Call for clarity on import permits for foreign ships

The International Trade Administration Commission of South Africa (Itac) has called on the Cape Chamber of Commerce and Industry and the Port Liaison Forum to provide clarity on calls for ships and aircraft of foreign registry to be exempted from import permit controls. In terms of the International Trade Administration Act any ship, aircraft or other transport of foreign registry which enters South African waters, airspace, or on land can reasonably be deemed to be “imported”, and since they are in use, are naturally “used goods”. This by definition subjects them to import permit control administered by Itac. To date no such import permit controls have ever been exercised, presumably due to an oversight, even though the Import Control Regulations expressly provide for them. These regulations are currently administered selectively by the South African Revenue Service (Sars) on behalf of Itac through an SAD 500 customs clearance system. As ships and aircraft usually only report to customs on forms DA 1 and DA 2, and not on SAD 500, they escape the net cast by the regulations, even though there is no legislation in place to support such a system of selective enforcement. Whilst the Chamber’s Port Liaison Forum does not seriously believe that it could ever have been intended by the legislature that ships, aircraft and the like of foreign registry be subjected to control in terms of the Import Control Regulations, the forum feels that the correct legislative intent ought to be clarified by means of an amendment to the regulations. Its interest in the matter was first piqued by an identified need to facilitate the smooth movement – particularly of vessels being brought into the country for the oil and gas sector – on form SAD 500 under rebate item 460.23 to the Customs and Excise Act. Earlier in 2014 amendments were made to this rebate item which now enables oil rigs and support vessels to be entered under specific circumstances. Since the amended rebate item is paradoxically excluded from rebate permit control by Itac, it would be reasonable to presume that the department would have no further interest in such goods, a spokesman told FTW. But as there is no exemption for “used goods” being customs entered under rebate item 460.23, oil rigs and support vessels are now being subjected to import permit control. Customs experts maintain that these needless import permit controls will not aid the targeted oil and gas sector but in fact hamper this growing business sector in the province. Itac, however, has said it is not clear around the rationale for the request or even why the current regulations and legislation should be changed. According to a spokesman for the forum they are set to meet with Itac.