Solid systems can translate into massive savings

Importers are still evaluating the full impact of the recently proposed 5% increase in ad valorem duties on luxury vehicles due to take effect on April 1, as well as the weaker rand, says J-L Koekemoer, systems architect for SHIPSHAPE Software. But, he says, with importers and exporters having very little control over the machinations of the rand, it is now more than ever necessary to have software in place that can add value to a business. “The automotive industry is an ever-changing environment, in terms of business requirements and technological advancements. It means that we have an everpresent opportunity to enhance our software and offer a more valuable solution to our clients,” says Koekemoer. “From the industry’s perspective, depending on factors like the rand’s position against the dollar, euro and yen and the current five-year extension of MIDP which comes to an end next year, there are still opportunities to save money on imports by increasing foreign currency earnings on exports.” In little less than two years’ time the implementation of the APDP (Automotive Production Development Programme) will begin. The successor of the current MIDP programme will be active for at least seven years to 2020. “One of the key differences is that no further reduction in tariffs will be effected,” says Koekemoer. “Having served the freight forwarding and Customs clearing community for almost 24 years, SHIP-SHAPE Software was one of the first companies to develop and implement a robust Excel-based supplier invoice importing mechanism which makes light work of large consignments comprising several hundred lines. “Gone are the days when an entry clerk spends two or three full days framing a 700-line customs declaration. With the supplier invoice this process takes a couple of minutes at most,” says Koekemoer. This is what makes the difference in the highly competitive and ever-changing environment of the automotive industry, in his view. “The two most important factors are time saving and accuracy. For example, in terms of complete units being imported, the agent has a limited window of opportunity to clear the consignment through Customs, sometimes comprising several hundred vehicles at a time. The slightest delay in this process can result in storage fees of thousands of rands per day, and the risk of penalties for incorrect duty declarations needs to be mitigated by a system with a solid tariffing engine,” says Koekemoer. “But clearing the declarations through Customs is just one aspect. Having your permits, Duty Credit Certificates and Rebate Credit Certificates all tracked from within one system ensures that you know in real time the current balance and complete history of any permit or credit certificate, provided you are the only agent transacting on that permit or certificate on behalf of the importer.”