RESTRICTED  WORLD  TRADE  
ORGANIZATION  WT/TPR/S/222 
30 September 2009  
 (09-4504) 
Trade Policy Review Body  
 
     
 
TRADE POLICY REVIEW 
 
Report by the Secretariat 
 
SOUTHERN AFRICAN CUSTOMS UNION 
 
   
This report, prepared for the third Trad e Policy Review of the Southern African 
Customs Union (SACU), has been drawn up by the WTO Secretariat on its own 
responsibility.  The Secretariat has, as required by the Agreement establishing 
the Trade Policy Review Mechanism (A nnex 3 of the Marrakesh Agreement 
Establishing the World Trade Organization), sought clarification from the SACU 
Secretariat and its members on their trade policies and practices. 
 
Any technical questions arising from this report may be addressed to 
Mrs. Eugenia Lizano (022/739 6578) and Messrs. Ricardo Barba 
(022/739 5088), John Finn (022/739 50 81), Thomas Friedheim (022/739 5083), 
or Jacques Degbelo (022/739 5583). 
 
Document WT/TPR/G/222 contains the policy statements submitted by the 
SACU members.   
 
 
 
Note: This report is subject to restricted circ ulation 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. SACU WT/TPR/S/222 
 Page iii 
 
 
 CONTENTS 
    Page 
SUMMARY OBSERVATIONS vii 
(1) E CONOMIC ENVIRONEMENT  vii 
(2) I NSTITUTIONAL FRAMEWORK  vii 
(3) T RADE POLICY INSTRUMENTS  viii 
(4) S ECTORAL POLICIES  ix 
I. ECONOMIC ENVIRONMENT 1 
(1) M AIN CHARACTERISTICS  1 
(2) M ACROECONOMIC DEVELOPMENTS  2 
(3) T RADE AND INVESTMENT PERFORMANCE  3 
(4) O UTLOOK  3 
II. THE COMMON REGIME 5 
(1) O VERVIEW  5 
(2) S OUTHERN AFRICAN CUSTOMS UNION (SACU) 6 
(i) Introduction 6 
(ii) Institutional structure 6 
(iii) Common revenue pool and sharing formula 7 (iv) Dispute settlement mechanism 9 
(v) Common policies 9 
(vi) Common monetary area (CMA) 10 
(3) T
RADE AGREEMENTS AND ARRANGEMENTS  10 
(i) Participation in the WTO 10 
(ii) African Union (AU) and African Economic Community (AEC) 11 (iii) Southern African Development Community (SADC) 12 
(iv) Relations with the European Communities 12 
(v) Relations with the United States 13 (vi) Free-Trade Agreement between SACU and EFTA 14 
(vii) Preferential-trade agreemen t between SACU and MERCOSUR 14 
(viii) Generalized System of Preferences (GSP) 15 
III. TRADE POLICIES AND PRACTICES BY MEASURE 16 
(1) I
NTRODUCTION  16 
(2) C USTOMS PROCEDURES AND VALUATION  16 
(i) Customs clearance and valuation 16 
(ii) Rules of origin 17 
(3) T ARIFFS AND OTHER CHARGES  17 
(i) MFN applied tariffs 17 
(ii) MFN bound tariffs 23 (iii) Tariff preferences 24 
(iv) Other duties and charges 26 
(v) Duty and tax concessions 26 WT/TPR/S/222 Trade Policy Review 
Page iv 
  
    Page 
(4) C ONTINGENCY TRADE REMEDIES  27 
(i) Anti-dumping 28 
(ii) Countervailing measures 29 (iii) Safeguard measures 30 
(5) S
TANDARDS AND TECHNICAL REGULATIONS  31 
REFERENCES   33 
APPENDIX TABLES  35 
ANNEX 1:  BOTSWANA   59 
ANNEX 2:  LESOTHO   139 
ANNEX 3:  NAMIBIA  201 
ANNEX 4:  SOUTH AFRICA 275 ANNEX 5:  SWAZILAND 401 
 
 SACU WT/TPR/S/222 
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 CHARTS 
    P a g e  
III. TRADE POLICIES AND PRACTICES BY MEASURE 
III.1 MFN tariff distribution by sector (ISIC1 definitions), 2009 21 
III.2 Tariff escalation by ISIC 2-digit industry, 2009 22 
TABLES 
I. ECONOMIC ENVIRONMENT  
I.1  Selected socio-econo mic indicators, 2002-07 1 
III. TRADE POLICIES AND PRACTICES BY MEASURE 
III.1 Structure of SACU MFN tariffs, 2002, 2008, and 2009 18 
III.2 MFN tariff distribution, by type of duty, 2002 and 2009 18 
III.3 Formula (variable) duties, 2009 19 III.4 Summary analysis of SACU MFN tariff, 2009 21 
III.5 Tariff lines where applied MFN rate might be higher than the bound rate, 2009 23 
III.6 Summary analysis of SACU MFN and preferential tariffs, 2009 25 III.7 Contingency measures notified by South Africa, 2003-08 27 
APPENDIX TABLES 
I. ECONOMIC ENVIRONMENT  
AI.1 Intra-SACU exports by destination, 2002-07 37 
AI.2 Intra-SACU imports by origin, 2002-07 38 
AI.3 Destination of exports, 2002-07 39 AI.4 Structure of exports (extra-SACU), 2002-07 40 
AI.5 Origin of imports, 2002-07 41 
AI.6 Structure of imports (extra-SACU), 2002-07 42 
III. TRADE POLICIES AND PRACTICES BY MEASURE  
AIII.1 Applied MFN tariff averages by HS2, 2009 43 
AIII.2 Applied MFN tariffs, by ISIC Rev.2 category, 2009 47 AIII.3 Selected statistics of SACU members' bound tariff, by HS 2-digit, 2009 50 
AIII.4 Excise duties, 2009 52 
AIII.5  Products eligible for rebates of customs and excise duties, 2009 55 
 SACU WT/TPR/S/222 
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 SUMMARY OBSERVATIONS 
(1) ECONOMIC ENVIRONMENT  
1. The five member states of the 
Southern African Customs Union (SACU) – 
Botswana, Lesotho, Namibia, South Africa, and Swaziland – continue to show substantial 
differences in levels of economic development.  Botswana and South Africa are 
classified as upper middle-income countries, 
while Namibia and Swaziland are considered lower middle-income countries, and Lesotho is a least developed country.  Nonetheless, SACU countries face common challenges, notably unemployment, income inequality, 
poverty,  and HIV/AIDS. 
2. Since 2003, SACU economies have 
collectively expanded at an average annual rate of about 4% in real terms.  In some SACU countries the growth performance has been 
somewhat erratic mainly reflecting 
infrastructure constraints, electricity supply shortages, cyclical mining output, and exchange rate adjustments, as well as the impact of the global financial crisis.    
3. Monetary policy within SACU is to a 
large extent directed by South Africa.  
Lesotho, Namibia, and Swaziland form a common monetary area with South Africa, and have pegged their currencies to the South African rand at par.  Botswana applies a 
crawling band exchange rate mechanism based 
on a basket of currencies comprising the rand and the SDR.  There is no formal harmonization of fiscal policy in SACU.  Botswana, Lesotho, Namibia, and Swaziland have relatively narrow tax bases;  customs and 
excise duties constitute a major source of 
public revenues but make up a negligible portion of South Africa's fiscal receipts.  
(2) I
NSTITUTIONAL FRAMEWORK  
4. A new Southern African Customs 
Union Agreement (the 2002 SACU 
Agreement) entered into force on 15 July 2004.  It provides for further harmonization of policies in a number of areas, including customs procedures, standards, 
technical regulations, SPS measures, 
competition, and unfair trade practices, but 
alignment in these areas has not yet taken place.  The only trade policies so far harmonized in SACU are the applied customs tariff;  excise duties;  duty rebates, refunds, 
and drawbacks;  customs valuation;  
non-preferential rules of origin;  and contingency trade remedies.   
5. The 2002 SACU Agreement 
established a new revenue-sharing formula under the Common Revenue Pool.  The 
change has contributed to an increase of public 
revenues in  Botswana, Lesotho, Namibia, and 
Swaziland.  South Africa continues to manage the Common Revenue Pool .   
6. In the WTO, SACU countries pursue 
the common objective of ensuring that the 
development concerns of developing and least developed countries are taken into account in the outcome of the DDA negotiations.  They are also seeking a substantial reduction or the elimination by developed WTO Members of 
all tariff and non-tariff barriers, particularly 
those on products of interest to developing and least developed countries.  
7. SACU countries are generally having 
difficulties in meeting WTO notification 
obligations, particularly in agriculture;  
numerous notifications remain outstanding.   
8. SACU countries are members of the 
Southern African Development Community (SADC) and have preferential trade agreements with EFTA and MERCOSUR.  
Swaziland is also a member of the Common 
Market for Eastern and Southern Africa (COMESA).  SACU countries are eligible for non-reciprocal preferential treatment under the Generalized System of Preferences (GSP), and 
the U.S. African Growth and Opportunity Act 
(AGOA).  Some SACU countries have bilateral trade agreements.  To further harmonize trade policy, SACU members have agreed to negotiate new preferential trade WT/TPR/S/222 Trade Policy Review 
Page viii 
 
 
 agreements as a group. They are finalizing 
negotiations on econom ic partnership 
agreements with the EC.  
9. The investment regimes of SACU 
countries are not harmonized, with the exception of certain duty concessions, the Motor Industry Development Programme, and the Textile and Clothing Industry 
Development Programme.  Other incentive 
schemes are country-specific, with the most developed country being the most generous.  
SACU countries are generally open to foreign investment; some members maintain restrictions on foreign investment in 
small-scale industries and services.   
(3) T
RADE POLICY INSTRUMENTS  
10. South Africa continues to set the 
applied MFN Common External Tariff (CET) in consultation with its SACU partners.  In 
some cases, it appears that the structure of the 
CET does not adequately reflect the needs of the individual economies of the other SACU members. 
11. The simple average rate of SACU's 
applied MFN CET decreased from 11.4% in 
2002 to 8.1% in 2009.  The pattern of 
protection has shifted in favour of agricultural products, with an average rate for agricultural products (WTO definition) of 10.1% in 2009, up from 9.6% in 2002, against an average rate 
for non-agricultural products (WTO definition) 
of 7.8% in 2009, down from 11.6% in 2002.  Using ISIC (revision 2), average tariff protection for manufacturing is the highest at 8.5%, compared with 3.7% for agriculture, and 0.8% for mining and quarrying.  
12. The tariff structure has been somewhat 
simplified.  In 2009, 96.8% of all tariff lines carry ad valorem  rates, up from 75% in 2002.  
The number of tariff lines with mixed duties has been reduced from 1,774 in 2002 to 98 in 
2009;  those with specific duties have been 
reduced from 195 to 109.  Mixed duties apply to agricultural products, coal, textiles, and footwear. Specific duties apply mainly to agricultural products (94 tariff lines), coal, and some textiles;  their ad valorem  equivalents 
range from zero to 60%.  Compound duties are no longer applied by SACU but there remain 
five tariff lines with formula duties. 
13. Tariff bindings by all SACU members 
are at ad valorem  rates.  The imposition of 
non-ad valorem  rates on some tariff lines 
creates a risk of non-compliance by SACU 
Members with their individual tariff bindings, 
and the use of formula duties based on reference prices does not ensure conformity with obligations under the WTO Agreement on Customs Valuation.  
14. South Africa has WTO tariff-quota 
commitments on textiles and clothing, and 
certain agricultural products; some  agricultural tariff quotas have not been opened where the applied out-of-quota tariffs have been equal to, or lower than corresponding 
bound in-quota tariffs.  
15. Non-tariff barriers such as (seasonal) 
import quotas and prohib itions, or additional 
duties on imports of certain agricultural products from all countries, including other SACU members, are aimed at encouraging 
domestic production of certain agricultural 
goods.   
16. Botswana, Lesotho, Namibia, and 
Swaziland apply the anti-dumping, countervailing, and safeguard measures  
determined by South Africa, a leading initiator 
of anti-dumping actions among WTO Members.  Botswana, Lesotho, Namibia, and Swaziland are in the process of establishing their own legal and institutional framework to enable them to initiate trade remedies.  In the 
areas of standards, technical regulations, and 
SPS measures, some SACU countries have adopted South Africa's regimes.   
17. Incentives aimed at export-oriented 
industries, services, and SMEs include duty 
and tax exemptions, some of them subject to 
local-content requirements or contingent on export performance.  The Motor Industry Development Programme, and the Textile and Clothing Industry Development Programme SACU WT/TPR/S/222 
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 are export incentive schemes available 
throughout SACU, but not utilized by all of the member countries.  Namibia and 
South Africa also provide incentives in 
designated export processing or industrial development zones.   
18. Some SACU countries apply export 
taxes (on rough diamonds by Namibia and 
South Africa;  on sugar by Swaziland).  
Botswana maintains a statutory export monopoly on beef exports.   
19. Progress has been made at national 
level towards implementing competition policies.  South Africa's competition 
legislation has been strengthened, while 
Swaziland has established a Competition Commission to enforce its new competition law.  Namibia has also recently adopted competition legislation.  Overall, little 
progress has been made in restructuring public 
enterprises in SACU countries. 
20. Some SACU countries have taken 
steps to strengthen intellectual property laws, notably in the area of copyright.   
21. None of the SACU countries is party 
to the WTO plurilateral Agreement on 
Government Procurem ent.  Botswana, 
Namibia, and South Africa apply price preferences in their government procurement regimes, or "reservation schemes" to support 
the economic empowerment of their citizens.   
(4) S
ECTORAL POLICIES  
22. The 2002 SACU Agreement calls for 
common agricultural and industrial policies with the aim of fostering economic integration and achieving a more balanced development of 
the customs area, but little progress has been 
made in this regard.   
23. SACU countries have a narrow export 
base, with the exception of South Africa.  The principal policy imperative remains 
diversification away from their key export 
products (diamonds and other minerals in Botswana and Namibia, textiles in Lesotho, and sugar in Swaziland).  Some 
labour-intensive manufacturing activities, particularly textiles and clothing, have been 
seriously affected by increased competition on 
foreign markets. 
24. Services play a crucial role for 
diversification of the SACU economies. Export opportunities, however, remain largely 
untapped by SACU (with the exception of 
South Africa).  In tourism, for example, constraints in infrastructure,  marketing and promotion, and finance, and lack of skilled labour have impeded the development of the subsector. Further liberalization and 
investment in services should generally 
improve the efficiency of other economic activities and the competitiveness of SACU's exports, especially by reducing costs for telecommunications, transport, and energy. 
25. In Botswana, the challenge lies in 
reducing its heavy reliance on diamond mining as the main driver of economic growth and development.  There is also a need to accelerate structural reforms to improve the economy's productivity and competitiveness.  
Agricultural policy is aimed principally at 
achieving food security and diversification away from beef production.  The small agriculture sector receives substantial government support through tariff protection, 
import quotas (for some products), and input 
subsidies.  To promote cross-border financial services, Botswana has established an International Financial Services Centre. The  licensing regime for telecommunications services has been reformed, to encourage 
competition in the subsector.  The transport 
infrastructure has been further developed but restrictive transport rules pose a considerable constraint for competitiveness of the land-locked economy.   
26. Lesotho is in the process of 
implementing the National Action Plan for Food Security 2007-17 which is also aimed at reducing poverty in rural areas by, inter alia , 
improving farm productivity through 
intensification, diversification, and 
commercialization of farming systems;  and WT/TPR/S/222 Trade Policy Review 
Page x 
 
 
 promoting sales of agricultural produce.  The 
private sector is expected to be the main engine of growth within the framework of the 
implementation of the Industrialization Master 
Plan 2007-10, and the Lesotho Government is creating an enabling environment.  The development of the services sector is also promoted, and some state-owned enterprises 
have been privatized.   
27. Namibia's third National Development 
Plan and "Vision 2030 Namibia" set out ambitious objectives for economic and social development.  One of the main policy tools for industrial development is the extensive set of 
tax incentives to encourage investment in 
manufacturing, particularly through export processing zones.  Farming, fishing, and mineral extraction industries are excluded from these incentives.  In agriculture, Namibia 
has applied import restrictions to encourage 
domestic production of so me basic products.  
Namibia has a well developed and regulated financial sector and a growing tourist industry based on its landscape and wildlife. 
28. South Africa's economy is relatively 
diversified.  The importance of agriculture in 
the economy, including in trade, has declined since the previous Review of SACU, but the sector remains crucial for absorbing unskilled labour.  Government intervention in 
agricultural markets appears to have declined 
but its involvement in manufacturing, mining, energy, and services sector remains important.  
The manufacturing sector benefits from a range of incentive schemes, some contingent 
on export performance.  Several state-owned 
enterprises operate in the mining and energy subsectors.  These policies have contributed to low profitability in the manufacturing sector, electricity shortages due to a lack of 
investment in electricity generation, and 
inefficient and costly supply of key services.  South Africa's shortage of electricity is also having a negative spill-over effect on its SACU partners de pendent on imported 
electricity.  
29. In Swaziland, food security and 
agricultural productivity are promoted through the diversification and commercialization of 
activities, while ensuring community 
participation and sustainable development of its natural resources.  Manufacturing remains largely based on sugar and related products 
(confectionery and soft drinks), which benefit from preferential access to the EC and the 
United States. Some food-processing 
industries primarily interested in low-cost inputs have expressed concerns about the structure of the SACU tariff.  Exports of garments and apparel to the United States have 
fallen in recent years, despite Swaziland's 
eligibility for AGOA preferences.  The financial services legislation has been modernized, and the mobile telecoms market has been opened to competition.   
 
  SACU WT/TPR/S/222 
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 I. ECONOMIC ENVIRONMENT 
(1) MAIN CHARACTERISTICS  
1. The five Member States of the Southern  African Customs Union (SACU), Botswana, 
Lesotho, Namibia, South Africa, and Swaziland, cover an area of 2.7 million square kilometres.  In 
2007, the combined population of the SACU count ries was around 55 million (Table I.1), with 
South Africa accounting for some 87% of the total.  During the period under review, South Africa has accounted for over 90% of SACU's aggregate GDP, maintaining its predom inant position in the 
region.
1     
2. The Customs Union's member states continue to  exhibit pronounced differences in levels of 
economic development.  Botswana and South Africa are classified as upper middle-income countries (Annexes 1 and 4, respectively), while Namibia a nd Swaziland are considered lower middle-income 
countries (Annexes 3 and 5), and Lesotho is a least-developed country (Annex 2).  Botswana, 
Namibia and, in particular, South Africa have  relatively well developed transportation and 
telecommunications networks;  however, for the c ountries to fully integrate and achieve sustained 
economic growth, infrastructure in the region needs to be further improved. 
3. The structure of economic activity within SACU  has not changed significantly since its last 
Trade Policy Review in 2003.  In 2007, services accounted for 59.3% of SACU's GDP (down from 
60.2% in 2003), followed by manufacturing with 16% (down from 17% in 2003), mining and energy with 10.8% (up from 10.2%), and agriculture with 3% (down from 3.5%).  Nevertheless, while the 
economy of South Africa is relatively diversifie d (Annex 4, Chapter I(1)), Botswana, Lesotho, 
Namibia, and Swaziland (BLNS) depend upon a lim ited number of products, such as diamonds, and 
beef for Botswana (Annex 1, Chapter I(1));  diamonds, fish, and meat for Namibia (Annex 3, 
Chapter I(1));  water, clothing, and textiles for Lesotho (Annex 2, Chapter I(1));  and sugar, and 
chemicals to be used in the food industries for Swaziland (Annex 5, Chapter I(1)). 
Table I.1 
Selected socio-economic indicators, 2002-07 
 2002 2003 2004 2005 2006 2007 
Area ('000 km2) 2,673 2,673 2,673 2,673 2,673 2,673 
Population (million) 53.3 53.9 54.4 54. 9 55.3 55.7 
Urban (million) 29.3 29. 9 30.4 30.9 31.4 32.0 
Density (per km2) 19.9 20.2 20.4 20.5 20.7 20.8 
Growth rate (per year) .. 1.1 1.0 0.9 0.8 0.7 
Life expectancy 52.6 51.9 51.2 50.4 49.7 49.0 
       
GDP at market prices (US$ million, current prices) 121,791 182,240 235, 090 262,939 279,279 306,827 
GDP per capita (US$, current prices) 2,284 3,381 4,319 4,789 5,049 5,510 
Real GDP (constant 2000, US$ million) 154,541 159,583 167,465 175,750 184,927 194,418 
Annual percentage change 3.8 3.3 4.9 4.9 5.2 5.1 
Per capita GDP 2,898 2,960 3,077 3,201 3,343 3,492 
Growth 2.8 2.0 3.7 3.7 4.1 4.1 
       
Share of GDP (current prices)a, b       
Agriculturec 3.9 3.5 3.1 2.7 2.8 3.0 
Table I.1 (cont'd) 
                                                      
1 Secretariat calculation, based on World Bank (2008). WT/TPR/S/222 Trade Policy Review 
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  2002 2003 2004 2005 2006 2007 
Mining and energy 11.7 10.2 9.7 10.0 10.6 10.8 
Mining  9.5 8.0 7.5 7.9 8.5 8.8 
Electricity and water 2.2 2.2 2.1 2.1 2.1 2.0 
Manufacturing sector 17.2 17.0 16.5 16.0 15.9 16.0 
Services 58.3 60.2 60.6 60.6 59.8 59.3 
Construction 2.3 2.4 2.3 2.4 2.6 2.7 
Other services 56.0 57.9 58.3 58.2 57.2 56.7 
Less:  financial services indirectly  measured 0.2 0.2 0.2 0.2 0.2 0.2 
Indirect taxes less subsidies 9.2 9.2 10.3 10.8 11.1 11.0 
       
