South Africa in major trade deal with China
The South African Revenue Service says it is working with Chinese authorities to finalise the legal framework for the China Trade Scheme, which came into effect at the start of the month.
China recently announced a temporary zero-tariff scheme for 20 non-least developed African countries, including South Africa.
From May 1, 2026, to April 30, 2028, zero tariffs will be implemented on 20 African countries that have established diplomatic relations with China and are not among the least developed countries.
China’s Tariff Commission said this initiative aims to “expand high-level opening-up and promote common development between China and Africa, in accordance with the relevant provisions of the Customs Law of the People’s Republic of China.”
This initiative follows President Xi’s February 14, 2026, statement on implementing a zero-tariff policy for African nations with which China maintains diplomatic relations.
The least developed countries are already benefiting from duty-free access to the Chinese market, as previously established during the Forum for China-Africa Cooperation (FOCAC).
From May 1, 2026, to April 30, 2028, qualifying South African goods exported to China will be exempt from customs duties under this scheme.
This is subject to compliance with the applicable tariff schedule and rules of origin.
Exporters are advised that eligibility for this preferential treatment is based on compliance with the specified rules of origin, which may include product-specific requirements, as well as the submission of a valid Certificate of Origin for customs clearance in China.
The Department of Trade, Industry and Competition (the DTIC) is working with the South African Revenue Service (SARS) on the customs procedures and the necessary changes to legislation that need to be implemented, including with regard to issuing the certificate of origin.
“In relation to products already in the water, if a certificate of origin is not issued before or at the time of shipment, the importer will have to pay a deposit,” said the department.
“After the importer submits the requested documents, the deposit can be refunded. The certificate of origin shall be marked ‘ISSUED RETROSPECTIVELY’ and shall be valid for one year from the date of shipment.”
South Africa to enhance export competitiveness
The department said the scheme applies to a wide range of products; however, some goods may have specific conditions, including tariff rate quotas.
Therefore, exporters are encouraged to familiarise themselves with the detailed tariff schedule and the rules of origin documentation to ensure compliance and make the most of the available preferences.
The department said this preferential market access framework provides South Africa with a strategic opportunity to boost export competitiveness, diversify into higher-value-added products, and expand market access for agricultural, industrial, and processed goods.
Additionally, it supports broader national objectives, including industrial development, job creation, and export-led growth.
“The DTIC, in collaboration with relevant government departments and stakeholders, has initiated the necessary processes to facilitate the implementation of the preference scheme,” said the department.
Minister Parks Tau stated that the zero-tariff treatment preference scheme is a sign of the strong relationship between China and the African continent and represents a significant outcome of FOCAC 2024.
This scheme provides South African exporters with a valuable opportunity to expand into one of the world’s largest and most dynamic consumer markets.
Additionally, the Minister noted that these developments complement the diversification strategy initiated by the Department of Trade, Industry and Competition (DTIC), which aims to enhance the resilience of the South African economy.
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