New labelling requirements create policing dilemma for SARS

'Dti implemented new rules without consultation' ALAN PEAT THERE HAVE been no formal discussions between the department of trade and industry (dti) and SA Revenue Service (SARS) customs on the department’s new labelling requirements for imported clothing and textiles – and it seems that customs is currently unable to police these new demands. According to a memo sent to members by the secretariat of the Western Cape division of the SA Association of Freight Forwarders (Saaff), it would also appear that the World Trade Organisation (WTO) has not received the obligatory notice of this SA attempt to control these imports. Said the memo: “We have been informed by Saaff national that, to date, SARS has not had formal discussions with the dti regarding this project - and that SARS is not able to implement the required inspection or stop process on every shipment but will carry out random stops for inspection.” It also added that SARS had advised the association that it had tried a number of times to contact the dti to set up a meeting and discuss this project - but had been unsuccessful. “What we are reading between the lines is that, at this stage, SARS will not be policing this - but it is unlikely that they would be able to publicise the fact that they are not applying the full force of the law to the labelling requirements.” What might also throw a spanner in the works is the fact that WTO approval has, as yet, not been received. At a meeting of the SA Chamber of Business (Sacob), the new deputy director for multilateral trade negotiations for the dti, Hennie Erasmus, told Saaff national that he had not been part of any discussions on the labelling regulations - nor was he aware that any had taken place. Said the SAAFF memo: “He did volunteer that, to his knowledge, the approval of the WTO should first be obtained, and he would have been copied on any such letter.” The association suggested that it was uncertain whether this meant that the dti would go ahead without the necessary approval - or whether the whole thing would be postponed.