional framework. The Tripartite Free Trad e Agreement (TFTA) was signed on 10 June 2015 
at the 3
rd Tripartite Summit of Heads of State and Government in Egypt. Some important work 
under the phase I negotiations (trade in goods) remains outstanding and will continue after the 
launch of the legal texts of the agreement. Acco rding to the authorities, Phase II (trade in 
services, as well as other trade-related areas) will follow after substantive completion of the Phase I work. 
2.3.4  Relations with the European Union 
2.41.  The EPA negotiations for the SADC region were launched in July 2004, with a view to 
establishing economic partnership agreements (EPAs) on a bilateral basis. SACU negotiated as part of the SADC configuration, comprising all its members plus Angola and Mozambique. 
2.42.  The negotiations reached an initial agreement culminating in the initialling of an interim EPA 
(covering goods only) at the end of 2007. Bots wana, Lesotho, and Swaziland (together with 
Mozambique) signed the interim EPA on 4 J une 2009. A final EPA for the SADC Group was 
expected to be finalized during 2009, but was finally initialled in July 2014, with the SADC EPA 
Group comprising Angola, Botswana, Lesotho, Mozambique, Namibia, South Africa and Swaziland. Angola did not initial the agreement and remains an observer.  
2.43.  The agreement goes beyond the market access on agricultural and fisheries products 
offered under the TDCA between South Africa and the EU which was used as the basis for market access negotiations. The authorities indicated that upon entry into force of the agreement, tariff 
liberalization will take place over a maximum period of 10 years. WT/TPR/S/324 • Southern African Customs Union 
 
- 17 - 
 
  2.44.  The agreement also covers cooperation on other trade-related issues such as the protection 
of intellectual property rights, competition, public procurement and tax governance. Botswana, Lesotho, Swaziland and Mozambique have opted to negotiate on trade in services with the EU.  
2.45.  During the transition period, a "market access regulation" (in place until October 2016) will 
regulate trade between the EU and BLNS, while th e TDCA will continue to govern trade between 
the EU and South Africa.  
2.3.5  Relations with the United States 
2.46.  All SACU countries, except Swaziland, are eligible for trade preferences under the 
U.S. African Growth and Opportunity Act (AGOA) in itiative; Swaziland's eligibility was terminated 
in 2014, due to issues related to worker rights. 
2.47.  The Act originally covered October 2000 to September 2008, and was amended in July 2004 
to expire on 30 September 2015 (AGOA III). Eligible countries qualify for duty-free and quota-free 
access to the U.S. market for a range of products, including selected agricultural and textile products (except for "wearing apparel"). To be e ligible for AGOA benefits, a number of conditions 
are laid out, including proven progress in establishing a market-based economy; commitment and 
action in developing political pluralism and the rule of law; eliminating discriminatory barriers to U.S. trade and investment; adequate protection of intellectual property; combating corruption; 
and protecting human rights, e.g. those specifically related to labour, particularly the abolition of 
certain child labour practices. 
2.48.  Eligibility for the wearing apparel provisions is governed by a separate set of conditions and 
associated rules of origin. To export apparel (and certain textile items) to the United States under 
the AGOA, countries must implement a "visa system " (to prevent illegal trans-shipment and use of 
counterfeit documentation, as well as effective enforcement and verification procedures) to ensure compliance with the required rules of origin. 
2.49.  The Africa Investment Incentive Act of 2006, AGOA IV, which amended the textile and 
apparel provisions of the AGOA, provides duty-f ree and quota-free treatment for eligible apparel 
articles made in qualifying sub-Saharan African countries. "Lesser developed beneficiary" 
sub-Saharan African countries may use non-U.S. fabric and yarn in apparel wholly assembled in 
their countries and still qualify for duty- and quota-free treatment.
7 AGOA IV continues to grant 
lesser developed beneficiary country status to Botswana, Lesotho, and Namibia, qualifying them for the Special Rule.  
2.50.  In June 2015, the Trade Preferences Ex tension Act of 2015 simultaneously extended the 
GSP programme until 31 December 2017 and AGOA until 30 September 2025. SACU's exports to the United States under preferential regimes (AGOA and GSP) have decreased in recent years, in 
line with general export trends (Table A2.1). 
2.51.  A Trade, Investment, and Development Cooperative Agreement (TIDCA) has been in place 
between the United States and SACU since July 2008. The TIDCA establishes a forum for 
consultative discussions, cooperative work, and possible agreements on a wide range of trade 
issues, including customs cooperation, technical barriers to trade, sanitary and phytosanitary measures, capacity building, and trade and investment promotion.  
2.3.6  Free trade agreement between SACU and EFTA 
2.52.  The free trade agreement between SACU and EFTA was signed in June 2006 and came into 
effect on 1 May 2008. Its goods aspect was notified to the WTO Committee on Regional Trade Agreements on 29 October 2008 under Article XXIV of GATT 1994.
8 The factual review took place 
on 19 and 20 November 2009, and it was considered by Members at the Committee on Regional 
Trade Agreements (CRTA) on 15 and 16 March 2010. 
                                               
7 Lesser developed countries are thos e with a per capita gross national product of less than US$1,500 a 
year in 1998 as measured by the World Bank. 
8 WTO document WT/REG256/N/1, 3 November 2008. WT/TPR/S/324 • Southern African Customs Union 
 
- 18 - 
 
  2.53.  The agreement covers trade in non-agricultural products, including fish and other sea 
products, and processed agricultural products. In  addition, the individual EFTA States and SACU 
concluded bilateral agreements on basic agricultural products, which form part of the free trade area package. Since the entry into force of the agreement, EFTA States grant the SACU members 
duty-free entry for all non-agricultural goods. The SACU States are to dismantle their tariffs 
progressively over a period not exceeding nine year s; 76.8% of their tariff lines were duty-free in 
2015. 
2.54.  The FTA also takes account of the parties' diverse levels of development by allowing for 
special treatment for Botswana, Lesotho, Namibia and Swaziland, which may temporarily levy duties for the protection of infant industries and can also restrict importation or exportation of goods for purposes of rural development, food security and poverty alleviation. In terms of 
competition, state trading enterprises, subsidies, investment, services, balance of payments, and 
government procurement, the parties agreed to cooperate and to some extent also consult with regard to their obligations under the WTO. A Joint Committee supervises the application and 
implementation of the Agreement. 
2.3.7  Preferential trade agreement between SACU and MERCOSUR 2.55.  In 2008, SACU and MERCOSUR member States concluded negotiations on a preferential 
trade agreement (PTA). The agreement was signed by the MERCOSUR member States on 
15 December 2008, and by SACU member States on 4 April 2009. The PTA has not yet been notified to the WTO and has not yet entered into force. 
2.56.  The agreement is aimed at promoting trade between the two parties on a selected number 
of products. In addition, it contains provisions on rules of origin and methods of administrative 
cooperation, trade remedies, technical barriers to  trade, sanitary and phytosanitary measures, 
further market access, settlement of disputes, and mutual administrative assistance between 
customs authorities, as well as legal and institutional provisions. The agreement established a 
Joint Administrative Committee, which supervises its administration and application. 
2.3.8  The Generalized System of Preferences 
2.57.  In general, SACU countries are eligible for the Generalized System of Preferences (GSP) 
schemes of developed countries and some developi ng countries. However, under the EU's new GSP 
scheme, as from 2014, South Africa is no longer eligible as a beneficiary country. In fact, the new scheme excludes from the beneficiary list, countri es that have free trade agreements (FTAs) or 
other preferential market access arrangements with the EU. As from January 2015, Botswana, 
Namibia, and South Africa were withdrawn by Cana da from its list of GSP beneficiary countries. 
2.58.  As an LDC, Lesotho is eligible for the European Union's "Everything but Arms" initiative, 
which allows it to export everything but arms to the EU duty-free and quota-free. 
 WT/TPR/S/324 • Southern African Customs Union 
 
- 19 - 
 
  3  TRADE POLICIES AND PRACTICES BY MEASURE 
3.1  Introduction 3.1.  Efforts are ongoing within SACU to furt her harmonize customs-related issues, including 
documentation. As at the time of the previous TP R of SACU countries, the applied customs tariff; 
excise duties; duty rebates, refunds and drawba cks; customs valuation; rules of origin; and 
contingency trade remedies remain harmonized within SACU. 
3.2.  Goods entering the SACU area may be declared at the first port of entry into the customs 
union, or may be removed in bond from the port of entry to another SACU country, where they are 
cleared for home consumption or for transit to another SACU country. Goods moved within SACU are free of customs duties but customs controls are maintained because of differences in internal tax regimes (i.e. VAT) and in non-tariff measures. In fact, goods traded within the customs union 
must be declared at each border post and comply with the requirements (e.g. sanitary, 
phytosanitary, and technical requirements) of each SACU member State. In the cases of 
Botswana, Swaziland, and Lesotho, which are landlocked, goods are imported (exported) mainly 
via South Africa (in transit). 
3.2  Customs Procedures and Valuation 3.3.  Article 23 of the 2002 SACU Agreement calls for appropriate measures, including customs 
cooperation, to ensure that the provisions of the agreement are applied effectively and 
harmoniously. Article 22 calls for similar legislation on customs and excise duties. Each member actually has its own legislation modelled on South Africa's Customs and Excise Act. However, customs procedures have not yet been fully harmonized, and some differences remain in the 
regulations and administrative procedures; documentation requirements also differ.  
3.4.  In 2009, building upon the three main pill ars (trade facilitation, protection of regional 
economic interests, and border control and the protection of society), SACU launched a customs 
modernization programme, as a response to issues that emanated from the World Customs 
Organization (WCO) Columbus Programme Diagnostics. These diagnostics were conducted in the SACU countries between 2006 and 2007. The main aim is to develop and adopt common and 
harmonized customs policies as well as strengthen the capacity of customs administrations in the 
region by modernizing and reforming customs processes in line with international instruments, in particular, the WCO safe framework of standards.  
3.5.  The first focus area of the customs modernization programme was the development of a 
regional customs policy covering the following areas: risk management, trade partnerships, 
standard operating procedures, IT connectivity and legislation. In 2010, a customs control bill and 
a customs duty bill were drafted in South Africa. The former is intended to regulate the movement 
(import and export) of goods, while the latter is intended to regulate the levying, payment, and 
recovery of customs duties. The bills currently serve as models for the development of SACU member States' national laws which are at different stages.  
3.6.  A "Regional Customs Policy Document" was adopted by the SACU Council of Ministers at its 
25
th meeting in December 2011. The policy gives effect to, and elaborates on, the common 
strategic objectives of: facilitating legitimate trade; protecting the fiscal interests of member States and the customs union through the maximization of revenues and the provision of accurate 
trade data; and protecting society in the member States. The policy document shall continue to 
provide guidance as SACU pursues the implementation of its specific customs projects.  
3.7.  During the review period, some progress was achieved in the automation and 
interconnectivity between the customs syst ems of SACU members. National customs 
administrations developed a data exchange standard consistent with the WCO data-sharing approach (the so-called Globally Networked Cust oms concept). The standard is to be employed 
through the three IT connectivity pilot projects, i.e. between Namibia and Botswana (under the 
Trans Kalahari Corridor Initiative), between South Africa and Lesotho, and between South Africa WT/TPR/S/324 • Southern African Customs Union 
 
