Customs

Sars’ Increased Customs and Excise Compliance Commitments - Take note

Publish Date:

13 Sep 2016

With reference to Sars’ “Increased Customs and Excise Compliance Commitments” here is a summary extract. Any comments and insight that you may have would be greatly appreciated.

Outcome 1: Increased Customs and Excise Compliance in the Annual Performance Plan 2016-2017.

Improve control over the flow of all goods and travellers entering and leaving the country

Sars will (i) Deploy the new manifest processing system to replace the manifest acquittal system in line with new international cargo reporting and cargo management standards by September 2016.
Sars will (ii) Conclude the implementation of the new state warehouse barcode inventory management system across state warehouses and acquire additional warehouse capacity for Cape Town and Durban at suitable, cost-effective locations by February 2017.
Sars will (iii) Design an off-site tracking and management system by December 2016, to reduce the risk associated with goods which are left with shipping companies for a lengthy period.

Identify, assess and respond to risks more effectively

Sars will: (iv) Review the current case selection capability and automated risk engine with the objective to improve risk management in the customs realm to the next level of excellence. In this regard, a recommendations report will be tabled by the end of February 2017.
Sars will: (v) Commence level 2 of Preferred Trader Compliance Accreditation Programme which comprises the awarding of “Status and Benefits” by 01 November 2016.
(vi) Our intention is to conclude 100 traders by end March 2017.

Enhance the quality of inspections and audit to effectively address detected non-compliance

Sars will: (vii) Review the Quality framework for inspections, inclusive of physical and document inspections and table a recommendations report by end of October 2016.
Sars will: (viii) Implement a new enforcement workflow module by January 2017 that will enhance traceability of manually triggered risk interventions initiated by Customs officials at the various ports of entry.

Modernise and align Excise processes and systems

Sars will: (ix) Improve excise skills amongst officers by developing improved standard operating procedures and introduce training interventions to the excise community by the end of November 2016.
Sars will: (x) Conclude the study that considers the introduction of a track-and-trace system with the cigarette industry and replace the old diamond stamp, in line with the World Health Organisation Convention for Tobacco Control, by the end of September 2016.

Develop a professional and disciplined Customs and Excise workforce

Sars will: (xi) Over the next 18 months, increase the professionalism and discipline of customs and excise workforce in a focused manner by aligning Sars with the WCO framework of principles and practices of customs professionalism.
Sars will: (xii) Undertake an assessment of current customs and excise officers to determine skills gaps, which will inform the required training interventions by the end of October 2016.
Sars will: (xiii) Implement a National Customs and Excise Training and Mentorship Programme with a special focus on technical, as well as practical customs and excise skills for core roles, such as tariff classification, valuation and rules of origin, to address critical skills capability and capacity gaps by the end of March 2017.
Sars will: (xiv) Introduce a pilot rotation approach for front-line officers in support of our anti-corruption efforts as well as career progression, by the end of December 2016.

Implement the new Customs and Excise legal framework

Sars will: (xv) Continue the development of processes and systems to support the implementation of the Customs Control Act, 2014 and Customs Duty Act, 2014. We will develop and implement the processes and systems incrementally and with co-operation and participation from the business community. The Acts will be made effective once the processes and systems are stable to ensure the minimum impact on the flow of trade and the economy. By the end of March 2017, Sars will implement phase 1 of the programme, which comprises Registration, Licensing and Accreditation (RLA).

Continue to adopt a whole-of-Government approach to improving border management

Sars will: (xvi) Initiate the single window concept with all relevant Government departments and relevant stakeholders, in line with WCO standards by 30 June 2016.
Sars will: (xvii) Continue to fight against the illicit trade and abuse of illegal substances by supporting the National Drug Master Plan (NDMP). Sars will develop and approve a Departmental Drug Plan by the end of September 2016.

Improve service and trade administration based on an understanding of our clients and their needs