Is Your Advance Payment Notice Holding Up Your Shipment?

For many South African importers, the Advance Payment Notice (APN) process runs smoothly – right up until it doesn’t. A missed step, a mismatched document, or a forgotten reference number can bring your entire shipment to a halt. Here’s what catches businesses out, and how to stay ahead of it.

The Rule is Simple. The Execution is Where it Gets Tricky.

Since 03 December 2021, it has been mandatory for all importers to apply for an Advance Payment Notification (APN) number from SARS for each advance import payment with a value of R50 000,00 (Fifty Thousand Rands) and above, and where the balance of payment (BOP) category code is 101.

Furthermore, with effect from 01 December 2023, authorised dealers (banks) are obligated to record, validate, and report the APN provided by a trader/importer to the South African Reserve Bank (SARB) when such payment is concluded.

Your authorised dealer, whether a bank or a specialist forex provider, cannot process your payment without it. And SARS, the South African Reserve Bank (SARB), and authorised dealers are all connected in this process. There is nowhere for a gap to hide.

Where Businesses Run into Trouble

• The APN and the invoice don’t match. When you apply for your APN on SARS eFiling, you’re logging specific invoice details. If those details don’t align with the Import Customs Clearance documents you submit later, your account can be flagged as non-compliant. It’s not just a paperwork issue, it can freeze your ability to make future payments until it’s resolved.
• The APN has lapsed. An APN is only valid for 30 days from the date it’s issued. If your payment doesn’t go through in that window for any reason, the notice lapses and you’ll need to start again. In a business environment where supplier timelines shift, this catches people off guard.
• The APN isn’t included on the bill of entry. Once your goods arrive, your APN reference number must appear on the import bill of entry. It’s the link that reconciles your advance payment with proof that the goods actually entered South Africa. Miss it, and you’re creating a compliance problem downstream.
• The importer isn’t registered correctly. To generate an APN, you need to be registered with SARS as both an eFiling user and as an importer. If either registration is incomplete or outdated, you won’t be able to generate a reference number at all and no APN means no payment, which means no shipment.

Getting it Right, Every Time

The good news: when the process is followed correctly, it’s efficient. SARS issues APN reference numbers immediately on submission – there’s no waiting period built in. The delay risk is entirely avoidable.

The steps are straightforward:

1. Confirm your eFiling and importer registrations are current.
2. Log your invoice details on SARS eFiling before payment.
3. Receive your APN reference number instantly.
4. Submit the APN, invoice, and supporting documents to your forex provider.
5. Include the APN reference on your bill of entry at customs clearance.
6. Submit your Import Customs Clearance documents within 4 months of payment.

One final note: APNs are not required for advance payments into the Common Monetary Area – Eswatini, Lesotho, and Namibia are exempt.

Don’t let a compliance gap delay your business

The APN process exists for good reason – to protect the integrity of South Africa’s financial system and keep legitimate importers in good standing. But the details matter, and the consequences of getting them wrong are real.

If you’re unsure whether your documentation is in order, or you want a team that manages this process alongside your payments, we’re here to help.

For more information or assistance please email enquiries@currencypartners.co.za or call (+27) 21 203 0081 to get in touch with our expert team.