- 20 - 
 
  and Swaziland. The pilot connectivity programme s are to be reviewed and a comprehensive 
proposal developed for IT connectivity in the union.1 
3.8.  A SACU trade partnership strategy was also developed to, inter alia , strengthen the 
consultation process between customs and busi ness, and develop an Authorized Economic 
Operator (AEO) programme aligned with the WCO Framework of Standards to Secure and 
Facilitate Global Trade (SAFE). The partnership is between customs administrations and the trading community. It is aimed at rewarding complianc e; securing and facilitating legitimate trade; 
and promoting mutual recognition among member States and third parties.  
3.9.  While the long-term ambition is to develo p the AEO programme for the region, this has been 
implemented in phases. The first phase consists  of the establishment of a Preferred Trader 
Programme (PTP). The PTP is limited in scope, covering importers' and exporters' compliance only 
(other supply chain entities are not covered) and it does not include safety and security of the 
supply chain. Each SACU member has establishe d its national preferred trader project which 
follows the regionally agreed standards and criteria . The criteria, to be met by traders, include an 
appropriate record of compliance with customs requirements, a proven record of financial 
solvency, sufficient knowledge of customs ma tters, and an adequate computer system.  
3.10.  Each member State has started to pilot PTP nationally to commence with the testing and 
validation of the processes required. In 2013, the 27
th Council of Ministers adopted the set of 
benefits to be accorded under PTP. 
3.11.  A manual was adopted in 2011 by the SACU Council of Ministers to provide a uniform 
interpretation and application of the single admini strative document (SAD) adopted at the time of 
the previous Review. It also provides a standard customs procedure code.  
3.12.  It appears that Botswana, Namibia and Swaziland use different ASYCUDA systems, while 
South Africa uses the Interfront Customs and Border Management Solution (ICBS) system. 
According to the authorities, Lesotho is piloting the ASYCUDA World system.  
3.13.  The customs valuation regime is still larg ely based on South Africa's legislation. In 2014, 
South Africa adopted new customs valuation legislation. Customs valuation is now covered in 
Chapter 7 (Valuation of Goods) of the Customs Duty Act, No. 30 of 2014, and the Customs Control 
Act, No. 31 of 2014 (Annex 4, Section 3). The regime derives from the WTO Agreement on Customs Valuation. The customs value of imported goods is the transaction value based on the f.o.b. price of the import. 
3.3  Rules of Origin 
3.14.  As at the time of the previous TPR, SACU countries have both non-preferential and 
preferential rules of origin; and there has be en no change to related legislation. The 
non-preferential rules of origin continue to be set in each member's Customs and Excise Act, 
modelled on the South African Act. Under the 1964 Customs and Excise Act of South Africa (Section 46), as amended, a good is regarded as having been produced or manufactured in any 
particular territory if at least 25% (or other percentage as may be determined by the 
Commissioner for Customs and Excise) 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. 
3.15.  Preferential rules of origin are applied by all SACU countries under regional trade 
agreements with EFTA, as well as in the framework of the Southern African Development Community (SADC) Trade Protocol. Preferential rules of origin also apply under individual 
SACU members' bilateral trade agreements (see Annexes). For goods to meet the basic origin 
criteria under the SADC Trade Protocol they must have been wholly produced, or have undergone substantial transformation, including change in tariff heading and local content, in that country. 
                                               
1 Online information. Viewed at: 
http://sacu.unwembi.co.za/docs/reports_annual/2012/annualreport2012.pdf .  WT/TPR/S/324 • Southern African Customs Union 
 
- 21 - 
 
  3.4  Tariffs and Other Charges 
3.4.1  MFN applied tariffs 3.16.  The International Trade Administration Commission (ITAC) of South Africa continues to 
manage the SACU common external tariff (CET). The 2015 tariff is based on the 2012 Harmonized 
System (HS). It contains 7,426 lines at the HS eight-digit level, of which 283 (3.8%) carry 
non-ad valorem  duties, i.e. specific, mixed, and formula (variable) duties (Tables 3.1 and 3.2).  
3.17.  Specific duties apply mainly to agricultural products, coal, and some textiles. Mixed duties 
apply to agricultural products, coal, and textiles and footwear products.  
3.18.  In 2014, South Africa submitted to  the WTO a notification on tariff quotas
2; these 
WTO market access tariff quotas are South African commitments only. South Africa's market access commitment comprises 53 product groups which enter the country at the in-quota tariff 
rate (Annex 4).  
Table 3.1 Structure of SACU applied MFN tariffs, 2009 and 2015 
(%) 
  2009 2015  Final bounda 
BWA LSO NAM 
and 
SWZ ZAF 
1. Bound tariff lines (% of all ta riff lines) n.a. n.a. 96.6 100.0 96.6  96.6
2. Simple average tariff rate 8.1 8.3 19.6 78.4 19.9 19.9
 Agricultural products (WTO definition) 10.1 9.9 40.0 198.1 42.0  42.0
 Non-agricultural products (WTO definition) 7.8 8.0 15.9 60.1 15.9 15.9
 Agriculture, hunting, forestry and fishing (ISIC 1) 3.7 3.5 17.7 166.3 19.7  19.7
 Mining and quarrying (ISIC 2) 0.8 0.1 1.5 60.0 1.5 1.5
 Manufacturing (ISIC 3) 8.5 8.7 20.0 73.4 20.2  20.2
3. Duty-free tariff lines (% of all tariff lines) 54.4 55.7 13.3 0.0 13.3 13.3
4. Simple average rate of dutiable lines only 17.9 18.9 22.7 78.4 23.1  23.1
5. Tariff quotas (% of all tariff lines) n.a. n.a. 0.0 0.0 0.0 5.6
6. Non- ad valorem  tariffs (% of all tariff lines)  3.2 3.8 0.0 0.0 0.0  0.0
7. Non-ad valorem  tariffs with no AVEs (% of all tariff lines)  0.8 1.0 0.0 0.0 0.0 0.0
8. Domestic tariff peak s (% of all tariff lines)b 8.5 9.9 3.3 0.0 3.7  3.7
9. International tariff peaks (% of all tariff lines)c 20.8 21.4 41.2 100.0 41.0 41.0
10. Overall standard deviation of applied rates 11.1 14.1 25.6 47.3 26.0  26.0
11. Nuisance applied rates (% of all tariff lines)d 1.0 1.4 0.0 0.0 0.0 0.0
n.a. Not applicable. 
a Final bound rates are based on the CTS schedule  in HS 07 nomenclature . Due to different HS 
nomenclatures between 2014 applied and final bound tariff schedules, the figures are not strictly comparable. 
b Domestic tariff peaks are defined as those exceed ing 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%. 
Note: The 2009 tariff is based on HS 07 nomenclature consisting of 6,695 tariff lines (at 8-digit tariff line 
level). Ad valorem equivalents (AVEs)  were estimated based on 2006 South African import data at 
the 8-digit tariff line level. However, there are no AVEs for 55 tariff lines due to no imports in 2006 (0.8% of total tariff lines). In case of unavailability, the ad valorem  part is used for mixed duty 
rates. The 2015 tariff is based on HS 12 nomenclature consisting of 7,426 tariff lines (at 8-digit tariff 
line level). Ad valorem equivalents (AVEs)  were estimated based on 2014 South African import data 
at the 8-digit tariff line level. However, there are no AVEs for 76 ta riff lines due to no imports in 
2014 (1.0% of total tariff lines). In case of unavailability, the ad valorem  part is used for mixed duty 
rates.  
 BWA: Botswana; LSO: Lesotho; NAM: Namibi a; SWZ: Swaziland; and ZAF: South Africa. 
Source: WTO Secretariat calculations based on tari ff information from the South African Revenue Service 
(SARS); and WTO, CTS database.  
                                               
2 WTO document G/AG/N/ZAF/81, 8 October 2014. WT/TPR/S/324 • Southern African Customs Union 
 
- 22 - 
 
  Table 3.2 MFN tariff distribution  by type of duty, 2009 and 2015 
  2009 2015 
No of 
linesa % HS Chapters No of 
linesa % HS Chapters 
Ad valorem 6,483 96.8 All HS chapters 7,143 96.2 All HS chapters 
Non-ad valorem  212 3.2  283 3.8   
Specific 109 1.6 02, 07, 09, 11, 
12, 16, 19, 20, 21, 22, 24, 27, 38, 52, 63 168 2.3 02, 03, 07, 09, 
10, 11, 12, 16, 17, 19, 20, 21, 22, 24, 27, 38, 52, 63 
Mixed 98 1.5 02, 04, 07, 16, 
19, 20, 27, 63, 
64 110 1.5 02, 04, 07, 16, 
19, 20, 27, 63, 
64 
Type 1 (e.g. 40% or 240c/kg) 65 1.0 02, 16, 20, 63, 
64 72 1.0 02, 16, 20, 63, 
64 
Type 2 (e.g. 450c/kg with a 
maximum of 96%) 33 0.5 04, 07, 16, 19, 
20, 27 38 0.5 04, 07, 16, 19, 
20, 27 
Formula 5 0.1 19, 20, 24 5 0.1 19, 20, 24 
Total lines 6,695 100.0 n.a. 7,426 100.0 n.a. 
n.a. Not applicable. 
a HS eight-digit. Source: WTO Secretariat calculations based on tari ff information from the South African Revenue Service 
(SARS). 
3.19.  As at the time of the previous TPR of SACU, variable (formula) duties are levied on 
corn-flour, preserved tomatoes, cherries, and two kinds of tobacco (Table 3.3). They pursue the 
objective of maintaining domestic prices above a certain level and protecting local industry against low international prices. They are based on a relationship between the f.o.b. import prices and reference prices. In other words: they are inversely proportional to import prices.
3 
3.20.  For the purpose of this tariff analysis, only the ad valorem  tariffs, the ad valorem  
equivalents (if computable), and the ad valorem  components of some of the non- ad valorem  tariffs 
were used for the calculations. As a result, the an alysis may, to a certain extent, be inaccurate. 
Table 3.3 Formula (variable) duties, 2015 
HS heading Product description Duty 
1901.9010 Corn flour 10% or 55c/kg less 90% 
2002.1090 Other tomatoes prepared or preserved 
otherwise than by vinegar or acetic acid 110c/kg less 80% with a maximum of 37% 
2006.0030 Cherries, drained or glacé 20% or 215c/kg less 80% 
2401.1000 Tobacco, not stemmed or stripped 860c/kg less 85% with a maximum of 44% 
2401.2000 Tobacco, partly or wholly stemmed or 
stripped 15% or 860c/kg less 85% 
Source: WTO Secretariat, based on tariff informat ion from the South African Revenue Service (SARS). 
3.21.  The simple average applied MFN tariff rate is 8.3% in 2015 slightly up from 8.1% in 2009 
(Table 3.1); tariff rates continue to display relatively high dispersion (from zero to 96%): the 
coefficient of variation slightly increased from 1.4 in 2009 to 1.7. The modal rate (the most 
frequently applied) is zero (some 57.5% of all tariff lines) (Chart 3.1). Duty-free items include live animals, products of animal origin, ores, fertilizers, cork, pulp of wood, silk, some minerals 
(e.g. nickel, lead, and zinc), and other base metals. The highest ad valorem  rate (96%) applies to 
14 tariff lines including mainly dairy products; and the highest ad valorem  equivalent (624%) 
applies to worn clothing and worn textile articles (Table A3.1). 
                                               
3 For more details, see WTO document WT/TPR/S/222/Rev.1, 14 December 2009.  WT/TPR/S/324 • Southern African Customs Union 
 
- 23 - 
 
  Chart 3.1 Breakdown of applied MFN tariffs, 2015 
(55.7)
(13.5)(16.4)
(9.4)
(1.8) (2.4)
(0.1)
0102030405060708090100
05001,0001,5002,0002,5003,0003,5004,0004,500
0 0-10 >10-20 >20-30 >30-40 >40-50 >50Number of tariff lines %
Number of lines 
Cumulated percentage (right-hand scale)
 
