Convoluted customs bills rules challenge even the experts

Concerns are growing over the impact of the country’s new customs bills as more of the rules and regulations guiding the laws are published. Several commentators on the rules and regulations have told FTW that the complexity of the documents is astounding. “We have some of the industry’s top experts commenting on the rules and regulations,” said Mike Walwyn, chairman of the Cape’s Port Liaison Forum (PLF), “and they are at times struggling to comprehend and come to grips with the intricacy of the rules. How then is the general industry going to come to terms with it?” With some 70 chapters set to be published, commentators on the documents were at the time of going to print only at chapter 15. “These rules are going to catch people out. They are incredibly detailed, intricate and difficult,” said one customs expert who has read through all the rules thus far. “Even with our comments and recommended changes they are not easy to understand and the customs environment is significantly changing with these rules. It is advisable that industry makes sure they familiarise themselves with the new customs acts sooner rather than later.” Said Walwyn: “The legislation itself refers one to the rules and regulations continuously. The statement ‘as guided by the rules and regulations’ is often used. Understanding the impact of these technical documents is going to be very important for the industry.” At the same time Walwyn said industry needed to understand that the South African Revenue Service was under no obligation to implement or accept any of the advised changes being made by industry commentators. At the end of 2013, following years of dispute and uproar over the new legislation, Sars officials undertook to publish the rules and regulations for comment, allowing industry an insight into those aspects that would guide the new bills. “Once effective the legislation is subject to a threeyear trial run, but there are serious concerns over how these new bills are going to be applied,” said another industry expert. “Our fear is how officials are going to apply their minds to the new laws. If one looks at some of the assessments that are made on the current legislation and then sees the strict application route being taken with the new bills then one can’t help but be concerned.” Sars, however, maintains that the new laws are not aimed at prohibiting or restricting legitimate trade. It says the new legislation is aimed at creating a balance between customs control and trade facilitation, creating an environment where the movement of goods is controlled and risk is minimised, protecting the country’s fiscus, economy and wider society at large. INSERT & CAPTION These rules are going to catch people out. They are incredibly detailed, intricate and difficult. – Mike Walwyn