Single customs bond concept on the cards

The implementation of a single bond covering all customs activities is one of the latest proposals from SA Revenue Service. Comments on the proposal, which is likely to simplify procedures for all involved, will close at the end of this month. “At present, if you’re a client of Sars, you require a different bond for each client type for which you are registered,” Andre Erasmus of Deloitte explained. “For example, if you wish to hold your own deferment account with Sars and at the same time are registered under a Schedule 3 rebate item while also operating a bond store, you’ll need a separate bond or surety for each, calculated separately, based on your duty and/or VAT exposure on each. You may therefore end up with three or four different sureties.” The new proposal will allow the holder to apply for one surety to cover all the different types of bonds, says Erasmus. “We’ve dealt with clients who have to manage four or five different bonds. What’s more, over the years the values have changed so if you have one bond that’s much higher and needs to be updated once a year, it makes sense.” While there are no time lines for implementation, unless there are objections, implementation shouldn’t take too long, in his view. The only sticking point could be administrative. “Sars has a number of policies with regard to bonds and sureties and these will all need to be changed to accommodate the new concept,” he said.