Implementation of the new Revenue Sharing Formula
The implementation of the new Revenue Sharing Formula as contained in the 2002 SACU Agreement began in 2006. The new formula has the following components:
The Customs component: Each Member State share of the customs component shall be calculated from the Cost Insurance Freight (CIF) value at border posts of goods imported from all other Member Sates into the area of each as a percentage of the total CIF value of intra –SACU imports.
The Excise Component: Each Member State’s share of the excise component shall be calculated from the value of its GDP in a specific calendar year as a percentage of total SACU GDP in such a year.
The Development Component: The development component shall initially be set at 15% of the excise component, but shall be reviewed from time to time and will be adjusted if agreed to by all Member Sates.