You’ve negotiated a competitive price with your overseas supplier. The product looks profitable, the order is ready to ship and, on paper, the numbers seem to add up.
Then the shipment arrives in South Africa, and the final bill is higher than expected.
That’s because your supplier’s invoice is only one part of the total cost of importing goods. Freight, insurance, customs duty, import VAT, clearance fees and local delivery can all affect the amount you finally pay before your shipment reaches your business.
The South African Reserve Bank reported that import values increased by R376.6 billion in the second quarter of 2026, driven by higher prices and volumes. For businesses importing stock, equipment or raw materials, understanding the full cost of an import is essential. It can affect your pricing, profit margins and cash flow.
So, what should you include when calculating the cost of importing goods into South Africa?
The Supplier’s Price Is Only The Starting Point
The first figure you’ll usually receive is the price quoted by your supplier. But to understand what an import will really cost your business, you need to look beyond the supplier’s invoice.
This is where landed cost becomes important. Landed cost refers to the total cost of getting goods from the supplier to their intended destination. Depending on the shipment, it can include the purchase price, transport, insurance, customs duty, taxes, clearance fees and local delivery charges.
The final calculation will vary from one shipment to the next, but these are eight costs every importer should plan for.
1. The Cost Of The Goods
The most obvious cost is the amount you pay your supplier. This could be the wholesale price of inventory, raw materials, machinery, equipment or finished products.
It’s important not to assume that the quoted price includes everything. Your supplier’s invoice may exclude transport, insurance, duties and taxes. The costs you’re responsible for will also depend on the Incoterm agreed with your supplier.
Incoterms set out how responsibilities, risks and costs are divided between the buyer and seller. Make sure you understand the agreed Incoterm before placing your order, as it can have a significant effect on your landed cost.
2. Freight And Transport
Moving your goods from the supplier’s premises to South Africa is another major part of the calculation.
Shipping costs can depend on the shipment’s size, weight, origin, destination, urgency and transport mode. Air freight and express services can help when speed matters, while ocean freight may be more suitable for larger shipments that are less time-sensitive.
Transport costs can also form part of the value used for customs purposes. This means your freight charge may affect more than your delivery budget. It can also influence the duties and taxes applied to your shipment.
3. Transit Insurance
Your goods may need insurance while they’re in transit. Whether insurance is included in your shipping arrangement depends on the terms agreed with your supplier, carrier or logistics provider.
If you’re responsible for insuring the shipment, include the premium in your import budget. The right level of cover can help protect your business against loss or damage during transport, particularly when importing high-value or fragile goods.
4. Customs duty
Customs duty is one of the first additional costs most importers consider. The rate that applies will depend on factors such as the type of goods, their customs value, quantity and tariff classification.
Some imports may also attract anti-dumping or countervailing duties.
Correctly identifying the Harmonised System (HS) code for your goods is therefore essential. The HS code helps determine the applicable duty rate and may also affect import-control requirements, rules of origin and eligibility for customs rebates.
Duty rates and customs requirements can change, so check the current classification and applicable rate before placing your order.
5. Import VAT
South Africa’s standard VAT rate is 15%, but import VAT is not simply calculated as 15% of the supplier’s invoice.
For goods imported from outside the Southern African Customs Union, SARS generally calculates import VAT using the customs value, a 10% uplift and any non-rebated customs duties. The 15% VAT rate is then applied to this amount.
The 10% uplift does not apply to qualifying goods imported from Botswana, Eswatini, Lesotho or Namibia.
For example, if the customs value of a shipment is R100,000 and the applicable customs duty is 10%, the calculation could look like this:
Customs value: R100,000
10% uplift: R10,000
Customs duty: R10,000
Added Tax Value: R120,000
Import VAT at 15%: R18,000
Simply adding 15% to the supplier’s invoice could therefore give you an inaccurate estimate.
6. Customs Clearance Charges
Before your goods can reach their final destination, they need to clear customs. This process may involve import declarations, supporting documents and the assessment and payment of customs duty and VAT.
Depending on the shipment and the service arrangement, you may also incur additional charges. DHL, for example, lists potential charges such as advance payment surcharges and regulatory fees, in addition to customs duty and local taxes.
