Submit your comments now on amendments to key draft bills

THE FREIGHT and trading
industries have just two
weeks to make their
comments on two draft
bills just published by
the national treasury,
according to Riaan de
Lange of Tariff & Trade
Intelligence.
They are the Draft
Revenue Laws Amendment
Bill, 2008; and the Draft
Revenue Laws Second
Amendment Bill, 2008 –
drafted to amend, amongst
other things, the Customs
& Excise Act, 1964.
“These two bills – along
with the Taxation Laws
Amendment Bills, 2008,
which were promulgated
earlier this year – give
effect to the tax proposals
presented by the minister
of finance in the 2008
budget,” said De Lange.
The public hearings
by parliament’s portfolio
committee began two days
ago, with comments due
to be submitted no later
than September 5.
These two bills contain
a comprehensive and
extremely varied spectrum
of amendments – ranging
from “providing for the
removal of dutiable
imported goods from a
customs and excise storage
warehouse on issuing of a
certificate”; and “providing
for losses in respect of
certain liquid bulk goods
in a special customs and
excise storage warehouse”;
to “amending certain
provisions regarding
entitlement to payment of
storage charges from the
proceeds of sale of goods
stored in a place deemed
to be a State warehouse”;
and “limiting liability for
underpayments of duty in
instances where it was not
paid or not paid in full in
accordance with a practice
generally prevailing”.
But the intriguing parts
of the Draft Revenue Laws
Second Amendment Bill,
according to De Lange,
are amendments, which
“almost grant customs a
para-military status”.
This is in the proposed
provisions for the
stopping of ships within
the territorial sea and
contiguous zone of South
Africa by customs officers
in command of armed
customs patrol boats; the
granting to such officers
the powers of arrest;
and the provision to the
officers of firearms.
To get a clearer idea of
just what this all means,
FTW quizzed Andrew
Robinson, a specialist
maritime lawyer with
Durban-based
Deneys Reitz.
"It would appear,” he
said, “that the purpose of
certain of the amendments
to the C&E Act is to
provide a customs officer
with the necessary
statutory authority to
prevent or punish any
contravention of any fiscal
law within the territorial
sea or contiguous zone.”
But it also introduces
two new implements
for enforcement and
punishment – namely the
customs patrol boat and
fire arms.
“With regard to the
customs patrol boat itself,”
said Robinson, “the further
amendments suggest
that the commissioner
is entitled to acquire
boats, suitably armed and
equipped, for patrolling the
sea borders of SA.
“The patrol boat will fly
the flag of the SA Revenue
Service (Sars) and will be
entitled to pursue any
vessel where that vessel
does not immediately
come to a stop when
signalled, ordered or
required to do so and the operator (which would
include the master) of the
vessel refuses to permit
the vessel to be boarded.
“The customs officer
may, as the last resort –
and after having fired a
warning shot – fire at-orinto
the vessel to compel
it to come to a stop.”
The draft Revenue Law
Second Amendment Bill
also seeks to provide a
customs officer with the
powers of arrest for the
purpose of enforcing the
act, Robinson added.
“It will allow a certain
category of customs
officers to possess
firearms,” he told FTW,
“although the firearm is
to be used as a last resort
– and then only in self
defence from imminent or
future death or grievous
bodily harm or in defence
of any other person
assisting the customs
officer who is at risk.”
But Robinson expressed
doubt about the feasibility
of this set of amendments.
“My own view,” he
said, “is that it is unlikely
that Sars will be able to
properly manage a fleet
of customs patrol boats.
Military experts have
recently said that there
appears to be no coherent
maritime policy in SA –
and these amendments
support that statement.
“It would be better
for SA if it developed a
single force, based on the
“Coast Guard” concept,
that was suitably equipped
to deal with all customs,
immigration and resource
protection issues.”