FTW gets Sars and its customers talking

AFTER OUR electronic sister publication FTNow invited readers to send in complaints about issues involving the SA Revenue Service (Sars) customs, we have been flooded with issues that readers want customs to sort out. At the request of customs, FTW submitted these complaints to them. Unacceptable delays with stop
reports for imports Customs stops for seafreight imports destined for Johannesburg are a problem. We experience unacceptable delays in receiving STOP reports which run into several days. I am sure this is a common gripe... and then of course the length of time to get release thereafter. I think Sars needs to be told what the additional costs are when a 20’/40’ FCL is stopped and takes up to10 days to get released. CLEARING AGENT. Why the export stops? Suddenly in the last year or so Sars seems to be stopping export shipments. Why? Then they want VOCs on tariff headings..samples extracted and taken to the Carlton Centre at our time and cost, then back to the depot for repacking..and how do we look to the rest of the world when we miss a sailing or a flight due to Sars delays? Thanks for the opportunity to voice our dissatisfaction in this area of our business. Alas! Please keep this anonymous as it is a fact – agents do get victimised. Acquittals process favours Sars THE CURRENT process of acquittals is very much in favour of SARS in that the clearing agents have to prove that the cargo has actually gone across the border. SARS has an office at every border and it would be much easier if these offices sent a daily report by way of email or fax confirming what bills of entry have gone across. The current system is hopelessly against the clearing agent. We have to submit proof that the cargo has gone across by way of stamped documents from the borders. We think that this is totally unfair practice on the part of Sars especially in view of the penalties should the EXes or RIT be done after 30 days. (See lead story on page 1). Clearing agents penalised for
vehicle thefts The South African crime rate is well known. In recent months many bonded warehouses have been robbed by very organised crime units. Some warehouses have lost up to 25 cars in one hit. The police are very aware of this and investigations are at the highest level. Imported vehicles going to neighbouring states are hijacked. These instances are beyond the control of the clearing agents or bonded warehouses. This is organised crime. The clearing agent now has to pay back to SARS with penalties and VAT the bonded sum. We think that this practice is totally unfair and Sars should change its policy. Sars is being unfairly enriched by demanding these payments from the clearing agents. Thank you for opening this door of communication. Customs stops
– no excuse for delays There is absolutely no excuse on the part of Sars for delays in issuing STOP reports. We have indeed taken disciplinary action in cases where the delays were clearly the result of Sars action. One challenge is that it is usually not easy to prove this as customs officers often successfully shift the blame to the clearing agents themselves. I have given notice to the staff that I shall now insist on action being taken against the agent when this happens. The idea is that the agents will not accept the blame as easily if that will cost them their licence. Customs officers also will not make the accusation as easily if they know there will be dire consequences if they cannot prove it. Some clearing agents often blame Sars to their clients when they are tardy in their work. Export stops – part of the war on terrorism Customs administrations across the world have stepped up controls on exports in the context of the war against international terrorism but also because of fiscal fraud. This includes transfer pricing, criminal actions including money laundering, and the international smuggling of illicit and regulated goods. Obviously this will be done in terms of the law. As every country wants to be internationally competitive there is greater scope internationally for a customs-trade partnership to minimise the costs of customs controls on exports. Until now South Africa has not been successful in establishing this partnership. This is a challenge we must accept as export controls are a reality in modern administrations. Customs will address substantiated claims CLEARING AGENTS and bonded warehouse operators should definitely not be expected to pay up when the goods have been stolen from the warehouses or hijacked and they can show that they took reasonable steps to prevent this. We do however have to face the fact that there are dishonest people among both the public and Sars. The claim of such a mishap must be substantiated or it can be used to evade legal requirements. Such cases can only be addressed on merit. Shabalala’s solutions: Strategic partnership is crucial There is a pressing challenge for both sides in this issue to demonstrate foresight by working to build a business-customs partnership such as exists in more developed countries like the US and the European Union. So far we have failed to produce the right leadership for this. I want to believe there are individuals in this region who are capable of leading the initiative in this and perhaps the FTW also can play a bigger role in the effort. Anonymous reports There should come a time when as a people we are prepared to stand by principle without fear under the protection of the law. Claims of victimisation are often an admission that one is also doing something illegal and would rather not get exposed. However until South Africans become better citizens I am ready to entertain anonymous reports such as through this FTW avenue and the Sars Hotline. Use Sars’ SSMO The clearing and trading community can also make greater use of the SARS Service Monitoring Office to obtain redress on their issues than they are doing at present, either directly or through agencies like the FTW. I trust that this is part of building the business-customs partnership for more effective and efficient customs administration at minimum cost to business and Sars.