Exports of goods and non-factor services (constant 2000 
US$ million)b 45,012 45,565 46,758 50,371 53,581 57,891 
Imports of goods and non-factor services (constant 2000 
US$ million)b 42,226 45,543 51,146 55,675 64,955 71,595 
Exports + imports /GDP (per cent) 56.5 57.1 58.5 60.3 64.1 66.6 
.. Not available. 
a Lesotho's 2006 figures are Central Bank of Lesotho projections. 
b 2007 data do not include Lesotho. 
c The definition of agriculture varies according to each country.  
Source:   International Financial Statistics, IFS CD Rom, version 1.1.82;  World Bank Key Development Data and 
 Statistics.  Viewed at:  http://web.worldbank. org/WBSITE/EXTERNAL/DATASTATISTICS;  African 
 Development Bank (2008), Selected Statistics on African countries ;  Bank of Botswana (2008), Annual Report 
 2007 ;  Bank of Lesotho (2006), Annual Report , Statistical tables;  Bank of Namibia (2009), Quarterly Bulletin , 
 March;  Bank of Namibia (2006) , Quarterly Bulletin , December;  South African Reserve Bank, Statistical tables, 
 March 2009;  IMF (2008), Kingdom of Swaziland:  Statistical Appendix , Country Report No. 08/355, October;  
 IMF (2006), Kingdom of Swaziland:  Statistical Appendix , Country Report No. 06/109, March;  and World Bank 
 WDI online information.  Viewed at:  http://ddp-ex t.worldbank.org/ext/DDPQQ/re port.do?method=showReport. 
(2) MACROECONOMIC DEVELOPMENTS  
4. Since 2003, SACU economies have collectively ex panded at an average annual rate of about 
4% in real terms, albeit with a certain variati on in growth rates in each economy and a generally 
unsteady performance (Table I.1).  The mixed growth record reflects, inter alia , severe infrastructure 
bottlenecks, fluctuations in mining output, and volatile national currencies, as well as the global 
economic downturn in recent years. 
5. Monetary policy within SACU is largely led by  South Africa.  Lesotho, Namibia, Swaziland, 
and South Africa form a Common Monetary Area (CMA ), within which the loti (Lesotho's currency), 
the Namibian dollar, and the lilangeni (Swaziland's currency) are pegged to the South African rand at 
par (Chapter II(3)).  Although not a member of the CMA, Botswana has pegged its currency (pula) to 
a basket of currencies, i.e. the rand and the SDR, and has contained its fluctuations against the rand 
(Annex 1, Chapter I(2)).  In practice, therefore, Lesotho, Namibia, and Swaziland (and to a certain 
extent Botswana) follow South Africa's monetary an d exchange rate policies (Annex 4, Chapter I(2)). 
6. There is a no formal harmonization of fiscal policy in SACU.  The BLNS countries have 
relatively narrow tax bases;  customs and excise du ties, which are basically still determined by 
South Africa, constitute a major source of revenue  for the relatively smaller BLNS economies, but 
make up a negligible portion of South Africa' s fiscal receipts.  Payments under SACU's 
revenue-sharing arrangement account fo r more than half of total government income in Lesotho and SACU WT/TPR/S/222 
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 Swaziland, while the corresponding figures for Nami bia and Botswana are in the order of 30% and 
25%, respectively.  By contrast, these payments repr esent about 1% of South Africa's total income.2 
(3) TRADE AND INVESTMENT PERFORMANCE  
7. During the period under review, SACU economi es maintained their traditionally high 
dependence on international trade;  the ratio of aggregate trade in goods and services as a percentage 
of GDP increased steadily from 56.5% in 2002 to 66.6% in 2007 (Table I. 1).  Nevertheless, the 
positive trade balance registered by SACU, as a whole,  at the time of the previous Review in 2003 has 
given way to a deficit, which rose from US$4, 388 million in 2004 to US$13,704 million in 2007 
(Table I.1).  The widening shortfall reflected mainly  the reversal of South Africa's hitherto positive 
record, driven by an increasing demand for imports  of machinery and declining exports due to 
electricity-related output constraints (Annex 4).  Bo tswana maintained trade surpluses throughout the 
review period, whereas Lesotho, Namibia, and Swaziland continued to post deficits. 
8. Intra-SACU trade has intensified since 2003 but  the traditional importance of South Africa as 
a regional hub has remained broadly unaltered.  Th roughout the review period, more than 95% of 
commercial flows within the customs union invo lved South Africa as a destination or supplier 
(Tables AI.1 and AI.2).  Moreover, South Afri ca accounted for around half of total BLNS trade, 
whereas the intra-SACU component of South Afri ca's total trade was relatively minor, reflecting 
greater diversification in terms of export destin ations and import sources (Annex 4, Chapter I).  
9. The EC continues to absorb the largest share of overall SACU exports, followed by the 
United States.  However, the U.S. market remains the single most important destination outside 
SACU for exports from Lesotho and Swaziland, ma inly due to the preferences granted under the 
African Growth and Opportunity Act (AGOA).  Exports to China from SACU, although still relatively modest, registered the fastest growth durin g the review period (Table AI.3).  SACU's main 
export products are:  minerals, platinum group meta ls, diamonds (Table AI.4), followed by meat, fish, 
textiles and clothing, and sugar a nd related products.  Impor ts to SACU originate largely from the EC, 
China, and the United States.  Since 2005, imports fr om China have exceeded those originating in the 
United States (Table AI.5).  SACU's imports cons ist mainly of machinery and transport equipment, 
fuels, and chemicals (Table AI.6). 
10. Inflows of foreign direct investment (FD I) into SACU remain low on a global scale, 
notwithstanding their sustained growth trend.   
11. The sectoral distribution of inward investment  has not changed significantly since the last 
TPR of the customs union.  FDI inflows are pred ominantly channelled into mining and quarrying, 
manufacturing (notably the clothing industry), telecommunications, financial services, and retail trade.  The EC continues to provide the largest sh are of overseas funds, followed by the United States 
and a number of Asian countri es, particularly Malaysia.
3  Besides being one of the leading investors in 
the economies of its SACU partners, South Africa su ccessfully attracts capital inflows from the rest of 
the African continent. 
(4) OUTLOOK  
12. Amid the global economic downturn, SACU 's performance outlook will depend on the 
effectiveness of ongoing policy ha rmonization efforts aimed at achi eving a more cohesive regional 
                                                      
2 Oral presentation delivered by the SACU Secret ariat at Regional Trade Policy Seminar for SACU 
countries in Windhoek (October 2008).  
3 South African Reserve Bank (2009). WT/TPR/S/222 Trade Policy Review 
Page 4 
 
 
 market and fostering export-led growth.  Notw ithstanding some progress in the consolidation of 
SACU institutions and operational mechanisms established under the 2002 SACU Agreement, a 
number of technical points are yet to be addressed.  In particular, work on coherent policy formulation 
in the areas of agriculture, industrial development, competition, and unfair trade practices is still at an 
early stage. In trade relations with third parti es, prompt implementation of the envisaged Common 
Negotiating Mechanism should provide for collective responses to regional and global developments 
that have a bearing on SACU's integration agenda.  Specifically, the elaboration of a common position 
could accelerate the creation of the SADC Free Trade Area.  
13. While trade liberalization initiatives would ensure  better terms of access to foreign markets, 
related tariff concessions could significantly reduce overall customs receipts, causing uneven 
repercussions on SACU member states' fiscal positions .  In this scenario, BLNS countries would need 
to broaden their domestic tax bases, whereas the revenue impact in South Africa would be minimal. 
14. SACU's economic outlook also depends on the e volution of the New Partnership for Africa's 
Development (NEPAD), aimed at eradicating povert y;  placing African countries, both individually 
and collectively, on a sustainable growth and devel opment path;  and promoting the integration of the 
continent into the global economy.   
 
 SACU WT/TPR/S/222 
 Page 5 
 
 
 II. THE COMMON REGIME 
(1) OVERVIEW  
15. The first Southern African Customs Union (SAC U) Agreement of sovereign states was signed 
on 11 December 19694, and entered into force on 1 Ma rch 1970.  The agreement replaced a 
1910 Customs Union Arrangement.5  Namibia became the fifth member of SACU on 10 July 1990;  it 
had been a de facto  member during the time it was administered by South Africa.6  Acknowledgement 
of the weaknesses of the 1969 SACU Agre ement led to its renegotiation as from 1994.7  A new 
agreement (the 2002 SACU Agreement) was signed on 21 October 2002, and entered into force on 
15 July 2004. 
16. One of the major issues tackled by the 2002 SACU Agreement was trade arrangements with 
third parties.  Article 31 of the 2002 agreement provi des that no member state can negotiate or enter 
into new preferential trade agreements with third parties, or amend existing agreements, without the 
prior consent of other member states.  In orde r to harmonize trade policy within SACU, the SACU 
Council of Ministers has directed that SACU will negotiate new preferential-trade agreements with 
third parties as a bloc, and not as individual countries.    
17. The 2002 SACU Agreement also provided for the establishment of a common negotiating 
mechanism for any new negotiations with third parti es.  However, Article 31 allows member states to 
maintain pre-existing preferential-trade arrangement s and related arrangements.   Consequently, some 
SACU members are still signatories to other trad e arrangements, such as the Common Market for 
Eastern and Southern Africa (COMESA), of which only Swaziland is a member (Annex 5)8;  and the 
Trade, Development and Cooperati on Agreement between the European Union and South Africa (the 
TDCA) (Annex 4).  Moreover, the SACU countri es and the EC are finalizing negotiations for 
economic partnership agreements.   
18. In addition, South Africa has bilateral trad e agreements with Malawi and Zimbabwe 
(Annex 4).9  Botswana has bilateral trade agreements with Malawi and Zimbabwe (Annex 1), while 
Namibia has a bilateral trade agreement with Zi mbabwe (Annex 3).  Lesotho and Swaziland do not 
have any bilateral trade agreements. 
19. SACU members are eligible fo r non-reciprocal preferential tr eatment under the Generalized 
System of Preferences (GSP);  and the U.S. African  Growth and Opportunity Act (AGOA).  None of 
the SACU members is a signatory to the Agreem ent on the Global System of Trade Preferences 
among Developing Countries (GSTP). 
20. All the SACU members are members of the Southern African Development Community 
(SADC), in their respective individual capacities,  but have undertaken single tariff phase down 
commitments in terms of the SADC Protocol on Trade. 
                                                      
4 Botswana and Lesotho became independent in 1966 and Swaziland in 1968. 
5 With the exception of the revenue-sharing formul a, which went into effect retroactively from 
1 April 1969. 
6 Namibia became independent on 21 March 1990. 
7 For details on the evolution of the customs union since 1910, including the weaknesses of the 
1969 SACU Agreement, s ee WTO (1998) and (2003). 
8 Lesotho withdrew from COMESA in 1997, followed by Namibia on 31 May 2004. 
9 South Africa also grants preferential tariff treatment to a list of products from Mozambique, which are 
admitted duty free, within annual quota limits (see WTO, 1998). WT/TPR/S/222 Trade Policy Review 
Page 6 
 
 
 (2) SOUTHERN AFRICAN CUSTOMS UNION (SACU)   
(i) Introduction 
21. The objectives of the 2002 SACU Agreement, as define d in Article 2, are:  (i) to facilitate the 
cross-border movement of goods between the territories of  the member states;  ( ii) to create effective, 
transparent, and democratic institutions which will en sure equitable trade benef its to member states;  
(iii) to promote conditions of fair competition in the common customs area;  (iv) to substantially 
increase investment opportunities in the common customs area;  (v) to enhance the economic 
development, diversification, indus trialization and competitiveness of member states;  (vi) to promote 
the integration of member states into the globa l economy through enhanced trade and investment;  
(vii) to facilitate the equitable sharing of revenue  arising from customs and excise duties levied by 
member states;  and (viii) to facilitate the development of common policies and strategies. 
22. In the preamble to the 2002 SACU Agreement,  it is acknowledged that the 1969 Agreement 
was hampered by a lack of common policies and common institutions.10  To address these specific 
deficiencies, the 2002 agreement provides for the adoption of common policies and strategies; the 
creation of specific institutions for running SACU; and the recognition of the crucial role of the 
external tariff as an instrument for development, and not merely for revenue generation.  Therefore, 
the 2002 agreement provides a framewo rk that allows policy and ins titutional developments in SACU 
to be properly anchored, and for the creation of th e legal and structural mechanisms required for the 
operation of SACU.   
(ii) Institutional structure 
23. The 2002 SACU Agreement provides for the establi shment of six institutions essential for the 
running of the customs union:  the Council of Ministers; the Customs Union Commission; the Secretariat; the Tariff Board; the Techni cal Liaison Committees; and the Tribunal.
11  
24. The Council of Ministers is the supreme decisi on-making authority on SACU matters.  It is 
"responsible for the overall policy direction and functioning of SACU institutions, including the 
formulation of policy mandates, procedures and guidelines for the SACU institutions".12  The Council 
consists of at least one Minister from each member state and is chaired in turn by each member state for a period of one year. 
25. The Customs Union Commission is responsible  for implementation of the agreement;  
overseeing the management of the common revenu e pool in accordance with the policy guidelines 
decided by the Council; and supervising the work of the Secretariat.
13 
26. The Secretariat is responsible for the day-to-day administration of the Agreement.  It is 
headed by an Executive Secretary, who must be a citizen of a member state.14  In general, it is 
responsible for implementing the policies of the Council and of the Commission, and for providing 
technical support for all SACU initiatives.15   
                                                      
10 See WTO (2003), pp. 6-7. 
11 Article 7. 
12 Article 8(2) of the 2002 Agreement.  See WTO (2003), p. 8, for more details on the responsibilities 
of the Council of Ministers.   
13 See WTO (2003), pp 8-9, for more details on the composition and operational procedures of the 
Customs Union Commission. 
14 The Secretariat is based in Windhoek, Namibia. 
15 See WTO (2003), p. 9, for details on the dutie s and responsibilities of the SACU Secretariat.  SACU WT/TPR/S/222 
 Page 7 
 
 
 27. The Tariff Board is responsible for, inter alia , making recommendations to the Council on the 
level of and changes to customs, 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 as provided for in Article  8 of the agreement.  The 2002 SACU agreement 
clearly makes the Tariff Board an independent ins titution, consisting of experts drawn from member 
states. Under Article 14 of the agreement, SACU members are to establish national bodies or designate institutions, entrusted with receiving requ ests for tariff changes, carrying out preliminary 
investigations, and making appropr iate recommendations to the Tariff Board.  The national bodies 
may also periodically make recommendations to the Commission (through the Secretariat) on the 
basis of studies or investigations on the impact of the tariff.   
28. The 2002 agreement sets up four Technical Liai son Committees for agriculture, customs, 
trade and industry, and transport.  In addition,  the SACU Council created the Finance Technical 
Liaison Committee in 2008.
16  These committees advise and assist the Customs Union Commission in 
its work.  
29. The Tribunal will adjudicate over any disputes, and will also undertake an advisory role 
(section (iv) below). 
30. Of the institutional organs provided for by the 2002 agreement, the Council of Ministers, the 
SACU Commission, Technical Liaison Committees and the Secretariat are currently functional.  SACU members have agreed that, in the mean time, the International Trade Administration 
Commission (ITAC) of South Africa will undertake the functions of the Tariff Board. 
31. The SACU Agreement established all SACU ins titutions.  The agreement did not, however, 
make provision for the detailed aspects of the substa ntive and procedural aspects of the work of the 
Tariff Board, the Tribunal or the national bodies.  Th e SACU Secretariat, in consultations with the 
member states, made proposal on Annexes to the SACU Agreement to provide more detail.  The 
negotiation of the Annexes, as well as their adoption by member states, took a considerable amount of 
time.  The Annexes on the Tariff Board and on the Na tional Bodies have been ratified by all member 
states;  the Annex on the Tribunal, however, is still undergoing the consultative stage, and should be 
submitted to the SACU Council before the end of 2009.  In addition, the members do not have the 
necessary legislation in place to implement the 2002 SACU Agreement, including the creation of national bodies as stipulated in Article 14.
17   
(iii) Common revenue pool and sharing formula 
32. The new revenue-sharing formula and the Common Revenue Pool are governed by 
Articles 32 to 37, and Annex A of the 2002 SACU Agre ement.  Under Article 32,  all customs, excise, 
and additional duties collected in the common custom s 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).18 
33. Article 33 of the 2002 agreement provided that South Africa would only manage the common 
revenue pool for two years, from the entry into force of the agreement.  Thereafter, a member state or 
SACU institution was to be appointed by the Coun cil to manage it, and specify the accounts into 
                                                      
16 This was done in accordance with  Article 8, paragraph 8, of the 2002 SACU Agreement, which 
provides a mandate for the Council to create additional technical liaison committees. The objective was to alleviate the work of the Customs Technical Liaison Committee by splitting finance and customs matters. 
17 The Secretariat drafted a SACU Model Law on  National Bodies, which Members are currently 
adopting. 
18 The sharing of revenue was at the co re of the original  SACU Agreement. WT/TPR/S/222 Trade Policy Review 
Page 8 
 
 
 which the common revenue pool is to be paid and from which all SACU payments are to be made. 
However, South Africa continues to manage the CR P:  its tenure as interim manager was extended 
pending finalization of work on a long term mana gement arrangement.  Following two studies on the 
matter, the Council has taken a decision, in prin ciple, to maintain the responsibility for the 
management of the Common Revenue Pool with South Africa, under a new account structure.  Details 
of this structure are still being finalized and should be implemented by April 2010. 
34. The Secretariat has oversight functions over all transactions into and out of the common 
revenue pool.  The pool is also to be subject to regular audits.  Before any sharing of the pooled 
revenue can be effected, the financial needs (budgeted co st of financing) of the Secretariat, the Tariff 
Board, and the Tribunal must be met.  From the remaining net amount, the respective shares of members during any financial year will be calculated from each of the three distinct components, i.e. 
the customs component;  the excise component;  and the development component.
19  
35. Under the new revenue sharing formula (and cont rary to the 1969 formula), South Africa is 
no longer consigned to taking a residual share af ter the shares of the other countries have been 
apportioned.  This means that each member's shar e is specifically calculated (Box II.1).  The new 
formula has also eliminated the concept of a revenu e floor, and the time-lag between actual flow of 
trade and distribution of tax receipts has been reduced.   
Box II.1:  The 2002 SACU revenue-sharing formula  
The revenue sharing formula of the 2002 SACU Agreement, for a given financial year, is: 
Ri = C (Ai/A) + (0.85) E (GDPi/GDP) + 20*(0.15) E (1-((Yi/Y)-1)/10) 
where: 
Ri = revenue share of SACU country i; 
i  = Botswana, Lesotho, Namibi a, South Africa or Swaziland; 
C  = all customs duties actually collect ed on goods imported into SACU, less the cost of financing the Secretariat, 
  the Tariff Board, and the Tribunal, le ss the customs duties rebated or refunded; 
Ai =   c.i.f. value (at the border) of imports of SACU  country i from all other SACU members, less re-exports;  
A  =  total c.i.f. value (at the border) of intra-SACU imports, less re-exports; 
E =   all excise duties actually collected on goods produced  in the SACU area, less the cost of financing the  
  Secretariat, the Tari ff Board, and the Tribunal, less the excise duties rebated or refunded; 
GDPi  =   gross domestic product of SACU country i; 
GDP  =   total gross domestic product of SACU members; 
Yi   =   gross domestic product per capita of SACU country i;  and 
Y   =   average gross domestic pr oduct per capita of all SACU members 
After some algebraic mani pulations, Ri becomes: 
Ri = C (Ai/A) + (0.85) E (GDPi/GDP) + (0.3) E (11-Yi/Y) 
The customs component:  C (Ai/A) 
The pooled customs revenue will be distributed according to intra-SACU imports.  On the basis of 1998/99 trade, 
South Africa would have contributed about 80% to the custom s component, and its share of this component would have 
been 20.5% (in 1998/99 South Africa's in tra-SACU imports were R 7,520 milli on, while total intra-SACU imports 
amounted to R 36,706 million).  On the same basis, the BL NS would have contributed around 20% to the customs 
component, and their shares of the customs pool would have  been:  Botswana (26.6%),  Lesotho (13.4%), Namibia 
(24.9%), and Swaziland (14.6%).  These sh ares are expected to remain stable ov er time, though the size of the customs 
pool (C) will depend upon the value of imports  and changes to the SACU tariff regime. 
Box II.1 (cont'd) 
 
                                                      
19 SACU members agreed that the b udgeted cost of financing the Secr etariat, the Tariff Board, and the 
Tribunal, for the related financial year, will be deduct ed proportionately from each  component of the common 
revenue pool before distribution to member states.  The development component is to be reviewed from time to time and adjusted if agreed to by all SACU members. SACU WT/TPR/S/222 
 Page 9 
 
 
 Box II.1:  The 2002 SACU revenue-sharing formula  
The excise component:  (0.85) E (GDPi/GDP) 
The size of the excise component has been set initially at 85%  of the excise pool, and will be distributed on the basis of 
the GDP of each of the SACU countries.  In 1998, South Afri ca's GDP represented 92.8% of SACU's total GDP, and its 
share of this component would have been  78.9% (92.8 times 0.85).  The remainde r of the 85% of the excise component 
would have been distributed as follo ws:  Botswana (3.0%), Lesotho (0.5%) , Namibia (1.8%), and Swaziland (0.8%).    
The development component:  (0.3) E (11- Yi/Y) 
The development component has been set initially at 15% of the excise pool, and will be di stributed inversely to each 
country's GDP per capita: the smaller the GDP per capita, the greater the share of the development pool.  In 1998, GDP 
per capita in the SACU area was:  Botswana (R 17, 968), Lesotho (R 2,395), Nami bia (R 9,615), South Africa 
(R 17,578), and Swaziland (R 7,024);  this leads to an aver age GDP per capita of R 10,916.  On this basis, the 15% 
share of the development component would have been dist ributed as follows: Botswana (2.80%), Lesotho (3.23%), 
Namibia (3.04%), South Africa (2.82%), and Swaziland (3.11%). 
The composition of SACU payment by component: 
On the basis of the previous figures, the BLNS countries  would largely derive their SACU revenue from the customs 
component: Namibia (83.7%), Botswana ( 82.1%), Swaziland (78.9%), and Lesotho (78.2%);  while South Africa would 
receive 20.1% from this component.  South Africa would get the majority of its SACU revenue from the excise 
component (77.2%), followed by Botswa na (9.3%), Namibia (6.1%), Swaziland  (4.3%), and Lesotho (2.9%).  The 
development component is relatively more important for Lesotho and Swazila nd (18.9% and 16.8%, respectively, of 
their total SACU revenues), followe d by Namibia (10.2%), Botswana (8.6%), and South Africa (2.7%).   
Source: SACU 2002 Agreement, and DTI (2001), "Working Pape r Concerning the Establishment of the CITA:  
 Draft", November, Pretoria. 
(iv) Dispute settlement mechanism 
36. The 2002 SACU Agreement provides for a disput e settlement mechanism.  Consultations are 
ongoing regarding some important aspects of the Tri bunal such as the jurisdiction and enforcement of 
decisions.  In the event of any dispute arising fro m the agreement, the parties must first negotiate 
before referring the matter to the Tribunal.20  The agreement gives the Tribunal power to adjudicate 
on any issue concerning the application or interpreta tion of the agreement, or any dispute arising from 
it.  It also provides for the Council to refer any matt er to the Tribunal for advice.  Thus, the Tribunal 
will not be restricted to adversarial matters only, but will also have a role as an  advisor.  Decisions of 
the Tribunal (to be made by a majority vote) w ill be final and binding.  This means that SACU 
members cannot take intra-SACU issues for resolution outside SACU structures  as the Tribunal will 
have exclusive jurisdiction to resolve disputes re garding the implementation and application of the 
2002 SACU Agreement. 
37. Further, the 2002 agreement allows for mutua lly acceptable solutions to problems that may 
arise between member countries.  Pursuant to Article 15, any difference or dispute arising out of the 2002 Agreement that does not directly affect the interests of all member states, may be the subject of direct consultations between the affected parties.  Th e affected parties are to report the results of their 
consultations before the next meeting of the Commission. 
(v) Common policies 
38. In an attempt to foster economic integra tion, the 2002 SACU Agreement calls for the 
elaboration of common policies amongst the memb ers on industrial development (Article 38), 
agriculture (Article 39), competition policies (Ar ticle 40), and unfair trade practices (Article 41).
21   
                                                      
