Customs Unspoken In the National Budget speech of 26 February 2014 the sole reference to customs was “Customs administration” on page 27 of 35. The South African Revenue Service (Sars) overhauled its customs management system in August 2013, and since its introduction the system has processed goods valued at more than R1.7 trillion. What was unsaid, but in the Budget Review, is much more interesting. With respect to Valueadded Tax “Documentation”: The customs modernisation programme has eliminated the need for paper-based documents to be generated and issued to taxpayers. The documents that are legally required will be aligned with the modernised customs processes and procedures. As for “Protection of trade information”: Sars has a responsibility to protect the merchandise trade information that it receives from travellers and traders. In the absence of the Protection of Personal Information Bill being implemented, it is proposed that the Customs and Excise Act be amended to provide for such data protection. Section 101B of the Act relating to travellers is already aligned with the anticipated requirements of the Protection of Personal Information Bill, but additional measures are needed to similarly address traders and cargo. Reference was also made to errors in the presentation of customs and excise data, and to the fact that highvolume scanners will soon be introduced at the Durban and Cape Town ports. Comment: No mention was made of the Customs Bills. The Glossary of the Budget Review defines “customs duties” as – tax levied on imported goods, which begs the question, why introduce a Customs Duty Bill, when customs is considered a tax? Customs paying for Sacu? In the “Economic Outlook”, Chapter 2 of the Budget Review, the Southern African Customs Union (Sacu) revenue payments remained at 1% of gross domestic product (GDP) during 2013. In Chapter 3 “Fiscal Policy”, the transfers from the National Revenue Fund to South Africa’s Sacu partners increased from R43.4 billion in 2013/14 to R59.7 billion in 2016/17, reflecting higher customs revenue during the economic recovery. For comparative purposes, the Sacu transfers are provided with the customs tax in brackets. In 2010/11 it was R14.99 billion (R26.64 billion), R21.76 billion (R34.20 billion) in 2011/12, R42.15 billion (R39.00 billion) in 2012/13, R43.37 billion (R44.50 billion) 2013/14, expected to be R51.74 billion (R50.30 billion) in 2014/15, R57.30 billion (R56.52 billion) in 2015/16 and R59.68 billion (R64.00 billion) in 2016/17. Customs tax seems to pay the Sacu partners. Sugar Duty Increase? The International Trade Administration Commission of South Africa (Itac) on 27 February 2014 published a media report on its website from Business Day, “Sugar producers seek import protection”. No Government Gazette notice has yet appeared. Energon On 02 April 2014 the general fuel levy will increase by 12c/ litre, and the Road Accident Fund (RAF) levy by 8c/ litre, thus 20c/litre. Then an increase of 36c/litre on petrol, and diesel 27.2/28.2c/litre is expected to be announced on 05 March 2014.
