Sars’ proof of export procedure causes headaches for truckers

Road transporters are facing a major problem, with clients requesting the SA Revenue Service (Sars) customs notification (CN1 and CN2) documents as part of their proof of export, and withholding transport payments if these are not produced, according to a trucking company executive who wished to remain anonymous. “This is a contentious issue,” he said, “as most exporters simply do not understand the new paperless electronic data interchange (EDI) system, as they were used to receiving a stamped manifest from the border.” And demands for the CN documents are pointless and, at times, impossible, he added. “The single administrative document (SAD) transmitted by EDI is the only real proof of export that clients need to prove goods have left the republic,” he told FTW. “But I fully understand clients requesting the CN1, as Sars now refuses to stamp manifests, and has replaced this with the introduction of the CN1 – the CN2 being the gate pass.” And indeed Sars confirmed that it would no longer stamp SAD forms in a letter to traders/agents issued by its customs and border management section in May. “Instead,” it added, “a system-generated release notification (CN1 form) will be issued” – and this message will also be communicated electronically to the registered trader/agent and the CN1 form handed to the driver as proof of release. But another complication can now raise its head, our trucker said. “What the clients don’t seem to understand is that these documents are not handled by our clearing agents. It’s only Sars that issues these documents once the truck enters the customs -controlled area – and the CN2 is now the gate pass for the truck to exit the border.” Also, sometimes Zimbabwe customs (Zimra) officials demand the CN1 as proof that the truck was exported correctly from SA – and keep this copy. “If drivers start arguing,” he added, “they are told that these documents are for customs officials – not drivers.” It’s a real headache for the truckers when these situations occur, and clients are still insisting that they produce copies of the CN1 and CN2 as proof of export for their cargo. It can mean the trucker’s border office staff running after the trucks down to the customscontrolled area to collect these Sars-printed CN1 and CN2 documents, returning to the office to photocopy them and then returning the originals to the border post. The truck is now delayed in the customs-controlled area while this process takes place. “On the trucks where we find no CN1 and CN2 documents at all, it’s a bigger problem,” said our contact, “with our border staff trying to locate the originals. And, if they were taken by Sars or Zimra, with them waiting for hours at counters requesting copies.” To try to find a solution to this problem, several clearing agents and transporters have approached Sars to request that they clarify the issue once and for all. Part of their case is that the EDI system has been introduced to create a paperless environment, and clients demanding these CN papers as proof of export are defeating the whole objective of having it. “This issue is now at a senior level,” said the trucker, “and we are expecting a memo from Sars shortly. Hopefully we will get clarity on the whole CN1/ CN2 story, and this will be communicated to everybody.” CAPTION Trucks often delayed as CN1 and CN2 documents are located.