SADC Rules of Origin, explained
"Rules of Origin" decide whether your goods count as genuinely Southern African — and therefore whether they trade duty-free across SADC. There are two ways to qualify.
Reviewed 2026-06-25. General guidance — customs makes the final determination against the product-specific rules.
When do goods qualify as SADC origin?
Goods are SADC-originating if they are wholly produced in the region, or sufficiently processed — meaning at least 35% regional value addition on the ex-works price, or a change in tariff heading between the imported inputs and the finished product. A few products have their own specific rule.
Wholly produced or obtained
The goods are entirely produced or obtained in a SADC member state with no materials from outside the region — for example minerals mined locally, plants grown and harvested locally, live animals born and raised locally, or fish caught in its waters. On the SADC Certificate of Origin these are marked "P" in Box 8.
Sufficiently worked or processed
The goods use some imported (non-originating) materials but are transformed enough in the region to qualify. This is met one of two ways: (1) a regional value-addition of at least 35% of the ex-works price, or (2) a change in tariff heading — the finished product falls under a different HS heading than its imported inputs. Some products have their own specific rule. These are marked "S" in Box 8.
The 35% value-addition test
Where you use imported materials, the most common way to qualify is regional value content. The formula is:
RVC % = (Ex-works price − Imported materials) ÷ Ex-works price × 100
If that is 35% or more, your goods generally qualify on value addition. You can test your own numbers in seconds with the tariff & RVC calculator.
Where the rules apply
The SADC Free Trade Area covers these member states:
* Participates partially in the SADC Free Trade Area — confirm tariff treatment for your product with SARS.
Frequently asked questions
What is the difference between Category P and Category S?
"P" means the goods are wholly produced or obtained in the SADC region, with no materials imported from outside it. "S" means the goods contain some imported (non-originating) materials but have been sufficiently worked or processed in the region to qualify — typically through at least 35% regional value addition or a change in tariff heading. The letter is recorded in Box 8 of the SADC Certificate of Origin.
How is the 35% regional value content calculated?
Using the build-down method: regional value content = (ex-works price − value of non-originating materials) ÷ ex-works price × 100. If the result is 35% or more, the goods generally meet the value-addition criterion. The ex-works price is your selling price at the factory gate, before freight and export costs.
What is the change-in-tariff-heading rule?
It is an alternative to the value test. If the manufacturing process changes the HS tariff heading — so the finished product is classified under a different heading than the non-originating materials that went into it — the goods can qualify as sufficiently processed, even if the value-add is below 35%. Some products have their own product-specific rule that overrides the general tests.
Check if your goods qualify
Run your costs through the calculator, then move on to the Certificate of Origin.