20 Article 13.6 of the Agreement. 
21 Article 10 of the Agreement stipulates that th e Secretariat shall assist in the harmonization of 
national policies and strategies of members in so far as they relate to SACU. WT/TPR/S/222 Trade Policy Review 
Page 10 
 
 
 39. The 2002 Agreement also calls for customs c ooperation (Article 23) to facilitate the 
simplification and harmonization of trade documenta tion and procedures;  a nd for harmonization of 
product standards and technical regulations within the common customs area (Article 28).  Regarding 
SPS matters, however, under Article 30 each member  reserves the right to apply measures in 
accordance with its national laws and internati onal standards (see also Chapter III(5) below). 
(vi) Common monetary area (CMA) 
40. Within SACU, there is a common monetary area (CMA), comprising Lesotho, Namibia, 
South Africa, and Swaziland;  Botswana is not a member.22  Namibia officially joined the CMA (now 
also known as the Multilateral Monetary Agr eement (MMA)) in 1992;  it had been a de facto  
member, as a territory administered by South Africa.   The CMA aims to achieve monetary stability in 
the region, better economic and financial c ooperation among members for sustained economic 
development, and to encourage the advancement of  the less developed members. The administering 
organ is the Common Monetary Area Commission, comprising a representative of each member country and any advisers the country may appoint.  
41. The agreement provides for free flow of funds within the monetary area (with the possibility 
of limited exceptions, as indicated in the provisi ons on exchange control, to safeguard domestic 
prudential requirements) and a right of access by Lesotho, Namibia, and Swaziland (LNS) to 
South Africa's capital and money markets.  The loti (L esotho's currency), the Namibian dollar, and the 
lilangeni (the Swazi currency) are pegged to the So uth African rand, and banknotes issued by LNS are 
freely convertible into the rand.  LNS must s upport the peg by maintaining net foreign reserves 
(NIRs) equivalent to a minimum of individual memb er state's money supply.  The rand is legal tender 
in Lesotho, Namibia, and Swaziland, and circulates widely in all three. 
42. Each of the LNS countries entered into a bilate ral monetary agreement with South Africa to 
supplement the MMA. This was done mainly for flexibility purposes, and to accommodate 
country-specific 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 th e CMA and pegging their currencies to the rand, 
effective implementation of monetary policy and the conduciveness of macroeconomic stability 
essential for growth in LNS depend, to a large exte nt, on the policies pursued by the South African 
Reserve Bank (SARB).  
(3) T
RADE AGREEMENTS AND ARRANGEMENTS  
(i) Participation in the WTO 
43. The SACU countries are original WTO Me mbers in their individual capacities.23  None of the 
SACU members are signatories or observers to any of the WTO plurilateral agreements.  Apart from South Africa, SACU members have not been direct ly involved, as complainant or defendant, in any 
WTO dispute settlement proceedings.  All SACU coun tries accord at least MFN treatment to all WTO 
Members. 
44. SACU countries attach great importance to  the Doha Development Agenda (DDA) 
negotiations.  They are of the view that in orde r to have meaningful participation in the DDA 
                                                     
 
22 The Botswana pula is not a currency of the CM A.  Nevertheless, Botswana maintains a crawling 
band system based on a basket of the South African  rand and the IMF's Special Drawing Right (SDR). 
23 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. SACU WT/TPR/S/222 
 Page 11 
 
 
 negotiations, they need to develop sufficient capacity to define and analyse issues in the negotiations, 
based on well informed national and regional developm ent priorities.  In this regard, SACU countries 
have indicated that technical assistance and cap acity building must extend well beyond traditional 
boundaries.  They would like this assistance to in clude research support at the country and regional 
levels, be aimed at mobilizing constituencies that ha ve an interest in domestic policy reform, and be 
provided through multilateral initiatives.  Technical  assistance, including institutional capacity 
building, will also be required if SACU countries ar e to set up the institutions necessary to effectively 
fulfil the objectives of the customs union enshrined in the 2002 SACU Agreement. 
45. SACU countries have multiple, and sometimes va ried, interests in the WTO, including on 
issues specifically related to the on-going DDA negotiations.  These interests include: the 
commitment to ensuring that the developmental con cerns of developing and least developed countries 
are reflected in the final outcome of these nego tiations;  and the substantial reduction and/or 
elimination (by developed WTO Members) of all tari ff and non-tariff barriers, particularly those on 
products of export interest to developing and least  developed countries.  SACU countries also favour 
technical assistance that will allow developing and least developed countries to participate fully and 
effectively in all negotiations, and ultimately to take advantage of the opportunities offered by the 
multilateral trading system.   
(ii) African Union (AU) and African Economic Community (AEC) 
46. The five SACU countries are members of th e AU, which succeeded the Organization of 
African Unity (OAU) in July 2002.  The AU aims to become, in the longer run, an economic and 
political union, and is being structured largely on the model of the European Union.  Its organs 
comprise the Assembly, composed of  Heads of State and Government  (decisional body);  the Council 
of Ministers (executive body);  the Pan-African Parliament (consultative body);  the Commission 
(including eight commissioners, each responsible for a portfolio);  a nd the Peace and Security Council 
(PSC).  The AU will also comprise an  African central bank;  an Afri can monetary fund;  an African 
investment bank;  a Court of Justice;  an  Ec onomic, Social and Cultural Council (whose Statutes have 
been elaborated);  and specialized technical committees. 
47. In June 1991, the OAU founded the African Ec onomic Community (AEC).  Under the AU, 
the AEC is to become a customs and monetary union in six stages, over a 34-year period.  The AEC is 
encountering several difficulties, however, incl uding conflicts, ins titutional and budgetary 
insufficiencies, and weak commitment by its members.   At the last AU Summit, held in Addis-Ababa 
in February 2008, the concept of a United States of Africa was revived, which may re-ignite the 
continent-wide economic integration.   
48. One of the main initiatives under the AU is th e New Partnership for African Development 
(NEPAD), which has its own Secretariat, based in South Africa.  It resulted from the fusion of two other plans proposed for Africa:  the Omega Plan and the Millennium Africa Plan.  The goals of 
NEPAD are to halt the marginalization of Africa in  the globalization process; to eradicate poverty; 
and to promote accelerated growth and sustainable development.  It places the private sector and investment promotion at the centre of its project, and aims at trade integration and improved access to the developed countries markets.   
49. To respond to the objectives defined by the AU and the NEPAD, an EC-Africa partnership to 
develop trans-African connecti ons was launched in 2006.  A total of €5.6 billion from the 
10
th European Development Fund (EDF, 2008-13) will support regional development in the priority 
areas of:  transport, energy, water, informa tion technology, and telecommunication networks. WT/TPR/S/222 Trade Policy Review 
Page 12 
 
 
 (iii) Southern African Development Community (SADC) 
50. The Treaty establishing the SADC was signed in 1992 with the objective of creating a 
development community that would achieve economic integration in the whole of Southern Africa, 
including through increased intra-regional trade.24  All five SACU member states are also members of 
SADC in their respective individual capacities.  S ADC aims to provide balanced economic growth 
and development, political stability, and security fo r all its member states through increased regional 
cooperation and integration.   
51. The SADC Treaty provides for several protocol s in specific areas such  as trade, finance, 
industry, education, agriculture, transport, and inv estment.  The protocols bind only the member states 
that are parties to them.   
52. All SACU member states are signatories to the S ADC Protocol on Trade, which entered into 
force on 25 January 2000.  The protocol aims to fu rther liberalize intra-regional trade in goods and 
services on the basis of fair, mutually equitable and beneficial trade arrangements.  The SADC free-trade area (FTA) was launched in August 2 008.  The SACU member states have undertaken 
single tariff-phase-down commitments in terms of the SADC Protocol on Trade.  
53. The SADC Free-Trade Area has been notified to the WTO under Article XXIV of the GATT 
1994
25, and was considered by Members at the Committee on Regional Trade Agreements (CRTA) on 
15-16 May 2007.26 
54. Through the Regional Indicative Strategic De velopment Plan (RISDP), adopted in 2003, 
SADC envisages a further move towards broader re gional integration. This includes the establishment 
of a Customs Union by 2010, a common market by 2015, and a monetary union by 2016.  SACU member states have committed themselves to these milestones. 
(iv) Relations with the European Communities 
55. SACU members were signatories to the Co tonou Agreement (su ccessor to the Lomé 
Convention) between the EC and the Africa n, Caribbean, and Pacific (ACP) countries.
27  
South Africa, however, was excluded from most of the trade provisions of the Lomé IV Convention 
and, as a result, was excluded from the trade provisi ons of the Cotonou Agreement.  South Africa's 
trade relationship with the EC is governed under a separate bilateral agreement, the SA-EC Trade, 
Development, and Cooperation Ag reement (TDCA), which makes provision for a free-trade area 
covering trade in goods.  A waiver from the obligations under Article I:1 of GATT 1994 (MFN 
treatment) for the Cotonou Agreement, that was granted by WTO Members for the period up to 
31 December 2007, has expired.28 
                                                      
24 SADC replaced the Southern African Development Coordinati on Conference (SADCC).  SADC 
membership comprises the five SACU countries and nine other countries from the sub-region, i.e. Angola, 
Democratic Republic of the Congo, Malawi, Mauritius, Madagascar, Mozambique, Tanzania, Zambia, and 
Zimbabwe. 
25 WTO documents WT/REG176/N1/Rev.1, 27 August 2004; WT/REG176/1, 8 October 2004; and 
WT/REG176/Rev.1, 19 November 2004. 
26 WTO document WT/REG176/M/1, 12 June 2007. 
27 The Cotonou Agreement was signed on 23 June 2000.  The fourth Lomé Convention expired at the 
end of February 2000. 
28 WTO document WT/MIN(01)/15, 14 November 2001.  The full text of the Cotonou Agreement has 
been communicated to WTO Members (WTO docum ent G/C/W/187/Add.3 of 14 April 2000). SACU WT/TPR/S/222 
 Page 13 
 
 
 56. ACP-EC negotiations began in September 2002,  and are aimed at establishing economic 
partnership agreements (EPAs) on a bilateral basis or between the EC and regional groupings.  The 
EPA negotiations for the SADC region were launche d in July 2004.  SACU (South Africa has also 
been invited to participate in the EPAs) is nego tiating the EPAs with the EC as part of the SADC 
configuration – known as the SADC EPA Group comprising only seven of the fourteen SADC members, i.e. SACU plus Angola and Mozambique.  The rest of the SADC countries are negotiating 
the EPAs under the Eastern and Southern Africa ( ESA) Group with the exception of Tanzania, which 
is negotiating as part of the East African Community (EAC) Group.   
57. In July 2005, SADC Ministers of Trade decided to commission a working group to look at 
harmonizing trade relations between Southern African  countries and the EC.  A Strategic Framework 
Document was developed and approved by the SADC Mi nisters of Trade at their meeting, in Luanda, 
Angola, in February 2006.  
58. The EPAs were expected to have been in for ce from 1 January 2008.  However, this has not 
materialized.  The SADC EPA Group-EC EPA negotia tions reached an initial agreement culminating 
in the initialling of an Interim EPA (covering goods onl y) at the end of 2007.  Botswana, Lesotho, and 
Swaziland (together with Mozambique) signed the In terim EPA on 4 June 2009.  Negotiations for a 
comprehensive EPA are under way, and the final EPA  for the SADC EPA Group is expected to be 
finalized during 2009. 
(v) Relations with the United States 
59. The African Growth and Opportunity Act (AGOA), contained in the U.S. Trade and 
Development Act of 2000 offers duty-free access to  some manufactured products originating in 
37 designated sub-Saharan African countries.
29  The Act originally covered the eight-year period from 
October 2000 to September 2008, but amendments in July 2004 extended the AGOA to 2015.  At the same time, a special dispensation relating to appare l was extended to 2007, but has since expired.  
60. Duty-free access to the U.S. market under the combined AGOA/GSP programme now covers 
approximately 7,000 product tariff lines, including the roughly 1,800 product tariff lines that were 
added to the GSP by the AGOA.  These include ite ms such as apparel and footwear, wine, certain 
motor-vehicle components, a variety of ag ricultural products, chemicals, and steel.  
61. To be eligible 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 discr iminatory barriers to U.S. trade and investment; 
adequate protection of intellectual property; co mbating corruption;  protecting human rights, 
e.g. those specifically related to labour, particul arly the abolition of certain child labour practices.
30  
Although the apparel benefits took e ffect, in principle, from 17 October 2000, countries must have in 
place an effective visa system to prevent illegal tr ans-shipment and use of counterfeit documentation, 
                                                      
29 African countries eligible for preferential treatment under the AGOA receive GSP treatment (exempt 
from the "competitive needs" limitations of the general GSP treatment by the United States) in the U.S. market until the expiry of the AGOA (in contrast to general GSP treatment, which is renewed on an annual basis in the 
United States), and will qualify for an expanded list of GS P products (beyond that available to other countries).  
All eligible African countries are entitled to duty-free and quota-free access to the U.S. market for apparel made 
from U.S. fabric, yarn or thread.  The legislation provides for an upper limit by volume on such imports, rising 
from 1.5% of "aggregate square metre equivalent" of  all U.S. apparel imports to 3.5%, over an eight-year 
period.   
30 African Growth and Opportunity Act online information.  Viewed at:  www.agoa.gov/index.html. WT/TPR/S/222 Trade Policy Review 
Page 14 
 
 
 as well as effective enforcement and verification pro cedures.  The five SACU countries were declared 
eligible for tariff preferences unde r the AGOA on 31 December 2001. 
62. The U.S. Trade Act of 2002 (AGOA II) expanded preferential access for imports from 
beneficiary sub-Saharan African countries by modify ing certain provisions of the AGOA.  Among the 
most important changes, AGOA II allows producers from Botswana and Namibia, for purposes of AGOA only, to profit from the "lesser developed be neficiary sub-Saharan country" provision, and to 
use third-country fabric in qualifying apparel. 
63. On 16 July 2008, SACU and the United States signed a Trade, Investment, and Development 
Agreement (TIDCA).  This is a cooperation agreem ent aimed at promoting investment and expanding 
and diversifying trade between SACU and the United States.   
64. The TIDCA aims to promote increased contact between the private sectors of both sides;  and 
to promote trade and investment between SACU member states and the United States by, inter alia , 
looking at the possibility of concluding trade- a nd investment-enhancing agr eements between the two 
sides;  monitoring trade and investment relations between the two sides;  identifying and removing 
barriers to trade and investment between the two sides;  and dealing with trade-capacity-building 
assistance and/or cooperation. 
65. The agreement further provides for a consultative process to deal with any matter relating to 
trade and investment between the two sides.  It also provides for cooperation and the possibility of 
concluding further agreements in the areas of san itary and phytosanitary matters (SPS), technical 
barriers to trade (TBT), customs cooperation, and trade facilitation. 
(vi) Free-Trade Agreement between SACU and EFTA 
66. In June 2006, SACU member states signed a fr ee-trade agreement with the European Free 
Trade Association (EFTA).  It came into effect on 1 May 2008.  The agreement was notified to the 
WTO Committee on Regional Trade Agreements on 29 October 2008 under Article XXIV of GATT 
1994. The factual review is scheduled to take place on 19 and 20 November 2009. 
67. The agreement covers trade in industrial produc ts, including fish and other marine 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 instruments creating the 
free-trade area.  The main objective of the agreement is to achieve liberalization of trade in goods in 
conformity with the relevant WTO provisions:  the EFTA States will grant the SACU states duty-free 
entry for all industrial goods from the entry into force of the agreement;  the SACU states will 
dismantle their tariffs progressively over a period not exceeding nine years.  
68. The agreement also includes trade-related disci plines as well as an article on special treatment 
for Botswana, Lesotho, Namibia, and Swaziland.  Moreover, the agreement contains provisions on the 
protection of intellectual property rights, as well as cooperation regarding investment, services, and 
government procurement.  It also includes a chapter on economic cooperation and technical 
assistance, and one on institutional and procedural  provisions.  A Joint Committee supervises the 
application of the agreement. 
(vii) Preferential-trade agreement between SACU and MERCOSUR 
69. During 2008, SACU and MERCOSUR member states concluded negotiations on a 
preferential-trade agreement (PTA).  The agreem ent was signed by the MERCOSUR member states 
on 15 December 2008, and by SACU member st ates on 4 April 2009.  The agreement replaces the SACU WT/TPR/S/222 
 Page 15 
 
 
 PTA signed in December 2004, based on the U nderstanding between SACU and MERCOSUR on the 
Conclusion of their Preferential Trade Agreement,  which mandated further negotiations aimed at 
resolving some outstanding issues.  The PTA has no t yet been notified to the WTO, although it is the 
intention of both parties to do so in future. 
70. The agreement is aimed at promoting trade be tween 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 tr ade, sanitary and phytosanitary measures, further 
market access, settlement of disputes, mutual ad ministrative assistance between customs authorities, 
as well as legal and institutional provisions.  The agreement established a Joint Administrative 
Committee, which supervises the administra tion and application of the agreement. 
(viii) Generalized System of Preferences (GSP) 
71. SACU countries also benefit, in their indivi dual capacities, from non-reciprocal preferential 
treatment from many developed and so me developing countries under the GSP.31 
 
                                                      
31 SACU countries are not signatories to the Agreem ent on the Global System  of Trade Preferences 
(GSTP) among Developing Countries. WT/TPR/S/222 Trade Policy Review 
Page 16 
 
 
 III. TRADE POLICIES AND PRACTICES BY MEASURE 
(1) INTRODUCTION  
72. There have been no major changes in the common trade policies applied by the SACU 
members since the previous Review of SACU in 2003.   The applied customs tariff;  excise duties;  
duty rebates, refunds and drawbacks;  customs valu ation;  rules of origin;  and contingency trade 
remedies are the only trade policies that continue  to be harmonized in SACU.  The Textile and 
Clothing Industry Development Programme (TCIDP) and the Motor Industry Development 
Programme (MIDP), which continue to be contin gent on export performance, are applied throughout 
SACU. 
73. Customs procedures, which have been in th e process of harmonization since 2002, have not 
yet been harmonized.  The common tariff has been somewhat simplified since the previous Review;  
it is applied by all countries with no exceptions, as are excise duties.  However, each member 
continues to have its own VAT or sales tax regi me; there are no plans to further harmonize the 
internal taxes, which would foster economic integration. 
74. The SACU members continue to apply countr y-specific investment incentives as a major 
industrial policy instrument.  Investigations re lated to trade remedies are still undertaken by 
South Africa's ITAC (after consultations with all members) on behalf of SACU;  when imposed, trade 
remedies are applied by the five members.  Howe ver, the BLNS are establishing their own institutions 
and drafting their own contingency laws to enable them to initiate trade remedies. 
(2) C USTOMS PROCEDURES AND VALUATION  
(i) Customs clearance and valuation 
75. There have been no major changes in SACU cu stoms procedures during the review period.  
Article 23 of the 2002 SACU Agreement calls for a ll five members to take appropriate measures, 
including customs cooperation, to ensure that the provisions of the agreement are applied effectively 
and harmoniously.  Prior to the entry into force of the new agreement, all SACU members applied 
South Africa's customs laws (mainly the Customs and Excise Act, Act No. 91 of 1964 of 
South Africa, as amended) to regulate customs pr ocedures (see Annex 4).  The SACU Agreement 
(Article 22) calls for members to have similar legislation in place governing customs and excise 
duties.  At present each member has its own legi slation modelled on South Africa's Customs and 
Excise Act.  However, customs procedures have  not yet been harmonized in SACU, and some 
differences remain in the regulations and admini strative procedures in the five countries;  the 
documentation required also differs.32 
76. In order to promote harmonization and facilitate  trade, SACU members have adopted several 
customs initiatives during the period .  These include the introduction of the single administrative 
document (SAD) as a common customs declaration;  a standard customs procedure code;  and an electronic data interchange.
33  It appears that Botswana,  Namibia and Swaziland use ASYCUDA, 
while South Africa uses CAPE.  Lesotho is assessing the different customs automation options. 
77. Goods entering the SACU area may be declared at the first port of entry into the customs 
union (usually a South African port), or may be removed in bond from the port of entry to another 
                                                      
32 USAID (2005). 
33 The World Customs Organization (WCO) is assisting the SACU customs administrations to 
strengthen implementation of these initiatives and develop a new customs strategy plan for the region.   SACU WT/TPR/S/222 
 Page 17 
 
 
 SACU country, where they are cleared for home consum ption or for transit to another SACU country.  
Goods moved within SACU are free of customs duty but customs controls are maintained because of 
the difference in internal tax regimes (i.e. VAT and sales taxes) and in import control measures. In the 
cases of Bostwana, Swaziland, and Lesotho, whic h are landlocked, goods are imported (exported) 
mainly via South Africa (in transit). 
78. 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. 
79. There has been no change to customs valua tion provisions in the SACU area.  SACU 
members use the 1964 Customs and Excise Act of South Africa, as amended, to regulate customs valuation.  Under this Act, the customs value of  imported goods is the transaction value based on the 
f.o.b. price of the import.  Where the transaction value cannot be ascertained, the customs value is 
based on the methods provided for by th e WTO Agreement on Customs Valuation. 
(ii) Rules of origin 
80. SACU countries have both non-preferential and preferential rules of origin.  The 
non-preferential rules of origin continue to be  set in each member's Customs and Excise Act, 
modelled on the South Africa's 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 pe rcentage as may be determined by the Commissioner for 
Customs and Excise)
34 of its production cost is represented by materials produced and labour 
performed in that territory, and if the last pro cess in its production or manufacture has taken place in 
that territory. 
81. Preferential rules of origin are applied under re gional trade agreements such as the Southern 
African Development Community (SADC) Trade Pr otocol (Chapter II(3)(v)), and under individual 
SACU member's bilateral trade agreements (see A nnexes).  The basic origin criteria for the SADC 
Trade Protocol are wholly produced, change in tariff heading and substantial transformation. 
(3) T ARIFFS AND OTHER CHARGES  
(i) MFN applied tariffs 
82. South Africa continues to set the applied MFN tariff for all SACU members after consulting 
with the other members.  The 2009 tariff is based  on the 2007 Harmonized System (HS).  The total 
number of lines at the HS eight-digit level decreased from 7,909 in 2002 to 6,695 in 2009, mainly due 
to the change in HS nomenclature from the 2002 version. 
83. The tariff structure has been somewhat simplified;  compound duties are no longer applied.  
However, the tariff still includes ad valorem , specific, mixed, and variable (formula) duties;  the 
percentage of tariff lines bearing ad valorem  rates increased substantially from 75% in 2002 to 96.8% 
in 2009 (Tables III.1 and III.2).  In number, lines wi th specific duties fell from 195 in 2002 to 109 in 
2009;  lines with mixed duties decreased from 1,774 to 98;  and those with formula duties remained 
the same (5 lines).  Specific duties (109 tariff lines) apply mainly to agricultural products (94 tariff lines), coal, and some textiles;  their a d valorem  equivalents range from zero to 60%.  Mixed duties 
                                                     
