South Africa

Distributing a product

Evolution of the sector

A major phenomenon in evolution of the distribution sector in South Africa has been the emergence of supermarkets or hypermarkets, which sell large quantities of almost all consumer goods on a self-serve basis. The hypermarkets, located in suburban shopping centers, have disrupted the traditional distribution chain by purchasing directly from manufacturers and bypassing the wholesaler, with low margins achieving high turnover, thereby placing price pressure on all competing outlets.

Market shares

Though there is growing black middle class with considerable disposable incomes, there are still huge differences in income in South Africa with 20% of households accounting for 60%. The big South African consumer market splits in two parts: a market of white people & some newly affluent back people with a high purchasing power, and a market of large majority of black people still with a very limited purchasing power. The majority of the retail sale is carried out by shopping centres, groupments of small shops, big department stores (Stuttafords, Edgars, Woolworths), supermarkets (Checkers, Pick' n Pay) and hypermarkets (Hyperama and Makro). The traditional business remains developed, especially outside the conglomerations, but does not represent a big market share, as it is almost exclusively meant for poor population.

Organizations in the retail sector

Fuel Retailers' Association
South African Council of Shopping Centres

Market access procedures

International Conventions

Member of World Trade Organisation
Party to the Kyoto protocol
Party to the Washington convention on International trade in endangered species of wild fauna and flora
Party to the Basel convention on the Control of Transboudary Movements of Hazardous Wastes and their disposal
Party to the Montreal protocol on Substances that deplete the Ozone Layer
Wassenaar arrangement on export controls for conventional arms and dual-use goods and technologies

International economic cooperation

South Africa is a member of Southern African Customs Union (SACU).

South Africa is a member of Southern African Development Community(SADC).

South Africa has also signed some bilateral and multilateral commercial agreements.

Non tariff barriers

Import licenses are required for a certain number of products (refer to Schedule 1 of the Import Control Regulations Act). These licences are delivered by the following authorities (as per the nature of the product): Department of Agriculture, Department of Water Affairs, Department of Sea and Fisheries, Department of Trade and Industry, Energy affairs and Department of Health.
Some products are subject to specific controls (caution: the list given below is not exhaustive):
- A phytosanitary certificate is required for vegetables and related products. It is delivered by the Ministry of Agriculture from the country of origin.
- A veterinarian certificate is required for the import of living animals and fresh, deep-frozen or canned meat.
- A certificate of disinfection is necessary for the import of woollen products, cotton, clothes,etc.
-A certificate of inspection by a recognised institute is required only for exporters who export for the first time in South Africa, it is not required when a good business relationship is established.
- A quality certificate may be asked for fruits and vegetables.

Customs duties and taxes on imports

7.91%

The WTO gives a sheet summarizing the Customs tariffs of the country

Also visit: Tariff-resource

Customs classification

South Africa uses a Harmonized System (HS).

Import procedures

Customs and excise duties are administered by SARS (South African RevenueService) .

Besides the manual method, an electronic data entry and clearance system is also used for registered firms.

Import documents required for customs clearance: 1. Copies of the Bill of Lading 2. A declaration of Origin Form DA59. 3. Bill of Entry (DA500) 4. Four copies and one original of Commercial Invoice 5. One copy of the insurance certificate for sea freight 6. Three copies of the Packing List.

The case of samples

For the entry of commercial samples, advertising material and professional equipment, South Africa applies the ATA (Temporary Admission) Carnet system. Goods should be adequately marked for identification purposes so as to facilitate their passage through customs. South Africa is a member of the ATA Convention (see: http://www.atacarnet.com/)

For further information

South African Revenue Service
South Africa Ministry of Trade and Industry
South African Reserve Bank (SARB)
South African Department of Foreign Affairs

Organizing goods transport

Main useful means

80% of all freight carried in South Africa is done so by road. Nearly 7% of Gross National Product is spent on freight transport. About 69% of road-freight tonnage is carried by firms or operators transporting freight in the course of their business, and 29% by road haulage firms.

Ports

Port of Durban
Port of Cape Town
Port of Port Elizabeth
Port of Richards Bay
Port of East London
Ports and Ships

Airports

O.R. Tambo International Airport – Jonesburg
Cape Town International Airport
Durban International Airport
Bloemfontein Airport
Port Elizabeth Airport
Pilanesberg International Airport
East London Airport
George Airport
Upington Airport

Sea transport organizations

National Ports Authority (NPA)

Air transport organizations

Airports Company of South Africa (ACSA)

Road transport organizations

The South African National Roads Agency Limited (SANRAL)

Rail transport organizations

Transnet