On 20 August 2024, the South African Revenue Service (SRS) advised that the updated Contravention List published on 13 August 2024 had been withdrawn.
The previous Contravention List is, therefore, still effective. Any penalties issued from 13 August 2024 must align with that previous list.
For more information on Offences, Penalties, and Disputes, visit:
https://www.sars.gov.za/customs-and-excise/offences-penalties-and-disputes/
Offences, Penalties and Disputes
The offences and penalties, customs appeals and customs dispute processes are explained below:
Administrative Penalties
https://www.sars.gov.za/customs-and-excise/offences-penalties-and-disputes/administrative-penalties/
Section 91 of the Customs and Excise Act 1964 provides a procedure that is an alternative to criminal prosecution. The procedure can be considered when it has been established that the person concerned “has contravened any provision of the Customs and Excise Act or failed to comply with any such provision with which it was his duty to comply.”
In terms of Section 91 of the Act, 1964, the person has the right to elect to be dealt with in terms of the section. Still, it is the SARS Commissioner's prerogative to decide whether he will so deal with him or prosecute him. The amount that the SARS Commissioner may require may not exceed the maximum fine which may be imposed upon a conviction for the contravention or failure in question as provided for in the penal provisions of the Act, 1964. An amount so called for cannot be deposited under protest.
The penal provisions (Sections78 to 86) of the Act, 1964 provide for offences in terms of the Act, 1964 and their possible sanctions if convicted in a court of law.
Appeals
https://www.sars.gov.za/customs-and-excise/offences-penalties-and-disputes/appeals/
What are Internal Administrative Appeals (IAA)?
Suppose anyone does not agree with the decision of a Customs officer. In that case, they should first approach that officer’s immediate supervisor in order to clarify the decision in question and resolve any uncertainties. Should the matter not be resolved in this way, the person may institute a formal internal administrative appeal.
How does the IAA Process work?
In cases where clients are not satisfied with any decision taken by officers in terms of the Act 1964, they have a right to appeal that decision to the relevant appeal committee.
Appeals must be lodged on a Form DA51 to the office that communicated the decision, or in the case of a decision relating to the declaration process, to the office indicated on the Customs Clearance Declaration as the office of destination or departure. The Form DA51 must be delivered within thirty (30) days from the date the client became aware of the decision or received reasons for the decision.
When requested, Customs provides reasons for a decision in writing within forty-five (45) days from the date of acknowledgement of receipt or indicates that reasons have already been provided. Should clients be unhappy with a decision made by any appeal committee, their recourse will be to lodge an application for Alternative Dispute Resolution (ADR) with the relevant appeal committee that made the decision.
The committee will add its comments thereto and forward the application to the ADR Unit for attention. It is important to note that an extension of twenty (20) days may be granted if such extension is applied for prior to the 30-day period (as mentioned above), and if this is exceeded, the IAA process cannot be followed and the applicant’s only recourse will then lie in litigation.
Dispute Resolution
https://www.sars.gov.za/customs-and-excise/offences-penalties-and-disputes/dispute-resolution/
What does Alternative Dispute Resolution entail (ADR)?
In addition to the IAA process, provision has also been made for an ADR process, which can be used as recourse against a final decision made under the IAA process. The ADR Process may be initiated by either the aggrieved person or SARS. SARS, however, finally determines whether a matter is suitable for ADR.
To apply for ADR, a properly completed Form DA 52 – Application for ADR – External Form, together with the relevant supporting documents, must be submitted to the chairperson of the appeal committee, who informs the client of the decision within 30 days of the date of the letter. The Commissioner will then decide and inform the applicant whether the matter is appropriate for ADR or not.
Suppose any person has contravened or failed to comply with any provisions of the Act 1964, it will be considered as committing a customs offence and a deposit for a possible contravention can then be charged by the relevant authority. A person can decide to lodge a dispute against the customs offence or penalty imposed.
Deposits for various contraventions in terms of the Act 1964 can be called for. It is not only where goods are imported or exported. A licensee or registrant can also be “penalised” if not complying with certain conditions.
