Alan Peat A NEW customs enforcement strategy - referred to as the “large trader control (LTC)” practice Ð has just been implemented by the SA Revenue Services (SARS). “This,” according to Deloitte & Touche, “is an effort to ensure that there is better customs compliance by companies, and it was bench-marked from customs’ global best practices.” The LTC applies to companies that have transacted in excess of R250-million in customs and excise duties and value added tax (VAT) in the 2002 financial year, and they can expect a visit by the SARS’ post-clearance inspectors (PCI) for a customs compliance review. According to Deloitte & Touche, the PCI is expected initially to make contact at MD or financial director level in the relevant companies with a request for the following information: l An overview of the company, its business activities, corporate structure in SA and elsewhere, including any associated or related companies; l Details of all sites operated from within SA - including any authorised customs procedures at the site e.g. a bond store; l A list of all of the trading names or styles used, and importer codes; l Details of overseas suppliers and relationship which may exist, and the products sold/imported; l Tax numbers such as customs, VAT and income tax; l Contact details of those in the company involved with customs and/or excise issues; l The auditors’ copies of audited accounts; l Customs and/or excise software used. “The SARS PCI will use this information to learn about top traders’ business, operations, systems and level of compliance,” FTW was told. “It is imperative that each trader be proactive in undertaking an assessment of its customs compliance. Should the PCI detect any non-compliance, it is anticipated that a more rigorous test will be performed across all taxes enforced by the SARS.”
