SARS considers scrapping deferment policy

JOY ORLEK SA REVENUE Service’s deferment policy, which allows importers and clearing agents to defer the payment of customs duties and VAT on imported goods for a period of up to 30 days, is under threat. SARS has indicated that the scheme is under review and could be cancelled before the next year-end (February 2006). Industry comment has been invited on proposed alternatives and the SA Association of Freight Forwarders has issued its response to SARS in this regard. “It is very important for industry to assess the impact this change will have on their business and provide commentary to SARS sooner rather than later,” says Deloitte’s Jed Michaletos. FTW was awaiting response from SARS on its reasons for the proposed scrapping of the scheme when this issue went to press.