Eswatini Import Tax

Eswatini, formerly known as Swaziland, is a small, landlocked country in Southern Africa that shares borders with South Africa and Mozambique. The country is a member of the Southern African Customs Union (SACU), which harmonizes trade policies and tariffs among member states, including South Africa, Botswana, Lesotho, Namibia, and Eswatini. As a result, Eswatini applies the common external tariff structure agreed upon by SACU. In addition, the country benefits from preferential trade agreements, including the African Growth and Opportunity Act (AGOA) with the United States and the Southern African Development Community (SADC) free trade agreements, which lower tariffs on imports from specific countries.

Eswatini’s economy is primarily driven by agriculture, manufacturing, and services, with a strong focus on sugar, forestry, and textiles. As a developing nation, Eswatini relies on a wide range of imports to support its economy, particularly for industrial machinery, agricultural products, and consumer goods. This document provides an overview of the custom tariff rates by category for products imported into Eswatini, highlighting any special duties applied to imports from specific countries. Additionally, key facts about the country’s geography, economy, and major industries are presented.

Custom Tariff Rates by Product Category

1. Agricultural Products

Agriculture is a key sector in Eswatini’s economy, with sugarcane being the most important crop. The country imports various agricultural products to complement domestic production.

A. Cereals and Grains

• Wheat: 5% tariff, reflecting its importance as a staple food in Eswatini, with most wheat imported.
• Maize (corn): 0% tariff, as maize is heavily produced locally and is considered an essential food product.
• Rice: 10% tariff, applied to imported rice to encourage local production of alternative grains.

Special Import Duties: Under SADC, cereals imported from other SADC member countries may enter duty-free or with reduced tariffs.

B. Fruits and Vegetables

• Bananas: 0% tariff, due to significant local production and regional imports from nearby countries.
• Tomatoes: 15% tariff, as tomatoes are locally grown and the tariff encourages local producers.
• Avocados: 10% tariff, applied to imported avocados to support domestic production.

C. Meat and Animal Products

• Poultry (chicken, turkey): 25% tariff, aimed at protecting domestic poultry producers.
• Beef: 20% tariff, reflecting the country’s reliance on imports, though it has a growing domestic beef sector.
• Pork: 18% tariff, applied to imported pork products.

Special Import Duties: Meat imports from SADC countries may benefit from reduced tariffs under regional agreements, while imports from countries outside SACU and SADC face higher tariffs.

2. Textiles and Apparel

The textile industry is significant in Eswatini’s economy, especially due to the country’s access to the U.S. market under AGOA. Tariffs on textile and apparel imports are designed to protect local manufacturers while meeting domestic demand.

A. Clothing

• Ready-made garments: 25% tariff, imposed to protect the local textile industry.
• Textile fabrics: 10% tariff on fabrics used in local garment manufacturing.
• Footwear: 20% tariff on imported footwear, supporting domestic production of shoes.

Special Import Duties: Textiles imported from AGOA-eligible countries (like the United States) may enter duty-free under preferential trade agreements. Products from SADC members also benefit from reduced tariffs or duty-free access.

B. Cotton

• Raw cotton: 0% tariff, promoting the local textile industry’s access to affordable raw materials.
• Processed cotton: 12% tariff, applied to processed cotton products used in textile manufacturing.

3. Electronics and Machinery

Eswatini imports most of its electronics and machinery due to limited local production capacity. The country relies on imports for industrial machinery, consumer electronics, and agricultural equipment.

A. Consumer Electronics

• Mobile phones: 0% tariff, promoting access to telecommunications and digital connectivity.
• Laptops and computers: 5% tariff, supporting technological advancement and accessibility.
• Television sets: 15% tariff, applied to consumer electronics used in households.

Special Import Duties: Consumer electronics imported from countries with which Eswatini has preferential trade agreements, like SADC and SACU member states, may benefit from lower tariffs.

B. Industrial Machinery

• Tractors and agricultural machinery: 5% tariff, supporting agricultural mechanization in Eswatini.
• Heavy industrial equipment: 10% tariff, applied to machinery used in the construction and mining industries.
• Other machinery: 8% tariff, depending on the type and use of the machinery.

