A new Customs era is about to dawn

A year-long collaboration between Sars Customs and its stakeholders will culminate in the rollout in October this year of the first phase of its modernisation programme. Aimed at significantly enhancing the efficiency and security of the supply chain, the new system will fundamentally change the way goods are processed. A key element, Sars Commissioner Oupa Magashula told guests at the official launch in Johannesburg last week, is to create a platform for collaboration because no-one owns the supply chain and each has a co-dependent role to play. “We started the modernisation programme on the tax side and will apply the same approach on the customs side. “Our core base,” he said, “is a compliance approach.” And there are two key ingredients to achieving compliance among taxpayers and traders, says Magashula – service and enforcement, or the carrot and stick approach. In other words, Sars will make it easy, convenient and speedy as possible for people who meet their tax obligations – with credible punishment for those who don’t comply. “The essence of our modernisation programme is the automation of our processes to make it easier and more convenient for taxpayers,” he said. And this involves a range of initiatives. Sars will, for example, extend the facility for traders to electronically submit any supporting document required by customs for the finalisation of a transaction. Various third party software providers will be offering tailored facilities within their applications to facilitate this requirement as an integral part of their solutions, all of which will reduce paper overload and the burden on the trader or broker to physically deliver them to Sars. Endorsement by stakeholders – who included the SA Association of Freight Forwarders, SA Express Parcel Association and SA Reserve Bank – following the Sars presentation last week was clear evidence that the collaborative approach has so far achieved its objectives.