 
34 The Act stipulated that the Commissioner may, at an y time, increase the prescr ibed percentage at the 
request of South Africa's International Trade Administration Commission (ITAC).  This is a discretionary power that, according to the authorities, has not been used recently. WT/TPR/S/222 Trade Policy Review 
Page 18 
 
 
 (two different types35) apply to agricultural products, coal , and textiles and footwear products 
(Table III.2).  
Table III.1 
Structure of SACU MFN tariffs, 2002, 2008, and 2009 
(Per cent) 
  U.R.  
  2002 2008 2009 
BWA LSO NAM 
and SWZ ZAF 
1.    Bound tariff lines (% of all tariff lines) n.a. n.a. n.a. 95.1 100.0 95.1 95.1 
2.    Duty-free tariff lines (% of all tariff lines) 43.4 54.1 54.4 11.5 0.0 11.6 11.6 
3.    Non- ad valorem  tariffs (% of all tariff lines) 25.0 3.1 3.2 0.0 0.0 0.0 0.0 
4.    Tariff quotas (% of all tariff lines) 3.8 4.6 4.6 0.0 0.0 0.0 4.6 
5.    Non- ad valorem  tariffs with no AVEs (% of all 
tariff lines) 25.0 0.8 0.8 0.0 0.0 0.0 0.0 
6.    Simple average tariff rate 11.4 8.1 8.1 20.0 79.1 20.3 20.3 
 Agricultural products (WTO definition)a 9.6 10.1 10.1 39.6 200.0 41.8 41.8 
 Non-agricultural products (WTO definition)b 11.6 7.9 7.8 16.7 60.0 16.7 16.7 
 Agriculture, hunting, forestry, and fishing 
(ISIC 1) 5.3 3.7 3.7 18.3 170.6 21.0 21.0 
 Mining and quarrying (ISIC 2) 0.7 0.8 0.8 1.5 60.0 1.5 1.5 
 Manufacturing (ISIC 3) 11.8 8.5 8.5 20.4 74.6 20.6 20.6 
7    Domestic tariff "spikes" (% of all tariff lines)c 3.9 8.5 8.5 2.4 0.0 2.8 2.8 
8.    International tariff "peaks" (% of all tariff lines)d 34.8 20.8 20.8 46.5 100.0 46.5 46.5 
9.    Overall standard deviation of a pplied rates 12.6 11.1 11.1 23.3 48.0 23..8 23..8 
10.   "Nuisance" applied rates (% of all tariff lines)e 0.0 1.0 1.0 0.0 0.0 0.0 0.0 
n.a. Not applicable. 
a WTO Agreement on Agriculture definitions. 
b Excluding petroleum. 
c Domestic tariff spikes are defined as those exceeding three times the overall simple average applied rate.  
d International tariff peaks are defined as those exceeding 15%. 
e Nuisance rates are those greater than zero, but less than or equal to 2%.  
Note: BWA:  Botswana;  LSO:  Lesotho;  NAM:  Nami bia;  SWZ:  Swaziland;  and ZAF:  South Africa.  
Source:   WTO Secretariat calculations, based on data provided by the South African authorities;  and WTO, CTS database. 
Table III.2  
MFN tariff distribution, by type of duty, 2002 and 2009 
2002 2009 Type of duty 
No. of linesa Per cent HS Chapters No. of linesaPer cent HS Chapters 
Ad valorem 5,933 75.0 All HS chapters 6,483 96.8 All HS chapters  
Specific 195 2.5 02, 03, 04, 07, 08, 09, 
10, 11, 12, 16, 17, 19, 
20, 21, 22, 24, 27, 38, 52, 63 109 1.6 02, 07, 09, 11, 12, 16, 
19, 20, 21, 22, 24, 27, 
38, 52, 63 
Compound 2 0.0 11, 22 0 0.0 n.a. 
Mixed 1,774 22.4 n.a. 98 1.5 02, 04, 07, 16, 19, 20, 
27, 63, 64 
Type 1 (e.g. 25% or 70c/kg) 65 0.8 03, 16, 20, 62 , 63, 64 65 1.0 02, 16, 20, 63, 64 
Type 2 (e.g. 325c/kg with a max. of 39%) 114 1.4 07, 16, 19, 20, 27, 52, 
55, 63 33 0.5 04, 07, 16, 19, 20, 27 
Type 3 (e.g. 22% or 24% 
with a max. of 2,880c/kg)  1,595 20.2 51, 52, 54, 55, 58, 59, 
60, 61, 62 0 0 0 
Table III.2 (cont'd)
                                                      
35 There were three types of mixed duties in WTO (2003). SACU WT/TPR/S/222 
 Page 19 
 
 
 2002 2009 Type of duty 
No. of linesa Per cent HS Chapters No. of linesaPer cent HS Chapters 
Formula 5 0.1 19, 20, 24 5 0.1 19, 20, 24 
Total lines 7,909 100.0 n.a. 6,695 100.0 n.a. 
n.a. Not applicable.  
a Eight-digit HS. 
Source : WTO Secretariat estimates, based on data provided by South Africa. 
84. As in 2002, variable (formula) duties are levi ed on corn-flour, preserved tomatoes, cherries, 
and two kinds of tobacco (Table III.3).  Variable (formula) duties were designed to maintain domestic 
prices above a certain level and protect the indust ry producing the good against low international 
prices.  They are based on the relationship between the f.o.b. import prices and reference prices.  If the f.o.b. price is higher than or equal to the reference price, an ad valorem  duty applies;  and if the f.o.b. 
price is lower than the reference price, the paya ble duty is calculated as the difference between the 
reference price and the f.o.b. price net of the otherwise payable " ad valorem  amount of duty.
36  As 
such, protection is adjusted automatically with changes in international prices; the lower the 
international price in relation to the referen ce price the higher the protection (Box III.1).   
Table III.3 
Formula (variable) duties, 2009 
HS heading Product description Duty 
1901.9010 Corn flour 10% or 55c/kg less 90% 
2002.1090 Other tomatoes prepared or pr eserved 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 stem med or stripped 15% or 860c/kg less 85% 
Source : South African Revenue Service online information, Legal and Policy:  Schedule to the Customs and Excise Acts 
 (Tariff Books) .  Viewed at:  http://www.sars. gov.za/home.asp?pid=2630 [26 March 2009].  
Box III.1:  Formula (variable) duties in the SACU tariff  
Formula duties were designed to combat "disruptive compet ition" (e.g. dumping, export s ubsidies, distress selling in 
cases of temporary surplus, arbitrary pricing in non-ma rket economies, and price manipulation in intra-group 
transactions) by maintaining domestic prices above set floors.  For this purpose, formula duties are adjusted 
automatically with changes in international prices.   
The formula duty generally appl ies the higher of two rates and is based on the relationship between the f.o.b. import 
price and a reference price:  either an ad valorem  duty applies, or the amount of cu stoms duty payable on each unit of 
the good is calculated as the difference between the reference price and the f.o.b. price ne t of "the otherwise payable ad 
valorem  amount of duty" (i.e. the am ount of duty payable if the ad valorem  rate were applied).  
Let θ be the ad valorem  rate, P m the reference price, and P z the f.o.b. import price, th e formula-duty system can be 
summarized as follows:  if P z ≥ Pm , then the ad valorem  (minimum) rate θ applies;  otherwise, i.e. if P m > P z, the 
amount of duty payable (D c) is calculated using the following formula: 
Dc = P m - (P z - θPz) = (P m - (1 - θ)Pz 
The ad valorem  equivalent rate θc that yields D c is: 
θc = D c/Pz = (P m - (1 - θ)Pz) / P z = (P m /Pz) + θ - 1 
Box III.1 (cont'd) 
 
                                                      
36 The otherwise payable " ad valorem  amount of duty" is the amount of duty to be paid if the 
ad valorem  rate set for import prices higher than or equal to the reference price were used.   WT/TPR/S/222 Trade Policy Review 
Page 20 
 
 
 Box III.1:  Formula (variable) duties in the SACU tariff  
This expression means that, fo r a given reference price P m and an ad valorem  rate θ, the ad valorem  equivalent, θc, 
increases as f.o.b. prices decline.  Since (P m/Pz) is higher than 1, then {(P m/Pz )-1} is positive and θ is lower than θc, 
which may take any value between θ, its lowest level, and infinity.  Therefore, in cases where maximum rates are not 
set, the maximum tariff protection is indefinite. 
On corn flour, cherries (drained or glacé) and tobacco  (partly or wholly stemmed or stripped), the minimum ad valorem  
rates are specified but no maximum rate is set.  Therefore, the ad valorem  equivalents could be higher than the ad 
valorem  bound tariffs on these products.   
For example, on drained or glacé cherries, under the formula duty system 20% is applied if the import price is at least 
215¢/kg (the reference price), otherwise if the f.o.b. im port price is lower than 215¢/ kg, the duty payable will be 
215¢/kg less 80% of the import price.  If the import price is 100¢/kg for example, the duty payable will be:  Dc = 215¢ - 
(1 - 0.2)100¢ = 135¢/kg;  therefore, the ad valorem  equivalent rate θc will be 135%.   
On tomatoes (prepared or preserved otherwise than by vine gar or acetic acid) and tobacco (not stemmed or stripped), 
maximum ad valorem  rates are specified, but no minimum ad valorem  rate (θ) is set.  This means that the tariff on these 
products may vary from zero to the maximum ad valorem  rate set.   
Source:   WTO (1998), Trade Policy Review:  SACU , Geneva.  
85. For the purpose of this tariff analysis, a total of 6,670 lines were used:  25 tariff lines for 
which ad valorem  equivalents could not be calculated were omitted.  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;  th e specific components of compound duties, have 
been ignored.  As a result, the analysis may, to a certain extent, be misleading.  For instance, the 
omission of the specific components of compound duties is likely to introduce a downward bias in the estimates.  Furthermore, the ad valorem  equivalents of certain non- ad valorem  duties could be 
relatively high; formula duties, as already mentioned, may in particular result in extremely high rates. 
86. The simple average applied MFN tariff rate is 8.1% in 2009 down from 11.4% in 2002 
(Table III.1);  the coefficient of variation of 1.4 (up from 1.10 in 2002) indicates that there is still 
relative dispersion of the tariff rates and that  dispersion has increased.  The tariff comprises ad 
valorem  rates ranging from zero to 96% (zero to 55% in  2002);  the modal rate (the rate occurring 
most frequently) is zero, and applies to some 54.6% of all tariff lines (up from 43.4% in 2002) 
(Chart III.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.  Some 87.4% of 
all tariff lines carry rates up to 20% (included).  The highest tariffs (above 50%) apply to some 0.1% 
of all tariff lines including dairy products, prepar ations of vegetables, beverages, and spirits 
(Table AIII.1).  The ISIC sector with the highest tariff protection is manufacturing (8.5%, down from 
11.8% in 2002), followed by agriculture (3.7%, down from 5.5% in 2002), and mining and quarrying 
(0.8%, slightly up from 0.7% in 2002) (Table AIII.2).  Under the WTO definition, agriculture has the highest average tariff protection at 10.1% (9.6% in 2002), against 7.8% (11.6% in 2002) for non-agricultural products.   
87. In aggregate, the tariff displays positive escal ation throughout the stages of production from 
raw materials, with an average tariff rate of 3.6% (down from 4.7% in 2002), to semi-finished 
products, with an average rate of 6.0% (down fro m 12.9% in 2002); to fully-processed products on 
which tariffs average 10.2% (dow n from 11.2% in 2002) (Table III.4).  Tariff escalation is also 
positive in almost all industries (Chart III.2).  The positive escalation and, therefore, the effective rate 
of protection, may be more pronounced if  duty concessions were taken into account. SACU WT/TPR/S/222 
 Page 21 
 
 
 54.6
53.2
89.7
71.313.8
13.9
10.3
13.019.0
19.6
12.38.7
9.1
2.53.6
3.9
0.60.2
0.2
0.3 0.1
0.1
0.0 
05001,0001,5002,0002,5003,0003,5004,000
All products
Manufacturing
Mining
Agriculture
Duty Free 0- 10% 10- 20% 20- 30% 30- 40% 40- 50% >50%Chart III.1
MFN tariff distribution by s ector (ISIC1 definitions)a, 2009
Number of lines
a
Source:Labels are share by sector.  Due to non- ad valorem  duties, they may not add up to 100%.
WTO Secretariat calculations, based on data provided by South Africa. 
Table III.4 
Summary analysis of SACU MFN tariff, 2009  
Applied 2009 rates Analysis No. of 
lines No. of 
lines useda Simple avg. 
tariff (%) Range tariff 
(%) Std-dev 
(%) CV 
Total 6,695 6,670 8.1 0-96 11.1 1.4 
By WTO definitionb             
Agriculture 917 901 10.1 0-96 12.7 1.3 
Live animals and products thereof 115 111 15.3 0-43.7 17.6 1.2 
Dairy products 29 29 21.9 0-96 23.8 1.1 
Coffee and  tea, cocoa, sugar, etc. 184 181 8.6 0-44.2 10.4 1.2 
Cut flowers and plants 45 45 7.1 0-25 8.5 1.2 
Fruit and vegetables 207 200 11.1 0-55 10.6 1.0 
Grains 16 16 0.5 0-5 1.4 2.8 
Oil seeds, fats, oils, and their products 86 86 7.9 0-20 4.2 0.5 
Beverages and spirits 56 56 17.1 0-60.1 13.0 0.8 
Tobacco 17 15 33. 6 0-45 15.7 0.5 
Other agricultural products 162 162 3.1 0-20.6 6.5 2.1 
Non-agriculture (excl. petroleum) 5,751 5,744 7.8 0-60 10.8 1.4 
Fish and fishery products 175 170 5.8 0-30 10.7 1.8 
Mineral products, precious stones, and 
precious metals 391 391 4.7 0-30 7.1 1.5 
Metals 752 752 4.6 0-30 7.2 1.6 
Table III.4 (cont'd)WT/TPR/S/222 Trade Policy Review 
Page 22 
 
 
 Applied 2009 rates Analysis No. of 
lines No. of 
lines useda Simple avg. 
tariff (%) Range tariff 
(%) Std-dev 
(%) CV 
Chemicals and photographic supp lies 1,215 1,213 3.7 0-20 6.2 1.7 
Leather, rubber, footwear, and travel goods 238 238 12.5 0-43 12.0 1.0 
Wood, pulp, paper, and furniture 324 324 6.1 0-30 8.0 1.3 
Textiles and clothing 991 991 21.2 0-60 12.8 0.6 
Transport equipment 211 211 8.7 0-30 10.2 1.2 
Non-electric machinery 622 622 2.7 0-30 6.0 2.2 
Electric machinery 374 374 6.6 0-25 7.9 1.2 
Non-agricultural articles n.e.s. 458 458 5.1 0-30 7.9 1.6 
By ISIC sectorc       
Agriculture, hunting, forestry, and fishing 324  324 3.7 0-44 7.3 2.0 
Mining 97  97 0.8 0-10 2.6 3.1 
Manufacturing 6,273  6,248 8.5 0-96 11.3 1.3 
By stage of processing       
Raw materials 717 717 3.6 0-60 7.7 2.1 
Semi-processed products 2,218 2,216 6.0 0-25 8.1 1.3 
Fully-processed products 3,760 3,737 10.2 0-96 12.6 1.2 
a Lines with no ad valorem  equivalents are excluded. 
b 27 tariff lines on petroleum products are not taken into account. 
c International Standard Industrial Classification (Rev.2).  Electricity, gas, and water are excluded (1 tariff line). 
Note: CV = coefficient of variation. 
Source : WTO Secretariat estimates, based on data provided by the South African authorities. 
0.05.010.015.020.025.030.0Chart III.2
Tariff escalation by ISIC 2-digit industry, 2009
Sourc e: WTO Secretariat estimates, based on data  provided by the South African authorities.All products
Food,
beverages
Textiles,
apparel
Wood products
Paper, printing
Chemicals ,
plastics
Non-metalli c
minera l
products
Basic meta l
products
Fabricated meta l
products
Other
manufacturin gNOT APPLICABLEAgriculture
MiningRaw materials Semi-processed Fully processedNOT APPLICABLEPer cent
 SACU WT/TPR/S/222 
 Page 23 
 
 
 (ii) MFN bound tariffs 
88. Bindings made by Namibia and Swaziland duri ng the Uruguay Round are identical to those 
made by South Africa.  Those bindings covered 95% of the tariff lines at the HS eight-digit level 
calculated on the basis of the 2008 tariff schedul e.  Botswana's concessions are the same as 
South Africa's with some exceptions.  In agricultu ral products, the exceptions include 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), on which tariff rates are bound by Botswana at 
20%.37  Exceptions in non-agricultural products incl ude small tractors (ex. HS 8701), on which the 
tariff rate was also bound by Botswana at 20%.38  Lesotho bound 100% of its tariff lines;  all 
agricultural products at ceiling rate of 200% and ot her products at a ceiling rate of 60% (Tables III.1 
and AIII.2). 
89. All tariff bindings are at ad valorem  rates, including lines to which specific, mixed, 
compound, or formula duties apply.  Tariff quotas were included in the commitments made by South Africa and apply to imports of selected agricultural products by all SACU countries 
(section (i) above).  On some tariff lines, the applie d tariff appears to be higher than the bound tariff 
(Table III.5).  However, this is especially difficult to assess in some of the lin es that bear specific   
non-ad valorem  duties and where there is no strict correspondence between nomenclatures. 
Table III.5 
Tariff lines where applied MFN rate might be higher than the bound rate, 2009  
MFN applied rates Tariff code  
As specified Corresponding 
AVEsa (%) Bound 
rates 
(%) 
SACU     
19019010 Corn flour 10% or 55c/kg less 
90% .. 99.0 
20060030 Cherries, drained or glacé 20% or 215c/kg less 
80% .. 37.0 
24012000 Tobacco, partly or wholly st emmed or stripped 15% or 860c/kg less 
85% .. 44.0 
South Africa, Namibia, and Swaziland    
02064100 Livers 30% or 130c/kg 40.8 38.0 
12119030 Basil, borage, hyssop, mint, rosemary, rue, and sage, 
ground or crushed 4c/kg 0.3 0.0 
22021010 Water, containing adde d sugar or other sweetening 
matter or flavoured, in sealed containers holding 2.5 l 
or less (excluding those in collapsible plastic tubes) 4.36c/l 0.5 0.0 
22021090 Water, containing adde d sugar or other sweetening 
matter or flavoured, in sealed containers holding more 
than 2.5 l (excluding those in collapsible plastic tubes) 3.3c/l 0.9 0.0 
64022000 Footwear with upper straps  or thongs assembled to the 
sole by means of plugs 30% or 500c/2u 31.9 30.0 
84212330 Oil or petrol-filters for internal combustion engines, 
suitable for use with motor vehicle engines (including motorcycle engines) 16.0% n.a. 15.0 
Table III.5 (cont'd) 
                                                      
37 South Africa bound tariffs for dairy products (HS 04) at 79%, 95%, and 96%;  for wheat, maize, and 
rice (HS 1001, 1005 and 1006) at 0%, 21%, and 50%;  for groundnuts and sunflower oil-seed (HS 1202 and 
1206) at 47% and 70%;  and for raw cotton (HS 5201) at 60%. 
38 South Africa bound the tariff on small tractors (ex. HS 8701) at 10%. WT/TPR/S/222 Trade Policy Review 
Page 24 
 
 
 MFN applied rates Tariff code  
As specified Corresponding 
AVEsa (%) Bound 
rates 
(%) 
Botswana     
02064100 Livers 30% or 130c/kg 40.8 38.0 
04021000 Milk and cream, concentrated or containing added 
sugar or other sweetening ma tter, in powder, granules 
or other solid forms, of a fat content, by mass, not 
exceeding 1.5% 450c/kg with a 
maximum of 96% 31.0 20.0 
04022100 Milk and cream, concentrat ed, in solid forms, of a fat 
content exceeding 1,5%, not containing added sugar or 
other sweetening matter 450c/kg with a 
maximum of 96% 30.9 20.0 
04022900 Milk and cream, concentrat ed, in solid forms, of a fat 
content exceeding 1,5%, c ontaining added sugar or 
other sweetening matter 450c/kg with a 
maximum of 96% 26.9 20.0 
04029100 Milk and cream, concentrated, not in solid forms, not 
containing added sugar or  other sweetening matter 450c/kg with a 
maximum of 96% 28.8 20.0 
04029900 Milk and cream, concentrated, not in solid forms, 
containing added sugar or  other sweetening matter 450c/kg with a 
maximum of 96% 21.4 20.0 
04041000 Whey and modified whey, whether or not 
concentrated or containing added sugar or other 
sweetening matter 450c/kg with a 
maximum of 96% 40.2 20.0 
04051000 Butter 500c/kg with a 
maximum of 79% 32.1 20.0 
04059000 Other fats and oils derived fr om milk; dairy spreads 500c/kg with a 
maximum of 79% 41.7 20.0 
04061000 Fresh (unripened or uncured) cheese, including whey 
cheese, and curd 500c/kg with a 
maximum of 95% 20.4 20.0 
04063000 Processed cheese, not grat ed or powdered 500c/kg with a 
maximum of 95% 20.1 20.0 
22021010 Water, containing adde d sugar or other sweetening 
matter or flavoured, in sealed containers holding 2.5 l or less (excluding those in collapsible plastic tubes) 4.36c/li 0.5 0.0 
22021090 Water, containing adde d sugar or other sweetening 
matter or flavoured, in sealed containers holding more than 2.5 l (excluding those in collapsible plastic tubes) 3.3c/li 0.9 0.0 
52010020 Cotton, not carded or combed, ginned but not further 
processed 160c/kg 20.6 20.0 
64022000 Footwear with upper straps  or thongs assembled to the 
sole by means of plugs 30% or 500c/2u 31.9 30.0 
84212330 Oil or petrol-filters for internal combustion engines, 
suitable for use with motor vehicle engines (including motorcycle engines) 16.0% n.a. 15.0 
.. Not available. 
n.a. Not applicable. 
a AVEs of the specific components. 
Source:   WTO calculations, based on data provided by the S outh African authorities;  and WTO CTS database.  
(iii) Tariff preferences 
90. Under the SACU Agreement, goods originating in  a member country are traded free of duties 
within the customs union.  Tariff preferences ar e provided under the SACU-EFTA agreement, and 
under SADC (Table III.6).  Under the SACU-EFTA agreement, preferences are highest in the manufacturing sector, where average tariff protection is 5.7%, compared with MFN tariff protection of 8.5%;  preferences in mining and agriculture are almost negligible.  Under the SADC Trade Protocol, all SACU countries also grant duty-free ac cess to imports of Category A products from the 
other SADC members.  SACU countries also grant tariff preferences under trade agreements in which SACU WT/TPR/S/222 
 Page 25 
 
