Tips for Navigating Logistics Red Tape in South Africa

At NHFS, we realise South Africa is a country that is being controlled by red tape and high costs at border crossings; making intra-regional and continental trade near impossible. According to Geordin Hill-Lewis, DA Shadow Minister of Finance, it now requires an estimated 1,000 documents and a minimum cost of $190 for a single truckload of goods to go between South Africa and Angola.

7 Tips for Seamless South African Logistics

Surely the logistics red tape in South Africa makes effective trade impossible? However, there are ways to navigating around it. Keep reading the blog as we reveal 7 ways to ensure that your trade into or out of South Africa goes smoothly.

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Tip #1: Make Sure You Have the Correct Documentation

This can be an overwhelming and exhausting process, but if you want to speed up the process of trading with other African countries, you need to ensure that you have all the relevant documentation at your disposal.
On average, you will need four different classifications of documents; those relating to customs and imports, those relating to exports, documents for payment and ones to be able to transport goods.

Tip #2: Familiarise Yourself with Customs Forms

You need to fill in and submit a Customs Declaration Form (SAD 500) if you want to export goods from the country. Only once this has been approved will you be allowed to leave South Africa with your goods.

Tip #3: Understand Exchange Control Forms

These forms are needed for you to be able to return to the country with any payment you have received for the goods sold. Without Form MP79(a) and Form E, you will not be able to bring foreign currency in or out of South Africa.

Tip #4: Retain Your Commercial Invoice

You will need to have a commercial invoice for the goods sold that includes a full inventory of the goods, the address of the shipper and seller and all relevant prices relating to said goods. You may also need a certificate of origin for the shipment.

Tip #5: Formulate a Bill of Lading

This is the contract between the carrier and the exporter, and you must have this document with you in order to cross the border.

Other Documents You May Need Include;

● A consular invoice,
● An inspection certificate,
● A dock and warehouse receipt,
● An insurance certificate,
● An export permit (if you are exporting regulated goods such as pharmaceuticals),
● An export packing list.

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Tip #6: Avoid Paying Cash to Cross the Border

Making a cross-border payment digitally is so much quicker and easier than paying in cash. Since the Ecobank Mobile App launched in 2016, 4 million users have utilised its digital service to make payments to cross borders, and this figure is only set to grow. Another benefit of a digital payment method is that the relevant banks can track traders and in turn, offer the correct support in aiding their businesses.

Tip #7: Use a Larger Logistics Company

On average small traders pay 62% more than larger organisations to cross borders, so it could be worth your while to enlist the services of a logistics company to help with your trading needs.

NHFS is Here to Expertly Guide Your Through the Logistics Process

Outsourcing your trading business also means that you do not need to worry about any of the above documentation as this will be taken care of for you. Contact us to learn about our services or how we can assist you today.

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