Agreement over duty collection

A memorandum of
understanding (MoU)
would soon be signed by
National Treasury and the
South African Revenue
Service (Sars) to ensure
the presence of revenue
authority representatives at
ports of entry to “ensure full
compliance with the collection
of customs and excise duties
paid at the ports of entry”,
Minister of Home Affairs,
Malusi Gigaba, said at a
media briefing on Sunday.
According to Gigaba, these
duties constitute about 10%
of the total revenue collection
on goods, the remainder being
paid via electronic transfer
prior to the goods' arrival.
Gigaba noted that this
was the only outstanding
matter that had to be
addressed around the Border
Management Authority Bill
that was in the process of
being finalised by Parliament’s
portfolio committee on home
affairs.
There are concerns by
National Treasury around
incorporating the C&E
function into the new border
management agency – which
will fall under Home Affairs –
as it would fragment the role
of revenue collection.