 
 they participate individually.  Thus, tariff preferen ces may differ from one SACU  country to another.  
However, when goods imported from outside the SACU under a preferential agreement are exported 
to another member state (not party to the agre ement), the normal import duty is charged.  The 
exporting state is responsible for ensuring that nor mal duty is paid on goods initially imported under a 
preferential arrangement if re-e xported to another SACU country. 
Table III.6 
Summary analysis of SACU MFN and preferential tariffs, 2009  
2009 applied rates EFTA SADC Analysis No. of 
linesa Simple avg. 
tariff (%) Range tariff 
(%) Simple avg. 
tariff (%) Range tariff 
(%) Simple avg. 
tariff (%) Range tariff 
(%) 
Total 6,695 8.1 0-96 5.5 0-96 0.0 0-60 
By WTO definitionb               
Agriculture 917 10.1 0-96 9.2 0-96 0.0 0 
Live animals and products thereof 115 15.3 0-43.7 15.0 0-43.7 0.0 0 
Dairy products 29 21.9 0-96 21.1 0-96 0.0 0 
Coffee and  tea, cocoa, sugar, etc. 184 8.6 0-44.2 7.0 0-44.2 0.0 0 
Cut flowers and plants 45 7.1 0-25 5.7 0-22 0.0 0 
Fruit and vegetables 207 11.1 0-55 10.4 0-55 0.0 0 
Grains 16 0.5 0-5 0.5 0-5 0.0 0 
Oil seeds, fats, oils, and their products 86 7.9 0-20 7.4 0-20 0.0 0 
Beverages and spirits 56 17.1 0-60.1 16.1 0-60.1 0.0 0 
Tobacco 17 33.6 0- 45 31.1 0-45 0.0 0 
Other agricultural products 162 3.1 0-20.6 2.4 0-20.6 0.0 0 
Non-agriculture (excl. petroleum) 5,751 7.8 0-60 4.9 0-60 0.0 0-60 
Fish and fishery products 175 5.8 0-30 2.9 0-25 0.0 0 
Mineral products, precious stones, and 
precious metals 391 4.7 0-30 2.2 0-22.4 0.0 0 
Metals 752 4.6 0-30 3.4 0-30 0.0 0 
Chemicals and photographic supplie s 1,215 3.7 0-20 2.3 0-20 0.0 0 
Leather, rubber, footwear, and travel 
goods 238 12.5 0-43 8.5 0-24 0.0 0 
Wood, pulp, paper, and furniture 324 6.1 0-30 3.5 0-22.5 0.0 0 
Textiles and clothing 991 21. 2 0-60 12.1 0- 60 0.1 0-60 
Transport equipment 211 8.7 0-30 7.2 0-30 0.0 0 
Non-electric machinery 622 2.7 0-30 1.9 0-30 0.0 0 
Electric machinery 374 6.6 0-25 4.5 0-45 0.0 0-4.4 
Non-agricultural articles n.e.s. 458 5.1 0-30 4.3 0-30 0.0 0 
By ISIC sectorc        
Agriculture, hunting, forestry, and 
fishing 324  3.7 0-44 3.6 0-44 0.0 0 
Mining 97  0.8 0-10 0.0 0 0.0 0 
Manufacturing 6,273  8.5 0-96 5.7 0-96 0.0 0-60 
By stage of processing        
Raw materials 717 3.6 0-60 2.9 0-60 0.2 0-60 
Semi-processed products 2,218 6.0 0-25 3.3 0-25 0.0 0 
Fully-processed products 3,760 10.2 0-96 7.3 0-96 0.0 0-4.4 
a Tariff rates are based on a lower frequency (number of lines) since lines with no ad valorem  equivalents are excluded. 
b 27 tariff lines on petroleum products are not taken into account. 
c International Standard Industrial Classification (Rev.2).  Electricity, gas, and water are excluded (1 tariff line). 
Note: CV = coefficient of variation. 
Source : WTO Secretariat estimates, based on data provided by the South African authorities. WT/TPR/S/222 Trade Policy Review 
Page 26 
 
 
 (iv) Other duties and charges  
91. As stipulated in the schedules to the South African Customs and Excise Act 91 of 1964 as 
amended, certain products are subject to VAT , excise duties, and other levies (Annex 4, 
section (2)(i)).  SACU members bound other duties and charges (ODCs) at the time of the Uruguay 
Round.  Lesotho bound ODCs on all tariff lines at ze ro per cent;  Botswana, Namibia, South Africa, 
and Swaziland bound them for all tariff lines at ze ro, with the exception of 49 tariff lines (at the 
eight-digit level) that have higher bound rates. 
(a) Excise duties 
92. SACU countries apply the same excise duties on  specified products (Table AIII.4).  Excise 
duties may be specific or ad valorem , depending upon the good, and are applied at the same rate on 
imported and domestically produced goods (Table A III.4).  Excise formula duties remain in place for 
motor vehicles and their components. 
(b) VAT or sales tax  
93. The value-added tax (VAT) and sales tax are not  harmonized within SACU, and this creates 
an economic border.  Each SACU country continue s to set its own VAT or sales tax.  Botswana, 
Lesotho, Namibia, and South Africa levy VAT at different rates;  and Swaziland still imposes a sales tax.  In practice, when goods are exported from one SACU country to another, the shipper applies for 
VAT/sales tax refunds from the exporting country, a nd then pays the relevant tax to the importing 
country.  However, this entails filing papers in  two countries;  it increases trading costs, and 
encourages smuggling and tax evasion.  Given the disparity of internal tax rates, border controls are still maintained within the SACU area.  The harmon ization of tax levels w ould facilitate trade and 
foster economic integration.  
(v) Duty and tax concessions  
94. The 2002 SACU Agreement provides that member s apply identical rebates, refunds or 
drawbacks of customs duties on imported goods (Artic le 21).  The SACU council is responsible for 
approving all rebates
39, refunds40, and drawbacks41 (Table AIII.4).  There are two types of rebates:  
industrial rebates and "temporary" rebates.  Industr ial rebates apply to inputs not produced in SACU 
or in short supply in SACU or that are for final goods to be used in the region.  The "temporary" 
rebates apply to final goods, for inputs for exports  and for specific use (e.g.  national disasters, 
donations).42  In general these rebates are used by all the SACU member states.  The only 
country-specific rebates are those for wheat (HS 1011) and dairy products (HS 04), which are used 
only by the BLNS, and those for goods to be used in the Gautrain Rapid Rail Link project, which are 
only used by South Africa.  In addition, South Africa has several incentives programmes that do not 
apply to the BLNS countries, with the exception of  the Textile and Clothing Industry Development 
Programme (TCIDP) and the Motor Industry Develo pment Programme (MIDP), which are contingent 
on export performance (Annex 4). 
                                                      
39 A part of the duty or all of the duty is reduc ed or remitted subject to compliance with certain 
conditions. 
40 Repayment of all or part of the duty paid at the time of importation. 
41 Part or all of the duty paid on the imported goods is refunded to the importer once the imported 
goods are used to manufacture a product that is exported out of the customs union. 
42 These are called "temporary" rebates becaus e they are reviewed by the authorities. SACU WT/TPR/S/222 
 Page 27 
 
 
 (4) C ONTINGENCY TRADE REMEDIES  
95. As a result of their SACU membership, all SACU members must apply anti-dumping, 
countervailing or safeguard measure imposed by South Africa, throug h investigations conducted by 
the International Trade Administration (ITAC) of South Africa on behalf of all SACU countries.  
Thus, the trade remedies applied by  South Africa are by extension also applied by BLNS.  The BLNS 
countries do not have trade remedies  legislation or institutions in ch arge of imposing trade remedies.  
Hence all actions are initiated by South Africa and thus mainly relevant to the South African 
economy;  BLNS do not produce most of the items concerned.  The new SACU Agreement provides for the creation of national bodies in each of the BL NS countries to enable them to conduct their own 
investigations.  The BLNS countries are in  th e process of drafting the necessary legislation to 
establish the national bodies.  In the interim, the ITAC of South Africa, which has been given a 
mandate to act as SACU Tariff Board in interim, is training officials from BLNS on tariff 
investigations and trade remedies.
43 
96. The International Trade Administration Act, No. 71 of 2002, the Customs and Excise Act, 
No. 91 of 1964, as amended, the Anti-Dumpi ng Regulations of 14 November 2003, and the 
Countervailing Regulations of 30 March 2005 provide the legal basis for anti-dumping and 
countervailing measures in South Africa, and by extension, SACU.44  The application of safeguards is 
regulated by the International Trade Administration Act, No. 71 of 2002, the Customs and Excise Act, 
No. 91 of 1964, as amended, and the Sa feguard Regulations of 27 August 2004.45   
97. South Africa (and by extension SACU) continues to be one of the major users of 
anti-dumping measures in the WTO.  Data are not av ailable on the percentage of imports to SACU 
that were subject to contingency measures during th e period under review.  However, the number of 
initiations of anti-dumping measures notified to the WTO has declined since 2005.  According to the 
information notified to the WTO, there have been  no new initiations of countervailing investigations 
during the review period, only sunset reviews and initiation of one safeguard investigation in 2007, 
which led to the imposition of a safeguard measure on lysine powder (Table III.7).46 
Table III.7 
Contingency measures notified by South Africa, 2003-08a 
 2003 2004 2005 2006 2007 2008a 
Anti-dumping       
Initiation of investigations 12 17 32 27 7 6 
Sunset reviewb 20 34 14 8 16 14 
Sunset reviewc 38 21 8 31 20 15 
Definitive measures 90 82 68 71 55 56 
Countervailing       
Initiation of investigations 0 0 2d 4d 3d 1d 
Definitive measures 4 4 4 3 1 1 
Table III.7 (cont'd) 
                                                      
43 For applications and necessary questionnaires relate d to trade remedies investigations and reviews, 
see ITAC online information.  Viewed at:  http:// www.itac.org.za/docs.asp?cID=1&scID=8 [27 March 2009]. 
44 WTO documents G/ADP/N/1/ZAF/2 and G/SCM/N/1/ZAF/2, 20 January 2004;  and  
G/SCM/N/1/ZAF/2/Add.1, 21 April 2005. 
45 WTO documents G/SG/N/1/ZAF/2, 27 September 2004. 
46 WTO document G/SG/N/8/ZAF/1/Suppl.2, G/SG /N/10/ZAF/1/Suppl.1; G/SG/N/11/ZAF/1/Suppl.2, 
21 December 2007. WT/TPR/S/222 Trade Policy Review 
Page 28 
 
 
  2003 2004 2005 2006 2007 2008a 
Safeguardse       
Initiation of investigations 0 0 0 0 1 0 
Definitive measures 0 0 0 0 1 0 
a To 30 June 2008. 
b Sunset review (expiry review). c Notice given of sunset review, but not yet initiated. 
d Sunset review. 
e Notifications available in the Secretariat only for 2007. 
Source : WTO documents G/ADP/N/-, SCM/N/-, and SG /N/- series, February 2003-August 2008;  and WTO                 
 Anti-Dumping Measures Database.   
(i) Anti-dumping  
98. Anti-dumping investigations are usually initiated upon a written application by or on behalf of 
the SACU industry.47  However, the ITAC may initiate an investigation or a review itself if it has 
prima facie  evidence of dumping, material injury, and/or a causal link to justify the initiation of an 
investigation or review.48  Investigations are formally initiated through publication by the ITAC of an 
initiation notice in the Government  Gazette .  This is also the case for countervailing and safeguard 
investigations. 
99. When determining the margin of dumping, the ITAC must make allowance for differences in 
conditions and terms of sale, differences in ta xation, and other differences affecting price 
comparability.  The margin of dumping is determ ined as the amount by which the normal value 
exceeds the export price.  If, during the investigatio n, the ITAC determines that the normal value of 
the goods investigated is the result of the Governme nt intervening in the exporting country or country 
of origin, and not determined by the market, it may use a normal value based on data from a third 
country. 
100. In determining material injury to the SACU industry the Commission must consider whether 
there has been a significant reduction of the SACU industry's prices and sign ificant changes in the 
domestic performance of the SACU industry in respect to, inter alia , sales volume, profits and losses, 
output, market share, productivity, employment, wages, and capacity to grow.  
101. The ITAC may request the South African Revenue Services (SARS) Commissioner to impose 
a provisional duty in respect of the in vestigated goods, by notice in the Government  Gazette .  If no 
anti-dumping, countervailing or safeguard duty is  imposed, the provisional duty paid must be 
refunded.  Definitive anti-dumping duties will rema in in place for five years from the date of 
publication of the ITAC's final recommendation, unl ess otherwise specified or reviewed before the 
end of the five-year period.  Definitive anti-dumping duties may be imposed with retroactive effect to 
the date of the imposition of the provisional duty.  Anti-dumping duties will stay in place for five years, unless an interested party requests a review of these duties.  Sunset reviews are available to 
determine whether any anti-dumping duty that has been in place for five years needs to be continued.  
For a duty to be continued it should be determined th at there would be a continuation or recurrence of 
injurious dumping (or injurious subsidized exports) if the duty were to be removed. 
                                                     
 
47 An application is regarded as made on behalf of the SACU industry if at least 25% of the SACU 
producers in terms of domestic volume support the application;  and of those producers that express an opinion 
on the application, if at least 50% in terms of domestic production volume support the application. 
48 For reports on ongoing investigations, see ITAC online information.  Viewed at:  
http://www.itac.org. za/docs.asp?cID=8 [27 March 2009]. SACU WT/TPR/S/222 
 Page 29 
 
 
 102. South Africa's legislation also provides for new shipper reviews.  Thus, new exporters from a 
country against which an anti-dumping or counterv ailing 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 and they are not related to a party on which the 
duty is imposed. 
103. Anti-dumping duties are imposed through a publication in the Government Gazette  by the 
SARS.  Goods subject to anti-dumping duties, count ervailing duties or safeguard measures are listed 
as an amendment to Schedule 2 of the Customs a nd Excise Act No. 91 of 1964.  Any of these duties 
may be reduced or withdrawn at the request of  the Minister of Trade and Industry after an 
investigation by the ITAC.  These amendments are also ma de through a notice in the Gazette  
amending Schedule 2 to indicate which anti-dumpi ng, countervailing or safeguard duties have 
changed. 
104. Anti-dumping proceedings may be suspended or  terminated following the receipt of a 
satisfactory price undertaking from any exporter to re vise its prices or to cease exports to the SACU at 
dumped prices.  If a sunset review has been initiated prior to the lapse of an anti-dumping duty, such 
anti-dumping duty should remain in force until the s unset review has been finalized.  The ITAC's 
decisions may be challenged by the interested pa rties and taken to the High Court in South Africa. 
(ii) Countervailing measures 
105. Countervailing investigations, like anti-dumping in vestigations, are in general only initiated 
upon receipt of a properly documented application by or  on behalf of the SACU industry.  The ITAC 
may initiate an investigation or a review only if it has prima facie  evidence of the existence of 
subsidized exports, material injury, and a causal link.   Prior to the initiation of an investigation, a 
notification must be forwarded to the foreign c ountry inviting it for cons ultations to determine 
whether any other subsidies are applied and to seek a mutually agreeable solution.  An investigation is 
formally initiated through publica tion of an initiation notice in the Government  Gazette .  All 
investigations and reviews must be fina lized within 18 months after initiation. 
106. A subsidy is countervailable if it is specific and causes material injury to the SACU industry 
producing the like product.49  A countervailing measure may only be imposed if the subsidy is 1% 
(2% for developing countries) or more of the invoi ced export price.  All subsidies are added up to 
determine if the total subsidy exceeds the de minimis  standard.  The ITAC is entitled to take into 
account and add up any subsidy found during the c ourse of the investigation even if the SACU 
industry has not mentioned it in the application. 
107. The Commission must determine the margin of each individual subsidy.  Subsidies may take 
the form of grants, loans, revenue forgone, tax holidays and reba tes, input subsidies,                      
over-reimbursement of customs duties, and prefer ential interest rates for export purposes.  To 
determine the margin or the amount of each i ndividual subsidy, the Commission may take into 
account the following: the time value of money, the duration of the subsidy, and whether the subsidy 
is linked to exports, to all sales, or to production. 
108. In determining material injury to the SACU i ndustry, the ITAC must consider whether there 
has been a significant reduction of prices in that SACU  industry.  Once material injury is determined 
the ITAC must consider whether there is a causal li nk between the subsidized exports and the material 
injury.  To do so it needs to, inter alia , take into account the change in the volume of subsidized 
imports;  the price undercutting e xperienced by the SACU industry vis-à-vis  the imported products;  
                                                      
49 Export subsidies are considered to be a specific subsidy. WT/TPR/S/222 Trade Policy Review 
Page 30 
 
 
 the market share of the subsidized imports;  the ma gnitude of the margin of subsidization;  and the 
price of fairly traded imports available in the market. 
109. The ITAC will apply the lesser-duty rule if both the importer and e xporter have cooperated 
fully.  When determining the level of the counter vailing duty, the ITAC should ensure that a product 
is not subject to both countervailing and anti-dumpi ng duties to compensate for the same situation of 
dumping or export subsidization.  Proceedings may be suspended or terminated following the receipt 
of a satisfactory price undertaking.   
110. Provisional duties may be imposed 60 days after the initiation of the investigation for a 
maximum of four months; these may not be extended.   Definitive countervailing duties will remain in 
place for five years from the date of publication of the ITAC's final recommendation unless otherwise specified or unless reviewed before the end of th e five-year period.  Definitive countervailing duties 
may be imposed with retroactive effect to th e date of imposition of the provisional payment. 
111. The ITAC initiates interim reviews only if the party requesting the reviews can prove a 
significant change in circumstances.  In itiations of reviews are published in the Government  Gazette .  
As a result of this interim investigation increase, the ITAC may decrease or confirm the scope of the 
application of such countervailing duties.  New shippe r reviews are available to exporters that did not 
export to SACU during the original investigation period. 
112. At least six months prior to the lapse of a countervailing duty the ITAC will publish a notice 
to request a sunset review.  The SACU indus try may request that the countervailing duty be 
maintained through application to the ITAC. 
113. The ITAC's decisions may be challenged through a judicial review in the High Court of 
South Africa.  An importer or an exporter ma y request reimbursement of countervailing duties 
collected if it can be proved that the margin of  subsidization, on the basis of which countervailing 
duties were paid, has been eliminated  or has been reduced to a level below that of the duty in force. 
(iii) Safeguard measures 
114. A safeguard measure may only be imposed in r esponse to a rapid and significant increase in 
imports of a product as a result of an unforeseen deve lopment, where such incr eased imports cause or 
threaten to cause serious injury to the SACU industry producing the like or directly competitive 
product.  In determining serious injury or thr eat 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 changes 
in the performance of the SACU industry in respect  of sales volume, profit and loss, output, market 
share, productivity, capacity utilization, and employment. 
115. Investigations are formally initiated through publication of an initiation notice in the Gazette .  
All interested parties have 20 days from the in itiation of an investigation to comment on the 
application.  The ITAC may requ est the SARS to impose a provisiona l 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 injury. 
116. A definitive safeguard measure may be applied 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.   SACU WT/TPR/S/222 
 Page 31 
 
 
 117. Safeguards may be in place, in general, only fo r 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 injury and there is ev idence that the SACU industry is 
adjusting;  if extended,  the measure must be reduced in eff ect.  Safeguard measures imposed for a 
period exceeding three years must be reviewed at their halfway point.  The ITAC's decisions may be challenged in a court of law. 
118. Safeguard measures are applied to all imports of the product concerned, irrespective of its 
source,  with the exception of imports originating in a developing country if their import share to 
SACU is de minimis . 
119. Botswana, Namibia, Swaziland, and South Africa have retained the right to use the special 
safeguard under Article 5 of the WTO Agreement on Ag riculture, but have neve r invoked this Article. 
(5) S
TANDARDS AND TECHNICAL REGULATIONS  
120. According to Articles 28 and 33 of the 20 02 SACU Agreement, there should be 
harmonization of technical regul ations and product standards, and sanitary and phytosanitary 
measures.  However, SACU countries do not have  a common policy on these issues.  Lesotho and 
Namibia use South African standards, while Botswa na established its own Bureau of Standards in 
1995, and Swaziland enacted its Sta ndards and Quality Act in 2001. 
121. Article 30 of the 2002 SACU Agreement indicates that members reserve the right to apply 
sanitary and phytosanitary (SPS) measures in accordance with their national SPS laws and 
international standards, but should consult with each  other to ensure the free flow of goods without 
endangering animal, and plant health.  Members may impose import restrictions to safeguard human, animal and plant health.  
 SACU WT/TPR/S/222 
 Page 33 
 
 
 REFERENCES 
South African Reserve Bank (2009), Quarterly Bulletin , March, Pretoria.   
USAID (2005), The Swaziland Investor Roadmap , Washington D.C. 
World Bank (2008), World Development Indicators 2008 .  Viewed at:  http://ddp-ext.worldbank.org/ 
ext/DDPQQ/member.do?method=getM embers&userid=1&queryId=6. 
WTO (1998), Trade Policy Review:  SACU , Geneva. 
WTO (2003), Trade Policy Review:  SACU , Geneva.   
  
