THE SOUTH African Revenue Service (SARS) has introduced tough new measures to stamp out VAT and duty-evasion.
The plan is to finalise documentation before exports are dispatched by sea or air, instead of when they are already en route, which so often happens.
According to commissioner Pravin Gordhan, discussions in this regard will be held with shippers' representative bodies.
Round-tripping has got to be stopped, says Gordhan. I know some exporters might create a hue and cry that we are impeding exports, but that is not our intention.
In the round-tripping process empty containers are exported and VAT claimed on the so-called export goods. The goods, which have not left the country, are then sold VAT free on the domestic market.
Gordhan is also calling for a stop on imported goods landed at Cape Town or Durban being cleared by customs only on arrival in Johannesburg.
They must be cleared at the port of entry, he says. Anything can happen on the trip from the coast to Gauteng and that is proving costly in lost customs revenue.
There has been a steady decline in the value of customs revenue collected, partly because of tariff cuts but also because of increased fraud and smuggling, he says.
The number of border posts serving the country has been rationalised but some are in isolated regions and staff who man them could be open to fraud and corruption.
There is a lack of intelligence about trade flows, he says, while tax evasion and the abuse of incentive schemes are rife. There are also too many outmoded manual systems in operation which require upgrading.
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