Sars vows to intensify clamp-down on illegal imports

Expect customs to become even more zealous at the ports of entry, says trade and industry minister Rob Davies. Speaking in parliament at the unveiling of the 2010/11 – 2012/13 Industrial Policy Action Plan (IPAP), Davies said government would deploy its trade policies more strategically. “This includes intensifying the campaign led by Sars against practices such as customs fraud, under invoicing, smuggling and illegal imports – all of which profoundly undermine productive capacity and employment in the economy,” he said. One of the most farreaching steps will be the introduction of “dedicated ports of entry for certain highrisk products” – planned for introduction within the next two years. Other steps outlined in the action plan include: • As part of the South African Revenue Service’s Customs Modernisation Project, Sars will extract indicative prices which will be used to alert Customs officials to underinvoicing and other types of customs fraud. • Dedicated capacity will be set up to deal with fraudulent and illegal imports in sensitive sectors, commencing with clothing and textiles. • Disposal of seized goods will be done in a manner which does not disrupt the domestic market. • Criminal prosecutions instead of fines will be pursued in sensitive sectors and above certain thresholds. • Loopholes will be identified and closed. For instance, to avoid neighbouring countries being used as conduits for illegal/fraudulent imports as well as the misuse of “trade fairs” to avoid payment of customs duty.