IT plays key role as SA gains traction as an assembly port

With the markets in the developed countries still under post-crisis pressure, Africa’s emerging markets are starting to draw the world’s eyes, according to Nachi Mendelow, sales and marketing manager with systems specialists Compu- Clearing. “This is true with all established markets,” he told FTW, “and is especially pronounced in terms of trade with the Far East. As cargo into Africa increases, so too does South Africa’s desirability as a cross-trade and assembly port.” Another factor which is increasing this attraction is that SA’s ports and infrastructure compare favourably with other African countries. So goods are often first landed in this country, and then transported onwards by road. These goods normally remain in bond, without duties being paid on them, and are at a later stage transported out of SA. “Special customs documents need to be produced to notify SA Revenue Services (Sars) about these entries,” said Mendelow. “Another scenario that can occur is that duties are paid on the goods as they arrive in SA. When these goods are then exported, a refund claim procedure is done, in order to recover the paid duties.” Certain strategic initiatives have also been undertaken to make this country an attractive and advantageous location for part and goods assembly. “These,” said Mendelow, “include rebates on duties as well as on local parts used in the assembly.” A point that must be remembered is that goods may not remain in-bond for longer than two years without being cleared – unless special permission has been received. “It is therefore vital that goods in the bonded warehouse are carefully monitored to ensure that all goods are cleared as needed,” Mendelow said, “and that they don’t overstay their allowed duration.” Compu-Clearing offers systems to facilitate all these activities. All required documents can also be produced – along with any items imported as bonded warehouse entries being automatically integrated into the Compu-Clearing Bonded Warehouse system. “This means that goods can now be tracked and reported on,” said Mendelow, “helping to ensure correct stock levels as well as clearing these goods in the required time. “In addition, when the time comes to produce the export entry, all that the user needs to do is select which stocks are going where and the Compu-Clearing Bonded Warehouse system will automatically do all required calculations. Also, customs refunds procedure documents as well as acquittal documents can be produced through the system.” There’s a parallel between continental trade growth and SA’s attractiveness as a trade hub. “As Africa continues to grow as an export destination, so SA continues to evolve as an important link in this supply chain,” said Mendelow. “With reliable and recognised information technology (IT) systems like Compu-Clearing facilitating the procedure, we are sure to see much growth and opportunity developing along these channels.”