Importers in South Africa must comply with strict foreign payment regulations when paying overseas suppliers before goods enter the country. One of these requirements is the SARS Advance Payment Notification (APN).
The APN system requires importers to notify SARS before making advance payments for goods that have not yet been imported. Once the notification is submitted through SARS eFiling, the importer receives an APN reference number that must be provided to both the bank processing the foreign payment and the clearing agent responsible for the customs clearance process.
The system was introduced to improve transparency in international trade and to reduce customs undervaluation and illicit financial flows.
Table of Contents
- What Is a SARS Advance Payment Notification (APN)?
- Why SARS Introduced the APN System
- When Is an APN Required for Import Payments?
- What is Required to Apply for an APN
- How to Generate an APN Reference Number on SARS eFiling
- Example of Multiple Advance Payments for an Import
- How to Cancel an APN Number
- Does SARS Approval of International Transfers (AIT) Apply?
What Is a SARS Advance Payment Notification (APN)?
A SARS Advance Payment Notification (APN) is a reference number issued by SARS when an importer declares their intention to make an advance payment to a foreign supplier for goods that will be imported into South Africa.
The APN system forms part of the Customs and Excise Act 91 of 1964, specifically under the rules related to Sections 59A and 120.
The notification must be submitted on SARS eFiling before the international payment is made.
Once issued, the APN number must be provided to:
- The foreign exchange dealer (bank or forex provider) processing the payment
- The customs clearing agent submitting the bill of entry
This ensures that the payment can be linked to the final customs declaration when the goods arrive in South Africa.
Why SARS Introduced the APN System
SARS implemented the Advance Payment Notification system to strengthen oversight of cross-border payments related to imports.
The system helps SARS:
- prevent customs undervaluation
- reduce illicit financial flows
- improve traceability between foreign payments and imports
- strengthen compliance with import regulations
By requiring an APN reference number, SARS can track the relationship between advance payments and the goods declared when they enter the country.
When Is an APN Required for Import Payments?
An APN reference number is required when an importer makes an advance payment exceeding R50 000 for goods that have not yet cleared customs in South Africa.
This applies to:
- businesses importing goods
- individuals importing goods
- payments made before customs clearance
In practice, this means an APN is required whenever a payment is made to a foreign supplier before the goods arrive and are cleared by customs, provided the payment exceeds the R50 000 threshold.
Importers making advance payments must ensure they comply with all import compliance requirements set out by SARS.
What is needed to apply:
- The importer needs to be registered on SARS eFiling.
- The importer needs to be registered with SARS customs as an importer.
- An invoice or pro-forma invoice from the foreign supplier detailing the intended supply of goods.
How to get an APN reference number on eFiling:
- Log into your eFiling account and open the relevant entity.
- Click on the Customs tab in the top right navigation bar.
- Click on the “Advance Payment Notification” on the left side menu.
- Click on the “Submit New Advance Payment Notification” option.
- Capture the information required on the APN form and press continue.
Immediately upon successful completion of the above process, you will receive a SARS-generated APN reference number. If there is a mistake or missing information on the form SARS will ask you to complete that first.
A history of all APN numbers issued can be viewed on the Advance Payment Notification History tab on the left side menu.
One APN number is required per advance payment over R50 000. If more than one payment is required prior to customs clearance then the APN numbers should be linked on e-filing when applying for the additional numbers. All APN numbers used need to be provided to your clearing agent submit to SARS when clearing.
If you need more assistance a step-by-step screenshot guide on how to generate an APN number is available here.
Example of how to do multiple advance payments for one import:
The total cost of an import shipment is R400 000 and is broken up into 4 payments. The 1st payment is the deposit of R100 000. The second payment is required halfway through production for R100 000. The third payment is required prior to shipping and is R40 000. The balance of R160 000 is paid after delivery in South Africa and customs clearance. An APN number is required for the first and second payments. The APN number for the second payment needs to be linked to the first payment. No APN number is required for the third payment as it is below R50 000. No APN is required for the 4th payment as it is after customs clearance.
How do I cancel an APN number if I no longer need it?
You can cancel the APN number on eFiling. The number will also automatically lapse if not used for 30 days.
What about SARS Approval of International Transfers (AIT) legislation? Does that apply to importers?
The Approval of International Transfers (AIT) legislation requires an AIT tax clearance pin for payments out of South Africa from:
- Individuals using their annual foreign investment allowance, and
- Individuals who have financially emigrated or are in the process of financial emigration from South Africa.
This pin can be acquired on the applicant’s eFiling through a similar process to the “Good Standing” tax clearance pin with the submission of these additional supporting documents.
The AIT tax clearance pin does not apply to payments for imports.
Should you have any questions not covered in this blog, please contact one of our consultants on 087 550 1038. We would be happy to help you.
