Facilitate trade rather than just create more red tape - Deloitte

Businesses that fail to take new trade facilitation rules into account could see their supply chains coming under significant pressure in the future, cautions Deloitte.

At risk, in particular, is future business with US companies which already have to comply with stricter trade rules since the devastating 9/11 terrorist attacks heightened fears of security risks. The US now wants the rest of the world to modernise their customs systems as well.

It means a paradigm shift is taking place in the customs world, including in SA, as the attention moves from compliance and enforcement to engaging with business in a trade partnership aimed at securing and controlling the supply chain. The SA preferred-trader programme, for example, is based on the World Customs Organisation (WCO) Framework of Standards.

According to Deloitte, businesses need to be aware of new provisions aimed at expediting the movement, release and clearance of goods, including goods in transit. Measures for effective co-operation between customs and other appropriate authorities on trade facilitation and customs compliance issues are also important, while further provisions for technical assistance and capacity building should also be on the radar.

However, this is a voluntary programme and at the moment many traders are adopting a wait-and-see approach. A new set of acts - the Customs Control Act and the Customs Duty Act - are only likely to become effective next year.

Source: Deloitte