South Sudan, the youngest country in Africa, has faced significant challenges since its independence in 2011, including political instability, conflict, and economic struggles. Despite these challenges, South Sudan is working to establish a more stable economic environment, including refining its customs and tariff systems to facilitate trade, promote economic growth, and raise revenue. As a landlocked country located in East-Central Africa, South Sudan relies heavily on imports to meet the needs of its population and industries. The tariff structure is a key tool for managing the flow of goods into the country, ensuring the protection of local industries, and balancing the need for foreign exchange.
South Sudan’s import tariff rates are primarily governed by the South Sudan Revenue Authority (SSRA), which administers customs duties and excise taxes. The country’s tariff system is influenced by its membership in the East African Community (EAC), regional trade agreements, and efforts to comply with the World Trade Organization (WTO). The tariff schedule for South Sudan covers various categories, including agricultural products, electronics, vehicles, machinery, and luxury goods.
Introduction to South Sudan’s Customs and Tariff System
South Sudan’s tariff system plays a crucial role in shaping the country’s trade relations and economic policies. The Customs and Excise Act forms the backbone of the country’s import duty regulations. The South Sudan government uses tariffs not only to generate revenue but also to regulate imports, promote local industries, and protect domestic production from foreign competition. In recent years, the government has focused on diversifying the economy and reducing dependency on oil exports. South Sudan’s import tariff structure aligns with the country’s broader development goals, which include enhancing industrialization, improving infrastructure, and encouraging foreign investment.
As a landlocked country, South Sudan faces logistical challenges that increase the cost of importing goods, including transportation costs through neighboring countries. As such, the government has focused on creating trade agreements and tariff policies that can lower barriers and promote trade, especially with countries in the region.
South Sudan’s tariff policies also aim to address the basic needs of the population while providing opportunities for economic development. This article categorizes the tariff rates by product type and includes special tariff provisions for certain countries and goods.
Import Tariff Rates by Product Category
The South Sudan Revenue Authority (SSRA) is responsible for collecting duties and enforcing import tariffs on goods entering South Sudan. The tariff system applies to all imported goods, and the rates vary by product category. The import duties range from zero tariffs for certain goods to higher rates for luxury and non-essential products. In addition to customs duties, there are also excise taxes on specific goods, particularly alcohol, tobacco, and luxury items.
1. Agricultural Products
Agricultural products are a significant component of South Sudan’s import market. Due to the country’s ongoing challenges with food production and insecurity, a wide variety of food items are imported to meet domestic demand. These include grains, vegetables, fruits, and livestock products.
Tariffs on Agricultural Products:
- Grains:
- Wheat: South Sudan is heavily dependent on wheat imports, with a typical tariff rate of 5% to 15% on wheat and wheat-based products.
- Rice: Rice, an essential food staple, attracts a tariff of 5% to 10%.
- Maize: Maize, a common staple food, may be taxed at 10%, depending on seasonal shortages.
- Meat and Livestock Products:
- Beef: Imported beef is taxed at 10% to 15%, depending on the product and its place of origin.
- Poultry: Chicken, particularly frozen poultry, is taxed at 15% to 20%.
- Lamb and Mutton: Lamb imports typically face a 20% tariff.
- Dairy Products:
- Milk: Dairy products such as powdered milk and liquid milk are taxed at 10% to 20%. Cheese and butter may attract higher rates depending on classification.
- Fruits and Vegetables:
- Citrus: Citrus fruits such as oranges and lemons are taxed at 10% to 15%.
- Exotic Fruits: Exotic fruits like apples and bananas attract tariffs ranging from 10% to 20%.
Special Agricultural Tariffs:
- Zero Tariffs on Agricultural Equipment: Agricultural machinery, tools, and fertilizers used for local production may be exempt from import duties to promote food security and agriculture development.
- Regional Preferences: Under the East African Community (EAC) and COMESA agreements, agricultural products from EAC and COMESA countries benefit from reduced or zero tariffs.
2. Textiles and Clothing
South Sudan has a significant demand for imported clothing and textiles, given the limited domestic textile manufacturing capacity. The country’s tariff rates for textiles and clothing aim to balance consumer needs and the protection of nascent local industries.
Tariffs on Textiles and Apparel:
- Clothing:
- Basic Apparel: Clothes such as t-shirts, shirts, and trousers are typically taxed at 20% to 30%, depending on the type of fabric and country of origin.
- Footwear: Imported shoes and sandals are taxed at 15% to 25%.
- Textile Fabrics:
- Cotton, Polyester, and Synthetic Fabrics: Raw textile materials face tariffs of around 10% to 15% to protect the domestic textile industry.
Special Textile Tariffs:
- Special Preferences for Regional Imports: Clothing and textiles imported from EAC member states may qualify for reduced or zero tariffs as part of the region’s free trade agreements.
3. Electronics and Electrical Appliances
The demand for electronics and electrical goods is rising in South Sudan, particularly in urban centers like Juba. These products are essential for both households and businesses.
