SARS, Customs and Excise has embarked on the long journey of establishing a National Single Window (NSW), a journey that will be complicated, challenging and will certainly take several years to complete. The Single Window concept is recognized worldwide as being instrumental in trade facilitation, ease of doing business and streamlining customs procedures. Single Windows have been established in Singapore, Thailand, Republic of Korea, Senegal, Mauritius, Mozambique, India and New Zealand to name but a few and the World Customs Organization supports the SW concept.
In November 2022, SARS announced that it would be embarking on a Single Window Project under its modernization programme and that the first phase would involve collaboration with the Border Management Authority and The Department of Agriculture, Land Reform and Rural Development (DALRRD). This phase would automate the current manual inspection case process that flows from SARS to other Government agencies, starting with DALRRD. SARS began the internal testing phase in mid-2023 and is currently still in progress. Digitization of the Prohibited and Restricted Goods List is under review and will be a key element in the success of the NSW as well as the inclusion of Transnet. So, what exactly is a National Single Window?
Theoretical definition: A system that allows traders to lodge information with a single body to fulfil all import- or export-related regulatory requirements.
Practical definition: Provides one ‘entrance’ for the submission and handling of all data and documents related to the release and clearance of an international transaction. This ‘entrance’ is managed by one agency that informs the other appropriate agencies, and/or directs combined controls.
UN Recommendation 33 states, among other things, that “it is a facility that allows parties involved in trade and transport, to lodge standardized information and documents with a single-entry point to fulfil all import, export and transit-related regulatory requirements. If information is electronic, then individual data elements should be submitted once”. In theory, the Single Window concept provides that traders will start the clearing process from only one end to the end of a process through one, and only one, ‘Window’. In the current environment, a declaration is submitted to Customs, and if validated, the consignment is released but, if detained for one of the other OGAs, the trader is responsible for obtaining release by approaching that department directly. In most cases, this requires a physical visit to the office concerned. This process automatically creates delays and additional cost.
The Single Window, however, allows for the declaration to be submitted to Customs, and if validated, the consignment is released but, if detained for one of the other OGAs, Customs is responsible for forwarding the documents to that department and ensuring that final release is obtained. In short, the trader will have very little or no contact with any Government Agency linked to the Single Window. This will ensure that delays, additional cost and duplicate inspections will be avoided, and a National Single Window must be seen as a future game-changer for South Africa.
