Bond store – the benefits to the importer

With the South Africa market slowing down, stock tends to sit in storage for a longer period until it is eventually sold. Many of these imported items attract duty which was paid to SARS when the goods arrived in the country. Effectively that duty portion paid, sits tied up on the shelf earning no interests and is not working for the business till the item is sold.

Here is where using a bond store comes in and can assist importers in differing paying the Duty (and VAT) until the item is required.

Only cargo that attracts duty can be placed in bond. Items where only VAT is applicable does not qualify to be placed in bond. By placing goods in bond companies can utilise the funds that would have been used for duty to trade and generate other income until the item in bond is sold and the duty and VAT is then paid to SARS.

Goods placed in a bond store are allowed to be stored for up to two years before the duty must be paid. This allows companies to maximise their cashflow and especially for smaller or start-up businesses this can be a great assistance.

We find that companies that offer online sales are making great use of bond stores to maximise their effectiveness and use of money. At Ziegler South Africa we are geared to assist any client in this market and have dedicated teams to ensure the process is seamless and effective to meet demand.

If you would like to know more about the benefits and what Ziegler South Africa can do for you, please contact your controller or Client Service Manager.