SARS confirms China trade scheme now in force
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A SARS notice has confirmed that the new China trade scheme came into effect on 1 May 2026. The scheme gives qualifying South African exporters duty-free access to the Chinese market for the next two years, but only if they meet strict rules of origin and submit the right paperwork.
What the scheme does
The zero-duty preference runs from 1 May 2026 to 30 April 2028, and applies to qualifying South African goods exported into China. The arrangement follows President Xi's announcement on 14 February 2026 that China would extend zero-tariff treatment to African countries with which it has diplomatic relations, and South Africa is one of 20 non-least developed African countries included.
Department of Trade and Industry Minister welcomed the scheme in a Media Statement, calling it a meaningful opportunity for South African exporters to grow into one of the world's largest consumer markets.
The compliance catch
Zero duty does not come automatically. Exporters must meet the prescribed rules of origin, including product-specific requirements, and submit a valid Certificate of Origin for customs clearance in China.
For goods already in transit without a certificate, Chinese customs will hold a deposit until the paperwork is submitted, after which the deposit is refunded. Retrospective certificates are valid for one year from the date of shipment and must be marked as such.
Some products are also subject to tariff rate quotas, which cap the volume that can enter duty-free in a given period.
What this means for accountants and their clients
For accountants advising exporting clients, the scheme creates both opportunity and risk.
Margin and pricing decisions.
Zero duty changes the landed cost of South African goods in China. Clients need to decide whether to pass the saving on to Chinese buyers to win volume, or hold the margin and lift profitability. Accountants will be asked to model both scenarios.
Tariff classification accuracy.
Whether a product qualifies depends on its exact tariff heading. The wrong classification means paying duty that could have been avoided. It can also mean a shipment held up at Chinese customs. Practitioners should review client product schedules against the published tariff list now.
Rules of origin compliance.
Goods must meet product-specific origin requirements to qualify. This affects sourcing decisions, bill of materials records, and supplier documentation. Clients who use imported inputs in their products need to check whether the finished goods still count as South African origin under the scheme.
Working capital strain on goods in transit.
Clients with goods already shipped without a certificate will need cash to fund the Chinese customs deposit while the retrospective certificate is processed. That is a real cash flow planning issue for finance teams.
Quota exposure.
Products under tariff rate quotas need volume tracking. Once a quota is filled, the duty-free preference ends for the rest of the period and clients revert to standard tariffs.
Advisory opportunity.
This is a chance for practitioners to step out of pure compliance work and into strategic advice. Helping a client identify qualifying products, plan shipments around quotas, and structure pricing for the Chinese market is the kind of work that justifies a higher fee.
Where clients can get help
The DTIC Export Help Desk is the central point of contact for guidance and queries on the scheme, and can be reached at exports@thedtic.gov.za.
Practical next step for practitioners
Run a quick review of every client with China-bound goods or significant Chinese supplier exposure. Check tariff classifications, review origin documentation, and flag any shipments currently in transit. The two-year window closes on 30 April 2028, so the time to position clients to use it is now.