Sars and TPT in talks to solve scanner-related haulage fee headache

Industry is calling for decisive
action to find a solution to the
increased costs arising from
the introduction of the South
African Revenue Service (Sars)
state-of-the-art scanners that
are costing shippers an arm
and a leg.
While meetings between
Sars, Transnet Port Terminals
(TPT) and affected industry
representative associations –
including the South African
Association of Ship Operators
and Agents (Saasoa) and the
South African Association of
Freight Forwarders (Saaff) –
have taken place, no solution
has yet been found.
According to Jed Michaletos,
chief officer customs and
excise, discussions around
the issue of high haulage fees
being charged for containers
that are transported to and
from scanners is ongoing.
“We are in discussion
with TPT who are
currently considering
the feasibility of
undertaking such
haulage,” he said.
An industry
analysis of costs at
the Durban and Cape
Town ports – where the
scanners are operating
– has shown that it
now costs R12 000-
R15 000 to scan and/or inspect
a single container.
In both ports the pick up
from the terminal and move to
the scanner alone costs R4250
while storage per day in the
depots ranges from R1100 per
day to R1500.
The Port of Cape Town
was found to be slightly more
expensive due to higher charges
for moving containers to
selected depots.
“It’s not an issue that is
going to go away,” said an
industry source. “These costs
are exceptionally high and they
are not viable in the current
economic environment.”
Michaletos said the use of
scanners by Sars at the major
ports was in response to global
developments regarding trade
supply chain security and the
facilitation of legitimate trade,
as well as the need to improve
its intervention regarding the
movement of illicit goods.
“Haulage costs are a
commercial consideration,” he
said.
Industry has publicly stated
its gripe is not with Sars but
with the cost of the haulage of
moving containers to and from
the scanners.
“While Sars is not
responsible for the increased
costs that we are paying they
are however an integral part of
the solution,” said the source.
“Customs legislation dictates
that shipping lines are
responsible for all container
movements until released
by customs and so by law
shippers have to pay these
exorbitant fees unless
customs allows another
entity to do so.
“The fact is that it will
cost only R650 if Transnet
Port Terminals rather
than the shipping line
undertakes the transport,”
said one industry spokesman.
“Our interpretation of the
legislation is that it allows them
to do it as they are moving
containers within the port
already.”
Michaletos
agreed that the
role of customs
was to make
the process
of scanning
containers as
effective and
efficient as
possible for
industry.
“We
believe that
engagement with all
stakeholders is necessary to
resolve problem areas and
Sars will, as it has in the
past, participate in further
discussions with all relevant
role players on that basis.”
Across the country shippers
maintain that the scanning
process has not brought about
a more effective or efficient
process as some 20% of all
scanned containers are still
being searched physically
resulting in major time delays
and even further added costs.
In response Michaletos said
containers were only sent to a
scanner if selected by the risk
engine for scanning.
“This means that the
number of containers scanned
per day and the number
referred thereafter for physical
inspection can differ vastly per
day,” he said. “If, for example,
on a particular day two
containers are
selected by the
risk engine for
scanning and
one is referred
to a depot
after being
scanned, then
the percentage
of scanned
containers
that are being
physically
inspected
may, at face value, seem
disproportionately high. On
another day, however, 30
containers may be scanned
and only one might be referred
to a depot for unpack which
now represents a very low
percentage.”
He said Sars was very aware
of the high costs associated
with container unpacks and,
as a result, did not routinely
send goods to depots for
unpack. This was purely
based on risk assessment that
was further layered, in the
case of containers sent for
scanning, by the conclusion of
that process and the fact that
sufficient doubt had been cast
over the goods that a physical
examination was warranted.
INSERT & CAPTION
Containers are only
sent to a scanner if
selected by the risk
engine for scanning.
– Jed Michaletos