Customs penalties cripple forwarders

KEVIN MAYHEW THE IMPOSITION of crippling penalties by the border authorities for incorrect paperwork is a major burden to the freight industry, says the director of Dynamic International, Jeanette Kriel. Based at the Nkomazi Border Plaza outside Komatipoort, Kriel says that she appreciates the need for accurate paperwork, but customs dictates leave no room for any human error on the part of the freight forwarders. Customs is imposing fines of up to R500 or 10% of the value of the goods for incorrect submission of tariff codes where no duty or VAT is payable to customs by Dynamic. The company has 10 staff members, one of whom is based over the border in Mozambique to assist with customs clearances. It also has an office at Beit Bridge handling traffic into Zimbabwe. “We have been in this business for some 16 years, but this penalty element is crippling our business and dampens any enthusiasm to train up new staff, for fear of them making a mistake which can prove costly,” she says. Referring to trading conditions, Kriel says the stronger rand and other factors have reduced traffic flows and the intense competition within the industry makes it difficult to survive.