Customs Control BillB45-2013

Submission by Business Unity South Africa

January 2014

Business Unity South Africa

• Confederation of business organisations including Chambers of Confederation of business organisations including Chambers of Commerce and Industry.Commerce and Industry.

• Official voice of business in South AfricaOfficial voice of business in South Africa

• Represent RSA businesses on macro economic issues at national Represent RSA businesses on macro economic issues at national and international levels.and international levels.

• Main aim is to ensure that business plays a constructive role in the Main aim is to ensure that business plays a constructive role in the country’s economic growth, development and transformation.country’s economic growth, development and transformation.

• Support an environment in which businesses of all sizes and in all Support an environment in which businesses of all sizes and in all sectors can thrive, expand and be more competitive. sectors can thrive, expand and be more competitive.

Overarching position

• Bill as drafted results in a radical policy shiftBill as drafted results in a radical policy shift

› Ports like City Deep currently designated as inland ports Ports like City Deep currently designated as inland ports

for customs purposes will no longer be so designatedfor customs purposes will no longer be so designated

• Customs fraud and illicit trade apparently the basis for this Customs fraud and illicit trade apparently the basis for this

shift. BUSA agrees this scourge must be addressedshift. BUSA agrees this scourge must be addressed

• BUSA does not believe that proposed policy shift is only BUSA does not believe that proposed policy shift is only

solution to the problemsolution to the problem

• Cannot risk an intervention which will have a negative Cannot risk an intervention which will have a negative

impact on trade impact on trade

Trends in economic activity

Trade trends (the dti, 2011)

Engagement with SARS

• Extensive engagement with SARS is recognisedExtensive engagement with SARS is recognised

• Unable to reach common ground on this one Unable to reach common ground on this one

issueissue

• Recognises the attempt by SARS to provide Recognises the attempt by SARS to provide

alternative to address concernsalternative to address concerns

• However they are not sufficient to alleviate the However they are not sufficient to alleviate the

concernsconcerns

Current RSA situation

• Goods are only consigned by the exporter to a specific Goods are only consigned by the exporter to a specific port, which may be inlandport, which may be inland

› Goods transferred directly from ship to train and transported Goods transferred directly from ship to train and transported to inland port where customs procedures are carried outto inland port where customs procedures are carried out

• No intervention by importer until port of customs clearanceNo intervention by importer until port of customs clearance

• New approach will require intervention by importer at first New approach will require intervention by importer at first port of entryport of entry

• Special Economic Zone legislation provides for licensed Special Economic Zone legislation provides for licensed customs controlled areas within the SEZ (s29)customs controlled areas within the SEZ (s29)

World Trade Organisation

• WTO agreement on trade facilitation, Ministerial Decision WTO agreement on trade facilitation, Ministerial Decision 7 December 20137 December 2013

“Article 9: Movement of goods under customs control intended for import 

Each Member shall, to the extent practicable, and provided all Each Member shall, to the extent practicable, and provided all

regulatory requirements are met, allow goods intended for import to regulatory requirements are met, allow goods intended for import to

be moved within its territory under customs control from a customs be moved within its territory under customs control from a customs

office of entry to another customs office in its territory from where office of entry to another customs office in its territory from where

the goods would be released or cleared.”the goods would be released or cleared.”

 

USA

• Customs port where entry documents are filed may Customs port where entry documents are filed may

not be the place where goods physically entered not be the place where goods physically entered

the the USUS

•Port of entry for an inbound shipment is where Port of entry for an inbound shipment is where

shipment is cleared by Customs not port of physical shipment is cleared by Customs not port of physical

crossingcrossing

Proposal (1)

• Provisions of Section 18 of the current Customs and Provisions of Section 18 of the current Customs and

Excise Act allowing for carriers to deliver containers to Excise Act allowing for carriers to deliver containers to

inland destination should be retained. inland destination should be retained.

• Include provision for the Commissioner to prescribe the Include provision for the Commissioner to prescribe the

information the manifest must contain by Ruleinformation the manifest must contain by Rule

Proposal (2)

Make provision for a definition of an Inland Port as a

recognised place of entry or exit along the following lines:

“Inland Port” means – a ‘dry port’ or terminal located

in the hinterland serving as dry port for customs

examination and clearance of containerised cargo.

Proposal (3)

“Designation of places of entry and exit31. (1) The Commissioner must for the proper exercise of customs control, andconsistent with any applicable Acts of Parliament and decisions of the nationalexecutive, by rule designate any number of—

Insert additional provision along the following lines

(f) Inland Ports as places where customs procedures may be carried out 

Proposal (4)

“Purposes for which places of entry and exit may be used

Insert additional provision along the following lines

32. (5) (g) if the goods were imported on board a foreign-going vessel, within three working days of arrival of the goods at the Inland Port where the goods are to be off-loaded from the vessel;

Proposal (5)

90. When clearance declarations for goods imported through places of entry must be Submitted

Insert additional provision along the following lines

(g) if the goods were imported on board a foreign-going vessel, within three working days of arrival of the goods at the Inland Port where the goods are to be off-loaded from the vessel;

 

Conclusions

• BUSA believes that the risks of the radical policy shift of no BUSA believes that the risks of the radical policy shift of no

longer allowing customs clearance at inland ports are so longer allowing customs clearance at inland ports are so

high that further efforts should be made to understand the high that further efforts should be made to understand the

implications before proceeding with the Billimplications before proceeding with the Bill

• BUSA therefore urges the Committee not to approve the Bill BUSA therefore urges the Committee not to approve the Bill

unless this matter is addressed unless this matter is addressed

Thank you