Note: Figures in parentheses indicate the share of total lines. Calculations include the ad valorem  part of 
mixed duty rates. They do not add up to 100% due to unavailability of AVEs for some tariff lines 
(representing 0.7% of  total tariff lines). 
Source: WTO Secretariat calculations based on tari ff information from the South African Revenue Service 
(SARS). 
3.22.  The ISIC sector with the highest tariff prot ection is manufacturing (8.7%, up from 8.5% in 
2009), followed by agriculture (3.5%, slightly down from 3.7% in 2009), and mining and quarrying 
(0.1%, down from 0.8% in 2009) (Table 3.4). Under the WTO definition, agriculture has the highest average tariff protection at 9.6% (10.1% in 2009), against 8.0% (7.8% in 2009) for non-agricultural products.  
3.23.  In 2015, aggregate tariff figures displayed positive escalation throughout the stages of 
production from raw materials, with an average ta riff rate of 5.0% (up from 3.6% in 2009), to 
semi-finished products, with an average rate of 5.3% (down from 6.9% in 2009), to fully 
processed products on which tariffs average 10.7% (up from 6.0% in 2009) (Table 3.4). Further 
disaggregation of the tariff at ISIC (Revision 2) two-digit level shows positive escalation mainly in some 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 3.4 and Chart 3.2). 
Table 3.4 SACU's applied MFN tariff summary, 2015 
 Number 
of lines Simple 
average 
(%) Tariff 
range 
(%) SDa Share of 
duty-free 
lines (%) Share of 
non- ad 
valorem  
tariffs (%) 
Total 7,426 8.3 0-624.0 14.1 55.7 3.8 
HS 01-24 1,365 9.7 0-96 12.8 41.3 18.4 
HS 25-97 6,061 8.0 0-624.0 14.3 59.0 0.5 
By WTO category       
WTO agricultural products 1,113 9.9 0-96 12.8 40.3 15.6 
Animals and products thereof 151 15.1 0-82 18.1 49.7 37.1 
Dairy products 40 12.7 0-96 24.3 32.5 67.5 
Fruit, vegetables, and plants 310 9.3 0-55 9.9 31.9 9.0 
Coffee, tea, and cocoa and cocoa 
preparations 33 8.3 0-25 10.1 45.5 18.2 
Cereals and preparations 152 8.1 0-40 9.7 35.5 15.8 
Oil seeds, fats, oil and their 
products 104 7.9 0-20 4.1 18.3 0.0 
Sugars and confectionary 17 12.6 0-39.9 15.6 58.8 29.4 
Beverages, spirits and tobacco 106 20.4 0-45 13.7 4.7 25.5 WT/TPR/S/324 • Southern African Customs Union 
 
- 24 - 
 
   Number 
of lines Simple 
average 
(%) Tariff 
range 
(%) SDa Share of 
duty-free 
lines (%) Share of 
non- ad 
valorem  
tariffs (%) 
Cotton 7 5.5 0-15 6.7 57.1 14.3 
Other agricultural products, n.e.s. 193 3.1 0-25 6.8 79.8 0.0 
WTO non-agricultural products 6,313 8.0 0-624.0 14.3 58.5 1.7 
Fish and fishery products 347 7.2 0-51.8 11.7 53.9 22.5 
Minerals and metals 1,193 4.8 0-30 7.3 64.7 0.2 
Chemicals and photographic 
supplies 1,377 3.0 0-20 5.8 76.5 0.2 
Wood, pulp, paper and furniture 340 6.1 0-45 8.8 62.4 0.0 
Textiles 765 16.9 0-624.0 25.8 21.2 0.5 
Clothing 269 40.6 0-45 8.9 3.3 0.0 
Leather, rubber,  footwear and 
travel goods 258 12.9 0-43 12.1 38.0 3.9 
Non-electric machinery 640 2.7 0-30 6.1 82.0 0.0 
Electric machinery 400 5.9 0-25 7.9 56.8 0.0 
Transport equipment 233 9.9 0-30 10.3 47.2 0.0 
Non-agricultural products, n.e.s. 463 5.1 0-30 7.9 69.5 0.0 
Petroleum 28 2.3 0-15 5.1 42.9 42.9 
By ISIC sectorb       
ISIC 1 - Agriculture, hunting and 
fishing 442 3.5 0-35 6.8 69.0 4.3 
ISIC 2 - Mining and quarrying 104 0.1 0-10 1.0 99.0 0.0 
ISIC 3 - Manufacturing 6,879 8.7 0-624.0 14.4 54.2 3.8 
By stage of processing       
First stage of processing 905 5.0 0-624.0 23.8 70.9 2.4 
Semi-processed products 2,366 5.3 0-39.9 8.0 64.9 1.1 
Fully processed products 4,155 10.7 0-96 13.4 47.2 5.7 
a Standard deviation. 
b International Standard Industrial  Classification (Rev.2). Electricity, gas and water are excluded 
(1 tariff line). 
Note: Calculations for averages are based on the nati onal tariff line level (8-digit), excluding in-quota 
rates. The tariff schedule is based on HS 2012. Ad valorem  equivalents (AVEs) were estimated based 
on 2014 South African import data at the 8-digit tariff line level. In case of unavailability, the ad valorem  part is used for mixed rates. 
Source:  WTO Secretariat calculations based on tariff in formation from the South African Revenue Service 
(SARS); and WTO, CTS database.  
Chart 3.2 Tariff escalation, ISIC 2-digit industry, 2015 
(%) 
0.05.010.015.020.025.030.035.0
Food, 
beverages, 
and  
tobacco
Textiles, 
apparel
Wood 
products
Paper, 
printing, and 
publishing
Chemicals, 
plastics
Non-metallic 
mineral 
products
Basic metal 
products
Fabricated 
metal 
products
Other 
manufacturingNOT APPLICABLERaw materials Semi-processed Fully processed
NOT APPLICABLEAll
 
Source: WTO Secretariat calculations based on tari ff information from the South African Revenue Service 
(SARS). WT/TPR/S/324 • Southern African Customs Union 
 
- 25 - 
 
  3.4.2  Bindings 
3.24.  Tariff bindings by SACU countries have not changed since the previous Review in 2009 (see 
Annexes for further details). Namibia, South Africa, and Swaziland have identical binding commitments, which covered 96.6% of the tariff lines at the HS eight-digit level. Lesotho has 
bound 100% of its tariff lines (Table 3.1). Botswana 's bindings (96.6% of tariff lines) are slightly 
different from South Africa's concessions. For instance, on agricultural products, the differences are on, inter alia , dairy products (HS 04); wheat, maize, and rice (HS 1001, 1005, and 1006); 
groundnuts and sunflower oil-seed (HS 1202 and 1206); and raw cotton (HS 5201); and in the 
non-agricultural sector on, inter alia , small tractors (ex HS 8701) (Annex 1). 
3.25.  All tariff bindings are ad valorem , including lines to which specific, mixed, or formula duties 
apply. Therefore, the imposition of non- ad valorem  duties, including specific, mixed, and formula 
does not ensure compliance by the countries with  their binding commitments (Table 3.5). Tariff 
quotas were included in the commitments made by South Africa and apply to imports of selected agricultural products.  
3.26.  During the Uruguay Round, Lesotho bound other duties and charges (ODCs) on all tariff 
lines at zero; Botswana, Namibia, South Africa, and Swaziland bound them for all tariff lines at zero, with the exception of 50 tariff lines (at the eight-digit level) that have higher bound rates. 
Table 3.5 Tariff lines where the applied MFN ra te might be higher than the bound rate, 
2015 
Tariff code Product descriptions MFN applied rates 
Bound rates 
(%) As specified 2015 AVEs  
(based on 
2014 
import 
prices)a 
Botswana       
04029100 Milk and cream, not containing added 
sugar or other sweetening matter 450c/kg with a 
maximum of 96% 24.0 20.0 
04029910 Milk and cream, in aerosol containers 450c/kg with a 
maximum of 96% 96.0b 20.0 
04029990 Milk and cream, other than in aerosol 
containers 450c/kg with a 
maximum of 96% 96.0b 20.0 
04069011 Cheddar, imported from Switzerland 500c/kg with a 
maximum of 95% 95.0b 20.0 
12119020 Basil, borage, hyssop, mint, rosemary, 
rue and sage, neither ground nor crushed 0.45c/kg 0.01 0.0 
12119030 Basil, borage, hyssop, mint, rosemary, 
rue and sage, ground or crushed 4c/kg 0.1 0.0 
ex 16010090 Sausages and similar products, of meat 
(other than paté de foie gras and foie 
gras) 40% or 240c/kg 40.0 37.0 
ex 16010090 Sausages and similar products, of meat 
(other than paté de foie gras and foie gras) 40% or 240c/kg 40.0 60.0 
19059010 Gluten bread 3.6c/kg with a maximum 
of 25% 0.1 0.0 
20060040 Sweet corn ( zea mays var. saccharata ) 30% or 7.25c/kg 30.0b 22.0 
22021010 Waters, containing added sugar or other 
sweetening matter or flavoured, in sealed 
containers holding 2.5 L or less  4.36c/L 0.4 0.0 
22021090 Waters, containing added sugar or other 
sweetening matter or flavoured, in sealed 
containers holding more than 2.5 L 3.3c/L 0.7 0.0 
ex 73202010 Helical springs 30.0 n.a. 15.0 
ex 73202010 Helical springs 30.0 n.a. 30.0 
ex 84212330 Oil or petrol-filters for internal 
combustion engines; suitable for use with 
motor vehicle engines 16.0 n.a. 15.0 
ex 84212330 Oil or petrol-filters for internal 
combustion engines; suitable for use with motor vehicle engines 16.0 n.a. 30.0 
84501290 Other machines, with built-in centrifugal 
drier 30.0 n.a. 20.0 WT/TPR/S/324 • Southern African Customs Union 
 
- 26 - 
 
  Tariff code Product descriptions MFN applied rates 
Bound rates 
(%) As specified 2015 AVEs  
(based on 
2014 
import 
prices)a 
84502010 Household or laundry-type washing 
machines 30.0 n.a. 0.0 
85285190 Other monitors, of a kind solely or 
principally used in an automatic data 
processing system 25.0 n.a. 0.0 
Lesotho        
63090013 Worn overcoats, car-coats, raincoats, 
anoraks, ski-jackets, duffle-coats, 
mantles, etc. 60% or 2,500c/kg 274.2 60.0 
63090017 Other worn clothing 60% or 2,500c/kg 624.1 60.0 
Namibia, South Africa, and Swaziland       
12119020 Basil, borage, hyssop, mint, rosemary, 
rue and sage, neither ground nor crushed 0.45c/kg 0.01 0.0 
12119030 Basil, borage, hyssop, mint, rosemary, 
rue and sage, ground or crushed 4c/kg 0.1 0.0 
ex 16010090 Sausages and similar products, of meat 
(other than paté de foie gras and foie gras) 40% or 240c/kg 40.0 37.0 
ex 16010090 Sausages and similar products, of meat 
(other than paté de foie gras and foie 
gras) 40% or 240c/kg 40.0 60.0 
19059010 Gluten bread 3.6c/kg with a maximum 
of 25% 40.0 0.0 
20060040 Sweet corn ( zea mays var. saccharata ) 30% or 7.25c/kg 30.0b 22.0 
22021010 Waters, containing added sugar or other 
sweetening matter or flavoured, in sealed containers holding 2.5 L or less  4.36c/L 0.4 0.0 
22021090 Waters, containing added sugar or other 
sweetening matter or flavoured, in sealed 
containers holding more than 2.5 L 3.3c/L 0.7 0.0 
ex 73202010 Helical springs 30.0 n.a. 15.0 
ex 73202010 Helical springs 30.0 n.a. 30.0 
ex 84212330 Oil or petrol-filters for internal 
combustion engines; suitable for use with 
motor vehicle engines 16.0 n.a. 15.0 
ex 84212330 Oil or petrol-filters for internal 
combustion engines; suitable for use with 
motor vehicle engines 16.0 n.a. 30.0 
84501290 Other machines, with built-in centrifugal 
drier 30.0 n.a. 20.0 
84502010 Household or laundry-type washing 
machines 30.0 n.a. 0.0 
85285190 Other monitors, of a kind solely or 
principally used in an automatic data processing system 25.0 n.a. 0.0 
n.a. Not applicable. 
a Ad valorem equivalents (AVEs)  were estimated based on 2014 South African import data at the 
HS 8-digit level. 
b The ad valorem  part is used for mixed duty rates if no AVEs are estimated. 
Source: WTO Secretariat calculations based on tari ff information from the South African Revenue Service 
(SARS); and WTO, CTS database.  
3.4.3  Tariff preferences  
3.27.  During the period under review, SACU countries together with Mozambique concluded an 
economic partnership agreement with the EU, which is to result in tariff liberalization. In addition, 
tariff preferences continue to be provided under the SACU-EFTA agreement, and under SADC (Table 3.6). Under the SADC Trade Protocol, all SA CU countries grant duty-free access to imports 
from the other SADC FTA members.  WT/TPR/S/324 • Southern African Customs Union 
 
