Oshoek is the land border post between South Africa and Eswatini. It is strategically positioned along the N17 highway which connects roads that lead to Durban harbour and Mozambique and is therefore a very significant route for Eswatini.
On 20 May 2024, the South African Revenue Service (SARS) Customs Division and the Eswatini Revenue Service (ERS) released the findings of a Time Release Study (TRS) on the flow of trade between Eswatini and South Africa at the Oshoek/Ngwenya border post that the two countries share.
According to the release, the TRS is a significant step to facilitate the seamless flow of trade through Southern African Customs Union (SACU) borders.
The study was conducted from 14 November 2023 to 17 November 2023, gathering vital data, both physical and system-related at the shared border post. The study was a collaborative effort by SARS, the ERS, and the World Customs Organization (WCO) in partnership with United Kingdom Aid (UK Aid), the South African Border Management Authority (BMA), the South African Police Service (SAPS), and representatives from our cross-border trading community.
The TRS emanates from the World Trade Organization’s (WTO’s) Trade Facilitation Agreement (TFA), which entered into force on 22 February 2017. The TFA aims to expedite the movement, release and clearance of cross-border goods, measures for effective cooperation between Customs authorities and stakeholders, as well as provisions for technical assistance and capacity building.
The agreement includes the “Establishment and Publication of Average Release Times” (Article 6) using tools such as inter alia, the TRS concept of the WCO and encourages members to measure and publish the average release time of goods periodically and consistently.
The WCO TRS is a strategic and internationally recognised tool to measure the actual time required for the release and/or clearance of goods, from the time of arrival until the physical release of cargo. The study aims to find bottlenecks in the trade flow and identify measures to improve the effectiveness and efficiency of border procedures.”
The SARS Commissioner emphasised the TRS as a vital initiative to identify supply chain bottlenecks, quantify trade facilitation results, and ensure predictability in trade-related procedures.
“As we embark on the journey towards Customs modernisation, I am confident that the insights gleaned from this TRS will inform our strategies and initiatives moving forward. Together, we will continue to strive for excellence in Customs administration, facilitating trade, and contributing to the sustainable development of Southern Africa,” he said.
The importance of the African Continental Free Trade Area (AfCFTA) agreement cannot be over-emphasised as it seeks to bring relief to 30 million Africans experiencing extreme poverty and boost the incomes of nearly 68 million others who live on less than $5.50 a day.
It is noteworthy that $292 billion of the estimated $450 billion in potential income gains from the AfCFTA would come from stronger trade facilitation measures – in other words, from measures to reduce red tape and simplify cross-border procedures to make it easier for African businesses to integrate into global supply chains.
The SARS Commissioner said that trade flows between South Africa and Eswatini had increased by R7.44 billion (15.7%) in 2023, due to an increase in exports of R4.22 billion (16.6%) and an increase in imports of R3.22 billion (14.6%). South Africa has maintained a trade balance surplus with Eswatini over the past five years.
The SARS Commissioner thanked the valuable co-operation of the ERS under the leadership of the Commissioner-General, and the Commissioner for Customs and Excise.
Key Findings and Recommendations of the Study:
- The national average time between cargo arrival and exit from Customs control is 34 minutes for imports and 1 hour 24 minutes for exports.
- The average time from submission of a Customs declaration to cargo release Customs Response CURES message on the manifest is 42 minutes.
- Recommendations include further analysis of processes at the port of entry, enforcement of a linear process for truck drivers, and consideration of the feasibility of converting the border into a One-Stop Border Post (OSBP).
- Observation of non-linear processes in Customs halls, leading to delays.
- Identification of personal activities by truck drivers during border crossings impacting clearance and release time.
- Trucks arriving without preclearance cause hindrance to the flow of precleared trucks.
- Time lag between cargo inspection completion and report submission by the HUB on the Service Manager system causing waiting times.
- Recognition of border operations resembling an OSBP, endorsed by the WCO, necessitating further exploration.
Recommendations for Implementation:
- Consideration of short-run feasibility for converting the border into an OSBP.
- Engagement of all border agencies and the private sector in discussions and workshops.
- Benchmarking tour to the Rusumo OSBP for firsthand observation of best practices.
- Seeking WCO-Accelerate Trade Facilitation Programme support to conduct workshops, draft Standard Operating Procedures (SOP), and build capacity within technical working groups.
- Acknowledgement of the challenges faced during the TRS and a call for the management to consider and implement the recommendations.
The TRS Report is accessible at:
https://www.sars.gov.za/wp-content/uploads/Time-Release-Study-Oshoek-Border-Post-2024.pdf
