Magashula provides ‘strong evidence’ for customs automation

SA Revenue Service Commissioner Oupa Magashula has called for a joint response by every link in the supply chain to improve border post efficiency. Speaking at the launch last Tuesday of The World Bank Time Release Study on border posts in South Africa, Mozambique and Swaziland, he said it was pointless for goods to move rapidly through one half of the border only to be delayed in no man’s land. There is very strong evidence on our own continent for the power of customs efficiencies, he added. Ghana saw customs revenue grow by 49% in the first 18 months after implementing its electronic data interchange system for customs procedures, and in Uganda reforms to improve customs administration and reduce corruption helped increase customs revenue by 24% between 2007 and 2008. According to Magashula, the latest ranking in Ease of Trading across borders places Swaziland 148th and SA 144th out of 183 economies. There’s a lot that Customs can do, he said, to simplify procedures – from minimising the level of Customs intervention in cargo movements to enhancing risk management techniques to better identify suspect imports and exports for scrutiny. “But we need to act soon and convert our manual, paper-based processes to electronic, automated risk-based process.” Pieter Kruger of Arrowbulk Logistics points out, however, that results will only be forthcoming once all parties work together and have the same clearing and processing on both sides. “Transport to Mozambique is double the rate to Durban because of the Customs procedures in that country and their inability to do anything quickly,” said Kruger. “There is hardly anything in South Africa that we export there that they manufacture or could affect their economy, but we spend days awaiting payment of duties. It is time South Africa made the rules and did not allow incompetence to rule in all our road exports.”