How to Start and Run an Import/Export Business in South Africa

If you're thinking about importing goods into South Africa or exporting products to international markets, there are a few important things you need to do first.

Contrary to what a lot of people might think, you can't just buy and sell across borders without the right paperwork, customs approvals, and licenses.

One of the biggest mistakes new importers and exporters make is assuming they can start trading right away—only to have their shipments stuck at customs because they don’t have an Import/Export License.

This is NOT a situation you want to find yourself in…

To help you avoid costly delays and fines, we’re breaking down everything you need to start an import/export business in South Africa.

What Is an Import/Export Business?

An import/export business is a company that buys and sells goods across international borders.

• Importing means bringing products from another country into South Africa.
• Exporting means selling South African-made products to buyers in other countries.

Importing allows you to bring in cheaper or high-demand products that aren’t made locally, and exporting gives you the chance to sell South African products globally and earn in stronger foreign currencies.

While this can be a great business opportunity, it also means dealing with customs rules, tax laws, and strict regulations.

These requirements make it all more complicated because if you don’t follow the proper steps, you could lose your shipment or pay expensive penalties.

What Do You Need to Start an Import/Export Business?

Before you can start importing or exporting, your business must be registered and compliant with South African regulations.

Here’s what you need to get started:

1. Register Your Business with the CIPC

To legally trade in South Africa, your business must be registered with the Companies and Intellectual Property Commission (CIPC).

To register your company, you’ll need:

1. A company name.
2. A business registration number.
3. A tax number from SARS.

If you haven’t registered your company yet, you can register your business online quickly and easily with Govchain.

2. Get an Import/Export License from SARS

An import-export license is officially required when:

1. The total imported/exported cargo is R150 000 or more in one calendar year
2. There are more than 3 imports/exports in one calendar year
3. You are importing for resale or business purposes and not for your personal use

Why Do You Need an Import/Export License?

1. Without it, you can’t clear goods at customs.
2. You legally cannot trade across borders if you don’t have it.
3. SARS tracks imported and exported goods for tax and compliance.

How to Apply for an Import/Export License

To register as an importer/exporter, you must:

1️. Complete the DA 185 application form (this is the official SARS registration document).2️. Submit the following documents:

• Company registration certificate from CIPC.
• Tax clearance certificate (proof that your business is tax-compliant).
• Bank confirmation letter (to verify your company’s bank account).
• Certified copy of your ID or passport.

Once SARS approves your application, you’ll receive an Import/Export Code that you’ll need every time you move goods across borders.

How to get your Import/Export License quickly? Let Govchain handle it for you – our online service is easy to use and our support team is always more than happy to help!

3. Understand Import Duties, VAT & Customs Fees

Importing and exporting involves customs duties and VAT, which can affect your costs and profits.

When importing goods into South Africa…

• 15% VAT is charged on all imported goods before customs releases them.
• Customs duties vary depending on the type of product.

For example… If you import goods worth R100,000, you may need to pay:R15,000 in VAT (15%).Customs duties (ranging from 0% to 45%, depending on the product).

When exporting goods from South Africa…

• Most exports are zero-rated for VAT, meaning you don’t charge VAT to international customers.
• You must keep clear records of exports to qualify for this tax exemption.

4. Work with a Reliable Shipping & Logistics Partner

Since your goods need to move across borders, you must work with a logistics provider you can trust to:

• Handle transportation (by air, sea, or land).
• Manage customs clearance and documentation.
• Provide warehousing or distribution if needed.

Pro tip: Air freight is faster but more expensive, while sea freight is cheaper but slower. You’ll need to do some digging and choose the best option based on your budget and urgency.

5. Check Product Restrictions & Trade Agreements

Some products require special permits before you can import or export them.

Here are some examples of Restricted Goods:

• Alcohol & Tobacco (these require additional import permits).
• Pharmaceuticals & Medical Products (regulated by SAHPRA).
• Fresh Food & Agricultural Products (require health & safety certificates).

If your product is covered under a trade agreement, you may qualify for lower customs duties.

Common Mistakes to Avoid in Import/Export Business

1. Not getting an Import/Export License

   • Customs won’t clear your goods, and you could face fines.

2. Forgetting about customs duties & VAT

   • If you don’t budget for import taxes, you may lose profits.

3. Not researching product restrictions

   • Some goods require special permits that take time to process.

4. Choosing the wrong shipping method

   • Air freight is expensive, while sea freight is slower, so be sure to pick wisely based on your business’ needs.

Get Your Import/Export License the Easy Way

Applying for an Import/Export License through SARS can be time-consuming and confusing.

Many businesses struggle with:

• Missing documents, which delay approvals.
• Complicated forms that take too long to process.
• Technical issues with the SARS system.

That’s why Govchain exists to make the process simple by…

• Handling all the paperwork for you.
• Getting fast approval so you can start trading sooner.
• Giving you access to support from compliance experts who make sure your application is correct.

Apply for your Import/Export License online with Govchain to take the next big step for your business and your future.