Tariffs on Electronics and Electrical Appliances:
- Mobile Phones:
- Mobile Phones and Accessories: Mobile phones face a 5% to 10% tariff, though the rates may vary depending on the brand and specifications.
- Consumer Electronics:
- Televisions, Radios, and Audio Equipment: Televisions and large home appliances are generally taxed at 15% to 20%.
- Laptops and Computers: Computers, laptops, and other IT equipment are typically taxed at 5% to 10%, with exemptions or reduced rates for educational or development purposes.
- Home Appliances:
- Refrigerators, Air Conditioners, and Washing Machines: These products are taxed at 10% to 15%.
Special Electronics Tariffs:
- Zero Duties for Educational and Medical Electronics: Goods imported for educational or medical purposes, such as computers for schools or medical equipment, may be exempt from customs duties or taxed at a reduced rate.
- Regional Preferences: Electronics and appliances imported from EAC countries may enjoy preferential tariffs under regional trade agreements.
4. Vehicles and Automotive Products
Given South Sudan’s infrastructure challenges, vehicles and automotive parts are crucial for transportation, construction, and development. Import tariffs on these products aim to balance the need for vehicles with the protection of domestic industries.
Tariffs on Vehicles and Automotive Products:
- Passenger Vehicles:
- Cars, SUVs, and Minivans: Passenger vehicles are typically taxed at 25% to 40%, depending on the vehicle’s value and origin.
- Commercial Vehicles:
- Trucks and Buses: Larger vehicles used for transport and infrastructure development face a tariff of 10% to 20%.
- Motorcycles and Bicycles:
- Motorcycles: These are typically taxed at 10% to 15%, depending on the engine capacity and model.
Special Vehicle Tariffs:
- Incentives for Electric Vehicles: South Sudan may offer reduced tariffs or exemptions for electric vehicles (EVs) as part of efforts to promote environmental sustainability.
5. Chemicals and Pharmaceuticals
Chemicals and pharmaceuticals are essential for both industrial and health needs. Import tariffs for these products ensure the availability of critical goods while promoting domestic production where possible.
Tariffs on Chemicals and Pharmaceuticals:
- Pharmaceutical Products:
- Medicines, Vaccines, and Medical Devices: Pharmaceutical imports are typically taxed at 5% to 10%, with lower rates for essential medicines and medical supplies.
- Industrial Chemicals:
- Fertilizers, Pesticides, and Manufacturing Chemicals: These are subject to a tariff rate of 10% to 15%, promoting local industrial capacity while allowing for critical imports.
6. Luxury Goods
South Sudan’s tariff system applies higher duties to luxury goods as a way to increase government revenue and discourage the importation of non-essential items.
Tariffs on Luxury Goods:
- Jewelry and Watches:
- Imported jewelry and luxury watches are typically taxed at 30% to 40%, reflecting the high value of these products.
- Alcoholic Beverages:
- Liquor and Spirits: Alcoholic drinks like wine, beer, and spirits face tariffs of 30% to 40%.
- Luxury Cars:
- Imported luxury vehicles are typically taxed at 40% or higher, depending on the make and model.
Special Import Duties and Exemptions
South Sudan’s tariff system also includes provisions for reduced or zero import duties on certain goods, including:
- Goods for Development Projects: Goods imported for large-scale infrastructure or development projects (e.g., road construction, water projects) may be exempt from duties.
- Special Trade Agreements: Goods imported from countries with which South Sudan has bilateral agreements may enjoy preferential tariff rates.
- Duty-Free Zones: Certain areas designated as free trade zones may allow for the duty-free importation of goods intended for re-export.
Country Facts
- Formal Name: Republic of South Sudan
- Capital: Juba
- Population: Approximately 11 million
- Official Language: English
- Currency: South Sudanese Pound (SSP)
- Location: Located in East-Central Africa, South Sudan is bordered by Sudan to the north, Ethiopia to the east, Kenya to the southeast, Uganda to the south, the Democratic Republic of Congo (DRC) to the southwest, and the Central African Republic to the west.
- Per Capita Income: Approximately USD 300 (2019 estimate)
- Three Largest Cities:
- Juba (capital city)
- Malakal
- Wau
Geography, Economy, and Major Industries
Geography: South Sudan features vast savannas, wetlands, and river systems, including the White Nile, which provides critical water resources. The country is primarily flat, with some highland areas in the southeast.
Economy: South Sudan’s economy is heavily dependent on oil, which accounts for over 90% of its export revenues. However, the country has been working to diversify its economy through agriculture, manufacturing, and services. The civil conflict has greatly hindered economic development, and the country remains one of the poorest in the world.
Major Industries:
- Oil and Gas: South Sudan is an oil-rich country, and the oil sector remains the backbone of its economy.
- Agriculture: Agriculture is a key part of South Sudan’s economy, with crops such as sorghum, maize, and cassava being grown. Livestock farming is also important.
- Manufacturing: South Sudan’s industrial sector is in its infancy, but there is potential in the manufacturing of food, beverages, and building materials.
