Closure of City Deep a done deal?

As the deadline for the new Customs Bill approaches, industry sources have once again raised concerns over its impact on the inland supply chain. A recent JCCI meeting in Johannesburg placed fresh emphasis on the dilemma and the impact that impending changes contemplated in the Customs Draft Control Bill will have for the import and logistics industries in particular. The bottom line, said Mike Poverello, customs specialist with the SA Revenue Service (Sars), is that the draft bill will effectively nullify the benefits of a through bill of lading. “The impact of this implies clearance at first port of entry,” he said. “The current benefit of ‘clearance free’ transit movement of manifested containers to inland terminals – via block train – will cease.” FTW put this interpretation of the bill before two of our legal sources. Andrew Robinson, partner at Norton Rose, said that two bills were applicable. The newly drafted Customs Control Bill, which, in conjunction with the Customs Duty Bill, would replace the current legislation governing customs operations. Quintus van der Merwe, partner at Shepstone & Wylie, told FTW that the answer was by no means simple. An associate had ploughed through a hefty 800 sections – and it seemed to be that the statement was correct. That is that entry must be made, and provision has not been made for movement on the bill of lading akin to section 18(1)(b) of the current Customs Act. Pat Corbin, former president of the JCCI – who has been waging a full-scale war against the new legislation for over a year – was quite adamant. He told the audience at the latest JCCI indaba that the recently tabled Customs Control Bill would leave the City Deep container terminal invalid. The closure of Johannesburg’s inland port seemed to be a “done deal”, he said. The promulgation of Sars’newly drafted Customs Control Bill, along with the Customs Duty Bill, would have far-reaching impact on the cost and efficiencies of doing business in SA and fellow Southern African Customs Union (Sacu) countries, he added. Poverello agreed. “Port congestion will rise as these containers, after they have been cleared at the discharge port, will undoubtedly have to be road freighted inland as Transnet will not likely hold up a block train pending customs release instruction. Furthermore, it will be virtually impossible for a carrier to move a consolidated container (FCL groupage) inland, as all consignments within the container will require clearance at port of discharge. This will give increased business to container depots within the port feeder area, and virtually signal the end of import deconsolidation at any inland container depot.” Corbin commented that Transnet had accepted the assurances from customs that “nothing would change and the boxes would still be able to move seamlessly once cleared.” Where this will all go is still an unknown quantity, but the predictions are certainly dire. CAPTION Pat Corbin ... passionate campaigner.