6.3. Terms of payment for imports (Import Payments)

(a) Advance payments

Foreign currency in respect of advance payments to cover the cost of permissible imports, other than capital goods, against the presentation of an invoice may be provided by the entity’s Authorised Dealer, provided that documentary evidence is presented to them in due course confirming that the goods have been received in South Africa.

The prescribed SARS Customs Declaration bearing the MRN must be submitted to the business entity’s Authorised Dealer immediately after the goods have been received in South Africa.

(b) Capital goods

Foreign currency may be provided for advance payments up to 100 per cent of the ex-factory cost of capital goods to be imported not exceeding a total value of R10 million. Payment for the importation of capital goods in excess of R10 million may only be provided up to 50 per cent of the ex-factory cost of the goods to be imported. Business entities must confirm to their Authorised Dealer that the order would otherwise be refused and that such payment is normal in the trade concerned.

Business entities may purchase foreign currency in respect of advance payments and/or cash-with-order requests to cover the cost of permissible imports as well as for goods consigned by air on a cash-on-delivery basis, provided that within 14 days a copy of the relative transport document dated and signed by a member of the South African Association of Freight Forwarders is submitted to the entity’s Authorised Dealer.

(d) Payments older than 12 months

Payments in respect of imports where the required import documents are older than 12 months may be effected via an Authorised Dealer, provided that no interest has been charged by the foreign supplier.