Customs puts single bond on the agenda

In the interests of
streamlining Customs
procedures in South
Africa, there’s a big
initiative from Customs
to introduce a single bond
rather than the variety
of bonds required for
different purposes.
Currently, if a customer
wants to move goods
within each port, they
need to open up an account
at each port and have a
deferment bond.
The idea now is to
introduce a system that
would cut down the need
for a different guarantee
in each port and each
customer would now hold
one national bond.
This single bond would
encompass warehouse
guarantees, road bonds and
others.
And while this would be
advantageous for Customs,
practically speaking there
are different views.
The feeling is that this
may benefit larger players
while smaller players
would come unstuck
because it would affect
their cash flow capability.
“At the moment they
have different accounts
at different ports, which
means they have different
payment dates and can
therefore use the money
as it comes in to pay other
accounts. With only one
national bond it could
affect their cash flow,”
says Lombard Insurance’s
Dean Burscough.
“If they miss a payment
date there are strict
penalties.”
Customs has been
talking about the
proposal for a few years.
“Practically they can’t
implement it immediately,
but it’s now on the agenda
and could be introduced
in a few years’ time,”
says Lombard’s Francis
Kingston.