PAPERLESS EXPORT MONITORING SYSTEM

Updated 2010-05-05 1

PAPERLESS EXPORT MONITORING SYSTEM

04/20/23

by

Exchange Control Department

Updated 2010-05-05 2

Introduction

Legal framework.

Export documentation – Customs and

SARB.

Current export process.

Process improvement initiatives.

How to generate an Unique Consignment

Reference (UCR).

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Updated 2010-05-05 3

Introduction…

SAD 500: Box 28 - UCR.

Paperless data reporting.

Authorised Dealer reporting.

Data matching.

Way forward.

Paperless Export Monitoring System.

Questions.

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Updated 2010-05-05 4

Legal framework

Customs and Excise Act (Act No. 91 of 1964), regulate:• Physical movement of goods;• Single Administration Document (SAD) 500

usage. Exchange Control Regulations, 1961 (i.t.o

Section 9 of Currency and Exchanges Act, 1933 (Act No. 9 of 1933))• Sub-regulation (10) (a) of Regulation 6

prescribes the completion of declaration.• Form F178 declaration, is a format prescribed

by Section 5 of Orders and Rules, to monitor exports.

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Single Administrative Document (SAD) 500

Replaced DA550 in Oct 2006

Completed by exporter or exporter’s freight agent

To be completed irrespective of the value

of the export

Export documentation - Customs

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•Form F178For exports to countries

outside the Common Monetary Area, exceeding

R50,000

Completed by exporter or exporter’s freight agent

Attested, followed up and acquitted by bank.

Export documentation - SARB

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•Acquits F178 & reports export

proceeds

•5

•RESIDENTEXPORTER

•3

•NON-RESIDENTIMPORTER

•2

•Goods

•SAD 500and

Original attested Form F178

•CUSTOMS

•4•SAD 500 data and original

Form F178•SARB

Current export monitoring system

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AUTHORISED DEALER

•1

•Attested Form F178

•Receive proceeds

Updated 2010-05-05 8

Process improvement initiatives

SARB –initiated Export Pilot Project (EPP) to monitor exports electronically. From 2007 to current EPP on Phase 2.

Customs – initiated paperless reforms, introduced SAD 500 in 2006 and Electronic Data Interface (EDI) accreditation.

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SARB F178(only when value export exceed R50 000)

Customs SAD500 (complete irrespective of value of export)

Box 28

Process improvement initiatives…

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SARB – added 4 features on SAD 500: Box 28 to complete info on Form F178, viz :

• Unique Consignment Reference (UCR),• Transaction Value & Swift Currency Code,• Receiving Bank & Bank Code, • Credit Terms.

Process Improvement Initiatives…

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Updated 2010-05-05 11

Process Improvement Initiatives…SAD 500 : BOX 28

ACTUAL CREDIT TERMS

BOX 28FINANCIAL DATA

UCR

TRANS VALUE

12000000

RECEIVING BANK

STANDARD

CREDIT TERMS

30 (001 – 180)

VAT CLAIM

0ZA00011111454

USD

CURRENCY

AD/BANK CODE

016

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VAT CLAIM

CREDIT TERMS

RECEIVING BANK

TRANS VALUE

UCR

BOX 28. FINANCIAL DATA

0ZA00011111454

12,000,000 USD

STANDARD 016

030 ( 001 – 180)

Process Improvement Initiatives…SAD 500 : BOX 28

ADVNEP

000

AD CODE

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Process Improvement Initiatives…Unique numbers

Match by using unique numbers as a link.

Unique numbers used - exporting at Customs.

Same unique numbers supplied to the bank when payment is received.

SARB uses unique numbers to tie up exports with receipts.

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Process Improvement Initiatives…Unique numbers

Customs Client Number (CCN):

• The CCN is issued by SARS and must be reported in a eight digit format. Should the CCN be less than 8 characters, zero’s must be added in front of the number.

Unique Consignment Reference (UCR) – generated

by the exporter or exporter’s freight agent.

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1st character = last digit of the year of export – i.e., ‘0’ for 2010.

Next 2 characters = the Society for World Interbank Financial Telecommunication (SWIFT) country code of the country of export , i.e. ‘ZA’ for South Africa.

