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Another meeting between FSE&CC and the Department of Customs and Excise took place on 28^th May 2010 in regard to the subject herein. You are invited to note the following: 

Expatriates 

1.     One motor vehicle previously registered in the expatriate’s name in his or her home country and brought into Swaziland when taking up residence is exempt from Sales Tax. It is not mandatory to register this type of car in Swaziland. To apply for exemption, expatriates should submit temporary residence permits and description of motor vehicles to the Department of Customs and Excise. Expatriates are required to engage the Customs Department after renewal of Temporary Residence Permits. Additional vehicles attract provisional tax of 14 percent which is refundable on permanent exportation of the motor vehicle. 

 2.     However, motor vehicles purchased by expatriates from the customs union and registered in another country in the customs union after the expatriate has taken up residence in Swaziland will attract the provisional tax of 14 percent in Swaziland. Should the expatriate decide to register the car in Swaziland, s/he will be required to pay sales tax instead of the provisional tax. If the vehicle is purchased and registered outside the customs union it will attract customs duty plus the provisional tax. In this case, should the expatriate decide to register the car in Swaziland, s/he will be required to pay sales tax plus customs duty. 

Swazi citizens using South African registered cars in Swaziland 

1.     If the car was registered ‘legally’ or ‘though a legal person’ in RSA and the owner does not wish to change registration, the car will attract the provisional tax but the affected party should adhere the conditions stipulated in the Customs and Excise Act

2.     If the owner wishes to register the car in Swaziland s/he will be required to pay Sales Tax only. However, the Department of Customs reserves the right to determine the term / period covered by the provisional tax

3.     The first two conditions under this sub-paragraph apply if a Swazi citizen is registered as a legal person in RSA and leases a SA vehicle registered in his/her name to his or her other business in Swaziland

4.     The first two conditions under this sub-paragraph also apply to companies based in Swaziland and using SA registered motor vehicles for their operations.  

Kindly note the following: 

a)    All payments are to be made in cash or bank guaranteed cheques at the Department of Customs and Excise

b)    All individuals or companies who wish to pay the provisional tax are required to fill form CE70 which can be collected from Customs or FSE&CC

c)     Payment of Sales Tax implies that the car owner intends to register the car in Swaziland and the latter has to be done in 7 days while payment of provisional tax is an indication that the owner does not intend to register the motor vehicle in Swaziland

d)    Receipts or certified copies of provisional tax and exemption certificates should be kept in the motor vehicles to prevent delays at roadblocks

e)    South Africa prohibits the use of SA registered cars by non-South African citizens. The form DA65 that is issued at the border posts was implemented in February 2010 and it binds all South African registered vehicles to complete the form DA65. It is an application to re-import the vehicle without paying vat and duties, and without the production of a DA65 permit upon arrival back in the Republic of south Africa, Customs (SARS) may call for a full 14% of the value of the vehicle if no DA 65 is produced. Please refer to the attachment.

 You may contact Ms. Wendy Dlamini, Mr. Vilakati, the Commissioner or any other officer at Customs for additional information.