On 01 September 2023, the South African Revenue Service (SARS) announced that the Advance Import Payment (AIP) Notification as part of the Advance Payment Notification (APN) project was one of SARS’ Customs Modernisation Programmes which involved a collaboration between SARS, the South African Reserve Bank (SARB) and authorised dealers in foreign exchange and aimed at combatting illicit financial flows and customs valuation fraud associated with the misuse of advance foreign exchange payments in respect of goods that are to be imported.
Advance payment notifications make it easy for taxpayers and traders to comply with their tax obligations whilst assisting SARS to detect and make non-compliance hard and costly for those traders and taxpayers who do not comply. The APN process ensures that traders notify SARS of their intention to apply to an authorised dealer for an advance foreign exchange payment for imported goods. This further prevents underpayment of customs duties and taxes, valuation fraud and illicit financial flows related to the importation or non-importation of goods following advance foreign exchange payments.
With effect from 03 December 2021, in terms of the published Rules under Sections 59A and 120 of the Customs and Excise Act 91 of 1964 for Advance foreign exchange payments, importers have an obligation to notify SARS via eFiling of their intention to apply to an authorised dealer for an advance foreign exchange payment in respect of goods to be imported.
See the Advance Import Payments at:
https://www.sars.gov.za/customs-and-excise/advance-import-payments/