Bonded warehousing in South Africa: how duty deferral works
If you import goods you won't sell or use straight away, storing them in a licensed customs warehouse lets you hold off paying import duty and VAT until the goods actually leave. Here's how it works, and where importers get caught out.
In short
- Goods stored in a SARS-licensed customs storage warehouse are "in bond": duty and VAT are deferred.
- You pay only when goods are cleared for home use. Goods re-exported from bond don't attract SA duty or VAT.
- Goods can stay in bond for up to two years, with extensions possible on application.
- Duty is charged at the rate in force when goods leave the warehouse, not when they arrived.
What is a bonded warehouse?
A bonded warehouse (SARS calls it a customs and excise storage warehouse) is a facility licensed by SARS under sections 19 and 20 of the Customs and Excise Act to hold dutiable imported goods before duty has been paid. The licensee must provide security to SARS and keep records of everything that comes in and goes out, linked to the bills of entry.
O.R. Tambo International Airport and Johannesburg are both designated warehousing places, which is why a bond store close to the airport suits air-freight importers in Gauteng.
Why importers use bond
Cash flow
Without bond, duty and VAT are payable when the shipment is cleared, often weeks or months before the stock is sold. In bond, you pay as you draw stock out, in the quantities you need.
Goods heading somewhere else
If some or all of a consignment will be re-exported, for example to a customer elsewhere in Africa, it can leave the warehouse for export without South African duty or VAT being paid on it.
Time to sort, repack or decide
With SARS approval, goods in bond can be sorted, separated, packed or repacked. That gives you room to split a bulk consignment between local sale and export, or to wait for the right buyer.
How goods move into and out of bond
- Entry for warehousing. On arrival, goods are declared on a bill of entry for the warehousing procedure. Once SARS releases them, they move to the licensed warehouse. If the warehouse is in a different customs area from where the goods landed, a separate removal-in-bond entry is needed for the journey.
- Storage. Goods stay in bond for up to two years from first entry. An extension can be requested from SARS, but the application must be made at least 30 days before the two years run out.
- Removal. Every removal needs its own bill of entry. Goods can leave for home use (duty and VAT paid), for export, for processing under a rebate, for transfer to another licensed warehouse, or in transit to another customs area.
Mistakes that cost importers money
| The mistake | What happens |
|---|---|
| Assuming the duty rate is locked in on arrival | Duty is charged at the rate applying on the day goods are removed for home use. If the tariff goes up while stock is in bond, you pay the higher rate. |
| Letting the two-year period lapse | Extensions must be applied for at least 30 days before expiry. Missing it creates a compliance problem with SARS. |
| Moving goods somewhere other than declared | Diverting goods from the destination on the bill of entry is a serious offence: SARS can demand the duty and VAT, impose penalties, prosecute, and seize the goods. |
| Using any truck for bonded moves | Goods in bond must travel with a licensed remover of goods in bond, unless the importer or warehouse licensee moves them in their own vehicles. |
| Assuming theft is covered by a duty rebate | A rebate exists for goods lost, destroyed or damaged in bond through exceptional events, but it excludes robbery and theft. Insurance and security matter. |
Is bond right for your shipment?
Bond usually pays off when duty is a meaningful share of the goods' value, when stock is sold gradually rather than all at once, or when part of a consignment may be re-exported. It is less useful for low-duty goods sold immediately, where storage and handling costs can outweigh the cash-flow benefit.
How BAC Logistics handles it
BAC Logistics runs bonded warehousing from Croydon, Kempton Park, a few minutes from O.R. Tambo. Because our customs clearing team is in-house, the entry into bond, the storage records and each removal are handled by the same people, so partial releases and re-exports don't need to be coordinated across several providers.
Frequently asked questions
Talk to our bond store team
Send us your commodity, the expected volume and how quickly you'll sell it, and we'll tell you whether bond makes sense and what it will cost.
Contact BAC Logistics or WhatsApp +27 74 353 1111.
Source: SARS, Customs and Excise Storage Warehouses (OS), 25 March 2025. This page is a general guide, not legal or tax advice; requirements can change and individual shipments differ.