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Customs

SARS’ Accreditation Draft Rule - Comment due

Publish Date: 
29 Mar 2021

On 19 March the South African Revenue Service (SARS) invited stakeholders to comment on its proposed draft Rules to the Customs and Excise Act, 1964 under Section 64E “Accreditation” on which comment is due by 09 April.

According to the SARS Explanatory Notes in terms of Section 64E(1)(a) of the Act, 1964 the Commissioner for SARS may confer accredited client status on any applicant who is licensed or registered under any provision of the Act, 1964 and determine by rule levels of accredited client status and specific criteria applicable to each level.

The proposed draft Rules will replace the current rules to Section 64E of the Act, 1964. The draft Rules align more closely to the standards of Pillar 2 of the World Customs Organization (WCO) Framework of Standards. Two levels of accredited client status are provided for. Level 1 - Authorised Economic Operator (AEO) (Compliance) and Level 2 - AEO (Security) with associated facilitations.

Level 1 is appropriate for economic operators who do not yet meet the safety and security standards required to qualify for Level 2 but would like to benefit from particular facilitations and mutual recognition of their AEO status by the other Member States of the Southern African Customs Union (SACU) with which South Africa has a mutual recognition arrangement. Level 2 is appropriate for economic operators who would like to benefit from facilitations additional to Level 1 and Mutual Recognition of their AEO status with other countries with whom South Africa has entered into Mutual Recognition Agreements (MRA).

Story by: Riaan de Lange

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