SARS finalizes framework for China's zero-tariff scheme, unlocks new export opportunities

The South African Revenue Service (SARS) has confirmed that it has completed both the legal and operational frameworks necessary to implement China's temporary zero-tariff scheme, marking a significant step forward in strengthening trade ties between South Africa and one of its largest global partners.

The zero-tariff initiative, first announced by China in February 2026, applies to African countries with which it maintains diplomatic relations. The policy is aimed at boosting exports from the continent by reducing or eliminating tariff barriers on qualifying goods entering the Chinese market.

SARS Commissioner Dr. Johnstone Makhubu announced that, effective June 1, 2026, the revenue service has begun issuing Rules of Origin certificates to qualifying exporters. These certificates are essential for businesses seeking to benefit from the preferential tariff treatment.

"Beginning June 1, we are introducing a simple, printable certificate format, allowing exporters to prove origin and claim the tariff preference straight away," Makhubu stated. He added that SARS is committed to ensuring that exporters fully benefit from the scheme, even if shipments were already in transit when the policy came into effect.

To address this, SARS has implemented a retrospective certification process. Goods that were shipped or cleared from May 1, 2026 onwards can still qualify for zero-tariff treatment, provided exporters obtain the necessary documentation.

"This approach ensures that no qualifying exporter is left behind," Makhubu said, noting that the measure is designed to provide clarity, certainty, and efficiency in cross-border trade.

As an interim solution, exporters whose goods arrive in China without a certificate of origin may lodge security with Chinese customs authorities. This security will be released once a valid SARS-issued certificate is submitted, ensuring that trade flows are not unnecessarily disrupted.

However, SARS cautioned that not all exports will qualify for the zero-tariff benefit. Certain goods remain subject to tariff-rate quotas or specific regulatory conditions. Eligibility depends strictly on compliance with Rules of Origin requirements and the presentation of valid certification.

Exporters are therefore urged to verify eligibility with their Chinese trading partners, maintain accurate and comprehensive origin documentation, and stay informed about SARS procedures. Non-compliance could result in delays, penalties, or disqualification from the tariff preference.

The rollout of this framework underscores SARS' broader commitment to facilitating legitimate trade while safeguarding the integrity of South Africa's customs system. It also signals a growing opportunity for South African exporters to expand their footprint in the Chinese market under more favorable trade conditions.

As global trade dynamics continue to evolve, the zero-tariff scheme positions South Africa to capitalize on enhanced market access, provided exporters are prepared, compliant, and responsive to the new regulatory landscape.