Rewrite of Customs Act – don’t hold your breath

ANY SUGGESTION that the long-awaited rewrite of the Customs and Excise Act is in the wings is “pure speculation”, according to SA Revenue Service (Sars) spokesman Adrian Lackay. This followed research by FTW associate, Riaan de Lange of Tariff & Trade Intelligence, which revealed evidence that a Customs and Excise review bill might appear before parliament in October. “But,” said Lackay, “that’s not on the cards at the moment.” If Minister of Finance Trevor Manuel actually has anything to say about the issue, he might include it in his forthcoming budget speech. But that’s a big if, according to Lackay. The problem with the current C & E Act is that it was enacted in 1964. There have been major political and trading industry changes since then – containerisation is just one of them – and the original Act was based on a trade policy of import regulation rather than the current policy of trade facilitation. These “fundamental changes”, according to Quintus van der Merwe who heads up the trade division at Durban-based lawyers Shepstone & Wylie, have seen the 1964 Act amended every year. “But it’s all taken place in a bit of a piecemeal fashion,” he said, “and it still doesn’t detract from the fact that the basic Act is too old for the times.” All these changes make it exceedingly difficult for the freight forwarding industry to remain in compliance with the Act, according to Gavin Cooper, MD of Seair Freight. “The fact that these changes often come up as only a small part of a general amendment to another Act only adds to the problem for the industry. “In an amendment of 400 pages, only 50 might refer to the forwarding industry,” Cooper said. “And actually finding it may come as a surprise, and only give us two or three days to comment on any amendment proposals. “To be in this situation with such a crucial piece of legislation for SA’s trade is just not funny.” FTW also questioned Charles Speed-Andrews of Safcor Panalpina, and director of Customs Affairs for the SA Association of Freight Forwarders on the issue. “We have no update to offer,” he said. Attempts for clarification from Marina van Twisk, who heads up the Sars legal team doing the rewrite, were also in vain. “I cannot speak to the press,” she said.