Special Import Duties: Machinery imports from SACU and SADC countries may benefit from reduced or duty-free status under trade agreements.

4. Pharmaceuticals and Medical Equipment

Eswatini imports most of its pharmaceuticals and medical equipment, as local production is minimal. The government maintains low tariffs on essential healthcare products to ensure public access.

A. Pharmaceuticals

• Medicines: 0% tariff on essential medicines to ensure affordable access to healthcare.
• Vitamins and dietary supplements: 5% tariff, promoting health and wellness while encouraging local production where possible.
• Medical supplies and surgical equipment: 3% tariff, applied to medical equipment needed in hospitals and clinics.

Special Import Duties: Pharmaceuticals imported from SADC and SACU countries can enter duty-free, facilitating access to affordable healthcare supplies.

5. Automobiles and Transport Equipment

The automotive industry in Eswatini is largely reliant on imports, as there is little to no domestic vehicle production. Tariff rates are structured to regulate vehicle imports and support local transport infrastructure development.

A. Automobiles

• Passenger vehicles: 20% tariff, applied to imported cars, SUVs, and other passenger vehicles.
• Commercial vehicles: 15% tariff on trucks, buses, and other commercial vehicles used in the transport industry.
• Motorcycles: 10% tariff, promoting access to affordable transportation, especially in rural areas.

Special Import Duties: Vehicles imported from SACU and SADC member countries may enter duty-free or with reduced tariffs, depending on trade agreements.

B. Spare Parts

• Vehicle spare parts: 8% tariff on essential spare parts needed for vehicle maintenance.
• Aircraft parts: 0% tariff, supporting the aviation industry.
• Shipping and transport equipment: 5% tariff on shipping containers and other transport equipment used in logistics and transportation.

6. Chemicals and Plastic Products

A. Chemical Products

Eswatini imports a wide range of chemical products for industrial, agricultural, and consumer use.

• Fertilizers: 0% tariff, promoting agricultural productivity and food security.
• Pesticides: 10% tariff, applied to agricultural chemicals used for crop protection.
• Cleaning products: 12% tariff, covering household cleaning supplies and other chemical products.

B. Plastics

Plastics are a significant import category, as the country relies on them for packaging, consumer products, and industrial use.

• Plastic containers: 18% tariff on finished plastic goods such as containers and packaging.
• Plastic raw materials: 5% tariff, applied to raw plastic materials used in local manufacturing.

7. Metals and Construction Materials

A. Iron and Steel

The construction sector in Eswatini is a key driver of economic growth, and it relies on the importation of iron and steel products.

• Steel rods and bars: 5% tariff, applied to construction materials like steel rods and bars.
• Sheet metal: 10% tariff, applied to sheet metal used in building and industrial applications.

B. Cement and Concrete

Cement and concrete products are in high demand due to infrastructure development, and much of the country’s cement is imported.

• Cement: 10% tariff, encouraging local production while still meeting the demand for imports.
• Concrete blocks: 8% tariff, applied to imported building materials used in construction.

8. Food and Beverages

A. Processed Foods

Processed food products are heavily imported into Eswatini, as local food production is focused primarily on staple crops.

• Canned foods: 15% tariff, applied to processed foods such as canned vegetables, meats, and other packaged products.
• Dairy products: 25% tariff, reflecting the reliance on imported dairy products to meet local demand.
• Snack foods: 20% tariff on imported snacks and confectionery products.

Special Import Duties: Processed foods imported from SADC countries may qualify for lower tariffs or duty-free access under regional trade agreements.

B. Beverages

Beverages, both alcoholic and non-alcoholic, are significant imports in Eswatini, and the government uses tariffs to regulate the market.

• Alcoholic beverages: 30% tariff, applied to imported alcoholic drinks, including wine, beer, and spirits.
• Non-alcoholic beverages: 20% tariff, covering soft drinks, juices, and bottled water.

9. Energy and Fuel Products

A. Petroleum and Fuel

Eswatini imports most of its petroleum and fuel products, despite its proximity to South Africa, which is a major producer of refined petroleum.