- 27 - 
 
  3.28.  SACU countries also grant tariff prefer ences under trade agreements in which they 
participate individually, in which case, when goods imported from outside SACU under a preferential agreement are exported to another member State (not party to the agreement), the 
normal import duty is charged.  
Table 3.6 Preferential  tariff rates, 2015 
(%) 
 Simple average (%) Share of duty-free lines 
(%) Share of non- ad 
valorem  tariffs (%) 
Applied  
MFN EFTA SADC Applied  
MFN EFTA SADC Applied  
MFN EFTA SADC 
Total 8.3 3.6 0.1 55.7 76.8 99.9 3.8 2.0 0.1 
HS 01-24 9.7 6.6 0.1 41.3 61.2 99.6 18.4 9.9 0.4 
HS 25-97 8.0 2.9 0.2 59.0 80.3 99.9 0.5 0.3 0.1 
WTO agricultural 
products 9.9 8.1 0.1 40.3 52.1 99.6 15.6 12.2 0.4 
Animals and products 
thereof 15.1 14.9 0.0 49.7 51.0 100.0 37.1 35.8 0.0 
Dairy products 12.7 12.3 0.0 32.5 35.0 100.0 67.5 65.0 0.0 
Fruit, vegetables, and 
plants 9.3 8.2 0.0 31.9 38.4 100.0 9.0 6.8 0.0 
Coffee, tea, and cocoa 
and cocoa preparations 8.3 4.1 0.0 45.5 75.8 100.0 18.2 6.1 0.0 
Cereals and preparations 8.1 3.9 0.0 35.5 57.9 100.0 15.8 12.5 0.0 
Oil seeds, fats, oil and 
their products 7.9 6.8 0.0 18.3 28.8 100.0 0.0 0.0 0.0 
Sugars and confectionary 12.6 12.6 8.9 58.8 58.8 70.6 29.4 29.4 29.4 
Beverages, spirits and 
tobacco 20.4 15.7 0.0 4.7 38.7 100.0 25.5 7.5 0.0 
Cotton 5.5 5.5 0.0 57.1 57.1 100.0 14.3 14.3 0.0 
Other agricultural 
products, n.e.s. 3.1 1.9 0.0 79.8 89.1 100.0 0.0 0.0 0.0 
WTO non-agricultural 
products 8.0 2.8 0.1 58.5 81.2 99.9 1.7 0.3 0.1 
Fish and fishery products 7.2 0.1 0.0 53.9 99.4 100.0 22.5 0.0 0.0 
Minerals and metals 4.8 1.9 0.0 64.7 89.7 100.0 0.2 0.0 0.0 
Chemicals and 
photographic supplies 3.0 0.0 0.0 76.5 99.6 100.0 0.2 0.0 0.0 
Wood, pulp, paper and 
furniture 6.1 0.9 0.0 62.4 95.6 100.0 0.0 0.0 0.0 
Textiles 16.9 7.2 1.2 21.2 36.6 99.3 0.5 0.5 0.5 
Clothing 40.6 17.9 0.0 3.3 10.0 100.0 0.0 0.0 0.0 
Leather, rubber, footwear 
and travel goods 12.9 4.9 0.0 38.0 70.9 100.0 3.9 0.0 0.0 
Non-electric machinery 2.7 0.8 0.0 82.0 94.8 100.0 0.0 0.0 0.0 
Electric machinery 5.9 1.3 0.0 56.8 91.3 100.0 0.0 0.0 0.0 
Transport equipment 9.9 6.5 0.0 47.2 60.9 100.0 0.0 0.0 0.0 
Non-agricultural products, 
n.e.s. 5.1 2.2 0.0 69.5 85.7 100.0 0.0 0.0 0.0 
Petroleum 2.3 2.3 0.0 42.9 42.9 100.0 42.9 42.9 0.0 
Note: The 2015 tariff is based on HS 12 nomenclature consisting of 7,426 tariff lines (at 8-digit tariff line 
level). Ad valorem equivalents (AVEs)  were estimated based on 2014 South African import data at 
the 8-digit tariff line level. In case of unavailability, the ad valorem  part is used for mixed rates. 
Source: WTO Secretariat calculations based on tari ff information from the South African Revenue Service 
(SARS). 
3.4.4  Excise duties 
3.29.  Excise duties are harmonized within SACU. They are specific on prepared foodstuffs, alcohol 
beverages and spirits, tobacco, mineral products, and products of the chemical or allied industries; 
and a d valorem  on perfumes and certain electronic apparatuses (Table A3.2). Excise formula 
duties are levied on motor vehicles and their components. WT/TPR/S/324 • Southern African Customs Union 
 
- 28 - 
 
  3.30.  The base for the imposition of ad valorem  excise duties on locally produced goods is the 
ex-factory price, whereas the base for imported excisable products is the customs value plus the 
duties and taxes collected by customs. 
3.4.5  VAT  
3.31.  The SACU agreement does not provide for harmonization of value-added tax (VAT). Each 
SACU country continues to set its own VAT (Annexes). Differences are significant in respect of tax bases and rates, as well as in experience with VAT: all SACU countries levy VAT at different rates, 
thus Lesotho, South Africa and Swaziland levy VAT at 14% whilst Botswana and Namibia at 12% 
and 15%, respectively. Lesotho and Swaziland have bilateral agreements with South Africa on VAT 
refund. 
3.4.6  Duty and tax concessions and exemptions 
3.32.  The 2002 SACU Agreement provides for reba tes, refunds or drawbacks of customs duties 
and excise taxes under specified conditions. In the interim, the South Africa ITAC is mandated to 
recommend all rebates, refunds, and drawbacks,  as specified in Schedules Nos. 3 to 6 to 
South Africa's Customs and Excise Act.
4  
3.33.  There are rebates as prescribed under Schedules Nos. 3 (industrial rebates) and 4 (general 
rebates) of the SACU tariff. The rules governing classification of goods specify which categories of 
people or industry qualify for each rebate scheme and the eligibility criteria. Industrial rebates 
usually pursue specific policy objectives, and they cover goods used in the manufacture or production of other goods. The "extent of the reba te" is in line with policy objectives; hence some 
goods are fully rebated while for others only a ce rtain value or amount of duty is rebated.  
3.34.  The general rebates under Schedule 4 cover mostly non-commercial purposes (e.g. national 
disasters, donations, international and diplomatic  arrangements). However, there are rebates of a 
commercial nature in this schedule and they incl ude rebates covering goods admitted temporarily. 
An example of a temporary rebate is a rebate  on goods temporarily admitted for processing, 
repair, cleaning, reconditioning or for the manufactu re of goods exclusively for export. In addition, 
as part of "general rebates", item 470.03 of the schedule provides for duty-free entry of goods for 
use in manufacture and associated activities, where these are related exclusively to export. In 
general, these rebates are used by all the SACU member States. Applications for temporary rebates are submitted twice a year (in January an d July); and once accepted, they are valid for 
six months, renewable.  
3.35.  The only country-specific rebates are those for wheat (HS 1011) and dairy products 
(HS 04), which are used only by BLNS. The Textile and Clothing Industry Development Programme (TCIDP) was discontinued in 2012. The Motor Industry Development Programme (MIDP) was 
replaced by the Automotive Production Development Program (APDP). 
3.4.7  Contingency trade remedies 3.4.7.1  Anti-dumping and countervailing measures 
3.36.  The International Trade Administration Ac t, No. 71 of 2002, the Customs and Excise Act, 
No. 91 of 1964, as amended, the Anti-Dumping  Regulations of 14 November 2003, and the 
Countervailing Regulations of 30 March 2005 continue to provide the legal basis for investigating dumping and subsidization, and for the imposition  of anti-dumping and countervailing duties in 
South Africa, and by extension in BLNS. The Trade Remedies Unit of ITAC investigates applications 
for anti-dumping and countervailing action (acceptan ce of a complaint by producers, on behalf of 
the SACU industry, initiation of an investigation and recommendation to the South African Minister 
of Trade and Industry).  
3.37.  During the period under review, there have  been no significant changes to the legal and 
institutional framework of anti-dumping, countervailing and safeguard measures. All SACU 
                                               
4 Online information. Viewed at http://www.sars.gov.za/Le gal/Primary-Legislatio n/Pages/Schedules-to-
the-Customs-and-Excise-Act.aspx .  WT/TPR/S/324 • Southern African Customs Union 
 
- 29 - 
 
  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 2002 SACU Agreement provides for the creation of na tional bodies in each of the BLNS countries 
to enable them to conduct their own investigations. In the interim, the ITAC of South Africa has 
been given a mandate to handle SACU customs tariff applications, in terms of the relevant 
legislation, and in consultation with SACU member States, until the national bodies and the SACU Tariff Board are operational.  
3.38.  Anti-dumping or countervailing investigations are in general initiated upon receipt of a 
properly documented application by or on behalf of a SACU industry. Prior to the initiation of a countervailing investigation, a notification must be forwarded to the foreign country, inviting it for consultations with the aim of clarifying the situation and arriving at a mutually agreed solution. An 
investigation is formally initiated through publication of an initiation notice in the 
Government Gazette. All investigations and reviews must be finalized within 18 months of initiation. 
3.39.  New exporters from a country against which an anti-dumping or countervailing duty has 
been imposed may be excluded from payment of anti -dumping duties, if it can be proved that they 
did not export the product in question to SACU during the original investigation period and they 
are not related to a party on which the duty is imposed. 
3.40.  Since 2009, South Africa has initiated 13 anti-dumping investigations (on frozen potato 
chips from Belgium and the Netherlands; frozen chicken meat and frit from Brazil; staple polyester fibre, shock tubes, screw studding, fully thre aded screws, unframed mirrors, and coated paper 
from China; garden picks from India; coated paper from the Republic of Korea; and soda ash from 
the United States). Four of these investigations have so far resulted in final measures (frit from Brazil; and staple polyester fibre, unframed mirrors and fully threaded screws from China). The 
investigations on picks from India and frozen chicken meat from Brazil were terminated without 
measures being imposed.  
3.41.  As of end 2014, South Africa (on behalf of SACU) maintained definitive anti-dumping 
measures against 12 WTO Members (Table 3.7).  
Table 3.7 Definitive anti-dumping measur es in force, as of 31 December 2014 
Country/ 
customs territory Product, 
investigation ID number Date of original 
imposition; publication 
reference Date(s) of extension; 
publication 
reference(s) 
Brazil Frit 
230911A 15/02/13, GG36147  
China Blankets 
180699/A 18/06/99, GG20226 15/06/05, GG27691 
04/02/11, GG33983 
Bolts and nuts of iron or steel 
060899/A 06/08/99, GG20363 
 03/06/05, GG27614 
06/05/11, GG34254 
Garlic 
201000/SNR 20/10/00, GG21650 10/03/06, GG28583 
26/03/10, GG33042 
Unframed mirrors 
021112 26/07/13, GG36684  
Stainless steel sinks 
250708/A 06/11/09, GG32606  
PVC rigid 
250408/A 25/04/08, GG31012 10/05/13, GG36432 
Garden picks, spades, 
shovels, rakes, forks  
080302/SNR 03/12/93, GG15291 08/03/02, GG23180 
02/11/07, GG30413 
18/10/13, GG36924 
Float and flat glass 
280599/A 28/05/99, GG20126 05/11/04, GG26937 
26/03/10, GG33042 & 
GG33102 
Wire ropes 
170807/A 28/08/02, GG23790 13/02/09, GG31892 
Staple polyester fibre 
230109/AD 28/05/10, GG33211  
Fully threaded screws with 
hexagon heads (set screws) 
181111  16/11/12, GG35879  WT/TPR/S/324 • Southern African Customs Union 
 
