On 26 November 2014 the South African Revenue Service (Sars) advised of its Stakeholder Strategic Meeting with Trade on 24 November 2014 to discuss the implementation of the Customs Control and Duty Acts, 2014 and the impact on the Customs Modernisation Programme.
The 7-page presentation has been reproduced. (Send us an email if you are interested in receiving the presentation.)
INDEX
1. Status of legislation
2. The rule making process
3. Major issues re the Rules
4. Way forward
5. Questions
1. STATUS OF THE LEGISLATION
• The Customs Duty Act, 2014, (Act No. 30 of 2014) was published in the Government Gazette No. 37821 of 10 July 2014.
• The Customs Control Act, 2014, (Act No. 31 of 2014) was published in the Government Gazette No. 37862 of 23 July 2014.
• The Customs and Excise Amendment Act, 2014, (Act No. 32 of 2014) was published in the Government Gazette No. 37863 of 23 July 2014.
• Acts only take effect on a date determined by the President by proclamation.
• As result of the rule drafting process and comments received amendments are also being made to the Customs Control Act and it is foreseen that further amendments to the Customs Duty Act and Excise Act may be required.
• These amendments will be circulated for comment and will be submitted through the normal Parliamentary process.
2. THE RULE MAKING PROCESS
• The first batch consisting of Chapters 1 and 3 to 10 was published for external comment at the end of June 2014 with a due date of 29 July 2014.
• A workshop to discuss the comments received was held on 29 August 2014.
• The second batch consisting of Chapters 11 to 20 and 24 was published for external comment on 4 August 2014 with a due date of 26 September 2014.
• A workshop to discuss the comments is scheduled for 26 November 2014.
• The third batch phase consisting of Chapters 21, 23 and 25 to 31 was published for external comment on 9 October 2014 with a due date of 14 November 2014.
• We aim to publish the remaining Chapters of the Customs Control Act for external comment by the end of December 2014.
• In the fifth phase we will publish the Customs Duty Act Rules.
• We will continue to organise workshops to provide feedback to trade on the main comments and concerns.
3. MAJOR ISSUES RAISED RE THE RULES
• First Batch.
• EDI versus e-filing.
•Calculation of time frames in the transit procedure – commencement / transit operation / completion of transit procedure.
• Record keeping – offsite storage and electronic record keeping.
• Sars accepted quite a number of comments from trade.
• Second Batch.
• Export time frames – a new proposal.
• Notifications – detail of information required and practical issues.
• Diversion of goods cleared for warehousing.
4. WAY FORWARD
• Sars aims to implement at least 70 percent of the both Customs Control and Customs Duty Act in June/July 2015.
• The 70 percent will exclude Chapters 22 (Postal), 38 (VDP) in the Control Act and Chapter 10 (Advance Rulings) in the Duty Act.
• It may further exclude Chapter 24 (expedited clearance and release) Chapter 37 (Dispute resolution) and other SARS “in house” functions such as Judicial matters, Debt collection, etc.
• Sars intends to implement the policy of clearance prior to arrival (as agreed during the Parliamentary process) of goods intended to move to inland terminals in the first phase of implementation.