APPENDIX TABLES 
  SACU WT/TPR/S/222 
 Page 37 
 
 
 Table AI.1 
Intra-SACU exports by destination, 2002-07 
(US$ million and per cent) 
Description 2002 2003 2004 2005 2006 2007 
Botswana's exports to other SACU members  (US$ million) 251.2 289.5 332.0 402. 5 301.5 526.3 
Shares        
South Africa 99.0 98.5 98.4 96.8 95.6 98.2 
Namibia 0.9 1.2 1.5 3.1 4.2 1.6 
Swaziland 0.0 0.2 0.1 0.1 0.2 0.2 
Lesotho 0.0 0.1 0.0 0.0 0.0 0.0 
Lesotho's exports to other SACU members  (US$ million) 151.6 92.9 173.9 161. 2 118.3 239.4 
Shares        
South Africa 100.0 99.9 98.0 100.0 100.0 100.0 
Botswana 0.0 0.1 2.0 0.0 0.0 0.0 
Swaziland 0.0 0.0 0.0 0.0 0.0 0.0 
Namibia's exports to other SACU members (US$ million) 332.2 420. 7 642.0 776.1 845.9 1,198.5 
Shares        
South Africa 98.2 97.6 98.0 98.4 98.0 97.8 
Botswana 1.8 2.2 1.9 1.5 1.8 1.8 
Swaziland 0.0 0.2 0.1 0.1 0.2 0.3 
Lesotho 0.0 0.0 0.0 0.0 0.0 0.1 
Swaziland's exports to other SACU members (U S$ million) 659.3 1,183.4 1,584.4 1,175. 2 619.4 833.3 
Shares        
South Africa 100.0 100.0 100.0 99.7 91.6 58.8 
Botswana 0.0 0.0 0.0 0.0 4.3 41.1 
Lesotho 0.0 0.0 0.0 0.1 0.0 0.1 
Namibia 0.0 0.0 0.0 0.2 4.0 0.1 
Source:  UNSD, Comtrade data base based on SITC Rev.3 data;  and data provided by the authorities of the SACU 
 members.  
 WT/TPR/S/222 Trade Policy Review 
Page 38 
 
 
 Table AI.2 
Intra-SACU imports by origin, 2002-07 
(US$ million and per cent) 
Description 2002 2003 2004 2005 2006 2007 
Botswana's imports from other SACU members (US$ m illion) 2,711.8 3,37 5.2 2,705.4 2,674. 4 2,640.4 3,354.9 
Shares        
South Africa 99.4 99.6 99.5 99.4 99.2 99.3 
Namibia 0.5 0.3 0.5 0.6 0.7 0.7 
Swaziland 0.1 0.1 0.0 0.0 0.0 0.0 
Lesotho 0.0 0.0 0.0 0.0 0.0 0.0 
Lesotho's imports from other SACU members (US$ million) 617.3 915.5 1,094.4 794.7 804.4 927.7 
Shares        
South Africa 99.9 100.0 100.0 99.9 100.0 99.9 
Namibia 0.0 0.0 0.0 0.0 0.0 0.0 
Botswana 0.1 0.0 0.0 0.0 0.0 0.1 
Swaziland 0.0 0.0 0.0 0.0 0.0 0.0 
Namibia's imports from other SACU members (US$ million) 1,015.3 1,151.1 2,072.7 2,101.2 2,317.9 3,161.3 
Shares        
South Africa 99.8 99.8 99.4 99.6 99.4 99.4 
Botswana 0.2 0.2 0.3 0.3 0.3 0.3 
Swaziland 0.0 0.0 0.3 0.1 0.3 0.3 
Lesotho 0.0 0.0 0.0 0.0 0.0 0.0 
South Africa's imports from other SACU members  (US$ million) 0.5 4.7 0.7 430.9 791.4 350.7 
Shares        
South Africa 0.0 0.0 0.0 0.0 49.5 0.0 
Botswana 6.1 86.4 48.2 70.2 33.5 62.3 
Namibia 37.0 12.2 27.9 29.7 16.9 37.6 
Lesotho 35.4 0.5 23.3 0.1 0.0 0.0 
Swaziland 21.5 0.9 0.6 0.0 0.0 0.1 
Swaziland's imports from other SACU members (US$ m illion) 769.7 1,245.9 1,634. 0 1,460.6 1,01 3.4 1,129.4 
Shares        
South Africa 100.0 100.0 100.0 100.0 98.3 95.7 
Namibia 0.0 0.0 0.0 0.0 1.2 2.3 
Lesotho 0.0 0.0 0.0 0.0 0.0 1.5 
Botswana 0.0 0.0 0.0 0.0 0.5 0.5 
Source:   UNSD, Comtrade database  based on SITC Rev.3 data;  and data pr ovided by the authorities of the SACU 
 members.   SACU WT/TPR/S/222 
 Page 39 
 
 
 Table AI.3 
Destination of exports, 2002-07 
(US$ million and per cent) 
  2002 2003 2004 2005a 2006a 2007a 
Total (US$ million) 27,204.3 36, 957.4 46,634.7 53,111. 9 60,260.3 71,663.5 
 (per cent)  
  America 12.6 13.9 14.9 12.3 13.0 14.3 
    United States 10.1 11.9 12.4 10.1 10.4 10.8 
    Other America 2.6 1.9 2.5 2.3 2.6 3.5 
      Canada 0.7 0.7 1.0 0.8 1.0 1.5 
              
  Europe 46.0 43.4 43.1 43.5 43.4 40.4 
    EC(25) 44.2 39.9 39.6 40.0 39.0 36.9 
      United Kingdom 18.7 17.1 15.8 16.7 14.5 12.6 
      Germany 7.0 6.6 7.0 6.5 6.8 7.3 
      Netherlands 4.4 4.1 4.0 4.5 4.6 4.1 
      Italy 2.8 2.5 2.7 2.3 2.6 2.8 
      Spain 2.9 2.7 2.7 3.0 2.8 2.8 
      Belgium 3.2 2.7 2.7 2.7 2.5 2.5 
      France 2.8 2.1 2.5 2.1 2.2 2.1 
    EFTA 1.3 3.0 3.0 3.0 3.7 2.9 
      Switzerland 0.9 2.1 2.5 2.4 2.9 2.0 
    Other Europe 0.6 0.5 0.5 0.5 0.7 0.7 
              
  Commonwealth of Independent Stat es (CIS) 0.2 0.3 0.4 0.2 0.3 0.3 
              
  Africa 17.0 16.2 14.2 14.7 14.6 14.3 
      Zimbabwe 2.9 2.7 2.3 2.6 2.2 2.2 
      Zambia 2.0 1.5 1.6 1.7 2.0 2.0 
      Mozambique 2.4 2.2 1.9 2.0 1.6 1.8 
      Angola 1.9 2.1 1.6 1.4 1.5 1.4 
      Nigeria 1.0 0.9 1.0 1.0 1.0 1.0 
              
  Middle East 3.4 3.0 3.1 3.5 3.5 3.5 
      Israel 2.0 1.4 1.4 1.5 1.3 1.3 
      United Arab Emirates 0.6 0.8 0.7 0.9 1.0 1.0 
              
  Asia 18.4 21.9 23.9 24.9 24.6 26.5 
    China 1.7 2.6 2.4 2.7 3.6 6.1 
    Japan 5.5 8.5 8.9 9.7 10.4 9.9 
    Six East Asian traders 6.7 6.3 7.6 6.1 5.6 5.6 
      Korea, Rep. of 1.8 1.6 1.5 1.6 1.8 1.7 
      Chinese Taipei 1.9 1.8 3.0 1.5 1.1 1.2 
    Other Asia 4.4 4.5 5.0 6.4 4.9 4.9 
      India 1.3 1.0 1.2 2.2 1.3 1.9 
      Australia 1.9 2.1 2.3 2.7 2.4 1.8 
              
  Other 2.4 1.2 0.6 0.8 0.8 0.7 
a Excluding Lesotho. 
Source:   WTO Secretariat calculations, based on UNS D, Comtrade database (SITC Rev.3 data). WT/TPR/S/222 Trade Policy Review 
Page 40 
 
 
 Table AI.4 
Structure of exports (extra-SACU), 2002-07 
(US$ million and per cent) 
  2002 2003 2004 2005a 2006a 2007a 
Total (US$ million) 27,204.3 36, 957.4 46,634.7 53,111. 9 60,260.3 71,663.5 
 (per cent)  
Total primary products 35.2 39.3 39.9 41.2 45.2 47.7 
   Agriculture 14.2 13.3 11.2 10.9 9.4 8.9 
      Food 10.8 10.1 8.6 8.5 7.2 7.0 
         1121  Wine of fresh grapes (i ncluding fortified wine) 1.1 1.1 1.2 1.1 0.9 0.9 
      Agricultural raw material 3.4 3.2 2.6 2.4 2.2 2.0 
   Mining 21.0 26.0 28.7 30.2 35.8 38.7 
      Ores and other minerals 6.4 5.6 5.6 6.6 8.6 10.2 
         2816  Iron ore agglomer ates (sinters, pellets, briquettes, 
 etc.) 1.5 1.3 1.2 1.8 1.9 2.2 
         2842  Nickel mattes, sinters, etc. 0.0 0.0 0.0 0.0 0.0 1.0 
         2879  Other non-ferrous base metals ores and 
 concentrates 0.3 0.3 0.4 0.5 0.7 0.9 
         2878  Ore and concentrates of molybdenum, niobium, 
 etc. 1.3 1.1 0.7 0.6 1.1 0.8 
      Non-ferrous metals 4.1 12.0 15.3 14.4 18.9 19.1 
         6812  Platinum unwrought, unworked or                      
 semi-manufactured 0.0 8.6 10.0 10.0 13.3 13.7 
         6841  Aluminium and aluminium alloys, unwrought 2.6 1.8 2.2 2.0 2.3 2.2 
         6842  Aluminium and aluminium alloys, worked 0.7 0.8 0.8 1.0 1.1 0.8 
      Fuels 10.5 8.4 7.9 9.2 8.3 9.5 
         3212  Other coal, whether or pulverized, not 
 agglomerated 6.7 4.8 5.2 6.1 5.1 4.6 
         3330  Crude oils of petroleum and bituminous minerals 0.0 0.0 0.0 0.0 0.8 2.6 
Manufactures 64.0 60.1 59.3 58.2 54.3 51.7 
   Iron and steel 8.9 10.5 12.1 11.1 9.4 10.4 
         6715  Other Ferro-alloys (excl. radio-active Ferro-alloys) 2.8 3.6 4.4 3.9 3.1 4.2 
         6753  Flat-rolled products, stai nless steel, hot-rolled 1.2 1.5 1.5 0.7 1.2 1.3 
         6755  Flat, cold-rolled stainless steel 0.2 0.1 0.6 0.7 1.2 0.9 
         6714  Ferro-manganese 0.9 0.8 1.3 1.2 0.7 0.9 
   Chemicals 8.6 7.1 7.5 8.0 7.8 6.2 
   Other semi-manufactures 20.2 17.8 16.0 16.6 14.8 12.9 
         6672  Diamonds (excl. industrial, sorted) not mounted/set 14.9 13.1 11.5 12.4 10.9 8.9 
   Machinery and transport equipment 19.7 18.0 17.3 18.2 18.9 19.0 
      Power generating machines 0.3 0.2 0.3 0.3 0.4 0.4 
      Other non-electrical machinery 6.1 5.7 5.3 5.6 6.3 7.1 
         7436  Filtering and purifying machin es for liquids/gases 3. 5 3.2 3.0 3. 1 4.0 4.5 
         Agricultural machinery and tractors 0.1 0.1 0.1 0.1 0.1 0.2 
      Office machines and telecommun ication equipment 1.5 1.4 1.3 1.2 1.3 1.3 
      Other electrical machines 1.2 1.0 1.0 0.8 0.9 1.0 
      Automotive products 8.9 8.5 8.0 8.2 8.2 7.6 
         7812  Motor vehicles for the transport of persons, n.e.s. 6.0 5.7 5.3 5.4 4.5 3.7 
         7821  Goods vehicles 0.8 0.8 0.5 0.9 1.7 1.8 
         7843  Other motor ve hicle parts and accessories of 722, 
 781 to 783 1.5 1.4 1.4 1.2 1.2 1.3 
      Other transport equipment 1.7 1.3 1.4 2.1 1.9 1.8 
   Textiles 1.0 0. 8 0.7 0.6 0.5 0.5 
   Clothing 2.0 2.4 2.7 0.9 0.5 0.5 
   Other consumer goods 3.6 3.3 3.0 2.8 2.3 2.2 
Other 0.8 0.6 0.8 0.7 0.6 0.6 
         9310  Special transactions and commodities not classified 
 by type 0.7 0.0 4.1 4.5 3.4 2.6 
   Gold 0.1 0.5 0.7 0.6 0.3 0.5 
a Excluding Lesotho. 
Source:   WTO Secretariat calculations, based on UNS D, Comtrade database (SITC Rev.3 data). SACU WT/TPR/S/222 
 Page 41 
 
 
 Table AI.5 
Origin of imports, 2002-07 
(US$ million and per cent)  
  2002 2003 2004 2005 2006 2007 
Total (US$ million) 27,560.7 35, 790.1 48,955.5 56,496. 4 69,702.2 82,011.4 
 (per cent)  
  America 15.5 14.0 13.0 12.6 12.8 13.6 
    United States 11.5 9.7 8.6 7.9 7.8 8.0 
    Other America 4.0 4.2 4.4 4.7 5.1 5.5 
      Brazil 1.7 2.0 2.1 2.4 2.0 2.1 
      Argentina 0.8 0.8 1.1 0.8 1.4 1.3 
              
  Europe 44.4 45.3 42.2 40.7 31.7 36.9 
    EC(25) 42.1 43.2 40.5 38.6 35.7 34.8 
      Germany 15.0 14.5 14.0 14.2 13.2 12.3 
      United Kingdom 9.2 8.8 6.9 5.6 5.2 5.0 
      France 4.2 5.9 6.0 4.4 3.6 3.5 
      Italy 3.5 3.2 3.0 3.0 3.0 2.8 
      Netherlands 1.8 1.7 1.5 1.6 1.6 1.6 
      Spain 1.3 1.5 1.4 1.7 1.5 1.5 
      Sweden 1.4 1.6 1.5 1.6 1.3 1.5 
      Belgium 1.4 1.4 1.3 1.4 1.3 1.3 
    EFTA 1.9 1.6 1.2 1.5 1.1 1.1 
    Other Europe 0.4 0.4 0.5 0.6 0.8 1.0 
              
  Commonwealth of Independent Stat es (CIS) 0.5 0.2 0.2 0.3 0.5 0.7 
              
  Africa 3.8 3.3 4.3 4.0 8.6 6.9 
      Nigeria 1.2 1.1 1.6 1.2 2.0 2.2 
      Angola 0.1 0.0 0.5 0.5 0.5 2.0 
              
  Middle East 9.7 10.2 11.7 11.6 11.5 10.8 
      Saudi Arabia 4.7 5.5 5.4 5.5 5.2 4.5 
      Iran Islamic Rep. 3.3 3.5 4.8 4.0 3.9 3.6 
              
  Asia 25.1 26.4 28.1 30.5 33.7 33.4 
    China 5.2 6.5 7.6 9.1 10.3 10.8 
    Japan 6.7 6.9 6.7 7.0 8.0 7.3 
    Six East Asian traders 8.0 8.1 8.5 8.7 9.5 8.2 
      Korea, Rep. of 1.6 1.6 2.1 2.6 2.6 2.2 
      Thailand 1.0 1.2 1.4 1.6 1.7 1.8 
      Chinese Taipei 2.2 2.1 1.9 1.7 1.7 1.4 
      Malaysia 1.3 1.2 1.2 1.3 1.2 1.3 
    Other Asia 5.2 5.0 5.3 5.6 5.9 6.0 
      India 1.1 1.2 1.5 2.1 2.4 2.3 
      Australia 2.7 2.2 2.3 2.1 2.1 1.9 
              
  Other 1.0 0.6 0.5 0.8 0.2 1.0 
Source:   WTO Secretariat calculations, based on UNSD, Comtrade da tabase (SITC Rev.3 data);  and data provided by the 
 authorities of SACU members. WT/TPR/S/222 Trade Policy Review 
Page 42 
 
 
 Table AI.6 
Structure of imports (extra-SACU), 2002-07 
(US$ million and per cent) 
  2002 2003 2004 2005a 2006a 2007a 
Total (US$ million) 27,560.7 35, 790.1 48,955.5 55,697. 5 68,878.2 81,053.4 
 (per cent)  
Total primary products 21.0 20.6 23.2 22.4 26.9 27.9 
   Agriculture 6.5 6.3 6.3 5.7 5.5 6.2 
      Food 5.0 5.0 5.0 4.6 4.5 5.2 
      Agricultural raw material 1.5 1.4 1.3 1.1 1.0 1.0 
   Mining 14.5 14.2 16.8 16.7 21.4 21.7 
      Ores and other minerals 1.7 1.7 1.8 1.7 2.0 2.1 
         2852  Alumina (aluminium oxide) 0.9 0.7 0.9 0.8 0.9 0.8 
      Non-ferrous metals 0.9 1.0 1.0 0.9 1.2 1.2 
      Fuels 11.9 11.5 14.0 14.1 18.2 18.4 
         3330  Crude oils of petroleum and bituminous minerals 10.1 10.1 12.1 11.6 13.7 13.5 
Manufactures 69.5 69.6 68.1 68.8 65.4 64.9 
   Iron and steel 1.3 1.3 1.4 1.5 1.7 2.0 
         6715  Other ferro-alloys (excl. radio-active ferro-alloys) 0.1 0.1 0.2 0.2 0.2 0.4 
   Chemicals 11.8 10.8 9.9 10.1 9.0 9.0 
         5429  Medicaments, n.e.s. 1.5 1.6 1.5 1.6 1.4 1.3 
   Other semi-manufactures 7.9 7.8 7.0 6.7 6.0 7.0 
         6672  Diamonds (excl. industrial, sorted) not mounted/set 1.7 1.8 1.4 0.9 0.5 0.9 
   Machinery and transport equipment 37.2 39.0 39.3 39.7 38.2 37.6 
      Power generating machines 1.3 1.5 1.4 1.1 2.1 1.4 
         7144 Reaction e ngines 0.6 0.6 0. 6 0.4 0.9 0.6 
      Other non-electrical machinery 11.2 11.4 10.1 9.7 9.9 10.8 
         7232  Mechanical shovels, etc., self-propelled 0.6 0.8 0.7 0.7 0.7 1.1 
         7284  Machinery and appliances for particular industries, 
 n.e.s. 0.6 0.6 0.7 0.6 0.8 0.6 
         7239  Parts n.e.s., of  machinery of 723 and 744.3 0.4 0.4 0.3 0.3 0.3 0.4 
         7283  Other mineral working machines 0.2 0.2 0.2 0.2 0.3 0.4 
         Agricultural machinery and tractors 0.8 0.7 0.7 0.5 0.5 0.6 
      Office machines and telecommun ication equipment 11.0 10.4 10.9 11.3 10.4 9.3 
         7643  Radio or television tr ansmission apparatus 2.7 2.3 2.5 2.8 2.4 2.0 
         7599  Parts and accessories of 751.1, 751.2, 751.9, 
 and 752 1.1 1.5 1.7 1.6 1.3 0.8 
         7522  Digital automatic data processing machines, 
 containing in the same housing at least a central 
 processing unit an input and output unit whether or 
 not combined 0.5 0.6 0.6 0.6 0.6 0.6 
         7649  Parts and accessories for a pparatus of division 76 0.6 0.5 0.5 0.6 0.5 0.4 
      Other electrical machines 3.4 3.5 3.0 3.2 3.2 3.3 
      Automotive products 6.3 7.1 8.0 10.0 9.6 9.7 
         7812  Motor vehicles for the transport of persons, n.e.s. 3.6 4.1 5.3 6.6 6.1 5.5 
         7821 Goods vehicles 0.6 0.7 0.7 1.0 1.3 1.8 
         7843  Other motor vehicle parts and accessories of 
 722, 781 to 783 1.4 1.4 1.3 1.5 1.4 1.4 
      Other transport equipment 3.9 5.2 6.0 4.3 2.9 3.2 
         7924  Aeroplanes, etc. (excl. helicopters), >15,000 kg 
 unladen 1.0 2.1 2.6 1.6 0.3 0.6 
   Textiles 2.4 2. 3 2.1 1.7 1.5 1.3 
   Clothing 0.8 1.1 1.3 1.5 1.6 1.3 
   Other consumer goods 8.0 7.4 7.1 7.5 7.3 6.9 
         8722  Instruments and appliances used in medical, 
 surgical or veterinary sciences (including sight  testing instruments, but excluding                   
 electro-diagnostic and radiological instruments and 
 apparatus) 0.7 0.6 0.6 0.6 0.5 0.5 
Other 9.6 9.8 8.8 8.9 7.8 7.2 
         9310  Special transactions and commodities not 
 classified by type 9.8 10.1 10.2 10.8 12.0 14.8 
   Gold 0.0 0.0 0.0 0.0 0.0 0.0 
a Excluding Lesotho. 
Source:   WTO Secretariat calculations, based on UNS D, Comtrade database (SITC Rev.3 data). SACU WT/TPR/S/222 
 Page 43 
 
 
 Table AIII.1 
Applied MFN tariff averages by HS2, 2009 
Avg. tariff Range Std-dev Code Description No. of 
lines No. of  
lines used 
(per cent) 
 Total 6,695 6,670 8.1 0-96 11.1 
01 Live animals 23 23 0.0 0 0.0 
02 Meat and edible meat offal 71 67 20.1 0-43.7 18.4 
03 Fish and crustaceans, molluscs, and other 
aquatic invertebrates 119 119 4.6 0-25 9.7 
04 Dairy produce;  birds' eggs;  natural honey;  
edible products of animal origin, not elsewhere 
specified or included 38 38 19.3 0-96 21.8 
05 Products of animal origin, not elsewhere 
specified or included 25 25 0.0 0 0.0 
06 Live trees and other plants;  bulbs, roots, and 
the like;  cut flowers and ornamental foliage 16 16 11.3 0-20 10.2 
07 Edible vegetables, and certain roots and tubers 71 71 10.4 0-37 9.7 
08 Edible fruit and nuts;  peel of citrus fruit or 
melons 62 62 6.6 0-35 7.7 
09 Coffee, tea, mate, and spices 38 38 3.6 0-44.2 9.4 
10 Cereals 16 16 0.5 0-5 1.4 
11 Products of the milling industry;  malt;  
starches;  insulin;  wheat gluten 51 50 6.2 0-20 8.4 
12 Oil seeds and oleaginous fruits;  misc. grains, 
seeds and fruit;  industrial or medicinal plants;  straw and fodder 47 47 6.2 0-20 7.0 
13 Lac;  gums, resins, a nd other vegetable saps 
and extracts 16 16 6.0 0-25 7.9 
14 Vegetable plaiting materials;  vegetable 
products not elsewhere specified or included 7 7 2.1 0-15 5.7 
15 Animal or vegetable fa ts and oils and their 
cleavage products;  prepared edible fats;  animal or vegetable waxes 57 57 7.5 0-10 4.3 
16 Preparations of meat, of fish or of crustaceans, 
molluscs or other aquatic invertebrates 71 66 12.0 0-40 13.9 
17 Sugars and sugar confec tionery 16 16 3.9 0-37 10.8 
18 Cocoa and cocoa preparations 12 12 9.3 0-21 9.8 
19 Preparations of cereals, flour, starch or milk;  
pastry cooks' products 29 29 17.1 0-30 9.2 
20 Preparations of vegetables, fruit, nuts or other 
parts of plants 85 78 17.1 0-55 11.5 
21 Miscellaneous edible preparations 36 34 12.8 0-30 9.8 
22 Beverages, spirits, and vinegar 39 39 15.5 0-60.1 14.3 
23 Residues and waste from the food industries;  
prepared animal fodder 39 39 4.8 0-20 7.2 
24 Tobacco and manufactured tob acco substitutes 17 15 33.6 0-45 15.7 
25 Salt;  sulphur;  earths and stone;  plastering 
materials, lime and cement 69 69 1.2 0-10 3.0 
26 Ores, slag, and ash 37 37 0.0 0 0.0 
27 Mineral fuels, mineral oils and products of 
their distillation;  bituminous substances;  mineral waxes 77 75 3.5 0-20 6.3 
28 Inorganic chemicals;  organic or inorganic 
compounds of precious metals, of rare-earth metals, of radioactive elements or of isotopes 177 177 1.0 0-20 3.3 
29 Organic chemicals 442 442 1.3 0-15 3.6 
30 Pharmaceutical products 34 34 0.6 0-20 3.4 
Table AIII.1 (cont'd) WT/TPR/S/222 Trade Policy Review 
Page 44 
 
