In the National Budget speech of 26 February 2014 the sole reference to customs was “Customs administration” on page 27 of 35. The South African Revenue Service (Sars) overhauled its customs management system in August 2013, and since its introduction, the system has processed goods valued at more than R1.7 trillion.
What was unsaid, but in the Budget Review, is much more interesting.
With respect to Value-added Tax “Documentation”: The customs modernisation programme has eliminated the need for paper-based documents to be generated and issued to taxpayers.The documents that are legally required will be aligned with the modernised customs processes and procedures.
As for “Protection of trade information”: Sars has a responsibility to protect the merchandise trade information that it receives from travellers and traders. In the absence of the Protection of Personal Information Bill being implemented, it is proposed that the Customs and Excise Act be amended to provide for such data protection. Section 101B of the Act relating to travellers is already aligned with the anticipated requirements of the Protection of Personal Information Bill, but additional measures are needed to similarly address traders and cargo.
Reference was also made to errors in the presentation of customs and excise data, and to the fact that high volume scanners will soon be introduced at the Durban and Cape Town ports.
Comment: No mention was made of the Customs Bills. The Glossary of the Budget Review defines “customs duties” as – tax levied on imported goods, which begs the question, why introduce a Customs Duty Bill, when customs is considered a tax? The calculation of the R17bn is not certain since Sars’ own published merchandise trade statistics (exports and imports) from August 2013 to January 2014 amounted to R984.5 billion.
