Heavy customs for lipsticks
No lover of make-up would consider lipstick a nonessential. "It is painfully obvious," says Shepstone & Wylie customs attorney Taryn Hunkin, "that a man is setting the rate of duty for lipstick."
International lipstick brands are slapped with a hefty 20% customs duty, depending on where they are imported from, making the price of colourful lips far more pricey than users would like. This is because the SA Revenue Service categorises the lipsticks as a "nonessential item", which makes them subject to a levy on imported goods, usually calculated as a percentage of its value.
On top of that, all lipstick brands including the local variety are taxed 5% ad valorem customs duty, which applies to luxury or nonessential items such as perfumes and arcade games. This excludes 14% Vat.
Make-up imports were worth a staggering R985m in 2009, up from R241m in 2000. This excludes hair products, perfumes and cosmetics. Lipstick imports were valued at R75m in 2009, according to the Department of Trade & Industry.
Hunkin says high customs duty applies to most imported make-up and cosmetic products. There are some variations. Agreement with the European Union binds it to a mere 4% customs duty, while imports from SADC countries are free. But the products must be made in those countries for the reduced duty to apply. China, the US and other countries are taxed the full 20% duty.
Source: Financial Mail
Source: I-Net Bridge
For more than two decades, I-Net Bridge has been one of South Africa’s preferred electronic providers of innovative solutions, data of the highest calibre, reliable platforms and excellent supporting systems. Our products include workstations, web applications and data feeds packaged with in-depth news and powerful analytical tools empowering clients to make meaningful decisions.
We pride ourselves on our wide variety of in-house skills, encompassing multiple platforms and applications. These skills enable us to not only function as a first class facility, but also design, implement and support all our client needs at a level that confirms I-Net Bridge a leader in its field.
Go to: http://www.inet.co.za