 
 Avg. tariff Range Std-dev Code Description No. of 
lines No. of  
lines used 
(per cent) 
31 Fertilizers 23 23 0.0 0 0.0 
32 Tanning or dyeing extracts;  tannins and their 
derivatives;  dyes, pigments and other 
colouring matter;  paints and varnishes;  putty and other mastics;  inks 52 52 2.9 0-10 4.6 
33 Essential oils and resinoids;  perfumery, 
cosmetic or toilet preparations soap, organic surface-active agents, washing preparations, lubricating preparati ons, artificial waxes, 
prepared waxes, polishing or scouring 
preparations, candles and similar article 40 40 10.8 0-20 9.0 
34 Soap, organic surface-active agents, washing 
preparations, lubricating preparations, artificial 
waxes, prepared waxes, polishing or scouring preparations, candles and similar articles, 
modelling pastes, dental  waxes and dental 
preparations with a basis 26 26 13.5 0-20 8.0 
35 Albuminoidal substances;  modified starches;  
glues;  enzymes 20 20 2.8 0-20 5.9 
36 Explosives;  pyrotechnic products;  matches;  
pyrophoric alloys;  certain combustible 
preparations 8 8 3.1 0-15 5.9 
37 Photographic or cinematogr aphic goods 50 50 5.4 0-15 6.8 
38 Miscellaneous chemical products 135 133 3.5 0-10 4.8 
39 Plastics and articles thereof 309 309 8.1 0-20 7.4 
40 Rubber and articles thereof 132 132 8.8 0-43 9.6 
41 Raw hides and skins (other than furskins) and 
leather 53 53 3.4 0-10 4.8 
42 Articles of animal gut (other than silk-worm 
gut) 25 25 26.4 0-30 8.0 
43 Furskins and artificial fur;  manufactures 
thereof 13 13 11.5 0-30 12.5 
44 Wood and articles of wood;  wood charcoal 87 87 6.9 0-30 8.5 
45 Cork and articles of cork 7 7 0.0 0 0.0 
46 Manufactures of straw, of esparto or of other 
plaiting materials;  basketware and wickerwork 12 12 18.3 0-20 5.8 
47 Pulp of wood or of other fibrous cellulosic 
material;  recovered (waste and scrap) paper 
and paperboard 21 21 0.0 0 0.0 
48 Paper and paperboard;  articles of paper pulp, 
of paper or of paperboard 153 153 5.1 0-20 6.7 
49 Printed books, newspapers , pictures and other 
products of the printing industry;  manuscripts, 
typescripts and plans 27 27 4.3 0-15 6.6 
50 Silk 9 9 0.0 0 0.0 
51 Wool, fine or coarse animal hair;  horsehair 
yarn and woven fabric 52 52 7.9 0-22 9.4 
52 Cotton 126 126 18.5 0-22 4.8 
53 Other vegetable textile fibres;  paper yarn and 
woven fabrics of paper yarn 23 23 3.8 0-22 8.5 
54 Man-made filaments 88 88 15.0 0-22 7.5 
55 Man-made staple fibres 108 108 16.1 0-22 8.0 
56 Wadding, felt and nonwovens;  special yarns;  
twine, cordage, ropes and cables and articles 
thereof 41 41 14.1 0-20 5.7 
57 Carpets and other textile fl oor coverings 21 21 26.4 5-30 9.0 
Table AIII.1 (cont'd) SACU WT/TPR/S/222 
 Page 45 
 
 
 Avg. tariff Range Std-dev Code Description No. of 
lines No. of  
lines used 
(per cent) 
58 Special woven fabrics;  tufted textile fabrics;  
lace;  tapestries;  trimmings;  embroidery 47 47 17.2 0-25 8.5 
59 Impregnated, coated, covered or laminated 
textile fabrics;  textile articles of a kind suitable for industrial use 62 62 10.9 0-22 9.4 
60 Knitted or crocheted fa brics 59 59 16. 7 0-22 8.8 
61 Articles of apparel and clothing accessories, 
knitted or crocheted 109 109 37.6 0-40 7.7 
62 Articles of apparel and clothing accessories, 
not knitted or crocheted 128 128 36.5 0-40 9.1 
63 Other made up textile articles;  sets;  worn 
clothing and worn textile articles;  rags 71 71 25.2 0-60 9.9 
64 Footwear, gaiters and th e like;  parts of such 
articles 56 56 21.9 0-31.9 11.7 
65 Headgear and parts thereof 11 11 18.6 0-30 11.2 
66 Umbrellas, sun umbrellas, walking-sticks, seat-
sticks, whips, riding-crops and parts thereof 6 6 25.8 20-30 4.9 
67 Prepared feathers and down and articles made 
of feathers or of down;  artificial flowers;  
articles of human hair 8 8 12.5 0-20 10.4 
68 Articles of stone, plaster, cement, asbestos, 
mica or similar materials 61 61 6.1 0-15 7.4 
69 Ceramic products 29 29 8.6 0-30 11.6 
70 Glass and glassware 108 108 7.4 0-20 5.6 
71 Natural or cultured pearls, precious or semi-
precious stones, precious metals, metals clad with precious metal, and articles thereof;  imitation jewellery;  coin 58 58 4.4 0-20 8.3 
72 Iron and steel 168 168 0.0 0-5 0.4 
73 Articles of iron or steel 186 186 6.9 0-30 6.4 
74 Copper and articles thereof 65 65 5.3 0-20 6.2 
75 Nickel and articles thereof 17 17 0.0 0 0.0 
76 Aluminium and articles thereof 63 63 5.6 0-30 6.4 
78 Lead and articles thereof 8 8 0.0 0 0.0 
79 Zinc and articles thereof 9 9 0.0 0 0.0 
80 Tin and articles thereof 5 5 0.0 0 0.0 
81 Other base metals;  cermets;  articles thereof 48 48 0.0 0 0.0 
82 Tools, implements, cutlery, spoons and forks, 
of base metal;  parts thereof of base metal 117 117 10.0 0-30 10.1 
83 Miscellaneous articles of base metal 47 47 12.1 0-20 8.4 
84 Nuclear reactors, boilers, machinery and 
mechanical appliances;  parts thereof 612 612 2.5 0-30 5.9 
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 387 387 6.5 0-25 7.8 
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 equipment of all kinds 24 24 0.4 0-10 2.0 
87 Vehicles other than railway or tramway rolling-
stock, and parts and accessories thereof 165 165 11.1 0-30 10.4 
88 Aircraft, spacecraft, and pa rts thereof 15 15 0.0 0 0.0 
Table AIII.1 (cont'd) WT/TPR/S/222 Trade Policy Review 
Page 46 
 
 
 Avg. tariff Range Std-dev Code Description No. of 
lines No. of  
lines used 
(per cent) 
89 Ships, boats and floating structures 18 18 2.2 0-10 4.3 
90 Optical, photographic, cinematographic, 
measuring, checking, precision, medical or 
surgical instruments and apparatus;  parts and accessories thereof 152 152 0.4 0-20 2.5 
91 Clocks and watches and pa rts thereof 51 51 0.0 0 0.0 
92 Musical instruments;  parts and accessories of 
such articles 17 17 0.0 0 0.0 
93 Arms and ammunition;  parts and accessories 
thereof 65 65 13.4 0-15 4.7 
94 Furniture;  bedding, mattresses, mattress 
supports, cushions and similar stuffed 
furnishings;  lamps and lighting fittings, not 
elsewhere specified or included;  illuminated signs, illuminated name-plates 48 48 13.8 0-20 9.4 
95 Toys, games and sports requisites;  parts and 
accessories thereof 33 33 1.8 0-30 6.4 
96 Miscellaneous manufactured articles 57 57 9.1 0-20 8.6 
97 Works of art, collectors' pi eces, and antiques 7 7 0.0 0 0.0 
Source : WTO Secretariat estimates, based on data provided by the South African authorities. 
 
 SACU WT/TPR/S/222 
 Page 47 
 
 
 Table AIII.2 
Applied MFN tariffs, by ISIC Rev.2 category, 2009 
Simple avg. Range Std-dev ISIC 
code Description No. of 
lines 
(Per cent) 
 Total 6,695 8.1 0-96 11.1 
          
1 Agriculture, hunting, forestry, and fishing 324 3.7 0-44 7.3 
11 Agriculture and hunting 244 4.3 0-44 7.6 
12 Forestry and logging 27 3.0 0-25 6.8 
121 Forestry 19 4.3 0-25 7.8 
122 Logging 8 0.0 0 0.0 
13 Fishing 53 1.4 0-25 5.8 
1301 Ocean and coastal fishing 46 0.0 0 0.0 
1302 Fishing n.e.c. 7 10.7 0-25 13.4 
          
2 Mining and quarrying 97 0.8 0-10 2.6 
21 Coal mining 4 0.0 0 0.0 
22 Crude petroleum and natural gas production 4 0.0 0 0.0 
23 Metal ore mining 23 0.0 0 0.0 
2301 Mining of iron ores 2 0.0 0 0.0 
2302 Non-ferrous ore mining 21 0.0 0 0.0 
29 Other mining 66 1.2 0-10 3.0 
2901 Mining of feldspar 32 0.3 0-5 1.2 
2902 Mining of fertilizer and chem ical minerals 12 0.0 0 0.0 
2903 Salt mining 1 10.0 10 0.0 
2909 Mining and quarrying n.e.s. 21 2.9 0-10 4.4 
          
3 Manufacturing 6,273 8.5 0-96 11.3 
3 - 31 Manufacturing (excluding f ood processing) 5,556 8.0 0-60 10.8 
          
31 Manufacture of food, beverage s, and tobacco 717 12.4 0-96 13.7 
311 Food products 556 12.7 0-96 13.6 
3111 Meat products 113 17.4 0-43.7 17.1 
3112 Dairy products 30 23.0 0-96 22.8 
3113 Fruit and vegetable canning 139 15.5 0-55 10.6 
3114 Fish products 121 6.6 0-30 11.2 
3115 Manufacture of oil and fats (veg. and animal) 63 8.2 0-20 4.2 
3116 Grain mill products  49 8.8 0-30 10.1 
3117 Manufacture of bakery products 16 17.5 0.1-30 9.3 
3118 Sugar products 7 0.0 0 0.0 
3119 Cocoa and chocolate conf ectionery 18 12.7 0-37 12.2 
312 Other food products and animal feeds 99 7.1 0-44.2 9.7 
3121 Other food products 71 8.5 0-44.2 10.1 
3122 Manufacture of animal feeds 28 3.6 0-20 7.8 
313 Beverages 48 13.4 0-60.1 14.1 
3131 Distillation of spirits and alc ohol production 16 12.6 2.4- 60.1 18.2 
3132 Manufacture of wines 15 24.7 20-25 1.3 
3133 Manufacture of malt liquors and malt 11 1.4 0-5 2.1 
3134 Soft drinks and mineral waters 6 7.2 0-21 10.7 
314 Tobacco manufactur ing 14 35.4 0-45 15.9 
Table AIII.2 (cont'd)WT/TPR/S/222 Trade Policy Review 
Page 48 
 
 
 Simple avg. Range Std-dev ISIC 
code Description No. of 
lines 
(Per cent) 
32 Textile, wearing apparel, and l eather industries 1,031 21.2 0-60 12.9 
321 Textiles 781 19.4 0-60 11.6 
3211 Textile spinning, weaving, and finishing 423 15.8 0-60 8.6 
3212 Made-up textile goods except w earing apparel 75 23.0 0-30 8.9 
3213 Knitted and crocheted fabrics 168 30. 3 0-40 12.9 
3214 Carpets and rugs 21 26.4 5-30 9.0 
3215 Cordage, rope, etc 12 14.2 0-20 7.0 
3219 Textiles n.e.c.  82 11.5 0-22 8.5 
322 Manufacture of wearing apparel, except footwear 146 34.5 0-40 10.8 
323 Leather products, except footwear and wearing apparel 62 11.5 0-30 12.5 
3231 Tanning and dressing of leather 38 3.4 0-10 4.8 
3232 Fur dressing and dying 7 17.1 0-30 10.4 
3233 Leather products except footwear 17 27.4 0-30 7.9 
324 Footwear, except vulcanized rubber or plastic footwear 42 20.6 0-30 12.4 
          
33 Wood and wood products, including furniture 117 10.8 0-30 9.5 
331 Wood and wood products, except furniture 92 8.7 0-30 9.3 
3311 Sawmills and woodm ills 56 5.5 0-15 6.4 
3312 Wooden case containers and cane ware 16 16.3 0-20 7.2 
3319 Wood and cork products 20 11.5 0-30 13.1 
332 Manuf.of furniture and fixtures, except primarily of metal 25 18.4 0-20 5.5 
          
34 Paper, paper products, printing,  and publishing 202 4.7 0-20 6.5 
341 Paper products 168 4.3 0-20 6.3 
3411 Pulp, paper and paperboard 98 3.2 0-20 5.6 
3412 Containers, paperboxes, paperboard 10 9.5 0-20 6.0 
3419 Articles n.e.s.(stationery) 60 5.3 0-20 7.0 
342 Printing and publishing and allie d industries 34 6.5 0-15 7.3 
          
35 Chemicals, petroleum, coal, rubber, plastics 1,538 4.5 0-43 7.1 
351 Industrial chemicals 993 3.2 0-20 5.6 
3511 Basic industrial chemicals 635 1.4 0-20 3.8 
3512 Fertilizers and pestic ides 54 3.5 0-10 4.8 
3513 Synthetic resins, plastic materi als except glass 304 7.0 0-18 6.9 
352 Other chemicals, incl. pharm. 309 4.7 0-20 7.1 
3521 Paints, varnishes and lacquers 16 5.0 0-10 5.2 
3522 Drugs and medicines 103 0.9 0-12 2.9 
3523 Soaps 33 16.8 0-20 6.2 
3529 Other chemicals n.e.s. 157 4.6 0-20 6.5 
353 Petroleum refineries 47 3.8 0-20 6.2 
354 Manufacture of miscellaneous petrol eum and coal products 20 6.0 0-20 7.9 
355 Rubber products 116 12.1 0-43 10.7 
3551 Tyre and tube industries 30 13.2 0-43 14.2 
3559 Rubber products n.e.s. 86 11.7 0-31.9 9.2 
356 Manufacture of plastic products n.e.s. 53 10.1 0-20 8.7 
          
36 Non-metallic mineral products except of petrol. and co al 218 6.4 0-30 7.3 
361 Pottery and china 16 10.6 0-30 12.9 
362 Manufacture of glass and glass products 108 7.3 0-20 5.7 
Table AIII.2 (cont'd)SACU WT/TPR/S/222 
 Page 49 
 
 
 Simple avg. Range Std-dev ISIC 
code Description No. of 
lines 
(Per cent) 
369 Other non-metallic mineral products 94 4.5 0-20 7.2 
3691 Structural clay products 17 4.7 0-20 8.7 
3692 Cement, lime, and plaster 9 0.0 0 0.0 
3699 Non-metallic mineral products 68 5. 1 0-15 7.1 
37 Basic metal industries 414 1.8 0-15 3.9 
371 Iron and steel basic industries 212 1.6 0-15 3.8 
372 Non-ferrous metal basic industries 202 2.0 0-15 3.9 
          
38 Fabricated metal products, machinery and equipment 1,833 5.4 0-30 8.0 
381 Fabricated metal products, except machinery and equipment 335 8.4 0-30 8.6 
3811 Manufacture of cutlery and hardware 118 11.4 0-30 9.8 
3812 Metal furniture and fixtures 8 17.5 0-20 7.1 
3813 Structural metal products 24 4.0 0-15 6.4 
3819 Fabricated metal prod. except machinery and equipment n.e.c. 185 6.7 0-30 7.2 
382 Non-electrical machinery incl. computers 656 3.7 0-30 6.7 
3821 Engines and turbines 13 1.2 0-15 4.2 
3822 Agricultural machinery 36 1.9 0-20 4.8 
3823 Metal and woodworking machinery 128 2.6 0-20 6.1 
3824 Special industrial machinery 147 0.3 0-10 1.7 
3825 Office machinery 35 0.0 0 0.0 
3829 Non-electrical machinery and equipment, n.e.s. 297 6.6 0-30 7.8 
383 Electrical machinery apparatus, a ppliances, and supplies 394 6.6 0-30 8.0 
3831 Electrical motors and apparatus 100 6.8 0-20 6.5 
3832 Radio, television and communi cation equipment 134 2.8 0-25 6.3 
3833 Electrical appliances and houseware 39 13.5 0-30 9.3 
3839 Electrical apparatus n.e.s. 121 8.5 0-21 8.1 
384 Transport equipment 243 8.1 0-30 10.0 
3841 Ship building and repairing 22 2.5 0-15 4.8 
3842 Railway and tramway 24 0.4 0-10 2.0 
3843 Motor vehicles 149 12.5 0-30 10.2 
3844 Motorcycles et bicycles 22 0.7 0-15 3.2 
3845 Aircraft manufacture 21 0.0 0 0.0 
3849 Other transport equipment n.e.c. 5 7.0 0-20 9.7 
385 Professional and scientific equipment 205 0.5 0-20 3.0 
3851 Prof., scientif., measuring equipment 103 0.9 0-20 3.9 
3852 Photographic and optical goods 52 0.3 0-15 2.1 
3853 Watches and clocks 50 0.0 0 0.0 
          
39 Other manufacturing industries 203 6.7 0-30 9.7 
3901 Jewellery and related articles 24 8.8 0-30 10.8 
3902 Musical instruments 18 0.8 0-15 3.5 
3903 Sporting goods 27 4.8 0-30 10.9 
3909 Other manufacturing n.e.c. 134 7.5 0-30 9.5 
          
4 Electrical energy 1 0.0 0 0.0 
Source: WTO Secretariat calculations, based on data provided by the South African authorities;  and UNSD, Comtrade 
 database. WT/TPR/S/222 Trade Policy Review 
Page 50 
 
 
 Table AIII.3 
Selected statistics of SACU memb ers' bound tariff, by HS 2-digit, 2009 
MFN Range HS  
two-digit Code Mean Range Botswana Lesotho Na mibia South Africa Swaziland  
01 0.0 0 0 200 0 0 0 
02 20.1 0-43.7 22-160 200 22-160 22-160 22-160 
03 4.6 0-25  60    
04 19.3 0-96 19-79 200 19-96 19-96 19-96 
05 0.0 0 0 60-200 0 0 0 
06 11.3 0-20 0-60 200 0-60 0-60 0-60 
07 10.4 0-37 0-60 200 0-60 0-60 0-60 
08 6.6 0-35 0-70 200 0-70 0-70 0-70 
09 3.6 0-44.2 0-170 200 0-170 0-170 0-170 
10 0.5 0-5 20-43 200 0-72 0-72 0-72 
11 6.2 0-20 24-99 200 24-99 24-99 24-99 
12 6.2 0-20 0-60 200 0-70 0-70 0-70 
13 6.0 0-25 0-26 200 0-26 0-26 0-26 
14 2.1 0-15 0-51 200 0-51 0-51 0-51 
15 7.5 0-10 0-81 60-200 0-81 0-81 0-81 
16 12.0 0-40 37-60 60-200 37-60 37-60 37-60 
17 3.9 0-37 37-105 200 37-105 37-105 37-105 
18 9.3 0-21 0-21 200 0-21 0-21 0-21 
19 17.1 0-30 0-99 200 0-99 0-99 0-99 
20 17.1 0-55 0-73 200 0-73 0-73 0-73 
21 12.8 0-30 37-597 200 37-597 37-597 37-597 
22 15.5 0-60.1 0-597 200 0-597 0-597 0-597 
23 4.8 0-20 33-72 60-200 33-72 33-72 33-72 
24 33.6 0-45 44-54 200 44-54 44-54 44-54 
25 1.2 0-10 0-10 60 0-10 0-10 0-10 
26 0.0 0 0 60 0 0 0 
27 3.5 0-20 0 60 0 0 0 
28 1.0 0-20 0-20 60 0-20 0-20 0-20 
29 1.3 0-15 0-17 60-200 0-17 0-17 0-17 
30 0.6 0-20 10-20 60 10-20 10-20 10-20 
31 0.0 0 0-15 60 0-15 0-15 0-15 
32 2.9 0-10 0-15 60 0-15 0-15 0-15 
33 10.8 0-20 10-597 60-200 10-597 10-597 10-597 
34 13.5 0-20 10-20 60 10-20 10-20 10-20 
35 2.8 0-20 0-22 60-200 0-22 0-22 0-22 
36 3.1 0-15 10-15 60 10-15 10-15 10-15 
37 5.4 0-15 0-15 60 0-15 0-15 0-15 
38 3.5 0-10 0-30 60-200 0-30 0-30 0-30 
39 8.1 0-20 10-30 60 10-30 10-30 10-30 
40 8.8 0-43 10-30 60 10-30 10-30 10-30 
41 3.4 0-10 0-60 60-200 0-60 0-60 0-60 
42 26.4 0-30 15-30 60 15-30 15-30 15-30 
43 11.5 0-30 0-30 60-200 0-30 0-30 0-30 
44 6.9 0-30 0-30 60 0-30 0-30 0-30 
45 0.0 0 0-30 60 0-30 0-30 0-30 
46 18.3 0-20 20 60 20 20 20 
47 0.0 0 5 60 5 5 5 
48 5.1 0-20 5-30 60 5-30 5-30 5-30 
49 4.3 0-15 0-30 60 0-30 0-30 0-30 
Table AIII.3 (cont'd) SACU WT/TPR/S/222 
 Page 51 
 
 
 MFN Range HS  
two-digit 
Code Mean Range Botswana Lesotho Na mibia South Africa Swaziland  
50 0.0 0 0-17 60-200 0-17 0-17 0-17 
51 7.9 0-22 0-25 60-200 0-25 0-25 0-25 
52 18.5 0-22 18-60 60-200 18-60 18-60 18-60 
53 3.8 0-22 0-25 60-200 0-25 0-25 0-25 
54 15.0 0-22 18-25 60 18-25 18-25 18-25 
55 16.1 0-22 0-25 60 0-25 0-25 0-25 
56 14.1 0-20 18-20 60 18-20 18-20 18-20 
57 26.4 5-30 30 60 30 30 30 
58 17.2 0-25 25-30 60 25-30 25-30 25-30 
59 10.9 0-22 25-30 60 25-30 25-30 25-30 
60 16.7 0-22 25 60 25 25 25 
61 37.6 0-40 45 60 45 45 45 
62 36.5 0-40 45 60 45 45 45 
63 25.2 0-60 30 60 30 30 30 
64 21.9 0-31.9 20-30 60 20-30 20-30 20-30 
65 18.6 0-30 15-30 60 15-30 15-30 15-30 
66 25.8 20-30 20-30 60 20-30 20-30 20-30 
67 12.5 0-20 15-30 60 15-30 15-30 15-30 
68 6.1 0-15 10-30 60 10-30 10-30 10-30 
69 8.6 0-30 0-30 60 0-30 0-30 0-30 
70 7.4 0-20 0-30 60 0-30 0-30 0-30 
71 4.4 0-20 0-30 60 0-30 0-30 0-30 
72 0.0 0-5 5-10 60 5-10 5-10 5-10 
73 6.9 0-30 10-30 60 10-30 10-30 10-30 
74 5.3 0-20 5-30 60 5-30 5-30 5-30 
75 0.0 0 5-20 60 5-20 5-20 5-20 
76 5.6 0-30 5-30 60 5-30 5-30 5-30 
78 0.0 0 5-15 60 5-15 5-15 5-15 
79 0.0 0 5-15 60 5-15 5-15 5-15 
80 0.0 0 5-30 60 5-30 5-30 5-30 
81 0.0 0 0-5 60 0-5 0-5 0-5 
82 10.0 0-30 20-30 60 20-30 20-30 20-30 
83 12.1 0-20 20-30 60 20-30 20-30 20-30 
84 2.5 0-30 0-30 60 0-30 0-30 0-30 
85 6.5 0-25 0-30 60 0-30 0-30 0-30 
86 0.4 0-10 10 60 10 10 10 
87 11.1 0-30 0-50 60 0-50 0-50 0-50 
88 0.0 0 0-5 60 0-5 0-5 0-5 
89 2.2 0-10 0-10 60 0-10 0-10 0-10 
90 0.4 0-20 0-30 60 0-30 0-30 0-30 
91 0.0 0 0-30 60 0-30 0-30 0-30 
92 0.0 0 5 60 5 5 5 
93 13.4 0-15  60    
94 13.8 0-20 20-30 60 20-30 20-30 20-30 
95 1.8 0-30 10-30 60 10-30 10-30 10-30 
96 9.1 0-20 0-30 60 0-30 0-30 0-30 
97 0.0 0 0 60 0 0 0 
Source :  WTO Secretariat estimates, based on data provided by the South African authorities;  and WTO CTS database. WT/TPR/S/222 Trade Policy Review 
Page 52 
 
