Canyon discontinues direct sales to South African market

45 minutes ago, CraigT48 said:

So to confirm the de facto document to be used when calculating duties is as follows on Page 624 of the Ordinary Customs Duty_Schedule1_Part1_09JuL2021 - is this correct?

For a complete bicycle 15% on FOB value, (not CIF)

The VAT then works out to 18.75% of the FOB value

Yes, CraigT42

That list basically covers everything, except tires sold loose/not fitted, and also there are a handful of odd exceptions on things like saddles and grips manufactured from certain materials  that get slapped with massive duties, but this very seldom happens. 
 

The other thing people tend to get caught out by is the country of origin. It has nothing to do with where you bought it from or where it ships from. Customs assessment is preferential and non preferential origins, and is normally the country of original manufacture, but in certain special cases this can be amended by the competent authority based on value having been added in a second country.

But for bikes, generally, even if they are assembled in the EU, and shipped to you from the EU, the country of preferential origin remains Taiwan. So the 15% duty applies. 
 

you need to be very careful when mail ordering clothes. Most clothes are meant to be levied at 45%. But clothing actually manufactured in the EU is rated at 0 or 5%. SARS likes just seeing clothes and slapping it with the 45% rate, even if the customs invoice clearly states the origin is EU. This is especially true with brands high end brands. RAPHA, Endura, ASSOS etc. So make sure or that before you just pay the duty

9 hours ago, DonatelloOnPinarello said:

.......

Then there is the fact that South Africa is still not really a e-commerce nation. Covid has changed that in a big way, mainstream e-commerce has a long way to go still. I know 30somethings that still use travel agents to book their holiday flights because they are afraid to put their credit card details into a website.

.....

Yet another THANKS for an excellent post.

I certainly am very much part of the age group that pre-date all the this e-commerce stuff.  In my defense, I have used Uber during a business trip (cheaper and less hassle than a rental, for that trip).  I even use MrD, dont laugh, it was a big step ... 

Living in the Cape we are truly spoilt for choice.  Most items we need are readily available between the range of cycling shops.  For the odd project it is easy enough to get sorted between these outlets.  Even "ordering" from Bike Addict, I pick up the phone, check stock and drive through.  Sure, those Hubbers doing more projects and wanting to use more high end items the playing field quickly change ....  But then, these people know enough of the products to order in via e-commerce.

As for buying a bike via e-commerce .... MANY of us simply prefer to "test ride" a bike, check the fit and feel.  Even if it was a local Giant/Scott/etc, I still want to touch it before I buy. 

2 hours ago, DonatelloOnPinarello said:

ut clothing actually manufactured in the EU is rated at 0 or 5%.

27% if the documents are correct for most clothing items of EU preferential origin (Vat will then be 20.55%)

17 hours ago, rock said:

27% if the documents are correct for most clothing items of EU preferential origin (Vat will then be 20.55%)

I think we are veering off topic here, and it’s my fault for bringing clothing into the discussion - if this doesn’t already exist, there should be a seperate thread specifically to  deal with import duties etc.

But I’m a bit confused how you come to this?  VAT is always 15%. We do not have variable VAT in South Africa. In the above example, assuming the applicable duty is 27%, and you bought a jacket costing exactly R1000.00, the calculation would be:

The duty would be: R1000*27%=R270.00

VAT would be: [(R1000.00+10%ATV)+R270]*15%= R205.50 - The 10%ATV value for calculating vat is only added for calculation purpose. You don’t pay it.

So, Total cost would be R1000+Duty+Vat = R1000+270+205.50 = R1475.50

Due to the Added Tax Value, the effective VAT rate in this instance is therefore 16.2%, but this will always change, based on the cost price and whatever duty may be applicable. You need to work out the effective VAT based on the price including duties. 

On 7/28/2021 at 2:57 PM, babse said:

and specialised you can actually go see and sit on the bike you want, try sizing (not wait months for shipment), and the price you see is the price you pay.

Sorry, I just never felt like Canyon was actually available in/to SA

I have never felt like a Canyon was available anywhere in the world never mind in SA! I tried ordering a Canyon for over a year but could never get stock. That was with trying to get delivery in Germany beause I travel to DE regularly for business and could have brought it back to ZA with me. I do not understand how they make any money or sell any bikes because I certainly dont have the patience to wait for a new bike for months on end having already had to pay for it up front.

1 hour ago, DonatelloOnPinarello said:

I think we are veering off topic here, and it’s my fault for bringing clothing into the discussion - if this doesn’t already exist, there should be a seperate thread specifically to  deal with import duties etc.

 

But I’m a bit confused how you come to this?  VAT is always 15%. We do not have variable VAT in South Africa. In the above example, assuming the applicable duty is 27%, and you bought a jacket costing exactly R1000.00, the calculation would be:

The duty would be: R1000*27%=R270.00

VAT would be: [(R1000.00+10%ATV)+R270]*15%= R205.50 - The 10%ATV value for calculating vat is only added for calculation purpose. You don’t pay it.

So, Total cost would be R1000+Duty+Vat = R1000+270+205.50 = R1475.50

 

Due to the Added Tax Value, the effective VAT rate in this instance is therefore 16.2%, but this will always change, based on the cost price and whatever duty may be applicable. You need to work out the effective VAT based on the price including duties. 

 

You calculated it yourself. The item cost R1,000 and the VAT was R205.50 therefore a 20.55% effective VAT rate on the purchase price.