Sars provides clarity on City Deep status

The recent FTW article
“TFR to launch express
service” (October 9, 2015)
has generated a lot of
interest and controversy in
the sector. This resulted in
a request that SA Revenue
Service provide clarity
on whether the policy of
customs clearance at the
first port of entry in the
Customs Control Act,
2014, (CCA) will result in
importers paying for freight
and producing a bill of
lading at the port of entry
after customs clearance and
release.
Over the months leading
up to the parliamentary
process, Sars held various
consultative meetings with
stakeholders that would
be affected by the change
in policy. These included
shipping lines, container
depots, importers, freight
forwarders and Transnet,
among others.
At these consultative
meetings, the shipping
lines confirmed that they
would continue to offer a
through bill service despite
the requirement of customs
clearance at the first port of
entry. Also, they pledged to
support Sars in its efforts to
secure the supply chain.
In its search for an
amicable solution, Sars
further obtained three
legal opinions on the issues
raised by commentators.
The opinions disagree that
carriers will, as a result
of the policy change, no
longer issue a through bill
of lading that will allow
the goods to move from
Durban to, for example,
City Deep.
After consultation with
affected stakeholders,
Sars made a proposal that
was accepted during the
parliamentary process.
This proposal aims to
provide certainty and
predictability to roleplayers
in the supply
chain regarding the
movement of the goods.
It provides a solution for
the seamless movement
of cargo consigned to
inland terminals. The
process will also facilitate
port planning, reduce
congestion and facilitate
the seamless movement of
containers to rail thereby
contributing to Transnet’s
initiative of providing an
express service.
Significantly, the
proposal was subsequently
included in section 90 (4)
of the CCA. In terms of the
proposal:
• A customs
clearance declaration
for a permissible
customs procedure
must be submitted for
containerised goods
consigned for delivery to a
licensed inland container
terminal or depot. This
declaration will inter alia
provide full details of
tariff, value, origin and
of the importer or the
importer's agent.
• This declaration
must be submitted at least
three calendar days before
arrival at the first place of
entry. Containers will then
be provisionally released
before arrival of the goods
at the first place of entry
to allow trade to plan the
supply chain.
• Penalties w ill only
be levied if the clearance is
not submitted within three
working days after arrival
of the goods.
• The provisional
release as contemplated
in clause 90(4) will be
interpreted by Sars as an
electronic message and
will include information
regarding the relevant
terminal or depot to which
the goods may be removed.
• The provisional
release notification will be
followed up with a final
release notification.
Importers have a choice
whether or not to defer the
payment of taxes. Clearance
at first port of entry can
be for any permissible
procedure that allows for
the deferment of duties and
taxes or for home use, in
which case the duties and
taxes become payable.