Next 8 characters = CCN, ‘00011111’

• Note! If the customs client code is less than 8

digits, then zeroes (0’s) must be added in front

to make up 8 digits.

How to generate an UCR

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Last 24 characters = the unique number of the document that the exporter will use to link export proceeds with a specific export shipment, can be: invoice, quotation, order, shipment no., foreign customer code, etc. - e.g., ‘454’ if the invoice number is the link.

The four parts combined make up the UCR - 0ZA00011111454.

It must be on the SAD 500.

0ZA00011111454

How to generate an UCR …

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• 0ZA00011111454

• BOX 28

• FINANCIAL DATA

• UCR

• 2009 – Year of Payment

SAD 500: Box 28 - UCR

•The UCR “Year of export” is the date of actual export or anticipated export in the case of the

receipt of an advance payment.

Pre-paymentsPre-payments

• 2010 – Year of Export

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• 0ZA00011111454

• BOX 28

• FINANCIAL DATA

• UCR

Bulk prepayment...multiple exports

•Allocate one single UCR and use on all related export entries

•$•$•$•$

• 0ZA00011111454

SAD 500: Box 28 – UCR …

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Instalment payments...multiple exports

•Allocate one UCR on first payment and use on all related export entries and later payments.

• 0ZA00011111454

• BOX 28

• FINANCIAL DATA

• UCR• 0ZA00011111454

•$•$•$•$

•30%•Up-front

•$•$•$•$

•30%•SOB+10

•$•$•$•$

•40%•30-days

SAD 500: Box 28 – UCR…

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short supply...prepaid exports•One UCR for first payment •One UCR for 2nd payment

•$•$•$•$

• 0ZA00011111454

•Two items ordered

•$•$•$•$

• 0ZA00011111456

•Two further items ordered

•plus...outstanding order now available...

•Two separate entries

required

•Only one item shipped

•SAD 500: Box 28 – UCR…

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Paperless data reporting

SARB receives two streams of data.

SARB

CUSTOMSAUTHORISED

DEALERS

Export data post-clearance with CCN & UCR

Export proceeds withCCN & UCR

CCN & UCR

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Customs provide SARB with export data.

Banks report to SARB the cross-border transactions via the Cross Border Foreign Exchange Transaction Reporting System (CBFETRS).

Updated 2010-05-05 22

CBFETRSReporting

with UCR and CCN

1st Query Directed toBank perSAD 500

info

2nd Query directed

to exporter

•EXPORTER•Authorised

Dealer

Authorised Dealer Reporting

Match payment againstoriginal SAD 500 details

and UCR & CCN

Advice of payment

Instructions to Cr CFC or convertto ZAR and CR Current a/c etc.

Must provide UCR & CCN

•SARB

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SAD 500 DATA BANK CBFETRS DATA

A to Z LtdExporter

00011111CCN

0ZA00011111454UCR

100,000.00 - USDTrans. Value

Standard - 016Trans. Bank

060Credit Terms

R80,000.00FOB Value

A to Z LtdResident

00011111CCN

0ZA00011111454UCR

USD100,000.00 Amount

016Bank Code

2010 – 03 – 15 Value Date

101 - 105, 201Category

Data matching

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The Minister of Finance announced in the 2009 Medium

Term Budget Policy Statement that the current paper-

based system of monitoring exports (Form F178) will

be replaced with a more efficient electronic (paperless)

system.

Important component of an efficient paperless system:

Communication!!!

• Complete & correct data reporting to:

Customs - SAD 500 data by exporters,

SARB - CBFETRS data by exporters.

Way forward

04/20/23

25

00011111

Paperless export monitoring system

SARB

Non SA

1st leg: Physical Export

RESIDENTEXPORTER

RESIDENTEXPORTER1

0ZA00011111454

R 1,000,000.00

3

0ZA00011111454

R 1,000,000.00

2nd leg: Payment for goods

2 4

NON-RESIDENTIMPORTER

Payment advice00011111 Macro

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CUSTOMSAUTHORISED

DEALER

Updated 2010-05-05 26

Questions

04/20/23