Southern African Customs Union (SACU)

The Southern African Customs Union (SACU) is the oldest single customs territory that was established in 1910 (revised in 1969, 2002 and 2013) with five members states namely Botswana, Eswatini, Lesotho, Namibia and South Africa. SACU has a common external tariff (CET) that applies to non-members of SACU, while tariffs and other barriers are eliminated on substantially all trade among its member states. More information is at (sacu.int)

Objectives of SACU

The objectives of SACU as contained in Article 2 of the SACU Agreement, 2002, are to:

1. facilitate the cross-border movement of goods between the territories of the Member States;
2. create effective, transparent and democratic institutions which will ensure equitable trade benefits to Member States;
3. promote conditions of fair competition in the Common Customs Area;
4. substantially increase investment opportunities in the Common Customs Area;
5. enhance the economic development, diversification, industrialization and competitiveness of Member States;
6. promote the integration of Member States into the global economy through enhanced trade and investment;
7. facilitate the equitable sharing of revenue arising from customs, excise and additional duties levied by Member States; and
8. facilitate the development of common policies and strategies.

Key provisions of the SACU Agreement include;

1. Article 18. Free movement of domestic products. Goods grown or manufactured in the Common Customs Area, on importation from the area of one Member State to the area of another Member, shall be free of customs duties and quantitative restrictions. Member States have the right to impose restrictions on imports or exports in accordance with national laws and regulations for the protection of health of humans, animals or plants; the environment; treasures of artistic, historic or archeological value; public morals; intellectual property rights; national security; and exhaustible natural resources.
2. Article 19. Goods imported from outside the Common Customs Area. Member States shall not impose any duties on goods which were imported from outside the Common Customs Area on importation of such goods from the area of any other Member State.
3.  Article 20. Customs duties on imported products.  Member States shall apply identical rebates, refunds or drawbacks of customs duty on imported goods.
4.  Article 25. Import and exports prohibitions and restrictions.    A Member State may grant a rebate of the customs duties in respect of goods imported into its area where such rebates are for the relief of the distress of persons in cases of famine and other national disasters; for such purposes as may be agreed upon by the Member States, etc. Member State has the right to prohibit or restrict the importation into or exportation from its area of any goods for economic, social, cultural or other reasons as may be agreed upon by the Council (Article, 25(1)). However, this should not be so construed as for the purpose of protecting its own industries producing such goods (Article 25 (3)).
5. Article 26. Protection of infant industries. Botswana, Eswatini, Lesotho and Namibia may as a temporary measure levy additional duties on goods imported into its area to enable infant industries its area to meet competition from other producers or manufacturers in Common Customs Area, provided that such duties are levied equally on goods, grown, produced or manufactured in other parts of the Common Customs Area and like products imported from outside that area (Article 26 (l)).
6. Article 29. Arrangements for regulating the marketing of agricultural products.    A Member State may impose marketing regulations for agricultural products within its borders, provided such marketing regulations shall not restrict the free trade of agricultural products between the Member States, except under emergent agriculture and related agro-industries, as agreed upon by Member States or any other purposes as agreed upon between Member States. Each measure shall be subject to a negotiated sunset clause outlining its conditions and period. 
7. Article 30. Sanitary and Phytosanitary measures. Member States reserve the right to apply SPS measures in accordance with their national SPS laws and international standards.​​​​​​​
8. Article 31. Trade relations with Third Parties. Member States shall establish a common negotiating mechanism for the purpose of undertaking negotiations with third parties. No Member State shall negotiate and enter into new preferential trade agreements with third parties or amend existing ones without the consent of other Member States.​​​​​​
9. Article 37. Agricultural Policy. Member States agreed to co-operate on agricultural policies in order to ensure the co-ordinated development of the agricultural sector within the Common Customs Area.

SACU rebate facilities:

• SACU 2002 Agreement provides for rebates as a policy instrument to stimulate manufacturing in the country
• Namibia underutilizes SACU rebate facilities provided under the SACU Agreement.
• Specific SACU Agricultural rebates only available to Botswana, Eswatini, Lesotho & Namibia are administered by the Ministry of Agriculture Water and Land Reform and NAMRA in Namibia
• Rebates provide a customs duty waver on imported goods meant to be intermediate goods for both agricultural and industrial production.

Further details on SACU can be found at​​​​​​​ Southern African Customs Union | SACU