Clearing and forwarding agents face considerable legal risks under the Customs and Excise Act, despite receiving minimal compensation.
It is imperative to manage this risk diligently, cautions Quintus van der Merwe, a partner at Shepstone & Wylie Attorneys, because failure to do so could result in significant financial and legal consequences for agents.
“Moreover, when agents are designated as the shipper or consignee on behalf of their principals, they encounter potential liability under the contract of carriage,” he says.
“This dual exposure underscores the importance of having meticulous contractual arrangements and risk mitigation strategies within the clearing and forwarding industry.”
The sector is constantly being challenged to find and retain new business, and is often under scrutiny due to the actions of some dubious agents.
Taryn Hunkin, the firm’s senior associate, explains: “There are some clearing agents operating at the moment who charge impossibly low rates for their service, or who are prepared to act unscrupulously to land cargo at costs below the norm.
"This has a negative impact on the reputation of the industry as a whole and leads to increased scrutiny by the South African Revenue Service (Sars).”
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