- 30 - 
 
  Country/ 
customs territory Product, 
investigation ID number Date of original 
imposition; publication 
reference Date(s) of extension; 
publication 
reference(s) 
Germany Wire ropes 
170807/B 28/08/02, GG23790 13/02/09, GG31892 
India 
 Polyethylene terephthalate 
(PET) 
300506/B 30/05/06, GG28887 04/03/11, GG34051 
Unframed glass mirrors 
251006/A 25/10/06, GG29329 04/03/11, GG34051 
Paper insulated lead covered 
electric cable 
310300 31/03/00, GG21036 11/11/05, GG28229 
08/04/11, GG34185 
Float and flat glass 
280599/B 28/05/99, GG20126 
 05/11/04, GG26937 
26/03/10, GG33042 & 
GG33102 
Indonesia Gypsum plasterboard 
020704/A 02/07/04, GG26533 06/03/09, GG31958 
Drawn and float glass 
031006 03/10/06, GG29272  
 Unframed glass mirrors 
251006/B 25/10/06, GG29329 20/04/12, GG35258 
Korea, Rep. of Polyethylene terephthalate 
(PET) 
300506/C 30/05/06, GG28887 04/03/11, GG34051 
Malaysia Stainless steel sinks 
250708/B 06/11/09, GG32606 04/05/12, GG35312 
Sweden  Tall oil fatty acid 
200608/A 05/06/09, GG32297  
Chinese Taipei PVC rigid 
250408/B 25/04/08, GG31012 
 10/05/13, GG36432 
Polyethylene terephthalate 
(PET) 
300506/A 30/05/06, GG28887 04/03/11, GG34051 
Thailand Gypsum plasterboard 
020704/B 13/02/04, GG26022 06/03/09, GG31958 
Turkey Blankets 
180699/B 
(tariff heading 6301.40) 18/06/99, GG20226 15/07/05, GG27773 
04/02/11, GG33983 
United Kingdom  Wire ropes 
170807/D 28/08/02, GG23790 13/02/09, GG31892 
United States Chicken meat portions 
271200/AD 27/12/00, GG21947 27/10/06, GG29319 
05/04/12, GG35238 
Soda ash 
210613/C 19/06/14, GG37756  
Source: WTO document G/ADP/N/265/ZAF, 17 February 2015. 
3.42.  SACU countries did not impose any countervailing measures during the review period. 
3.4.7.2  Safeguard measures 
3.43.  The investigation and application of safeguards are regulated by the International Trade 
Administration Act, No. 71 of 2002, the Customs an d Excise Act, No. 91 of 1964, as amended, and 
the International Trade Administration Commi ssion Safeguard Regulations of 8 July 2005. 
3.44.  Investigations and impositions of safeguar d measures are implemented in accordance with 
the International Trade Administration Act, 2002,  and the International Trade Administration 
Commission Safeguard Regulations (SGR). 
3.45.  As stated in the previous Review of SACU countries, safeguard measures may be imposed in 
the context of an unforeseen development, agai nst imports, causing serious injury to the 
SACU industry producing the like or directly competitive product. In determining serious injury or 
threat thereof to the SACU industry, the ITAC must  consider: the rate and volume of the increase 
in imports of the product concerned (in absolute terms or relative to the production and demand in SACU); and whether there have been significant ch anges in the performance of the SACU industry WT/TPR/S/324 • Southern African Customs Union 
 
- 31 - 
 
  in respect of sales volume, profit and loss, output, market share, productivity, capacity utilization, 
and employment. 
3.46.  Investigations are formally initiated through publication of a notice in the Government 
Gazette. All interested parties have 20 days from the initiation of an investigation to comment on 
the application. The ITAC may request the SARS to impose a provisional payment as soon as the 
ITAC has made a preliminary determination that there are critical circumstances where a delay would cause damage that would be difficult to repair, and there is clear evidence that increased 
imports have caused or are threatening to cause serious injuries. 
3.47.  A definitive safeguard measure may be ap plied as a customs duty and/or a quantitative 
import restriction. If a quantitative import restriction is used, it should not reduce imports below the average level during the preceding three years. A safeguard measure must be liberalized 
progressively at regular intervals throughout its period of validity.  
3.48.  Safeguards may be in place, in general, only for four years. This can be extended for 
six years (for a maximum of ten years) where the ITAC deems that the lapse of the safeguard 
measure is likely to lead to the recurrence of serious injuries and there is evidence that the 
SACU industry is adjusting; if extended, the measure must be further liberalized. Safeguard measures imposed for a period exceeding three year s must be reviewed at their halfway point. The 
ITAC's decisions may be challenged in a court of law. 
3.49.  Safeguard measures are applied to all import s of the product concerned, irrespective of its 
source, with the exception of imports originating in a developing country if their share in imports of the product concerned in SACU does not exceed 3%, provided that developing country Members 
with less than a 3% import share collectively account for not more than 9% of total imports of the 
product concerned.  
3.50.  SACU is not a major user of safeguard measures, as it appeared during the period under 
review; one safeguard measure has been in force since 2009. In November 2012, following a 
request from major producers of frozen potato chips, the International Trade Administration Commission of South Africa (on behalf of SACU) initiated a safeguard investigation on imports of 
frozen potato chips, on which ITAC imposed a provisional safeguard measure in July 2013. The 
measure consisted of a safeguard duty of 61.42%.
5 
3.51.  On 11 December 2013, ITAC decided to impose a definitive safeguard measure. This 
definitive safeguard measure replaces the provisio nal safeguard measure imposed, and it consists 
of a safeguard duty of 61.42% until 4 July 2014,  then reduced to 40.92% until 4 July 2015 and 
further reduced to 20.45% until 5 June 2016. It will terminate on 5 June 2016.6 
3.52.  Botswana, Namibia, Swaziland, and South Africa have retained the right to use the special 
safeguard under Article 5 of the WTO Agreement on Agriculture, but have so far not invoked this. 
                                               
5 Online information. Viewed at: http://www.globaltradealert.org/measure/south-africa-definitive-
safeguard-measure-imports-frozen-potato-chips . 
6 Further information is available in WTO do cuments, G/SG/N/8/ZAF/2, G/SG/N/10/ZAF/2, 
G/SG/N/11/ZAF/2/Suppl.2, 16 December 2013. WT/TPR/S/324 • Southern African Customs Union 
 
- 32 - 
 
  REFERENCES 
Flatters, F., and Stern, M. (2005), Implementing the SACU Revenue-Sharing Formula: Customs 
Revenues,  April. Viewed at:  
http://qed.econ.queensu.ca/faculty/flat ters/writings/ff&ms_nt_sacu_rsf.pdf .  
 
  WT/TPR/S/324 • Southern African Customs Union 
 
- 33 - 
 
  4  APPENDIX TABLES 
Table A1.1 SACU trade, 2008-13  
(US$ million and %) 
 2008 2009 2010 2011 2012 2013a 
 Imports 
SACU 99,789 77,490 97,886 119,887 122,713 120,246 
  Extra (%) 89.8 86.1 85.8 86.9 86.5 87.7 
  Intra (%) 10.2 13.9 14.2 13.1 13.5 12.3 
Botswana 5,211  4,728  5,657  7,272  8,025  7,433  
  Extra (%) 22.1 23.3 25.9 33.3 31.3 27.2 
  Intra (%) 77.9 76.7 74.1 66.7 68.7 72.8 
Lesotho 972 1,356 1,277 1,460 1,594 .. 
  Extra (%) 4.9 4.8 20.8 3.4 11.0 .. 
  Intra (%) 95.1 95.2 79.2 96.6 89.0 .. 
Namibia 4,689 6,208 5,980 6,457 7,132 7,575 
  Extra (%) 31.6 29.5 27.0 23.4 28.5 35.5 
  Intra (%) 68.4 70.5 73.0 76.6 71.5 64.5 
South Africa 87,593 63,766 82,949 102,699 104,144 103,441 
  Extra (%) 99.2 99.8 97.0 97.4 97.3 97.2 
  Intra (%) 0.8 0.2 3.0 2.6 2.7 2.8 
Swaziland 1,325 1,431 2,024 2,000 1,817 1,796 
  Extra (%) 6.1 9.3 8.7 11.1 11.1 10.8 
  Intra (%) 93.9 90.7 91.3 88.9 88.9 89.2 
 Exports 
SACU 85,725 65,384 95,634 122,188 112,660 110,939 
  Extra (%) 95.7 94.4 84.4 86.8 85.8 85.1 
  Intra (%) 4.3 5.6 15.6 13.2 14.2 14.9 
Botswana 4,951 3,456 4,693 5,882 5,971 7,573 
  Extra (%) 80.5 84.7 86.7 85.9 85.0 86.9 
  Intra (%) 19.5 15.3 13.3 14.1 15.0 13.1 
Lesotho 727 628 503 770 678 .. 
  Extra (%) 60.1 51.0 24.9 54.1 51.7 .. 
  Intra (%) 39.9 49.0 75.1 45.9 48.3 .. 
Namibia 4,729 5,871 5,848 5,901 5,377 6,337 
  Extra (%) 67.6 65.2 70.3 70.2 75.8 59.6 
  Intra (%) 32.4 34.8 29.7 29.8 24.2 40.4 
South Africa 73,966 53,864 82,626 107,946 98,872 95,112 
  Extra (%) 100.0 100.0 86.6 88.9 87.6 87.6 
  Intra (%) 0 0.0 13.4 11.1 12.4 12.4 
Swaziland 1,352 1,566 1,964 1,689 1,761 1,917 
  Extra (%) 31.5 48.1 40.8 34.4 29.2 36.1 
  Intra (%) 68.5 51.9 59.2 65.6 70.8 63.9 
.. Not available. 
a Excluding Lesotho. Note: 0.0 refers to  >0 and <0.05. 
Source: WTO Secretariat estimates, based on UNSD , Comtrade database; and data provided by the 
authorities of the SACU members. WT/TPR/S/324 • Southern African Customs Union 
 
- 34 - 
 
  Table A1.2 Intra-SACU imports by origin, 2008-13 
(US$ million and %) 
  2008  2009  2010  2011 2012 2013  
Botswana's imports from other 
SACU members (US$ million) 4,060  3,628  4,193  4,851 5,510 5,415  
Shares       
  Lesotho 0.0 0.0 0.0 0.2 0.2 0.1 
  Namibia 0.7 0.8 1.6 1.3 8.2 9.5 
  South Africa 99.2 99.1 98.2 98.5 91.5 90.3 
  Swaziland 0.0 0.1 0.1 0.0 0.1 0.1 
Lesotho's imports from other 
SACU members (US$ million) 924 1,292  1,011  1,410 1,419 ..  
Shares       
  Botswana 0.0 0 0.3 0.1 0.0 .. 
  Namibia 0.1 0 0.0 0 0.0 .. 
  South Africa 99.6 100.0 99.5 99.8 99.9 .. 
  Swaziland 0.3 0.0 0.1 0.1 0.0 .. 
Namibia's imports from other 
SACU members (US$ million) 3,206  4,374  4,366  4,944 5,102 4,882  
Shares       
  Botswana 0.5 0.5 0.4 0.6 2.2 3.8 
  Lesotho 0.0 0.0 0.0 0.0 0.0 0.0 
  South Africa 99.2 99.1 99.2 99.0 97.4 95.8 
  Swaziland 0.3 0.4 0.4 0.4 0.4 0.4 
South Africa's imports from 
other SACU members 
(US$ million) 728 151 2,515  2,717 2,862 2,936  
Shares       
  Botswana 25.1 69.0 11.8 12.4 14.1 17.9 
  Lesotho 0.0 0.0 10.5 9.9 9.1 8.1 
  Namibia 11.2 30.9 27.1 27.0 22.7 23.5 
  South Africaa  63.7   0   11.4   16.3   13.7   10.8  
  Swaziland 0.0 0.1 39.3 34.4 40.4 39.7 
Swaziland's imports from other 
SACU members (US$ million) 1,243  1,298  1,848  1,777 1,614 1,603  
Shares       
  Botswana 0.0 0.0 0.0 0.1 0.0 0.0 
  Lesotho 0.0 0.0 0.0 0.0 0.1 0.6 
  Namibia 0.1 0.2 0.1 0.1 0.0 0.1 
  South Africa 99.8 99.7 99.9 99.8 99.9 99.3 
.. Not available. 
a Re-imports. Note: 0.0 refers to  >0 and <0.05. 
Source: WTO Secretariat estimates, based on UNSD , Comtrade database; and data provided by the 
authorities of the SACU members. WT/TPR/S/324 • Southern African Customs Union 
 
