Amended rules and regulations to be published shortly
Industry has completed all of
the commentary on the rules
and regulations guiding the
new customs legislation in
the country.
But, said South African
Revenue Service (Sars)
spokesman Sandile Memela,
the process of consultation
and engagement was still
under way.
A complete set of
the amended rules and
regulations will now be
published allowing industry
to read it in its entirety
with the three new pieces
of legislation – the Customs
Control Act, the Customs
Duty Act and the Customs
and Excise Amendment Act.
Whilst it is yet unknown
when the bulk of the new
legislation will come into
effect, it is not expected to be
sooner than 2017.
The registration and
licensing process, however,
is expected to kick off in
August 2016.
“It is very important for a
final set of the draft rules to
be circulated,” said Memela.
“The idea is to be exhaustive
for the sector to have a sense
of ownership and belonging.
We are working together.”
Industry and Sars are
also set to have at least one
more workshop to iron
out any outstanding issues
and concerns before the
legislation is considered
completed.
Jean Pool, customs
executive of the Western
Cape chapter of the South
African Association of
Freight Forwarders (Saaff),
told members of the
Exporters' Club Western
Cape last week that it was
imperative for industry
to familiarise itself with
the legislation that would
undoubtedly result in
substantial changes to the
trading environment.
“One of the bigger impacts
on industry will be in terms
of the new delivery timelines
and the penalties that
will be imposed,” he said.
“Understanding and knowing
what the timelines and
penalties are is essential.”
It is understood that
under the new legislation
time lines have dramatically
changed. Whereas in the past
industry was given seven
days following importation
to make due customs entry,
they will in future have three
working days.
Pool said a major ongoing
concern around time frames
was the rigid requirement in
the new acts that an export
declaration be submitted
to customs only after the
container had been stuffed
and sealed, but at least two
hours before it would be
delivered to the port. “This
suggests a lot of truck
standing time for shipments
stuffed close to the port, with
attendant increases in the
export costs which South
Africa, already struggling,
can ill afford,” he said.
In terms of penalties the
new acts contain two types:
prosecution avoidance
penalties, which may be
refused and payment of
which is thus optional as
is the case under current
section 91 of the customs and
excise act; and fixed amount
penalties (new) which are
compulsory.
“The oddity is the large
amounts of these fixed
amount penalties, which
are defined as “not being an
offence”. It takes three such
breaches (and doubling and
tripling of each subsequent
penalty) before these
breaches register as an
“offence” in terms of the new
acts,” he explained.
Pool said compliance
with the new legislation
would require a thorough
understanding of the changes
it was bringing.
