Customs changes exchange rate data to accommodate euro

WITH THE swing from individual currencies to the euro in the European Community (EC) - excluding euro-sceptic |UK) - SA customs has now changed its system of published exchange rates. Previously, customs released individual rates for these European countries on a daily and weekly basis, but from January 1 the separate rates for Austria; Belgium; France; Germany; Italy; Netherlands; Portugal and Spain have been omitted, with the euro now being applicable. The previous system of e-mailing these rates to individual parties has also been automatically discontinued from December 31, and those who previously received these will no longer enjoy that service - "Unless otherwise requested," said customs' J P M Cronje. The new exchange rate data from customs has now been introduced on the SARS Internet web-site - http://www.sars.gov.za - "where information can be viewed and downloaded if required", he added. "The business need to have the daily rates of exchange easily accessible to customs' external clients has resulted in the new system," Cronje said. "Rates of exchange data for the previous two years will always be available. The system will also allow users to do conversions to local currency by entering the foreign currency amount - which may prove to be very useful." But those readers who may be worried because their goods are still on the high seas - and priced in an individual national currency at date of sailing from the foreign source port - can relax, according to Edward Little, executive director of the SA Association of Freight Forwarders (SAAFF). "The date of loading is also the date at which the exchange rate for that consignment is fixed," he told FTW. "With the transit time overlapping the January 1 change to the euro, certain agents and importers may be concerned that they will be infringing customs' demand for values to be quoted in the new euro." But negotiations have taken place between the association and customs officials. "The authorities have accepted that this may cause a problem," said Little, "and have agreed that any such cases will be dealt with using the appropriate exchange rate for each of these individual currencies submitted as the valuation for customs purposes." This, of course, will not be applicable to consignments shipped after the December 31 deadline.