- 35 - 
 
  Table A1.3 Intra-SACU exports by destination, 2008-13 
(US$ million and %) 
  2008  2009  2010  2011 2012 2013  
Botswana's exports to other 
SACU members (US$ million) 965 527 625 831 896 993  
Shares        
  Lesotho 0.1 0.1 0.1 0.1 0.1 0.2 
  Namibia 5.9 3.5 2.7 3.8 12.4 18.6 
  South Africa 93.9 96.1 97.0 95.6 87.3 81.1 
  Swaziland 0.1 0.3 0.2 0.5 0.2 0.1 
Lesotho's exports to other 
SACU members (US$ million) 290 308 378 353 328 ..  
Shares        
  Botswana 0.0 0 0 0.5 0.5 .. 
  Namibia 0 0 0 0 0.0 .. 
  South Africa 99.9 99.8 99.7 98.0 98.0 .. 
  Swaziland 0.1 0.2 0.3 1.5 1.5 .. 
Namibia's exports to other 
SACU members (US$ million) 1,534  2,043  1,739  1,760 1,302 2,562  
Shares        
  Botswana 1.6 2.5 2.3 2.3 28.0 33.9 
  Lesotho 0.1 0.1 0.1 0.1 0.1 0.0 
  South Africa 98.1 97.2 97.4 97.6 71.7 66.0 
  Swaziland 0.2 0.2 0.3 0.1 0.1 0.1 
South Africa's exports to other 
SACU members (US$ million) 0 0.0 11,059  12,023 12,239 11,764  
Shares        
  Botswana 0 0 37.7  38.0  41.2  39.1  
  Lesotho 0 0 11.7  13.2  13.1  12.0  
  Namibia 0 0 35.0  35.7  33.4  36.0  
  Swaziland 0 100.0  15.5  13.1  12.3  12.9  
Swaziland's exports to other 
SACU members (US$ million) 926 813 1,162  1,107 1,247 1,225  
Shares        
  Botswana 0.5 1.0 0.8 0.5 0.4 0.4 
  Lesotho 0.8 0.1 0.3 0.4 0.3 0.5 
  Namibia 0.6 0.4 1.4 1.7 0.8 1.2 
  South Africa 98.0 98.4 97.6 97.4 98.5 97.9 
.. Not available. 
Note: 0.0 refers to  >0 and <0.05. 
Source: WTO Secretariat estimates, based on UNSD , Comtrade database; and data provided by the 
authorities of the SACU members. WT/TPR/S/324 • Southern African Customs Union 
 
- 36 - 
 
  Table A1.4 Extra-SACU merchand ise imports by origin, 2008-13 
(US$ million and %) 
 2008 2009 2010 2011 2012 2013a  
Total (US$ million) 89,628 66,746 83,952 104,189 106,206 105,410 
 (% of total) 
America 13.4 12.7 11.9 12.5 11.7 10.6 
  United States 8.1 7.7 7.3 7.9 7.2 6.5 
  Other America 5.3 5.0 4.6 4.6 4.4 4.1 
   Brazil 1.9 1.9 1.7 1.6 1.6 1.5 
Europe 34.0 34.9 34.4 33.1 31.4 31.5 
  EU(28) 32.1 33.0 32.6 31.0 29.6 29.4 
   Germany 11.2 11.6 11.1 10.4 9.8 10.3 
   United Kingdom 4.7 4.7 4.7 4.8 4.7 3.8 
   Italy 2.4 2.5 2.4 2.6 2.5 2.6 
   France 2.8 3.1 2.9 2.7 2.4 2.2 
   Spain 1.2 1.2 1.6 1.4 1.2 1.8 
   The Netherlands 1.5 1.9 1.8 1.4 1.8 1.6 
   Belgium 1.4 1.5 1.4 1.3 1.3 1.5 
   Sweden 1.8 1.9 1.7 1.6 1.4 1.0 
  EFTA 1.1 1.3 1.5 1.5 1.3 1.4 
   Switzerland 0.9 1.2 1.4 1.4 1.2 1.3 
  Other Europe 0.8 0.5 0.3 0.6 0.5 0.6 
Commonwealth of Independent 
States (CIS) 0.4 0.7 0.2 0.3 0.4 0.6 
Africa 7.7 7.2 7.2 7.3 9.3 9.2 
   Nigeria 2.1 2.8 2.6 3.0 3.5 3.4 
   Angola 3.0 2.1 2.4 1.5 2.6 1.9 
   Mozambique 0.4 0.6 0.6 1.1 1.3 1.2 
Middle East 13.7 11.4 10.2 10.9 11.1 9.9 
   Saudi Arabia 6.2 4.8 3.9 4.3 7.5 7.6 
Asia 30.6 32.4 35.1 35.2 35.5 37.7 
  China 11.4 13.2 14.3 14.7 14.3 15.6 
  Japan 5.5 4.8 5.1 4.6 4.4 3.9 
  Six East Asian Traders 7.5 7.7 8.5 8.2 8.7 8.8 
   Thailand 2.0 2.1 2.2 2.2 2.5 2.6 
   Singapore 1.0 0.9 1.1 1.1 1.2 1.9 
   Korea, Republic of 1.6 1.7 2.1 2.2 2.1 1.8 
   Chinese Taipei 1.2 1.2 1.2 1.2 1.2 1.3 
  Other Asia 6.2 6.7 7.2 7.7 8.1 9.4 
   India 2.8 3.0 3.6 4.1 4.5 5.2 
   Australia 1.8 1.7 1.6 1.6 1.4 1.3 
Other 0.2 0.8 0.9 0.7 0.6 0.6 
a Excluding Lesotho. 
Source: WTO Secretariat estimates, based on UNSD , Comtrade database; and data provided by the 
authorities of the SACU members. WT/TPR/S/324 • Southern African Customs Union 
 
- 37 - 
 
  Table A1.5 Extra-SACU merchandis e exports by destination, 2008-13 
(US$ million and %)  
 2008 2009 2010 2011 2012 2013a 
Total (US$ million) 82,009 61,693 80,671 106,114 96,648 94,395 
 (% of total) 
America 13.4 11.3 12.6 11.4 11.6 10.1 
  United States 10.7 8.9 9.6 8.5 8.8 7.7 
  Other America 2.7 2.5 2.9 2.9 2.8 2.4 
Europe 37.5 34.3 33.7 29.0 27.2 28.7 
  EU(28) 34.1 29.2 29.3 25.1 23.9 24.3 
   United Kingdom 10.2 8.9 8.7 8.0 7.9 7.6 
   Germany 7.1 5.9 7.0 5.3 4.3 4.1 
   Belgium 2.8 2.4 2.5 2.5 2.7 3.3 
   The Netherlands 4.3 3.5 3.1 2.9 2.9 3.3 
   France 1.9 1.6 1.5 1.0 1.2 1.3 
   Italy 2.0 1.9 2.1 1.9 1.6 1.3 
   Spain 2.6 2.3 1.7 1.3 1.2 1.1 
  EFTA 2.7 4.7 3.9 3.3 2.7 3.7 
   Switzerland 2.2 3.8 3.0 2.8 2.0 3.0 
  Other Europe 0.6 0.4 0.5 0.5 0.7 0.7 
Commonwealth of  
Independent States (CIS) 0.5 0.4 0.5 0.4 0.5 0.5 
Africa 16.5 19.6 16.9 15.0 17.2 18.0 
   Mozambique 2.1 2.8 2.4 2.4 2.6 3.2 
   Zambia 2.5 2.5 2.3 2.3 2.9 3.1 
   Zimbabwe 2.3 2.9 2.9 2.5 2.7 2.7 
   D.R. Congo 1.4 1.1 1.2 1.1 1.6 1.6 
   Angola 1.6 2.2 1.6 1.3 1.6 1.6 
Middle East 3.3 3.5 3.4 2.7 3.2 3.2 
   United Arab Emirates 1.0 1.0 1.1 0.9 1.1 1.4 
Asia 27.9 29.8 32.0 30.9 29.9 31.4 
  China 5.9 9.9 10.3 11.9 10.9 13.0 
  Japan 9.9 6.7 8.0 7.2 5.9 5.9 
  Six East Asian Traders 6.2 6.6 6.5 6.2 6.9 6.7 
   Hong Kong, China 0.8 1.6 1.2 1.2 1.5 1.6 
   Korea, Republic of 1.9 1.5 2.1 2.1 1.6 1.3 
   Singapore 0.7 0.5 0.4 0.4 1.0 1.2 
   Chinese Taipei 1.4 1.3 1.3 1.1 1.1 1.2 
  Other Asia 5.9 6.6 7.1 5.5 6.3 5.8 
   India 2.8 3.4 3.8 3.3 4.0 3.4 
Other 0.9 1.1 1.0 10.7 10.3 8.0 
a Excluding Lesotho. 
Source: UNSD, Comtrade database; and data provided by the authorities of the SACU members. WT/TPR/S/324 • Southern African Customs Union 
 
- 38 - 
 
  Table A1.6 Merchandise imports by product group (extra-SACU), 2008-13  
(US$ million and %) 
 2008  2009  2010  2011 2012 2013a 
Total (US$ million) 89,628 66,746 83,952 104,189 106,206 105,410 
 (% of total) 
Total primary products 31.7 30.2 28.1 30.0 31.4 30.6 
 Agriculture 6.2 7.4 6.7 7.0 7.1 6.6 
   Food 5.3 6.5 5.8 6.0 6.3 5.8 
   Agricultural raw material 0.9 0.9 0.9 1.0 0.8 0.8 
 Mining 25.5 22.8 21.4 23.0 24.3 24.0 
   Ores and other minerals 2.3 1.0 1.1 1.3 1.4 1.5 
   Non-ferrous metals 1.0 0.9 1.2 1.2 1.2 1.2 
   Fuels 22.2 20.9 19.1 20.5 21.7 21.3 
Manufactures 61.8 64.4 65.5 64.1 62.5 63.5 
 Iron and steel 1.7 1.6 1.6 1.8 1.7 2.0 
 Chemicals 9.8 10.4 10.7 10.1 10.2 10.1 
 Other semi-manufactures 6.6 6.9 7.4 7.1 7.5 7.2 
 Machinery and transport equipment 35.0 35.2 35.4 35.4 33.8 34.6 
   Power generating machines 2.2 1.9 2.3 2.4 1.9 1.9 
   Other non-electrical machinery 10.6 10.1 8.7 9.6 9.8 10.0 
     Agricultural machinery and tractors 0.7 0.7 0.5 0.7 0.8 0.8 
   Office machines & telecommunication 
equipment 8.4 9.4 9.8 8.7 7.9 8.6 
   Other electrical machines 3.4 4.0 3.6 3.3 3.1 3.4 
   Automotive products 7.1 6.9 8.4 8.6 8.4 8.4 
   Other transport equipment 3.4 3.0 2.6 2.8 2.6 2.2 
 Textiles 1.2 1.4 1.5 1.4 1.4 1.4 
 Clothing 1.1 1.6 1.8 1.7 1.6 1.7 
 Other consumer goods 6.2 7.3 7.0 6.6 6.4 6.5 
Other 6.6 5.4 6.5 5.9 6.1 5.9 
a Excluding Lesotho. 
Source: WTO Secretariat estimates, based on UNSD , Comtrade database; and data provided by the 
authorities of the SACU members. WT/TPR/S/324 • Southern African Customs Union 
 
