6.2. Payment via an Authorised Dealer (Import Payments)

Business entities may purchase foreign currency to pay for the actual price of imported goods, bona fide freight charges, insurance cover as well as buying commissions and retainer fees due to agents, provided that the rate of commission or fee is normal in the particular trade concerned, together with any other incidental charges incurred in the purchase and shipment of the goods.
Where an import permit is required, business entities must ensure that a covering import permit issued by ITAC is obtained.

6.2.1 Payments for imports must be made against the following documentation:

(a) commercial invoices issued by the supplier;

(b) any one of the transport documents as prescribed by the International Chamber of Commerce Uniform Customs and Practice for Documentary Credits (UCP 600) and its supplement for electronic presentation, the eUCP, evidencing transport of the relative goods to South Africa; or

(c) Freight Forwarders Certificate of Receipt or Freight Forwarders Certificate of Transport; and

(d) consignee’s copy of the prescribed SARS Customs Declaration. In lieu of the documents referred to in (b) and (c) above, arrival notifications issued by shipping companies may be tendered.

Since Botswana is a member of the Custom Union, imports from Botswana may be paid for against the commercial invoice issued by the supplier and the consignee’s copy of the prescribed SARS Customs Declaration.

6.2.2 Freight payments together with exemptions

Business entities must ensure that original, final freight invoices are presented to an Authorised Dealer for payment. Under no circumstances may quotes and/or pro-forma invoices be presented for payment.

Freight payments that are expressed in foreign currency and are directly related to a specific import or export transaction may be settled between local entities (i.e. legal persons) in foreign currency.

Importers who do not conduct a CFC account or who have no inflow of foreign currency may purchase foreign currency in the spot market to pay freight charges to another resident provided that such resident has an obligation to pay freight charges in foreign currency.

Foreign currency held by a locally recognised ships’ agent (including cash to master transactions), freight forwarder, marine insurance broker or tour wholesaler or operator for the ultimate benefit or account of a non-resident entity (e.g. a ship’s owner, freight forwarder, insurance broker or insurance entity abroad) need not be offered for sale to an Authorised Dealer. These funds may be retained in a CFC account until distribution on behalf of or transfer to the non-resident beneficiary abroad.

Where a business entity is required to pay any interest on an overdrawn account by converting Rand into foreign currency, this must be done in the spot market.