• Gasoline: 5% tariff, applied to gasoline imports for transportation and industrial use.
• Diesel fuel: 5% tariff, reflecting the widespread use of diesel in transportation and industry.
• Natural gas: 0% tariff, promoting the use of cleaner energy sources.

B. Renewable Energy Equipment

To support the transition to renewable energy, Eswatini maintains low tariffs on key renewable energy technologies.

• Solar panels: 0% tariff, encouraging the adoption of solar energy.
• Wind turbines: 0% tariff, supporting the growth of wind energy projects.

10. Luxury Goods

A. Jewelry and Precious Stones

Luxury goods such as jewelry and precious stones are subject to high tariffs to regulate luxury imports and generate revenue.

• Gold jewelry: 10% tariff on imported gold jewelry and other luxury items.
• Diamonds and gemstones: 8% tariff, applied to imported diamonds and other precious stones.

B. Perfumes and Cosmetics

Perfumes and cosmetics, especially luxury brands, are popular imports, and the government uses tariffs to control their market.

• Perfumes: 25% tariff on imported fragrances and luxury personal care products.
• Cosmetics: 15% tariff, applied to imported skincare and beauty products.

Special Import Duties for Specific Countries

SACU Members

As a member of the Southern African Customs Union (SACU), Eswatini applies a common external tariff system for imports from non-SACU countries. Goods traded between SACU member states (South Africa, Botswana, Namibia, Lesotho, and Eswatini) generally enjoy duty-free or reduced tariff status, facilitating intra-regional trade.

SADC Members

Under the Southern African Development Community (SADC) free trade agreement, Eswatini benefits from preferential tariff rates on goods imported from other SADC member countries. This includes reduced or zero tariffs on many agricultural products, textiles, machinery, and industrial equipment.

AGOA (African Growth and Opportunity Act)

Eswatini has access to the U.S. market under AGOA, which allows duty-free entry for many products exported from Eswatini to the United States, particularly in the textile and garment sector. While AGOA primarily benefits exports, it also influences Eswatini’s import tariff structure for complementary goods.

Country Facts About Eswatini

• Formal Name: Kingdom of Eswatini
• Capital City: Mbabane (administrative capital), Lobamba (royal and legislative capital)
• Largest Cities:
  • Mbabane
  • Manzini
  • Big Bend
• Per Capita Income: Approximately USD 4,000
• Population: Approximately 1.2 million people
• Official Language: Siswati and English
• Currency: Lilangeni (SZL), also uses South African Rand (ZAR)
• Location: Southern Africa, bordered by South Africa to the west and Mozambique to the east

Geography, Economy, and Major Industries

Geography

Eswatini is a small, landlocked country in Southern Africa, with a diverse landscape that includes mountains, savannas, and river valleys. It shares borders with South Africa to the west and Mozambique to the east. The country’s climate varies from temperate in the highlands to subtropical in the lowlands, making it suitable for various forms of agriculture.

Economy

Eswatini’s economy is heavily reliant on agriculture, manufacturing, and services. The country has a dual agricultural economy, with both subsistence farming and large-scale commercial agriculture. Sugarcane is the most important crop, and the sugar industry is a significant contributor to export revenues. The manufacturing sector, particularly textiles, benefits from preferential trade agreements such as AGOA, which allows duty-free access to the U.S. market.

Remittances from migrant workers, particularly those working in South Africa, play a vital role in supporting the economy. Eswatini’s service sector, including retail, banking, and tourism, has been growing, with the government encouraging diversification to reduce dependency on agriculture and trade with South Africa.

Major Industries

• Agriculture: The agricultural sector, particularly sugarcane production, is central to the economy. Eswatini is a significant exporter of sugar and related products.
• Manufacturing: The textile and apparel industry is vital for export growth, benefiting from preferential access to markets like the United States under AGOA. Other manufacturing industries include food processing, timber, and pulp production.
• Services: The service sector, including retail, banking, telecommunications, and tourism, has become an increasingly important contributor to GDP.
• Tourism: Eswatini’s natural beauty, cultural heritage, and proximity to South Africa make it an emerging tourism destination, particularly for eco-tourism and cultural tourism.