On 03 August 2023, the South African Revenue Service (SARS) manager: Rules of Origin and Trade Agreement released a letter titled “Gradual Implementation of the 13 Blocks SADC Certificate of Origin (SCO) and Transitional Arrangements for the Smooth Phasing Out of the 12 Blocks SCO”
The letter reads:
You will recall that in the past SARS has been issuing and certifying both 12 and 13 blocks SCO for goods destined within the Southern African Development Community (SADC) countries. In 2020 SARS requested the SADC member states to gradually phase out the 12 blocks SCO in compliance with the record of the decisions of the 28th meeting of the ministers of trade that was taken in 2016, in Gaborone, Botswana.
The transition from the 12 to 13 blocks SCO took considerable time due to excess stock. Now that SARS and Traders have limited stock of the 12 blocks SCO, it is now an opportune time to transition to the 13 blocks SCO in compliance with the 28th Ministerial decision.
During July 2023, Customs Branch offices started to sensitise the branch stakeholders about the transition. SARS has started to issue 13 blocks SCO with effect from 01 July 2023 and will stop issuing and processing them until 15 August 2023. Traders with the 12 blocks SCO will be allowed to process them until 30 August 2023. SARS has made a provision for identified retailers to continue with the 12 blocks SCO until they finish stock and then transition to the 13 blocks SCO. Arrangements have been made with SADC member states to accept and accord preference to those identified retailers.
The main reason for this arrangement is that retailers can request and utilise a high number of SCO, ensuring a smooth transition.
Please note that the transition from the 12 to 13 blocks SCO does not require traders to amend or enhance their systems nor change the procedure for lodging SCO; it only impacts SARS internally.
We urge traders to return the 12 blocks SCO to the nearest Customs and Excise office. During August 2023, no trader would be returned or refused to process the 12 blocks SCO, however as from 01st September 2023 only traders issued with 13 blocks SCO will be certified except for identified retailers. We kindly request traders to return unused 12 blocks SCO so that they can be reallocated to identified retailers.
Traders are urged to sign and stamp the back of the SCO under Declaration by the Producer. Traders exporting to Mozambique should continue completing and processing the 13-block SCO as they previously did.
Kindly note that henceforth, the 12 blocks SCO will no longer be printed and be accepted for preferential rates of duty. All Customs and Excise branches have enough stock of the 13 blocks SCO and urge traders to escalate offices that do not have 13 blocks SCO to Mr Alfred Ramoroka at aramoroka@sars.gov.za, or Ms Sarah Phejane at sphejane@sars.gov.za for actioning.
This measure is taken to align our SCO with the format prescribed in the Consolidated SADC Protocol on Trade.
Please contact Rules of Origin at rulesoforigin@sars.gov.za for further clarity.