CUSTOMS EXTERNAL GUIDE OVERVIEW OF CUSTOMS PROCEDURES

Transcription

1 CUSTOMS EXTERNAL GUIDE OVERVIEW OF CUSTOMS PROCEDURES Revision: 2 Page 1 of 14

2 TABLE OF CONTENTS 1 SCOPE 3 2 REFERENCES Legislation Cross References 3 3 DEFINITIONS AND ACRONYMS 3 4 BACKGROUND The South African Revenue Service SARS Client Charter The Customs Organisation 5 5 GOVERNING LEGISLATION 5 6 CUSTOMS PROCEDURES Arrival and departure of goods and travellers in South Africa Temporary Storage Facilities Importation Exportation Drawback and refund of duty Customs Warehouses (Bonded and Rebate Stores) Free Trade Agreements and Preferential Arrangements with Other Countries Industrial Development Zones (IDZs) TRANSIT Processing Customs offences Postal Goods Electronic Data Interchange (EDI) Accredited Client Scheme Appeals against Decisions Keeping records and notifications Penalties 13 7 QUALITY RECORDS 13 8 DOCUMENT MANAGEMENT 13 Revision: 2 Page 2 of 14

3 1 SCOPE a) The guide provides general information about Customs procedures applicable to internal and external clients. b) The export information outlined in this document must be read in conjunction with SC-EX REFERENCES 2.1 Legislation TYPE OF REFERENCE REFERENCE Legislation and Rules Customs and Excise Act No. 91 of 1964: Sections 65,75,78, 86, 91 and 96 administered by SARS: Customs and Excise Rules: Rule and 77I South African Revenue Service Act No. 34 of 1997: Section 2, 13 and Schedule 1 Other Legislation: Constitution of the Republic of South Africa, 1996: Section 7(2) International Instruments: 2.2 Cross References Trade Agreement between the European Union and the RSA Kyoto Convention General Annex: Standard 3.1 and 3.3, Chapter 4 and 6 Kyoto Convention Specific Annex: All Chapters DOCUMENT # DOCUMENT TITLE APPLICABILITY QMS-01 Quality Management System Manual All SC-CC-24 Internal Administrative Appeal External Policy All SC-CC-26 Alternative Dispute Resolution External Policy All SC-CF-04 Completion of declarations - External Manual All SC-CF-13 Use of Non Designated Ports - External Policy All SC-CF-19 Licensing, Registration and Designation - External Policy All SC-DT-C-13 Refunds & Drawbacks External Policy All SC-EX Exports External Policy All SC-MT-02 International Mail External Guide All SC-PA Guide on Duty Free Allowance For Travellers All SC-PA Traveller Processing External Policy All SC-SE-05 Bonds External Policy Paragraph 2 3 DEFINITIONS AND ACRONYMS Break Bulk Cargo Clearance Home Consumption SACU Goods transported other than by containerised cargo Processing, audit, examination, detention and release of goods Cleared for use in South Africa The Southern African Customs Union, consisting of: The Republic of South Africa; The Republic of Botswana; The Kingdom of Lesotho; The Republic of Namibia; and The Kingdom of Swaziland. The Act Customs and Excise Act No. 91 of 1964 Transit Goods Travellers The removal of goods without the payment of duties and VAT: a) Within the same control area; b) From one (1) control area to another control area; c) From one (1) control area in South Africa to another Customs territory. Any person who temporarily enters the territory of a country in which he or she does not normally reside (non-resident) or who leaves that territory; and Any person who leaves the territory of a country in which he or she normally resides (departing resident) or who returns to that territory (returning resident). Revision: 2 Page 3 of 14

4 4 BACKGROUND 4.1 The South African Revenue Service a) The South African Revenue Service (SARS) comprises the former Departments of Inland Revenue and Customs and Excise. The passing of the South African Revenue Services Act No. 34 of 1997 constituted SARS as an organ of state within the Public Administration (Section 2 of the SARS Act). b) It is the duty of SARS, as an organ of State, in terms of Section 7(2) of the Constitution, to respect, protect, promote and fulfil the rights in the Bill of Rights. c) Unless an authority is empowered to encroach upon the private individual s rights, privileges and liberties, that individual may avail himself/herself of these rights in his/her dealings with the administration (i.e. the right to administrative justice). d) In exercising discretion under any of the acts administered by SARS, its Commissioner is therefore under a duty to act fairly. e) The overview provides the reader with basic information of SARS Customs organisation, the vision, mission, values, mandates and priorities. It also includes a synopsis of the core Customs procedures and highlights obligations to ensure compliance with the law. This overview is an information tool and the application thereof is subject to the legislative provisions in force. f) The South African Customs play an integral role in the facilitation of movement of goods and persons entering or exiting the borders of South Africa. The core functions are to: i) Enforce Customs as well as related trade laws; ii) Collect duties and taxes; iii) Ensure the social welfare of the citizens of South Africa by controlling the import and export of prohibited and restricted goods; iv) Ensure timely clearance of goods and facilitate the speedy movement of travellers through South African borders; and v) Support our integration into the global economy in a way that benefits all South Africans. 4.2 SARS Client Charter a) The attainment of administrative autonomy led to SARS adopting a business-like management approach. This has led, inter alia, to the implementation of a SARS Client Charter: YOUR RIGHTS AND OBLIGATIONS You are entitled to expect SARS To help you through Self-explanatory leaflets and booklets as well as our website Courteous and professional service at all times Providing clear, accurate and helpful responses Making clear what action you need to take and by when Being accessible via our call centre and walk-in centres Listening to your suggestions To be fair Expecting you to pay only what is due under law Treating everyone equally Ensuring everyone pays their fair share To respect your Constitutional rights and privacy By keeping your private affairs strictly confidential By furnishing you with reasons for decisions taken By applying the law consistently and impartially Revision: 2 Page 4 of 14

5 If you are not satisfied, you may Request that your tax affairs be re-examined Exercise your right to object and appeal Request that we advise you of the procedures to be followed In our Alternative Dispute Resolution (ADR) process Lodge a formal complaint at any of our offices Lodge a complaint with the SARS Service Monitoring Office (SSMO) In return, your obligations are to Be honest Timely submit full and accurate information Pay your tax and/or duties on time and in full Encourage others to pay their tax and/or duties Report others who are not paying their fair share Not encourage or be party to bribery or fraud in any form. 4.3 The Customs Organisation a) SARS is under the leadership of the Commissioner for the South African Revenue Service. b) Customs Operations reports to the Group Executive: Customs Operations responsible for the crosscutting operational issues throughout SARS. c) Customs Vision - To render a world class Customs service which contributes to the stability, health and prosperity of the country, region and world. d) Customs Values - In pursuance of our vision we strive to: i) Execute our responsibilities with honour, pride and integrity; ii) Be transparent, fair and accountable in all our dealings; and iii) Work in partnership with stakeholders who share our vision to actively combat trade malpractices. e) Customs Mission - We aspire to attain the highest levels of professionalism in executing our mission, which is to: i) Facilitate legitimate trade and travel while ensuring compliance; ii) Control and account for all imports and exports; iii) Collect and bring to account all revenue due to the State; iv) Administer specific industry schemes, trade measures, international protocols and other international obligations; v) Eradicate smuggling and other transgressions through enforcement action; and vi) Enforce controls on the importation and exportation of prohibited and restricted goods on behalf of other authorities administering such law. f) Customs Mandate and Priorities (in accordance with Government policy) are to: i) Provide border control management; ii) Community protection iii) