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The Current Cost Of Clearing Cars In South Africa Officially (Updated Guide, 2025)

Importing a car into South Africa can be a complex and costly process, especially if you are unfamiliar with the various charges involved. The total cost of clearing a vehicle includes import duties, VAT, shipping fees, compliance costs, and registration fees. Understanding these costs is crucial to avoid unexpected expenses and ensure a smooth importation process.

This updated 2025 guide provides a detailed breakdown of the official costs of clearing cars in South Africa. Whether you're bringing in a personal vehicle or a business shipment, this guide will help you navigate the process effectively.

1. Import Duties and Taxes in South Africa

When a vehicle enters South Africa, it is subject to customs duties and taxes, which significantly impact the overall cost. The major charges include customs duty, VAT, and ad valorem duty.

A. Customs Duty

Customs duty is the first charge applied to imported vehicles and is calculated as a percentage of the car’s customs value. For most passenger vehicles, the customs duty is 25% of the vehicle's customs value. For example, if an imported car is valued at $20,000, the customs duty will be $5,000.

B. Value Added Tax (VAT)

In addition to customs duty, imported cars attract 15% VAT, which is calculated based on the total of the vehicle’s customs value and the customs duty. If the vehicle’s customs value is $20,000 and the customs duty is $5,000, the VAT will be 15% of $25,000, amounting to $3,750.

C. Ad Valorem Duty

Ad valorem duty is a tax applied to vehicles based on their price and luxury classification. This duty can range from 0.75% to 20%, depending on the value of the car. Luxury vehicles often attract higher rates. If an imported car is valued at $50,000, an ad valorem duty of 10% would add another $5,000 to the total cost.

2. Shipping Costs for Imported Cars

Shipping costs vary based on the method used, the car’s size, and the distance traveled. There are two main shipping options: Roll-on/Roll-off (RoRo) and container shipping.

RoRo shipping is the cheaper and more common method, where cars are driven onto a cargo ship for transportation. The cost for RoRo shipping typically ranges from $800 to $1,500 per car.

Container shipping is more expensive but offers better security, making it ideal for luxury or high-value vehicles. The cost of container shipping can range from $1,500 to $4,000 per car.

The final shipping cost also depends on factors such as port charges, insurance, and handling fees at both the departure and arrival points.

3. Additional Fees and Charges

Aside from taxes and shipping costs, several additional fees apply when clearing a car in South Africa. These include marine insurance, port charges, compliance certification, and registration fees.

A. Marine Insurance

To protect the vehicle against damage or loss during transit, marine insurance is required. The cost of marine insurance is usually between 1% and 3% of the car’s value. For a $20,000 vehicle, insurance may cost between $200 and $600.

B. Port Charges

Upon arrival at a South African port, a vehicle incurs handling, inspection, and storage charges. These port fees vary by location but generally range between $200 and $500 per car.

C. Compliance and Registration Fees

Before the vehicle can be legally driven on South African roads, it must pass compliance testing to ensure it meets local safety and environmental standards. The cost of compliance testing varies, typically ranging from ZAR 3,000 to ZAR 10,000 ($160 - $540).

Once the compliance checks are complete, the vehicle must be registered with the relevant authorities. Registration fees will vary depending on the region and type of vehicle.

4. Required Documentation and Processing Fees

To clear a car in South Africa, several permits and documents are required. These include an import permit, a letter of authority, and customs clearance paperwork.

A. Import Permit

An import permit from the International Trade Administration Commission (ITAC) is mandatory for all used vehicle imports. While the ITAC does not charge a fee for the permit, the vehicle is still subject to customs duties and VAT.

B. Letter of Authority (LOA)

The National Regulator for Compulsory Specifications (NRCS) issues a letter of authority (LOA) to ensure that the imported vehicle complies with South African safety and technical standards. The cost of obtaining an LOA varies depending on the vehicle type, typically ranging from ZAR 300 to ZAR 1,800 ($16 - $96).

5. Special Exemptions and Rebates

Certain individuals and vehicle types may qualify for tax exemptions or reduced import duties in South Africa. These exemptions apply mainly to returning residents, immigrants, and classic car owners.

A. Returning Residents and Immigrants

South African citizens returning from abroad or immigrants moving to the country can import one personal vehicle without paying customs duty. To qualify for this exemption, the individual must have owned and used the vehicle for at least six months before importing it and must have lived outside South Africa for at least one year. The imported car cannot be sold for two years after entry. While the customs duty is waived, VAT still applies.

B. Classic and Vintage Cars

Vehicles older than 40 years may be eligible for reduced import duties under special regulations. Classic car owners should consult SARS and ITAC for the latest guidelines on duty reductions.

6. Total Estimated Cost of Clearing a Car in South Africa

To give a practical estimate, let’s consider a scenario where a car valued at $20,000 is imported using RoRo shipping.

First, customs duty at 25% of the vehicle's value amounts to $5,000. VAT is then calculated at 15% of the combined vehicle value and customs duty, adding up to $3,750. If an ad valorem duty of 5% is applied, it adds another $1,000 to the cost.

Shipping the vehicle via RoRo would cost around $1,200, while marine insurance at 2% of the car’s value would be approximately $400. Port charges would add another $300, and compliance testing and registration fees could cost $500.

Adding up all these costs, the total cost to clear a $20,000 imported car would be around $32,150. However, this amount may vary based on the car’s specifications, the chosen shipping method, and fluctuating exchange rates.

7. Conclusion: Is Importing a Car to South Africa Worth It?

Importing a car to South Africa can be expensive due to high import duties, VAT, and additional fees. In many cases, buying a similar vehicle locally may be more cost-effective. However, importing may still be a good option for:

• Luxury or rare vehicles that are not available in the local market.
• Returning South Africans and immigrants who qualify for tax exemptions.
• Businesses that import foreign vehicles for resale.

Before importing a car, it’s essential to research current regulations, consult with the South African Revenue Service (SARS), and work with a licensed customs clearing agent to ensure a smooth process.

If you need assistance finding a reliable customs clearing agent in South Africa, let us know in the comments!