 
 Table AIII.4 
Excise duties, 2009 
Tariff 
heading Description Rate 
Specific excise duties  
 Prepared foodstuffs  
19.01 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 basic, not elsewhere specified or in cluded;  food preparations of goods of 
headings Nos. 0401 to 0404, not containing co coa or containing less than 5% by mass 
of cocoa calculated on a totally defatted basis sot elsewhere specified or included  
 Traditional African beer powder  R 0.347/kg 
 Beverages and spirits  
22.03 Beer made from malt  
 Traditional African beer  R 0.0782/l  
 Other R 46.41/la 
22.04 Wine of fresh grapes, including fortified wines;  and grape must (excluding heading 
No. 20.09)  
22.05 Vermouth and other wine of fr esh grapes flavoured with plants or aromatic substances  
 Sparkling wine R 6.16/l 
 Unfortified wine R 1.98/l 
 Fortified wine R 3.72/l 
22.06 Other fermented beverages (e.g. cider, pe rry, and mead);  mixtures of fermented 
beverages;  and mixtures of fermented beverages and non-alcoho lic beverages, not 
elsewhere specified or included  
 Traditional African beer  R 0.0782/l 
 Other fermented beverages, unfortified R 2.33/l 
 Other fermented beverages, fortified R 4.73/l 
 Mixtures of fermented be verages, and mixtures of fermented beverages and non-
alcoholic beverages R 2.33/l 
 Other R 4.73/l 
22.08 Undenatured ethyl alcohol of an alcoholic strength by volume of less than 80% volume;  
spirits, liqueurs, and other spirituous beverages  
 Wine spirits, manufactured by the distillation of wine R 77.67/la 
 Spirits, manufactured by the distilla tion of any sugar cane product R 77.67/la 
 Spirits, manufactured by the dis tillation of any grain product R 77.67/la 
 Other spirits R 77.67/la 
 Liqueurs and other spir ituous beverages R 77.67/la 
 Tobacco  
24.02 Cigars, cheroots and cigarillos of tobacco  or of tobacco substitutes R 1,951.43/kg net 
 Cigarettes, of tobacco or of tobacco R 3.85/10 cigarettes 
24 03 Other manufactured tobacco and manufactur ed tobacco substitutes;  "homogenized" or 
"reconstituted" tobacco;  and t obacco extracts and essences  
 Cigarette tobacco and substitutes thereof R 183.04/kg 
 Pipe tobacco and substitutes thereof R 100.10/kg net 
 Mineral products  
27.10 Petroleum oils and oils obtained from  bituminous minerals, other than crude;  
preparations not elsewhere specified or in cluded, containing by mass 70% or more of 
petroleum oils or of oils obtained from bituminous minerals, these oils being the basic 
constituents of the 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 
Table AIII.4 (cont'd)SACU WT/TPR/S/222 
 Page 53 
 
 
 Tariff 
heading Description Rate 
 Products of the chemical or allied industries   
29.03 Halogenated derivatives of hydrocarbons  
 Carbon tetrachloride R 5/kg 
 1,1,1-Trichloroethane (methyl chloroform) R 5/kg 
 Chlorotrifluoromethane R 5/kg 
 Pentachlorofluoroethane  R 5/kg 
 Tetrachlorodifluoroethane R 5/kg 
 Heptachlorofluoropropane R 5/kg 
 Hexachlorodifluoropropane R 5/kg 
 Pentachlorotrifluoropropane R 5/kg 
 Dichlordifluoromethane R 5/kg 
 Tetrachlorotetrafluoropropane R 5/kg 
 Trichloropentafluoropropane R 5/kg 
 Dichlorohexafluoropropane R 5/kg 
 Trichlorofluoromethane R 5/kg 
 Chloroheptafluoropropane  R 5/kg 
 Trichlorotrifluoroethane R 5/kg 
 Dichlorotetrafluoroethane and chloropentafluoroethane R 5/kg 
 Bromochlorodifluoromethane, bromotrifluorom ethane, and dibromotet rafluoroethane  R 5/kg 
38.24 Prepared binders for foundry moulds or cores;  chemical products and preparations of 
the chemical or allied industries (including those consisting of mixtures of natural 
products), not elsewhere specified or included;   residual products or the chemical or 
allied industries, not elsewh ere specified or included   
 Mixture containing acyclic hydrocarbons  perhalogenated only with fluorine and 
chlorine (excl. mixtures containing chlor odifluoromethane, dichlo rodifluoromethane or 
trichlorofluoromethane) R 5/kg 
 Mixtures containing dichlorodifluoromet hane or trichlorof luoromethane R 5/kg 
 Other mixtures containing perhalogenate d derivatives of acyclic hydrocarbons 
containing two or more  different halogens R 5/kg 
Ad valorem  excise duties  
33.03 Perfumes and toilet waters 7% 
33.04 Beauty or make-up preparations, and pr eparations for the case of the skin 5% 
36.04 Fireworks 7% 
43.03 Articles of apparel, clothing accessori es, and other articles of furskin  7% 
43.04 Artificial fur and articles thereof 7% 
84.15 Air conditioning machines 7% 
84.18 Refrigerators, freezer s, and other refrigerating or freezing equipment, electric or other;  
heat pumps other than air conditioning machines of heading No. 84.15 7% 
85.17 Cordless phones, fax machines, modems 7% 
85.18 Microphones, loudspeakers, amplifiers 7% 
85.21 Video recording 7% 
85.25 Cell phones, video cameras 7% 
85.27 Reception apparatus 7% 
85.28 Reception apparatus (television) 7% 
87.02 Motor vehicles (taxi) {(0.00003 x A) – 0.75%}% 
with a maximum rate of 20% 
87.03 Motor vehicles {(0.00003 x A) – 0.75%}% 
with a maximum rate of 20% 
87.04 Bakkies (trucks/pick-ups)  {(0.00003 x A) – 0.75%}% 
with a maximum rate of 20% 
87.06 Chassis  {(0.00003 x A) – 0.75%}% 
with a maximum rate of 20% 
87.11 Motorcycles  7%b 
89.03 Water scooters   7% 
93.02 Revolvers, pistols 7% 
Table AIII.4 (cont'd)WT/TPR/S/222 Trade Policy Review 
Page 54 
 
 
 Tariff 
heading Description Rate 
93.03 Other firearms and similar devices 7% 
93.04 Other arms 7% 
95.04 Articles of funfair/table games 7% 
95.06 Golf balls  7% 
a Absolute alcohol. 
b Except for sub-heading No. 8711.90.20:  5%. 
Note: A:  recommended retail price excluding VAT, less 20%.   
Source:  Customs and Excise Tariff Book, Part  2:  Section A:  Specific Excise Duties and Specific Customs Duties on 
 Imported Goods of the Same Class or Kind. SACU WT/TPR/S/222 
 Page 55 
 
 
 Table AIII.5 
Products eligible for rebates of customs and excise duties, 2009 
Rebate Product 
Schedule 3:  Industrial rebates of customs duties  
Part 1:  Imports to manufacture other goods  
 Animal and vegetable fats and oils a nd their cleavage products;  prepared edib le fats;  animal or vegetable waxes 
 Prepared foodstuffs;  beverages, spirits, vine gar;  tobacco and manufactured tobacco products 
 Mineral products 
 Products of the chemical and allied industries 
 Plastics and articles thereof;  and rubber, synt hetic rubber, factice, and articles thereof 
 Raw hides and skins, leather, furskins, and articles thereof;   saddlery and harness;  trav el goods, handbags, and similar 
containers;  and articles of  gut (excluding silk-worm gut) 
 Wood and articles of wood;  wood charcoal;  cork and articles of cork;  manufactures  of straw, esparto, and other plaiting 
materials;  and basketware and wickerwork  
 Paper-making material;  and paper an d paperboard, and articles thereof  
 Textiles and textile articles  
 Footwear, headgear, umbrellas, sunshades,  whips, riding-crops, and parts thereof;  prepared feathers and articles made 
therewith;  artificial flowers;  and articles of human hair 
 Articles of stone, plaster, cement, asbe stos, mica, and similar material;  cera mic products;  and glass and glassware 
 Pearls, precious and semi-precious stones, precious metals, rolled precious metals, and articles thereof;  imitation jewellery;   
and coins  
 Base metals and articles of base metal 
 Machinery and mechanical appliances;  el ectrical equipment;  and parts thereof  
 Vehicles, aircraft, vessels, and associated transport equipment 
 Optical, photographic, cinematographic, meas uring, checking, precision, medical and surgical instruments and apparatus,  
clocks and watches;  musical instruments;  sound recorder s or reproducers;  television image and sound recorders or 
reproducers;  and parts thereof 
 Miscellaneous manufactured articles  
 Material for general industrial purposes  
Part 2:  Goods used in manufacturing other goods for export  
 Prepared foodstuffs;  beverages, sp irits, and vinegar;  and tobacco and manufactured tobacco substitutes  
 Articles of stone, plaster, cement, asbe stos, mica, and similar materials;  ce ramic products;  and glass and glassware 
 Optical, photographic, cinematographic, measuring, chec king, precision, medical or surgical instruments  
 Miscellaneous manufactured articles  
Schedule 4:  General rebates of customs duties and fuel levies 
Part 1:  Specific rebates of customs duties  
 Imports by international organizations  
 Goods for cultural, educational, charitable, welfare or youth organizations or purposes 
 Goods for approved institutions or bodies 
 Goods for disabled persons or th e upliftment of indigent persons 
 Goods for religious instruction or purposes 
 Goods for heads of state, diplomatic , and other foreign representatives 
 Goods imported by immigrants, tourists, returning re sidents and other passengers , for their personal use 
 Personal effects, and sporting and re creational equipment, new or used 
 Goods imported as accompanied passengers' baggage either by non-residents or resi dents and cleared at the place where 
such persons disembark or enter South Africa  
 Motor vehicles imported by natural pers ons on change of permanent residence 
 Household furniture 
 Cups, medals, and other trophies;  and ar ticles of food and drinks imported by o fficials of any foreign government for 
official use at international exhibitions 
 Re-imported goods  
 Goods for industrial or commercial purposes 
 Goods for manufacturing or commercial purposes  
 Mixtures of mono-, di-, and polyisocyanates , and preparations containing isocyanates 
 Piping and tubing of unhardened vulcanized rubber 
 Electric motors, generator sets, and motor cars 
Table AIII.4 (cont'd) WT/TPR/S/222 Trade Policy Review 
Page 56 
 
 
 Rebate Product 
 Goods (excluding corn or grain seeds) for the purposes of experimenting therewith  
 Nets treated with insecticides for the control of mosquitoes 
 Used personal or household effects  
 Used property 
 Life saving apparatus 
 Food containing soya-bean concentrates , specially prepared for infants  
 Goods unconditionally abandoned to the Office by the owner or goods destroyed with the permission of the Commissioner;  
goods lost in manufacturing processes in a customs and excise wa rehouse;  and goods proved to have been lost, destroyed or 
damaged on any single occasion 
 Bona fide unsolicited gifts of no more th an two parcels per person per calendar year , and of which the value per parcel does 
not exceed R 400 
 Goods imported for the relief of distress of persons in cases  of famine or other nationa l disaster, under any technical 
assistance agreement or in terms of an obligation under any multilateral internati onal agreement to which South Africa is 
party 
 Goods imported for any purpose agreed upon between the Governments of South Af rica, Botswana, Lesotho, Swaziland, 
and Namibia 
 Ileal bladder appliances and parts thereo f;  and skin protective preparations  
 Printed matters imported by airlines for their use 
 Goods of any description imported by refugees from African territories  
 Machinery and mechanical appliances;  and electrical machinery and equipment  
 Parts and  materials, of plastics 
 Textile fabrics woven 
 Goods produced or manufactured in Mozamb ique, and imported directly therefrom 
 Goods for upgrading,  supplied free of charge to re place defective goods covered by a warranty agreement 
 Goods for sale, consumption or use in the 2010 FIFA World Cup South Africa when imported and entered by persons and 
employees of qualifying persons 
Part 2:  Temporary rebates of customs duties  
 Fish, fresh, chilled or frozen, excluding fish fillets and other fish meat  
 Fish fillets and other fish meat (whether  or not minced), fresh, chilled or frozen 
 Fish, dried, salted or in brine;  smoked fi sh, whether or not cooked before or during the smoking process;  and flours, meals, 
and pellets of fish, fit for human consumption 
 Dairy produce;  and natural honey  
 Potatoes, dried leguminous vegetables, cereals, oil seeds, and sweet corn 
 Wheat  
 Rape seed, whether or not broken;  and sunflower seed  
 Preparations based on minced, fl avoured, and cooked fish, frozen 
 Raw or refined sugar  
 Preparation of wheat or wheaten flour, gluten-free 
 Specified aliphatic hydrocarbon solvents  
 Tetrachloroethylene 
 Miscellaneous chemical products 
 Plastics and articles thereof 
 Synthetic rubber and factice derived from oils 
 New pneumatic tyres, of rubber 
 Paper and paperboard;  and articles of paper pulp, of paper or of paperboard 
 Textile and textile articles produ ced and imported from Malawi, Mozambique, Tanzania, and Zambia 
 Textile and textile articles entered for home consumption after 1 April 2001 to 30 September 2006 
 Textile and textile articles entered for home c onsumption after 1 January 2006 to 30 September 2010 
 Woven fabrics of synthetic staple  fibres, containing 85% or more  by weight of acrylic fibres 
 Other woven fabrics of synthetic st aple fibres, containing acrylic  
 Woven warp pile fabric s and chenille fabrics 
 Knitted or crocheted fabrics;  "l ong pile" fabrics, knitted or croc heted;  looped pile fabrics, knitted or crocheted;  and othe r 
pile fabrics and terry fabr ics, knitted or crocheted 
 Glass bottles or a metric capacity, for the packing of mineral water, beer, wine, and spirituous beverages 
 Bracelets and pendants, of stainless steel 
 Tubes and pipes, of iron or steel;  and tubes, pi pes, and hollow profiles, of iron or non-alloy steel 
Table AIII.4 (cont'd) SACU WT/TPR/S/222 
 Page 57 
 
 
 Rebate Product 
 Aluminium plates, sheets, and strip 
 Works trucks 
 Segmental ball plug valves, positioners, and actuators  
 Hydraulic presses 
 Parts for use solely or principally in radi o-telephonic transmission a nd reception apparatus  
 Vehicles, aircraft, vessels, and associated transport equipment 
 Medical or surgical instruments and apparatus  
 Goods specified in Schedule 1 Part 2Aa, imported into South Africa for further pr ocessing, blending or mixing, or entered 
for use in the manufacture of excisable goods of another or same calls or kind  
 Undenatured, partially undenatured or  fully denatured ethyl alcohol  
 Meat of bovine animals, fresh, chilled or frozen 
 Meat of sheep or goats, fresh, chilled or frozen. 
 Milk and cream, not concentrated nor containing any added sugar or other sweetening matter, fresh 
 Milk and cream, concentrated or containing adde d sugar or other sweetening matter, in powder  
 Buttermilk, curdled milk and cream, yogurt, kephir, and other fermented or acidified milk and cream, whether or not 
concentrated or containing added sugar or  other sweetening matter or flavoured or  containing added fruit, nuts or cocoa 
 Whey, whether or not concentrated or containing added sugar or ot her sweetening matter; produc ts consisting of natural 
milk constituents, whether or not containing added sugar or other sweetening matter, not elsewhere specified or included 
 Butter and other fats and o ils derived from milk  
 Cheese (excluding cheddar and sweet milk cheese)  
 Birds' eggs, not in shell, and egg yolks,  fresh, dried, cooked by steaming or by boiling in wa ter, moulded, frozen or 
otherwise preserved, whether or not contai ning added sugar or other sweetening matter 
 Vegetables (uncooked or cooked by steaming or bo iling in water), frozen 
 Dried vegetables, whole, cut, sliced, broken or in powder, but not further prepared  
 Peas (uncooked or cooked by steaming or bo iling water), shelled or unshelled, frozen  
 Dried leguminous vegetables, shelled,  whether or not skinned or split 
 Grapes, dried 
 Fruit, dried;  and mixtures of nuts or dried fruits 
 Wheat;  maize (corn);  buckwheat, millet,  and canary seed;  and other cereals 
 Soya beans, whether or not broken 
 Malt extract;  food preparations of flour, groats, meal, starch  or malt extract, not containing cocoa or containing less than 
40% by weight of cocoa calculated on a totally defatted basis, not elsewhere specified or included;  food preparations of 
goods of headings Nos. 04.01 to 04.04, not containing cocoa or containing less than 5% by we ight of cocoa calculated on a 
totally defatted basis, not else where specified or included  
 Pasta, whether or not cooked or stuffed or otherwise prepared 
 Preparations for infants  
 Food preparations not elsewhere specified or included;  and pudding and ice cream mixtures 
 Other fermented beverages;  and mixtures  of fermented beverages and mixtures of fermented bevera ges and non-alcoholic 
beverages, not elsewhere specified or included 
 Undenatured ethyl alcohol;  and ethyl alcohol and other spirits, denatured 
 Sparkling wine;  wine;  grape must;  ve rmouth and other wine of fresh grapes, a nd spirits obtained by distilling grape wine 
or grape marc;  whiskies;  rum and tafia, and other spirits  obtained by distilling fermente d sugarcane products;  gin and 
geneva;   vodka;  liqueurs a nd cordials;  and other  
 Unmanufactured tobacco;  and tobacco refuse  
 Cotton, not carded or combed  
 Goods of any description, for use in the construction of the Gautrain Rapid Rail Link 
Part 3:  Goods temporarily admitted under rebate of customs duties  
 Goods temporarily admitted for processing,  repairing, cleani ng or reconditioning  
 Goods temporarily admitted for specific purposes  
 Goods temporarily admitted subject to export in the same state 
Part 4:  Rebates of fuel levy  
 Goods in respect of which the fuel levy, together with the customs duty, where a pplicable, amounts to not less than R 2,500, 
proved to have been lost, destroyed or damaged on any single occasion 
 Specified aliphatic hydrocarbon solvents 
Table AIII.4 (cont'd) WT/TPR/S/222 Trade Policy Review 
Page 58 
 
 
 Rebate Product 
Schedule 5:  Specific drawbacks and refunds of customs duties and fuel levy 
Part 1:  Specific drawbacks of customs duties  
 Animal and animal products  
 Prepared foodstuffs, beverage s, spirits, and tobacco 
 Chemical and allied products  
 Plastic and rubber goods 
 Textile and textile products 
 Footwear, headgear, umbr ellas, and sunshades  
 Base metals and articles of base metal 
 Machinery and mechanical applian ces;  and electrical equipment  
 Vehicles, aircraft, vessels, and associated transport equipment  
 Optical, photographic, surgical, mu sical, and precision instruments  
 Miscellaneous (e.g. mattresses and similar padded, stuffed or fitted furnishings;  sports goods;  and Christmas crackers) 
 Goods (excluding carbon), surcharge goods, and carbon, used in manufacturing, processing, finishing or packing of any 
goods exported;  wooden packing cases, boxes, crates, drums, and similar containers, unassemb led, used as packing for 
exported goods;  and casks of a capacity of less than 180 l, used as packing for exported goods 
Part 2:  Refunds of customs duties on goods ex ported in the same condition as imported  
 Goods, from a single consignment, not having been imported  contrary to the provisions of any law, on which duty 
amounting to R 50 or more, has been paid 
 Motor vehicles imported by bona fide tourists for their ow n use and exported within 12 months of the date of import 
 Goods, exceeding R 200 in value for each consignment for each consignee, exported for trade purposes 
 Goods, not intended for trade purposes, imported thought the post, if  such goods are returned by the addressee to the sender, 
in the same condition as imported  
 Printed books, journals, and periodicals, not  having been imported contrary to th e provisions of any law, on which duty 
amounting to R 50 or more, has been paid 
Part 3:  Miscellaneous refunds of customs duties and fuel levy  
 Goods abandoned to the Office 
 Goods used to manufacture excisable goods 
 Motor vehicle parts and accessories  
 Motor vehicles  
Part 4:  Refunds of fuel levy  
 Petrol, distillate fuels and biodiesels used for specific purposes 
Schedule 6:  Rebates and refunds of excise duties, fuel  levy, road accident fund levy, and environmental levy  
Part 1:  Rebates and refunds of specific excise duties  
 Prepared foodstuffs (trad itional African beer powder) 
 Beer made from malt and traditional African beer  
 Wine and other fermented beverages (excluding beer made from malt and trad itional African beer);  mixtures of fermented 
beverages;  and mixture of fermente d beverages and non-alcoholic  beverages not elsewhere specified or included 
 Spirits and spirituous beverages 
 Manufactured tobacco and tobacco substitute products 
 Minerals products (e.g. petroleum oils and biodiesel, and distillate fuel and biodiesel) 
 Goods for use in manufacturing;  a nd goods lost, destroyed or damaged  
Part 2:  Rebates and refunds of ad valorem  excise duties  
 Goods supplied to schools or colleges;  goods used by an or ganization or body for the care of persons with alcohol or 
narcotic substance dependency;  goods to be used by the Nati onal Sea Rescue Institute of S outh Africa and the Surf Life-
Saving Association of South Africa;  a pparatus, capable of sound reproduction onl y, manually operated;  motor vehicles, 
motor cars, and other motor vehicles;  goods used by heads of state, diplomatic, and other fo reign representatives;  goods for 
use in manufacturing;  goods exported ex a customs and ex cise warehouse;  and goods lost, destroyed or damaged  
a Prepared foodstuffs;  beverages, spirits, and vinegar;  tobacco;  mineral products;  and products of the chemical or allied 
 industries. 
Source:  Customs and Excise Duties Act (Act No. 91 of 1964).  Viewed at:  http://www. sars.gov.za/home.asp?pid=2630 
 [13 March 2009].