SARS reveals R1bn fraud-fighting initiative

TERRY HUTSON SOUTH AFRICAN Revenue Service (SARS) has revealed sweeping improvements in its ability to combat fraud and smuggling at the country’s borders. Speaking at a World Customs Day function held in Durban last week and attended by Keith Thomson, the US Customs assistant commissioner, SARS commissioner Pravin Gordhan said the department would spend well over R1 billion this year to bring about radical changes within the SARS structure. Heading the infrastructure purchases are 18 new x-ray scanners to be deployed at the country’s border points. The first of these will be installed in Durban harbour by July so that the port can better manage South Africa’s Container Security Initiative (CSI). The next will go to Johannesburg International Airport followed by the two main land border posts of Lebombo and Beit Bridge. After that each port will receive at least one scanner costing in excess of R25 million with Durban likely to receive several others. The scanners will be of the static and mobile variety for maximum flexibility. Gordhan also announced the establishment of a Customs Border Investigative Unit to help combat the more sophisticated methods used to smuggle cargo and counterfeit goods in and out of the country. He said that smugglers and those committing fraud were using increasingly sophisticated methods to escape detection and it was necessary to counter this with equally sophisticated systems. SARS is also undertaking a feasibility study for a detector dog unit at the ports. Looking ahead Gordhan announced that a mandatory electronic reporting system would be established requiring importers to make an electronic submission about their cargo ahead of arrival, allowing SARS to liaise with other revenue organisations in the exporting country. Eventually this system will extend to exporters, with SARS communicating the relevant information with countries of destination. The same electronic reporting will apply to passengers arriving by aircraft in order for SARS to understand the risk profile in advance. Gordhan is the current chairman of the World Customs Organisation representing 169 member countries and administering 99% of global trade.