- 39 - 
 
  Table A1.7 Merchandise exports by product group (extra-SACU), 2008-13  
(US$ million and %) 
 2008  2009  2010  2011 2012 2013a 
Total (US$ million) 82,009 61,693 80,671 106,114 96,648 94,395 
 (% of total) 
Total primary products 46.9 51.3 51.5 48.5 46.9 49.5 
 Agriculture 9.7 12.9 11.2 9.3 9.6 10.8 
   Food 7.7 10.8 9.1 7.4 7.9 8.9 
   Agricultural raw material 2.0 2.1 2.0 1.9 1.8 1.9 
 Mining 37.2 38.4 40.4 39.2 37.2 38.7 
   Ores and other minerals 12.7 13.7 15.8 16.4 16.6 18.0 
   Non-ferrous metals 15.8 14.8 15.5 13.7 10.9 12.0 
   Fuels 8.7 9.8 9.1 9.0 9.7 8.6 
Manufactures 52.7 48.1 47.3 41.0 43.3 42.8 
 Iron and steel 10.8 8.3 9.6 7.2 6.6 6.3 
 Chemicals 7.2 7.3 6.8 6.0 6.7 6.4 
 Other semi-manufactures 11.2 11.0 11.3 10.3 10.6 11.4 
 Machinery and transport equipment 20.1 18.1 16.9 15.1 17.0 16.5 
   Power generating machines 0.3 0.3 0.2 0.2 0.3 0.3 
   Other non-electrical machinery 6.4 5.5 5.4 5.1 5.3 5.1 
     Agricultural machinery and 
tractors 0.1 0.1 0.1 0.1 0.1 0.1 
   Office machines & 
telecommunication equipment 1.1 1.2 0.9 0.8 0.9 1.0 
   Other electrical machines 1.0 1.1 0.9 0.9 1.0 1.0 
   Automotive products 9.6 8.5 8.4 7.0 8.0 7.5 
   Other transport equipment 1.7 1.4 1.1 1.2 1.4 1.6 
 Textiles 0.4 0.4 0.3 0.3 0.3 0.3 
 Clothing 0.8 0.7 0.3 0.5 0.5 0.2 
 Other consumer goods 2.1 2.3 2.1 1.7 1.7 1.7 
Other 0.3 0.4 1.0 10.5 9.8 7.7 
a Excluding Lesotho. 
Source: WTO Secretariat estimates, based on UNSD , Comtrade database; and data provided by the 
authorities of the SACU members.  
  WT/TPR/S/324 • SOUTHERN AFRICAN CUSTOMS UNION 
 
- 40 - Table A2.1 SACU country exports to the United States under the preferential regimes, 2008 and 2014  
(US$ million) 
  2008 2014 
Total AGOA GSP No programme 
claimed  
(applied MFN entry) Othera Total AGOA GSP No programme 
claimed  
(applied MFN entry) Othera 
All of which:  
duty-free All of which:  
duty-free 
Botswana  218.8 15.8 0.1 202.9 201.7 0 318.0 9.5 0.0 308.5 307.7 0.0 
Lesotho  374.1 338.8 0.1 35.2 30.6 0 361.2 288.9 0.1 72.2 69.8 0 
Namibia  301.2 0.0 3.4 297.9 291.3 0 256.2 0 0.4 255.8 254.1 0.0 
South Africa  9,958.7 2,427.7 1,456.8 6,056.7 5,718.1 17.5 8,269.6 1,747.6 1,356.2 5,147.0 4,838.5 18.7 
Swaziland  133.9 125.4 0.2 8.3 2.2 0.0 81.4 59.1 18.1 4.2 1.4 0.1 
SACU 10,986.7 2,907.7 1,460.6  6,600.9 6,243.8 17.5 9,286.3 2,105.1  1,374.8  5,787.6  5,471.4 18.8 
a Civil aircraft and pharmaceuticals. 
Note: 0.0 refers to  >0 and <0.05. 
Source: WTO Secretariat estimates, based on data from USITC database.  WT/TPR/S/324 • Southern African Customs Union 
 
- 41 - 
 
  Table A3.1 MFN tariff averages by HS 2-digit level, 2015 
HS Description No. of 
lines Averages 
(%) Ranges  
(%) Shares of 
duty-free 
lines (%) Shares of 
non- ad 
valorem  
tariffs 
(%) 
 Total 7,426 8.3 0-624.0 55.7 3.8 
01 Live animals 35 0.0 0.0 100.0 0.0 
02 Meat and edible meat offal 95 20.7 0-82 33.7 49.5 
03 Fish and crustaceans, molluscs and 
other aquatic invertebrates 251 7.6 0-30 62.9 9.6 
04 Dairy produce; birds' eggs; natural 
honey; edible products of animal origin, not elsewhere specified or included 59 10.6 0-96 44.1 45.8 
05 Products of animal origin, not 
elsewhere specified or included 25 0.0 0.0 100.0 0.0 
06 Live trees and other plants; bulbs, 
roots and the like; cut flowers and ornamental foliage 18 12.2 0-20 38.9 0.0 
07 Edible vegetables and certain roots and 
tubers 101 9.4 0-30 34.7 4.0 
08 Edible fruit and nuts; peel of citrus 
fruit or melons 87 6.1 0-35 37.9 0.0 
09 Coffee, tea, maté and spices 46 2.8 0-25 78.3 10.9 
10 Cereals 27 1.2 0-5.3 70.4 7.4 
11 Products of the milling industry; malt; 
starches; inulin; wheat gluten 55 6.1 0-20 36.4 21.8 
12 Oil seeds and oleaginous fruits; misc. 
grains, seeds and fruit; industrial or medicinal plants; straw and fodder 57 7.1 0-20 38.6 3.5 
13 Lac; gums, resins and other vegetable 
saps and extracts 16 6.0 0-25 56.3 0.0 
14 Vegetable plaiting materials; vegetable 
products not elsewhere specified or included 7 2.1 0-15 85.7 0.0 
15 Animal or vegetable fats and oils and 
their cleavage products; prepared 
edible fats; animal or vegetable waxes 69 7.5 0-10 24.6 0.0 
16 Preparations of meat, of fish or of 
crustaceans, molluscs or other aquatic invertebrates 109 8.9 0-51.8 26.6 57.8 
17 Sugars and sugar confectionery 17 12.6 0-39.9 58.8 29.4 
18 Cocoa and cocoa preparations 12 9.3 0-21 50.0 0.0 
19 Preparations of cereal s, flour, starch or 
milk; pastry cooks' products 31 18.5 0-40 3.2 16.1 
20 Preparations of vege tables, fruit, nuts 
or other parts of plants 92 15.9 0-55 7.6 23.9 
21 Miscellaneous edible preparations 34 12.1 0-30 14.7 14.7 
22 Beverages, spirits and vinegar 61 16.0 0-40.7 3.3 37.7 
23 Residues and waste from the food 
industries; prepared animal fodder 39 4.8 0-20 59.0 0.0 
24 Tobacco and manufactured tobacco 
substitutes 22 34.8 0-45 4.5 22.7 
25 Salt; sulphur; earths and stone; 
plastering materials, lime and cement 74 0.1 0-10 98.6 0.0 
26 Ores, slag and ash 37 0.0 0.0 100.0 0.0 
27 Mineral fuels, mineral oils and products 
of their distillation; bituminous 
substances; mineral waxes 78 3.4 0-20 59.0 17.9 
28 Inorganic chemicals; organic or 
inorganic compounds of precious metals, of rare-earth metals, of radioactive elements or of isotopes 180 0.8 0-20 93.3 0.0 
29 Organic chemicals 494 0.6 0-15 94.1 0.0 
30 Pharmaceutical products 44 0.5 0-20 97.7 0.0 
31 Fertilizers 23 0.0 0.0 100.0 0.0 WT/TPR/S/324 • Southern African Customs Union 
 
- 42 - 
 
  HS Description No. of 
lines Averages 
(%) Ranges  
(%) Shares of 
duty-free 
lines (%) Shares of 
non- ad 
valorem  
tariffs 
(%) 
32 Tanning or dyeing extracts; tannins 
and their derivatives; dyes, pigments and other colouring matter; paints and varnishes; putty and other mastics; inks 58 2.7 0-10 72.4 0.0 
33 Essential oils and re sinoids; perfumery, 
cosmetic or toilet preparations 60 12.3 0-20 31.7 0.0 
34 Soap, organic surface-active agents, 
washing preparations, lubricating preparations, artifici al waxes, prepared 
waxes, polishing or scouring 
preparations, cand les and similar 
articles, modelling pastes, dental waxes and dental preparations with a basis 28 12.1 0-20 28.6 0.0 
35 Albuminoidal subs tances; modified 
starches; glues; enzymes 20 2.8 0-20 75.0 0.0 
36 Explosives; pyrotechnic products; 
matches; pyrophoric alloys; certain combustible preparations 8 3.1 0-15 75.0 0.0 
37 Photographic or cinematographic goods 47 5.4 0-15 59.6 0.0 
38 Miscellaneous chemical products 188 1.9 0-10 79.8 1.6 
39 Plastics and articles thereof 334 6.5 0-20 47.3 0.0 
40 Rubber and articles thereof 143 9.5 0-43 44.8 0.0 
41 Raw hides and skins (other than 
furskins) and leather 53 3.4 0-10 66.0 0.0 
42 Articles of animal gut (other than silk-
worm gut) 25 26.4 0-30 4.0 0.0 
43 Furskins and artificial fur; 
manufactures thereof 14 12.9 0-30 42.9 0.0 
44 Wood and articles of wood; wood 
charcoal 94 6.4 0-30 55.3 0.0 
45 Cork and articles of cork 7 0.0 0.0 100.0 0.0 
46 Manufactures of straw, of esparto or of 
other plaiting materials; basketware and wickerwork 12 18.3 0-20 8.3 0.0 
47 Pulp of wood or of other fibrous 
cellulosic material; recovered (waste 
and scrap) paper and paperboard 21 0.0 0.0 100.0 0.0 
48 Paper and paperboard; articles of 
paper pulp, of paper or of paperboard 153 4.0 0-20 71.9 0.0 
49 Printed books, newspapers, pictures 
and other products of the printing 
industry; manuscripts, typescripts and 
plans 27 4.3 0-15 66.7 0.0 
50 Silk 9 0.0 0.0 100.0 0.0 
51 Wool, fine or coarse animal hair; 
horsehair yarn and woven fabric 52 7.9 0-22 55.8 0.0 
52 Cotton 126 18.4 0-22 3.2 0.8 
53 Other vegetable textile fibres; paper 
yarn and woven fabrics of paper yarn 23 3.8 0-22 82.6 0.0 
54 Man-made filaments 88 11.9 0-22 37.5 0.0 
55 Man-made staple fibres 108 16.1 0-22 15.7 0.0 
56 Wadding, felt and nonwovens; special 
yarns; twine, cordage, ropes and cables and articles thereof 40 13.8 0-20 10.0 0.0 
57 Carpets and other textile floor 
coverings 21 26.4 5-30 0.0 0.0 
58 Special woven fabrics; tufted textile 
fabrics; lace; tapestries; trimmings; embroidery 44 16.0 0-25 27.3 0.0 
59 Impregnated, coated, covered or 
laminated textile fabrics; textile 
articles of a kind su itable for industrial 
use 64 10.3 0-25 43.8 0.0 WT/TPR/S/324 • Southern African Customs Union 
 