Before your goods are shipped, confirm which customs clearance services are included in your quote and which charges may be billed separately. Knowing this upfront can help you avoid surprises when the shipment arrives.
7. Delivery After Customs Clearance
Customs clearance doesn’t necessarily mean your goods have reached your warehouse.
Once the shipment has been released, you may still need to arrange and pay for road freight from the airport, port or customs facility to your premises, distribution centre or customer.
This final leg of the journey is easy to overlook when the main focus is getting goods across the border. But it forms part of your landed cost, so it should be included in your calculations from the start.
8. Storage, Demurrage And Detention
Some import costs only appear when something goes wrong or a shipment takes longer than expected.
Missing documentation, incorrect tariff classifications, customs inspections and other clearance issues can cause delays. Depending on the shipment and facility, these delays may lead to storage, demurrage or detention charges.
For context, storage costs at South African ports and airports can range from R500 to R2,000 per day once the free storage period has expired.
Accurate paperwork and timely customs information can help reduce the risk of these charges. It’s also worth building some contingency into your budget, particularly when importing goods with strict delivery deadlines.
How Businesses Can Reduce Import Costs
Import costs can add up quickly, but careful planning can help you manage them.
Start by comparing the total landed cost before choosing a supplier. The lowest product price may not result in the lowest overall cost once freight, duties, taxes and delivery are included.
Shipping costs are another area worth reviewing, particularly if your business imports regularly. With DHL Express, businesses in South Africa can access international shipping discounts from 35%, depending on the account and shipment. Opening a DHL Express Business Account is free and comes with no minimum shipping volume, giving businesses greater flexibility when managing the cost of moving goods across borders.
Prepare a landed-cost estimate before placing the order, and check the HS classification and import requirements for the goods. This gives you a clearer view of your expected costs and helps protect your margins.
It’s also important to plan for the time needed to prepare documents, clear customs and arrange final delivery. Rushing a shipment or submitting incomplete information can lead to delays and extra charges.
Review your import process regularly. If you’re repeatedly paying unexpected fees, experiencing clearance delays or using inefficient shipping methods, there may be opportunities to improve the way you plan and manage your shipments.
Tools that help you estimate landed costs, check HS classifications and understand customs requirements can also support better purchasing decisions before your shipment leaves the supplier.
Make Import Decisions With The Full Cost In Mind
Importing can give your business access to new suppliers, products and markets. But the supplier’s quoted price is only the beginning.
Before placing an order, calculate the full landed cost. Consider the purchase price, shipping method, insurance, customs duty, import VAT, clearance charges, final delivery and the potential cost of delays.
Getting these figures right at the start makes it easier to set prices accurately, protect your margins and manage your cash flow.
Tools such as DHL MyGTS can help businesses estimate landed costs, check HS classifications and understand import and export requirements before a shipment moves.
Ready to take greater control of your international shipments? Open a DHL Express Business Account to access tools and services designed to help your business make import decisions with fewer surprises.
FAQs
There’s no single cost for importing goods into South Africa. Your total landed cost may include the price of the goods, international shipping, insurance, customs duties, import VAT, customs clearance, local delivery and, where applicable, storage or other additional charges.
The final amount depends on factors such as the type of goods, their value, country of origin, tariff classification and shipping requirements. DHL’s guide to importing goods into South Africa provides a useful overview of the main costs and requirements businesses should consider before shipping.
Import duties are based on several factors, including the customs value of the goods, their tariff classification and their country of origin.
South Africa’s standard VAT rate is currently 15%. Import VAT is calculated on the Added Tax Value (ATV), rather than simply on the supplier’s invoice amount. This means the calculation may also take customs duty and certain freight-related costs into account.
For more detail, read DHL’s guide to calculating duties and overcoming import logistics challenges in South Africa.
To estimate the landed cost, start with the supplier’s price and add the costs involved in getting the goods to their final destination. These may include international freight, insurance, customs duties, import VAT, customs clearance and local delivery.
It’s also worth allowing for possible storage, demurrage or delay-related charges, particularly if additional documentation or inspections are required.
DHL’s Optional Services and Customs Services guide explains how its MyGTS tools can help businesses estimate landed costs, duties, taxes and freight charges before shipping. This can make it easier to budget accurately and avoid unexpected costs when importing into South Africa.
Share
Similar Stories
