One of South Africa’s leading multimodal freight consolidators, SACO Shipping, has become the first completely neutral non-vessel operating common carrier (NVOCC) to be accredited by the South African Revenue Service (SARS) as an Authorised Economic Operator (AEO).
According to the Group CEO for South Africa, Dave Graham, the AEO achievement extends to the company’s container freight station (CFS) division, ZACPAK, thereby making it the first neutral CFS on home soil to achieve the same World Customs Organization (WCO) compliancy status.
“An accreditation like this really is an indication of who you are dealing with,” Graham said.
“It’s a guarantee to our clients – many of whom are AEO accredited entities themselves – that they are dealing with a reputable service provider and not a company unaligned with 21st-century regulatory procedures.”
Although preparations for the accreditation started last June, Graham said the NVOCC already had most of the necessary requirements for AEO in place.
“Our due diligence and related business dynamics were up to date, but we still had to do proper research and go through a stringent process with SARS which involved a desk-top audit, an actual audit to follow, and the writing of customs exams.”
Graham emphasised that “as the first local NVOCC and CFS to apply for this accreditation, SARS had to adapt its audit requirements to reflect our unique business model, which differs from that of freight forwarders and clearing agents”.
“They had simply not had the opportunity and experience of dealing with 100% neutral NVOs and CFSs in the AEO process before”.
ZACPAK managing director Willie Nel said that apart from having the necessary integrity checks already in place, SACO still had to treat its application with the same diligence it did when managing cargo.
“There were several processes at play, but primary among these were IT, financial integrity and strict cargo security.
“We had to show that the former is robust and securely ring-fenced so that only authorised entities have access to sensitive information. The financial position of our company also came into focus, and our customs experience through the years stood us in good stead.”
Nevertheless, SACO had to enrol for SARS’ Customs Sufficient Knowledge exams, which 25 staff members completed.
Nel expressed pride in the recent addition of the PPECB ambient accreditation received along with this remarkable and coveted AEO certification, notwithstanding the involved process SARS had taken in ensuring that all aspects of how SACO conducted its business were inspected.
“They looked at recruitment, how it is done, whether we do the necessary security checks, how often we enforce password changes, our responsiveness in respect of certain incidents, our disaster recovery programme, and our client relationship management. And they assessed all the practical details of our standard operating procedures.”
Graham added that the AEO mark of approval was a major acknowledgement of one’s compliance with international supply chain procedures, harking back to 2005 when the World Customs Organization had embarked on enhanced cargo visibility and securitisation.
Said Nel: “It is important to remember that Sars and its peers across the globe have algorithms that stop containers on the water and at ports of entry. It’s all about addressing the big dark hole in containerisation, and when a box is held back, it affects the entire supply chain.
“By dealing with an AEO service provider, clearing and forwarding agents can submit documentation through electronic channels, adding speed to SARS’ involvement in this process and ruling out unnecessary physical inspections.”
Nel noted that having a neutral consolidator with CFS capacity ensured Sars could refer uncleared cargo to a trusted partner like ZACPAK, further enhancing supply chain efficiency.
“It’s a win for our clients and reinforces the value of partnering with accredited entities,” he said.
Graham added: “I think the best way to sum it up is it provides peace of mind for the freight forwarders and clearing agents we deal with. To be at the forefront of the industry in this respect adds tremendous recognition to what we do at the SACO Team of Companies.”
