Importers, exporters, customs brokers, transporters, warehouse operators, freight forwarders and shipping companies registered or licensed for a customs activity may apply for accreditation under the South African Revenue Service (SARS) Authorised Economic Operator (AEO) programme.
SARS outlined the application process and benefits during an industry webinar hosted by the Association of Meat Importers and Exporters on September 7.
Applications are submitted electronically through eFiling. SARS introduced the automated application process in December 2023, replacing the previous manual system.
“Everything that we do in this programme is absolutely free of charge,” SARS Client Relationship Manager Masonwabe Matshayana said.
The voluntary programme accredits eligible businesses that meet prescribed customs compliance and supply chain security standards. Its purpose is to facilitate legitimate trade and strengthen the security of international supply chains.
Two accreditation levels
The programme has two levels:
- Level 1, known as AEO Compliance, requires an appropriate customs compliance record, effective operational and computer systems, sufficient financial resources and compliance with tax legislation. Applicants must demonstrate sufficient customs knowledge by completing a competency assessment with a pass mark of at least 70%. The SARS accreditation policy requires Level 1 applicants to maintain a compliance record for the three years preceding their application. Certain minor or unintentional errors do not necessarily disqualify an applicant.
- Level 2, known as AEO Safety and Security, includes the Level 1 criteria and adds more extensive requirements covering premises, personnel, cargo, information technology, business partners and crisis management. Level 2 applicants are required to have a five-year compliance record.
Eligible customs clients may apply directly for either Level 1 or Level 2. Accreditation remains valid for five years, subject to continued compliance.
The programme is also open to qualifying small, medium and micro enterprises.
“This programme is not just about the size; it’s about compliance,” SARS Operational Specialist Livhuwani Netshiombo said.
Trade facilitation benefits
Accredited clients may qualify for reduced customs security requirements, fewer routine documentary and physical inspections, expedited inspections and priority access to non-intrusive inspection equipment.
They are allocated a SARS client relationship manager and may also receive priority when applying for tariff and valuation determinations.
Matshayana said customs bonds, sureties and deferment securities could be reduced by between 60% and 80% for qualifying Level 1 clients.
“If you have a warehouse with a bond surety of a million, by the time we grant you the status, we reduce that to around R400 000,” he said.
Level 2 clients could qualify for exemptions from certain security payments, Matshayana said.
Accredited clients could avoid the R5 000 provisional payment associated with embargo applications, he added. Level 2 clients could also qualify for exemptions from customs attendance charges during examinations.
The SARS policy states that benefits awarded are determined by the commissioner and depend on the category of client or circumstances of the case.
South African AEOs may also receive facilitative treatment from foreign customs authorities under mutual recognition arrangements.
SARS has signed AEO mutual recognition arrangements with 12 customs counterparts: customs authorities in China, Uganda, Botswana, Eswatini, Lesotho, Namibia, Zambia, Hong Kong, India, the United Kingdom, the United States and Brazil.
The arrangements allow participating customs administrations to recognise one another’s AEO programmes and grant agreed reciprocal treatment to accredited traders.
