Sars modernisation kicks up a gear

The SA Revenue Service will enter into service-level agreements with its customers committing to time frames for cargo stops when its Customs modernisation programme shifts into high gear. And it’s not far off, with Sars setting a May deadline for implementation of the next phase of the programme. But it will be a two-way street demanding equal co-operation from traders in terms of providing the necessary documentation electronically and fulfilling all Customs obligations in good time. It’s all part of the relentless march to a paperless environment, which is gaining momentum following the launch in November last year of phase one of the programme. That involved the implementation of ‘procedure codes’ to replace the traditional ‘purpose codes’ – a switch that was accomplished with minor disruption thanks to the collaborative effort between Sars and the industry. And this has been a key element of its success so far, says Sars executive manager Beyers Theron. “From the outset, we determined several key programmes we believed would achieve our objectives,” he told FTW. “The first is the preferred trader programme. “We are building a much stronger accreditation scheme which we call Trusted Trader.” The current system, he says, is too open and loose. “It was easier to get people accredited and we would offer a 30-day timeline to give you a status. “With the new scheme our view is that even if it takes us two to three years we will work with the trader to get him to a level of compliance – it could be two to three months or two to three years, but we’re not giving out accreditation unless we are sure the trader is compliant and can be dealt with in a separate service channel associated with significant benefit. “We will probably go live with the first set of trusted traders around May this year.” Declaration processing was also prioritised from the outset. “We have redesigned the whole process and aligned more with international instruments like WCO Safe and Kyoto. Bringing in the CPC codes was part of this process. “We have changed a significant number of business rules in the system and worked with service providers to trade and Saaff all along,” says Theron. There will be some key changes in the declaration process, he added. “Vouchers of Correction as we know them today will no longer be there in their current format and several new features will be introduced. “For example, we will hold ourselves accountable for time frames so if we decide to stop your consignment and we do not check that consignment in a specific time frame we will give the trader the benefit of the doubt and release the consignment on condition the shipment poses a lesser risk. “However, that release doesn’t mean we won’t check the consignment – we’ll check it in a post-clearance environment.” Sars will also have the facility to track every move within a trade transaction. “If we have all the data upfront – manifest data, client data and declaration – we’ll be able to process the declaration prior to arrival of goods in the country. We won’t necessarily give you a release immediately as there are still some legal issues to be addressed with regard to the point of release, but if you’re a preferred trader we’ll give you everything that you require upfront so you’ll have a seamless process as far as possible. “If we decide to stop your cargo, the sooner you send us your supporting documents – and preferably electronically – the faster we can start the inspection process. Every entity in the supply chain and everyone’s piece of the puzzle can be tracked. If we get the manifest late we’ll be able to flag that. If a consignment is held up by customs, the system will advise us and we will take the necessary action – and if you complain about a consignment we’ll find where in the chain the problem was. So, if you take three or four days to provide supporting documents, we’ll know it was your fault and we’ll advise you accordingly.” Moves are also afoot to extend electronic reach to other state departments. For example, in the passenger environment, Sars is working on projects with Home Affairs and other government agencies to optimise process efficiencies and capitalise on areas of collaboration. A similar system could be rolled over to the trade environment with Customs working more closely with the likes of government and regulating agencies. “Everything in that pipeline that we track will be measured in time and every time we go over the service-level agreement time we will give the trader the benefit of the doubt. “But trade has to do its part as well. If the shipper does not submit advanced and electronic manifests, and the agent does not deliver a declaration in good time, and if he doesn’t have his supporting documents within the agreed time frame, the system will not benefit at all. So, the more data upfront from all relevant trade parties, the faster Customs will service you.”