Regulatory Requirements in Kenya
AFA Fibre Crops Directorate is the Regulating Agency, in Kenya, is mandated to regulate, develop and promote the fibre value chains. Exporters of sisal must first obtain a registration certificate from AFA FCD prior to obtaining the exporter licence. The procedures for obtaining the registration certificate and exporter licence can be accessed via the links below.
3.Register with AFA Fibre Crops Directorate (link)
4.Sisal exporter licence (link)
The issuance of the registration certificate and licence are done through the Agriculture & Food Authority (AFA) Integrated Management Information System IMIS Portal; the procedure to register with AFA IMIS Portal has been outlined here. A consignment of sisal must be accompanied by a phytosanitary certificate from the exporting country; this is to ensure that the sisal is free from pests and diseases. In Kenya, the phytosanitary certificate is issued by the Kenya Plant Health Inspectorate Service (KEPHIS), for each consignment. A step-by-step guide on how to obtain the certificate can be referenced here. In addition, for each consignment, the exporter is required to obtain a sisal export permit; for more information on how to obtain the permit, click here.
An AfCFTA Certificate of Origin (COO) is issued by the Kenya Revenue Authority (KRA) Rules of Origin Section for consignments destined for the AfCFTA market. Detailed step-by-step guide on the procedures for registration and COO have been outlined below:-
Regulatory requirements in the Country of destination
Agricultural Pests Act, 1983 (Act No. 36 of 1983): This Act regulates the import of agricultural products to prevent the introduction of pests and diseases. A phytosanitary certificate may be required for sisal fiber if it's classified as a plant product.
National Environmental Management Act, 1998 (Act No. 107 of 1998): Depending on the specific type and origin of the sisal fiber, the import may be subject to environmental regulations, particularly if the product is considered a potential environmental risk. Compliance with environmental impact assessments or obtaining specific permits may be required.
Health Act, 1977 (Act No. 63 of 1977): Port health authorities are responsible for inspecting imported goods to ensure they meet health standards. This can include physical inspections and testing of sisal fiber imports for contaminants or pests.
Standards
The Standards Act, 2008 (Act No. 8 of 2008) administered by the South African Bureau of Standards (SABS), governs the quality standards of products imported into South Africa. Standards by the SABS on fibre and polymer can be accessed here.
The International Organization for Standardization( ISO) Standards on sisal fibre can be accessed via this link. Standards are searchable and the actual standard will need to be obtained, at a cost; the list below provides an outline of standards for sisal fibre.
- ISO 1181: 2004 -Fibre ropes - Manila and sisal --3-4-and 8-strand ropes
- ISO 9001:2015: Similar to textiles, this standard ensures quality management in the production of sisal products.Additional certifications may include those related to sustainable agricultural practices
- Consumer Protection Act, 2008 (Act No. 68 of 2008): This Act requires that all goods, including imports, be labelled correctly and provide accurate information to consumers. Labelling must include the country of origin, weight, and any other relevant details.
- National Regulator for Compulsory Specifications Act, 2008 (Act No. 5 of 2008): This Act mandates compliance with compulsory specifications related to labelling and packaging, particularly if the sisal fibre is to be used in products subject to these specifications.
Customs Requirements
Goods imported to South Africa may enter and be cleared through one of these processes:
- Home consumption i.e. direct entry into South African Customs Union (SACU) countries (duty is paid on importation or under rebate / relief from duties under specific circumstances / conditions);
- Warehousing (pending payment of duty or re-export)
- Transit / in bond movements within the country or through South Africa beyond the borders of SACU;
- Temporary admission into SACU including inward processing (for manufacturing purposes and subsequent exportation).
National legislation gives an importer / agent seven days (an additional seven days in which to make due entry for loose or break bulk cargo, imported by sea, air or rail i.e. 14 days) or 28 days in the case of goods in a container depot, in which to clear goods from the time they have landed. The clearance process includes accepting and checking the goods declaration against the documents produced (invoice, bill of lading, certificate of origin, permits, etc.), examination of the goods if necessary and the assessment and collection of duty and VAT. Customs may require additional information and may also request samples. Customs may also detain goods for other Government departments. The relevant Government department will then ensure compliance with their applicable laws, regulations and rules. Customs values are set by the General Agreement on Tariffs and Trade (GATT) valuation code, which involves six valuation methods; more information can be referencedhere.
All import and export commercial transactions require commodities on Customs declarations to be classified according to an appropriate tariff heading. The tariff classification code is directly linked to the rate of duty payable on that commodity. Classification operates as part of the international Harmonised Commodity and Coding System, under the WCO Harmonised System Convention.
The Tariff Book indicates the normal customs duties (Schedule No 1, Part 1), excise duties (Schedule No 1, Part 2A), ad valorem duties (Schedule No 1, Part 2B), anti-dumping duties (Schedule No 2, Part 1) and countervailing duties (Schedule No 2, Part 2) that would be payable on importing goods into South Africa. Tariff classification of goods also determines the necessity for import control permits, the rules of origin obligations, and the applicability of any customs rebate provisions.
Duties levied on imported goods are as listed below:-
- Customs duties: This is imposed by the Customs and Excise Act 91 of 1964. They are levied on imported goods with the aim of raising revenue and protecting the local market. They are usually calculated as a percentage of the value of the goods (set in the schedules to the Customs and Excise Act). However meat, fish, tea, certain textile products and certain firearms attract rates of duty calculated either as a percentage of the value or as cents per unit (for example, per kilogram or metre). More information on customs duties can be referenced here.
- Anti-dumping and countervailing duties - This is charged on goods considered to be “dumped” in South Africa; and on subsidised imported goods.More information on Anti-dumping and countervailing duties can be referencedhere.
- Ad Valorem Excise Duty - This is applicable to products such as, amongst others, Motor Vehicles, Electronic Equipment, Cosmetics, Perfumeries and other products generally regarded as “luxury items” and are subject to the payment of Ad Valorem Excise Duty if used within the Southern African Customs Union (SACU). More information can be referenced here.
- VAT (which is also collected on goods imported and cleared for home consumption). The rate is 15%. To calculate VAT on imported goods, the ATV (added tax value) needs to be determined first. This is done as follows: [(Customs Value + 10% thereof) + (any non-rebated duties levied on the goods)] x 15% = [ATV] x 15% = VAT payable. More information on VAT can be referenced here.
- In addition:
- Customs Duty is free and 15% VAT for Tariff 5305.00
Payments for customs and excise can be done through eFiling, Electronic Fund Transfer (EFT). Cash deposits to a SARS Customs and Excise bank account at any bank branch is no longer available as a payment option to SARS clients. Credit and/or debit cards can only be used for payment of duties and/or VAT for travellers. It is advisable to engage a licensed customs broker who is familiar with South African import regulations. A broker can assist with documentation, tariff classification, and liaising with customs officials to ensure a smooth import process.
