South African Customs Union (SACU)

South African Customs Union (SACU) is the world’s oldest customs union which was established in 1910.

South African Customs Union (SACU)

About the South African Customs Union (SACU)

  • It is the world’s oldest customs union which was established in 1910.
  • Member countries: South Africa, Namibia, Botswana, Lesotho, and Eswatini (formerly Swaziland).
  • Headquarter: Windhoek (Namibia)
  • It was administered by South Africa, through the 1910 and 1969 Agreements.
  • The customs union collected duties on local production and customs duties on members’ imports from outside SACU, and the resulting revenue was allocated to member countries in quarterly instalments utilizing a revenue-sharing formula.
  • Negotiations to reform the 1969 Agreement started in 1994, and a new agreement was signed in 2002. The new arrangement was ratified by SACU Heads of State.
  • The Economic structure of the Union links the Member states by a single tariff and no customs duties between them.
  • The Member States form a single customs territory in which tariffs and other barriers are eliminated on substantially all the trade between the Member States for products originating in these countries; and there is a common external tariff that applies to nonmembers of SACU.

 


Q) What is Customs duty?

Customs duty, also known as import duty or tariff, is a tax imposed by a government on goods imported into or exported out of a country. It is a form of indirect tax that is levied at the border when goods cross international boundaries.

Source: India plans to revive trade deal with SACU

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