Under the framework of the Southern African Customs Union (Sacu) Customs Modernisation Programme, funded by the United Kingdom (UK) Foreign and Commonwealth Office, World Customs Organization (WCO) experts were invited to lead an Authorised Economic Operator (AEO) Validation Workshop for the South African Revenue Service (Sars). The Workshop was held from 10 to 14 February in Pretoria.
During the five-day workshop, the SARS AEO validation team was introduced the WCO SAFE Framework of Standards (FoS), including all its pillars, core elements, and AEO criteria etc. This was followed by a discussion on the essential elements of the AEO Validation Guidance, the sequential steps of the AEO validation procedures and the skills required by AEO validators.
The participants, comprising Customs auditors, legal experts and client relationship managers, were given an opportunity to share their views on the similarities and differences between AEO validation and post-clearance audit. The core values of Customs-Business partnerships were highlighted as an important aspect towards achieving AEO programme implementation. Auditors with a Customs compliance mindset were given security validation knowledge and taught how to hold discussions with business on coordinating and enhancing international supply chain security and safety. Another important element underscored during the training was that validation of the applicant was central to accreditation, and that the applicant’s supply chain may not be tested. Accordingly, the applicant is responsible for securing its own supply chain.
The Workshop entailed extensive discussions on the self-assessment questionnaire prepared by Sars for potential AEOs taking part in the country’s AEO pilot. While referring to the WCO self-assessment template, the WCO experts also shared questionnaires by other Customs administrations. The participants and experts discussed how to enhance the questions posed, making it simpler for business to understand and answer them. A number of recommendations were made, including adding explanatory notes to the self-assessment questionnaire to help clients provide accurate information about their security and safety protocols.
A further aim of the Workshop was to include practical sessions, such as the mock validation process held at BMW’s South African plant in Rosslyn. Participants were told how BMW guarantees supply chain safety and security. Equipped with this information, the Workshop participants were given a walk-through of BMW South Africa’s processes for receiving goods. The lessons learned were shared among the Workshop participants and Sars management during the post-validation assessment. During that session, several Mutual Recognition Arrangements/Agreements (MRAs) signed between different Customs administrations were also referenced, so as to enhance learning and information sharing.
Sars embarked on its Preferred Traders Programme (PTP) in May 2017. The initial number of 28 accredited traders (importers/exporters) has grown to reach 119 as of 14 February. Under the Sars Strategic Plan for 2023, the priority will be to focus on improving voluntary compliance and supply chain security through implementation of the standardised WCO SAFE/AEO programme. At the same time, Sacu wishes to roll out PTPs for all its members, while moving towards a fully fledged AEO programme in phases. To this end, the WCO experts discussed and shared views on the PTP compatibility assessment tool aimed at ensuring mutual recognition of Preferred Traders among Sacu Members.
Story by: Riaan de Lange