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HOW COMPLIANT IS SARS?
The Jacobsens Customs News
Bulletin aims to inform South African importers and exporters, their
service providers and their trade partners with changes that impacts on their business.
Customs is a dynamic profession that is subject to
change, and South Africa is currently going through a ground-breaking
process of Customs modernisation which will
change the profession and the way in which imports and exports are
handled forever.
These changes affect everyone involved in the supply
chain. Although Customs modernisation legislation should aim to find the
perfect balance between customs control and supply chain security on
the one side, and trade facilitation on the other side analysts are of
the opinion that the emphasis in South Africa’s case will still be on
Customs control, and that trade facilitation has been neglected.
There is no definition for trade facilitation as the
understanding of the terms varies. The WTO Agreement on Trade
Facilitation was signed in Bali in December 2013. According to the WTO’s definition,
“trade facilitation” is the simplification and harmonization of
international trade procedures”.
Trade procedures refer to the “activities, practices and
formalities involved in collecting, presenting, communicating and
processing data required for the movement of goods in international
trade”.
The International Convention on the Simplification
and Harmonization of Customs procedures (Kyoto Convention), which was
revised in 1999 and entered into force in 2006 forms the basis of South
Africa’s Customs modernisation and reform
legislation. The Revised Kyoto Convention is therefore also called the
Customs modernisation convention as it promotes
trade facilitation and effective controls through its legal provisions
that detail the application of simple yet efficient procedures.
There is a trade facilitation tool on the WCO
website that evaluates the trade facilitation compliance of Customs
administrations per article of the WTO Agreement on Trade Facilitation.
One can evaluate SARS on the basis of the tool.
The tool is available at http://www.wcoomd.org/en/topics/wco-implementing-the-wto-atf/atf.aspx.
One can evaluate SARS by clicking on the individual
articles of the WTO Agreement on Trade Facilitation (ATF) first and
then by clicking on the “Performance Indicators” for each Article.
For example Article 1 deals with the publication and
availability of information. The evaluating question for Article 1 is “Do
you publish Customs Laws regulations, procedures (including all
associated regulatory documents), fee and charges imposed prior to
implementation?:
Remember that this information is on the website on
the World Customs Organisation and it is
aimed at assisting Customs administration to be Trade Facilitation
compliant. If one thus wants to
evaluate SARS the question should read: “Does SARS publish Customs Laws
regulations, procedures (including all associated regulatory
documents), fee and charges imposed prior to implementation?”
The answer to the question will simply be “Yes” or “No”
but there is also a quantitative indicator which allocates a % of
information stipulated in Article 1.1 of TFA publicly available.
Article 1.1 provides that:
“Each Member shall promptly publish
the following information in a non-discriminatory and easily accessible
manner in order to enable governments, traders, and other interested
parties to become acquainted with them:
(a)
procedures for importation, exportation, and transit (including port,
airport, and other entry-point procedures), and required forms and documents;
(b) applied rates of duties
and taxes of any kind imposed on or in connection with importation or
exportation;
(c)
fees and charges imposed by or for governmental agencies on or in
connection with importation, exportation or transit;
(d) rules for the
classification or valuation of products for customs purposes;
(e) laws, regulations, and
administrative rulings of general application relating to rules of
origin;
(f) import, export or
transit restrictions or prohibitions;
(g) penalty provisions for
breaches of import, export, or transit formalities;
(h) procedures for appeal or
review;
(i) agreements
or parts thereof with any country or countries relating to importation,
exportation, or transit; and
(j) procedures
relating to the administration of tariff quotas.”
One can do the same for all 12 articles listed and
evaluate SARS on that basis.
It will be very interesting to evaluate SARS on the
following Articles:
Art.1 Publication and availability of information
Art.2 Consultation
Art.3 Advance ruling
Art.4 Appeal/Review procedures
Art.5 Other measures for transparency etc.
Art.6 Fee and Charges
Art.7 Release and Clearance of goods
Art.8 Border Agency Cooperation
Art.9 Movement of goods intended for import
Art.10 Formalities
Art.11 Transit
Art.12 Customs cooperation
Kindly share your opinions by e-mail to leon@gmls.co.za.
We look forward to your opinions.
DRAFT TARIFF AMENDMENTS WITH EFFECT FROM 1
JANUARY 2015
(Comments due by 8 October 2014)
Draft Tariff Notices on annual EFTA phase-downs and other
amendments to Schedules Nos. 1, 2, 3 and 4 have been published on the
SARS website on 10 September 2014.
The draft amendments are explained in an
Explanatory Memorandum.
Various draft notices as well as an Explanatory Memorandum can
be downloaded from the SARS website.
The proposed amendments include the following:
·
Draft
amendment on phase-down duties in terms of the EFTA Trade Agreement and
amendments on the reduction in the rate of duty on paper and paperboard
on tariff subheading 4811.41.90 ITAC Report No. 151.
Intended implementation with
effect from 1 January 2015
·
Draft
technical amendments and creation of separate 8-digit tariff subheadings
for goods classifiable in Chapters 4, 15, 30, 32, 33, 38, 39, 70 and
85. Intended implementation with
effect from 1 January
2015
·
Draft
amendment to create separate 8-digit
tariff subheadings for goods classifiable under tariff
subheading 0207.1 (chicken meat). Intended implementation with effect from 1 February
2015
·
Draft
amendment to delete anti-dumping item 201.02/0207.14.90/01.08 and to
insert new anti-duty items which are indicated on the SARS website as a
consequence to an earlier deletion in Part 1 of Schedule No. 1 with effect from 1 February 2015
·
Draft
amendment to delete countervailing items 235.00 and 235.01 as they
have become redundant. Intended implementation with effect from 1
January 2015
·
Draft
amendment to substitute anti-dumping items as a consequence to an
amendment in Part 1 of Schedule No. 1. Intended implementation with effect from 1 January 2015
·
Draft
amendments to delete redundant rebate items with effect from 1 January 2015
·
Draft
amendment to substitute rebate item 311.03 to read "Industry:
Textile Weaving". Intended implementation with retrospective effect from 7 December 2012
·
Draft
amendment to delete rebate item 497.01 as it is not in use. Intended
implementation with effect from
1 January 2015
·
Draft
amendment to delete rebate items 498.01 and 498.02 as they are not in
use. Intended implementation with
effect from 1 January 2015
Download the draft notices from http://www.sars.gov.za/Legal/Preparation-of-Legislation/Pages/Draft-Documents-for-Public-Comment.aspx.
NOTE:
Comments
are due on the Draft Rules to Chapters 11 to Chapter 24 and Chapter 24
of the Customs Control Act (Act 31 of 2014) before 26 September
2014. Refer to the Jacobsens Customs News Bulletin of 13 August
2014 for more information.
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