Customs pilots ‘large trader scheme’ SARS spells out the background and benefits SARS CUSTOMS has made significant progress in its ‘large trader control’ scheme currently being piloted with selected clients in the bigger customs centres of Johannesburg, Cape Town and Durban. A full roll-out is planned for the new financial year. The concept, first considered towards the end of 2002, was based on the finding that a very small percentage of the SARS client base accounted for over 80% of total revenue collected in 2002. These large traders are generally international and multi-nationally based; they have a complex corporate structure with divisions, subsidiaries and branches around the country; they are generally registered in more than one customs activity e.g. import, export, warehousing; and they process large numbers of transactions, import high value products and use state of the art computer systems. As major customers, who account for a significant portion of Customs’ activities and revenue, they are accorded the benefit of its accreditation scheme and partnership programme. To make it work SARS has committed to streamlining trade procedures and taking a more targeted approach to inspections. This has necessitated a greater understanding of trade and globalisation impacts and of the client’s commercial activities. The client scores on several levels, not least that he has a single point of contact to address issues relating to any of his activities. Dedicated customs officers in the Post Clearance Teams are allocated specific traders within each economic sector like electronics, clothing, etc, helping the officer to understand the business of the allocated client better. He can study the processes and systems used and address risks within such systems where a revenue leakage may occur. Officers will also propose internal controls to counteract such risk. Customs also undertakes to be more proactive in addressing weaknesses and controls within the client’s systems and processes, advising him after a Customs Post Clearance Inspection of any errors found, but more importantly of measures that should put in place to prevent similar errors in the future. Learning from the UK model SARS CUSTOMS has worked closely with customs officials from the United Kingdom to develop this approach. This included a study tour by SARS customs officers to the United Kingdom in 2002 where they saw a similar system in operation. In addition UK officials held a training session in South Africa and on the job training has been ongoing.
