On 01 March the South African Revenue Service (SARS) announced the publication of its 60-page “Customs External Policy - Clearance Declaration”, which was effective on the day.
According, to the SARS notification, when goods in a Customs warehouse are sold, the current Customs Procedure Codes (CPCs) provide for a change of ownership Customs clearance declaration (CCD). Change of ownership information has been added to the policy to define obligations.
The “Summary of Main Points” offers the following:
(a) Importers and exporters and their clearing or registered agents must be registered or licensed as prescribed in SC-CF-19, before submitting a Customs Clearance Declaration (CCD).
(b) Every importer or exporter of goods must lodge a CCD when goods are imported into or exported from South Africa, except when exempted by Rule. Declarants make a self-assessment with the transaction documentation and submit the CCD to Customs either electronically or manually. Customs replies with a CUSRES message. The status codes and completion of the CCD are explained in SCCF-04.
(c) Electronic Data Interchange (EDI) users experiencing technical problems or difficulty, for example difficulty to insert the provisional payment (PP) requirements, must contact their Service Providers or the SARS Contact Centre to log a call.
(d) Customs can release the consignment or request supporting documents to validate the correctness of the CCD by means of a documentary inspection. The declarant submits the supporting documents via e@syscan or hard copies, which are scanned at the Customs Office for attachment to the relevant case on the system. Declarants are required to prove the origin of the goods when preferential rate of duty is applied. If all the supporting documents as requested are received the case is routed for an inspection.
(e) If the supporting documents are not on hand the declarant may apply for a sight declaration (DA 22).
(f) Declarants may request expedited clearances, conditional or embargo release if the set criteria are complied with.
(g) Goods may only enter or leave South Africa through ports of entry or exit designated for that purpose in the Rules. Goods may be imported or exported via rail, air, sea or road. Some imports or exports may require an import or export permit.
(h) Declarants dealing with goods moved in transit with the temporary suspension of duties and VAT must retain the proof of export (paragraph 2.4(l) of this document) and to acquit them of their liability for the duties and taxes. See SC-TR-01-02 for acquittal of declarations.
(i) Any goods that are being recovered from an abandoned wreck are regarded as imported goods and the local or registered foreign principal (searcher) must submit a CCD bringing revenue to account.
(j) Export declarations where a drawback of duty and taxes is envisaged must at time of lodgement of the CCD contain the appropriate drawback item in terms of the applicable Schedule as well as the correct Customs Procedure Code (CPC). All the notes and specific requirements for the specific drawback item must also be adhered to. Exporters and declarants who wish to claim a drawback in terms of Schedule 5 must be registered with Customs. Refer to SC-CF-19. Exportation of any goods under the provisions of a drawback item is subjected to the approval of the Commissioner. (i) When it is a requirement of the applicable drawback item it is the responsibility of the declarant to apply for an examination without prejudice (EWP) in order for the container to be packed or sealed under Customs supervision. (ii) Drawback applications are submitted and processed as prescribed in terms of SC-DT-C-13.
(k) CCDs may be required to be amended, substituted or cancelled depending on the circumstances.
(l) Certain goods (Section 38) are cleared on a simplified clearance procedure (DA 306 or DA 306A) instead of a CCD if the Controller / Branch Manager grants permission. Reusable transport equipment is also cleared in this fashion.
(m) Any person whose rights have been adversely affected by administrative action has the right to be given written reasons, as contemplated in the Constitution of South Africa.
The External Policy is available on request.
Story by: Riaan de Lange
