Post-Brexit trading between the UK and South Africa
Before BREXIT South Africa traded with the UK through the SADC-EU EPA (Southern African Development Community- EU Economic Partnership Agreement). With the UK leaving the EU, how does that impact trade with South Africa?
Following its exit from the European Union (EU), the United Kingdom of Great Britain and Northern Ireland (UK) officiated the SACUM-UK Economic Partnership Agreement (EPA), a new trade agreement with South Africa and other states. It is an agreement between SACU member states (i.e. South Africa, Lesotho, Eswatini, Namibia, Botswana), Mozambique and the UK. In order to allow for uninterrupted trade between members following Brexit, the SACUM-UK EPA came into being on 1 January 2021.
SACUM-UK EPA: preferential tariff treatment
The SACUM-UK EPA creates a free trade area between the UK, SACU Member States and Mozambique. The agreement essentially copies the preferential duty treatments of its predecessor, the SADC-EU EPA, except for updated volume limitation on the Tariff Rate Quotas.
Both imports from the UK to South Africa and exports to the UK from South Africa still receive benefits. Imports receive the preferential rates as stated in the EU column of the South African Tariff Book. Exports enjoy the benefits they had under the pre-Brexit SADC-EU EPA.
SACUM-UK EPA: claiming preferential import duty rates
In order to make use of the trade agreement, all South African exporters to the UK need to register for the SACUM-UK EPA with South African Customs. Once registered exporters can apply for an EUR1 certificate of origin that is specifically linked to this trade agreement. The EUR1 certificate verifies that the goods exported are of South African origin and qualify for the reduced import duty tariffs that are part of this agreement.
Providing a valid EUR.1 certificate will give your business a competitive edge as your products will incur nil or reduced import duties in the UK.
Read more – how to fill in a EUR1 certificate.
