Do you want to save money when exporting?

Do you want to save money when exporting?
May 2019 Newsletter

When business exports products, there are many pitfalls and advantages for both the exporter and the importer. There appears to be a trade language all on its own. One of the proven traditional ways that an importer can save on import tariffs for products manufactured in South Africa linked to specific Trade Agreements, is to obtain a Certificate of Origin.

Chambers have been certifying products from manufacturing countries since the early 1920s. The purpose of the Certificate of Origin(CoO) is to issue a certificate that attests that the product is wholly owned South African, or has been substantially modified by the local manufacturer. Only Chambers certify CoOs. Manufacturers are able to issue a document that attests that the product is South African, but it does not have the impetus of a CoO.

Then there are the agreed import and export terms, such as EXW (Ex works), FOR, (Free on Rail), DAP (Delivered at Place) and FCA (Free Carrier). These terms are Incoterms® 2010 by the International Chamber of Commerce and are the rules for the use of domestic and international trade terms. If you use the wrong word, it could cost you dearly as it would affect your insured product or final payment terms. It is in the interest of a business to know and have the Incoterms® manual with them. MCCI hosted an export and Certificate of Origin course on 23 May 2019, and have the Incoterms® manual available for sale.

Another critical fact to note the tariff heading of your product and the impact it could have on the import price. If you are a local company and uses Freight Forwarders, they would approach harbour Chambers such as Cape Town, Durban or Richards Bay for the CoO’s, but you can come directly to the MCCI for our electronic CoO, and save on the cost of a CoO.

MCCI has a fully accredited CoO service that is always available. This CoO has been issued by a Chamber who has institutional knowledge and is a body of integrity. Should you be interested in finding out if you could save money on your CoO, or if you need a CoO to benefit from the Trade Agreements, or would like to purchase an Incoterms® manual, contact Valerie Pienaar at businesslink@middelburginfo.com.