- 43 - 
 
  HS Description No. of 
lines Averages 
(%) Ranges  
(%) Shares of 
duty-free 
lines (%) Shares of 
non- ad 
valorem  
tariffs 
(%) 
60 Knitted or crocheted fabrics 59 16.7 0-22 13.6 0.0 
61 Articles of apparel and clothing 
accessories, knitted or crocheted 125 41.3 0-45 2.4 0.0 
62 Articles of apparel and clothing 
accessories, not knitted or crocheted 144 40.0 0-45 4.2 0.0 
63 Other made up textile articles; sets; 
worn clothing and worn textile articles; 
rags 84 36.3 0-624.0 3.6 4.8 
64 Footwear, gaiters and the like; parts of 
such articles 57 22.2 0-30 19.3 17.5 
65 Headgear and parts thereof 11 18.6 0-30 9.1 0.0 
66 Umbrellas, sun umbrellas, walking-
sticks, seat-sticks, whips, riding-crops and parts thereof 6 25.8 20-30 0.0 0.0 
67 Prepared feathers and down and 
articles made of feathers or of down; 
artificial flowers; ar ticles of human hair 8 12.5 0-20 37.5 0.0 
68 Articles of stone,  plaster, cement, 
asbestos, mica or similar materials 61 6.1 0-15 59.0 0.0 
69 Ceramic products 29 8.6 0-30 62.1 0.0 
70 Glass and glassware 128 7.7 0-30 27.3 0.0 
71 Natural or cultured pearls, precious or 
semi-precious stones, precious metals, 
metals clad with precious metal, and 
articles thereof; imitation jewellery; 
coin 60 4.3 0-20 78.3 0.0 
72 Iron and steel 168 0.1 0-10 98.8 0.0 
73 Articles of iron or steel 207 7.6 0-30 34.8 0.0 
74 Copper and articles thereof 65 5.3 0-20 52.3 0.0 
75 Nickel and articles thereof 17 0.0 0.0 100.0 0.0 
76 Aluminium and articles thereof 64 3.6 0-30 67.2 0.0 
78 Lead and articles thereof 8 0.0 0.0 100.0 0.0 
79 Zinc and articles thereof 9 0.0 0.0 100.0 0.0 
80 Tin and articles thereof 5 0.0 0.0 100.0 0.0 
81 Other base metals; cermets; articles 
thereof 48 0.0 0.0 100.0 0.0 
82 Tools, implements, cutlery, spoons and 
forks, of base meta l; parts thereof of 
base metal 117 10.3 0-30 47.0 0.0 
83 Miscellaneous articles of base metal 48 12.3 0-20 22.9 0.0 
84 Nuclear reactors, boilers, machinery 
and mechanical appliances; parts 
thereof 623 2.5 0-30 83.5 0.0 
85 Electrical machinery and equipment 
and parts thereof; sound recorders and reproducers, television image and sound recorders and reproducers, and parts and accessories of such articles 423 5.7 0-25 58.4 0.0 
86 Railway or tramway locomotives, 
rolling-stock and parts thereof; railway 
or tramway track fixtures and fittings 
and parts thereof; mechanical 
(including electro-mechanical) traffic 
signalling equipm ent of all kinds 24 0.4 0-10 95.8 0.0 
87 Vehicles other than railway or tramway 
rolling-stock, and parts and 
accessories thereof 186 12.3 0-30 36.0 0.0 
88 Aircraft, spacecraft , and parts thereof 15 0.0 0.0 100.0 0.0 
89 Ships, boats and floating structures 19 2.6 0-10 73.7 0.0 
90 Optical, photographic, 
cinematographic, measuring, checking, 
precision, medical or surgical 
instruments and appa ratus; parts and 
accessories thereof 149 0.5 0-20 96.6 0.0 WT/TPR/S/324 • Southern African Customs Union 
 
- 44 - 
 
  HS Description No. of 
lines Averages 
(%) Ranges  
(%) Shares of 
duty-free 
lines (%) Shares of 
non- ad 
valorem  
tariffs 
(%) 
91 Clocks and watches and parts thereof 49 0.0 0.0 100.0 0.0 
92 Musical instruments; parts and 
accessories of such articles 17 0.0 0.0 100.0 0.0 
93 Arms and ammunition; parts and 
accessories thereof 66 13.4 0-15 10.6 0.0 
94 Furniture; bedding, mattresses, 
mattress supports, cushions and 
similar stuffed furn ishings; lamps and 
lighting fittings, not elsewhere 
specified or included; illuminated signs, 
illuminated name-plates 56 14.3 0-20 28.6 0.0 
95 Toys, games and sports requisites; 
parts and accessories thereof 36 1.9 0-30 88.9 0.0 
96 Miscellaneous manufactured articles 66 11.5 0-45 39.4 0.0 
97 Works of art, collectors' pieces and 
antiques 7 0.0 0.0 100.0 0.0 
Note: Calculations for averages are based on the nati onal tariff line level (8-digit), excluding in-quota 
rates. The tariff schedule is based on HS 2012. Ad valorem  equivalents (AVEs) were estimated based 
on 2014 South African import data at the 8-digit tariff line level. In case of unavailability, the ad valorem  part is used for mixed rates.  
Source: WTO Secretariat calculations based on tari ff information from the South African Revenue Service 
(SARS); and WTO, CTS database.  WT/TPR/S/324 • Southern African Customs Union 
 
- 45 - 
 
  Table A3.2 Excise duties, 2015 
Tariff 
heading Product descriptions Rate 
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 spec ified 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 totally defatted basis not elsewhere specified or included:   
  Traditional African beer powder as defi ned in Additional No te 1 to Chapter 19 R 0.347/kg 
Beverages and spirits   
2203 Beer made from malt:   
   Traditional African beer as defined in Additional Note 1 to Chapter 22 R 0.0782/L 
   Other R 73.05/La 
2204 Wine of fresh grapes, including fortified wines; grape must (excluding that of 
heading 20.09):   
   Sparkling wine R 9.75/L 
   Unfortified wine   
    With an alcoholic strength of at least 4.5% by volume but not exceeding 16.5% 
by vol. R 3.07/L 
    Other R 149.23/La 
   Fortified wine   
    With an alcoholic strength of at least 15% by volume but not exceeding 22% 
by vol. R 5.46/L 
    Other R 149.23/La 
2205 Vermouth and other wine of fresh grapes flavoured with plants or aromatic 
substances:   
   Sparkling R 9.75/L 
   Unfortified   
    With an alcoholic strength of at least 4.5% by volume but not exceeding 15% 
by vol. R 3.07/L 
    Other R 149.23/La 
   Fortified   
    With an alcoholic strength of at least 15% by volume but not exceeding 22% 
by vol. R 5.46/L 
    Other R 149.23/La 
2206 Other fermented beverages (for example, cider, perry, mead); mixtures of 
fermented beverages and mi xtures of fermented beverages and non-alcoholic 
beverages, not elsewhere specified or included:   
   Sparkling fruit beverages and sparkling mead R 9.75/L 
   Traditional African beer R 0.0782/L 
   Other fermented beve rages, unfortified R73.05/La 
   Other fermented beverages of non-ma lted cereal grains, unfortified R 73.05/La 
   Other fermented apple or pe ar beverages, unfortified R 3.65/L 
   Other fermented fruit beverages and mead bevera ges, unfortified R 3.65/L 
   Other fermented apple or pear beverages, fortified R 60.97/La 
   Other fermented fruit  beverages and mead beve rages, fortified R 60.97/La 
   Other mixtures of ferm ented fruit or mead beverages and non-alcoholic 
beverages, unfortified R 3.65/L 
   Other mixtures of fe rmented fruit or mead be verages and non-alcoholic 
beverages, fortified R 60.97/La 
   Other R 73.05/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: R 149.23/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: R 149.23/La 
   Whiskies R 149.23/La 
   Rum and other spirits obtained by distilling fermented sugarcane products R 149.23/La 
   Gin and Geneva R 149.23/La WT/TPR/S/324 • Southern African Customs Union 
 
- 46 - 
 
  Tariff 
heading Product descriptions Rate 
   Vodka R 149.23/La 
   Liqueurs and cordials   
    With an alcoholic strength by volu me exceeding 15% by vol. but not exceeding 
23% by vol. R 60.97/La 
    Other R 149.23/La 
2402 Cigars, cheroots, cigarillos and cigarettes, of tobacco or of tobacco substitutes:   
   Cigars, cheroots and cigarillos, containing tobacco R 2 824.55/kg 
net 
   Cigarettes containing tobacco R 6.21/10 
cigarettes 
   Cigars, cheroots and cigari llos of tobacco substitutes R 2 824.55/kg 
net 
   Cigarettes of toba cco substitutes R 6.21/10 
cigarettes 
2403 Other manufactured tobacco and ma nufactured tobacco substitutes; 
"homogenized" or "reconstituted" tobacco; tobacco extracts and essences:   
   Smoking tobacco, whether or not containing tobacco substitutes in any 
proportions R 155.54/kg 
net 
   Cigarette tobacco R 278.82/kg 
   Other:   
    Other cigarette tobacco substitutes R 278.82/kg 
    Other pipe tobacco substitutes R 155.54/kg 
net 
Mineral 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 obtain ed from bituminous minerals, these oils 
being the basic constituents of the preparations:   
   Light oils and preparations:   
   Petrol R 0.03909/L 
   Aviation kerosene free 
   Illuminating kerosene, marked free 
   Illuminating kerosene, unmarked R 0.03817/L 
   Distillate fuel R 0.03817/L 
   Specified aliphatic hydrocarbon solvents, marked free 
   Specified aliphatic hydrocarbon solvents, unmarked R 0.03817/L 
Products of the chemical or allied industries   
2903 Halogenated derivatives of hydrocarbons:   
   Carbon tetrachloride R 5/kg 
   1,1,1-Trichloroethane (methyl chloroform) R 5/kg 
   Bromochlorodifluoromethane , bromotrifluoromethane and 
dibromotetrafluoroethanes R 5/kg 
   Trichlorofluoromethane R 5/kg 
   Dichlorodifluoromethane R 5/kg 
   Trichlorotrifluoroethanes R 5/kg 
   Dichlorotetrafluoroethanes and chloropentafluoroethane R 5/kg 
   Chlorotrifluoromethane R 5/kg 
   Pentachlorofluoroethane R 5/kg 
   Tetrachlorodifluoroethanes R 5/kg 
   Heptachlorofluoropropanes R 5/kg 
   Hexachlorodifluoropropanes R 5/kg 
   Pentachlorotrifluoropropane R 5/kg 
   Tetrachlorotetrafluoropropanes R 5/kg 
   Trichloropentafluoropropanes R 5/kg 
   Dichlorohexafluoropropanes R 5/kg 
   Chloroheptafluoropropanes R 5/kg WT/TPR/S/324 • Southern African Customs Union 
 
- 47 - 
 
  Tariff 
heading Product descriptions Rate 
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 else where specified or included; residual 
products of the chemical or allied industries, not elsewhere specified or included R 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 R 0.03817/L 
Ad valorem  excise duties   
3303 Perfumes and toilet waters: Other 7.0% 
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 5.0% 
3604 Fireworks 7.0% 
4303 Articles of apparel and clothing accessories and other articles of fur skin 7.0% 
4304 Artificial fur and articles of apparel and clothing accessories 7.0% 
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 se parately regulated 7.0% 
8517 Telephone sets, including telephones for cellular networks or for other wireless 
networks 7.0% 
8518 Microphones, loudspeakers, amplifiers 7.0% 
8519 Sound recording or reproducing apparatus:   
8521 Video recording or reproducing apparatus 7.0% 
8525 Television cameras, digital cameras and video camera recorders 7.0% 
8527 Reception apparatus for radio-broadcasting 7.0% 
8528 Monitors and projectors, not incorporating television reception apparatus; 
reception apparatus for television 7.0% 
8702 Motor vehicles for the transport of ten 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 Vehicles specially designed for travelling on snow; golf cars and similar vehicles ((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 ((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 5.0%d 
8903 Water scooters and the like 7.0% 
9302 Revolvers and pistols 7.0% 
9303 Other firearms and similar devices 7.0% WT/TPR/S/324 • Southern African Customs Union 
 
- 48 - 
 
  Tariff 
heading Product descriptions Rate 
9304 Other arms 7.0% 
9506 Golf balls 7.0% 
a Absolute alcohol. 
b Vehicles manufactured in the Republic of South Africa. c Vehicles imported into th e Republic of South Africa. 
d Except for HS 871150 and 87119030: 7%. 
Source: Schedules to the Customs and Excise Act, 1964 (Tariff Book), Schedule 1, Part 2A and 2B.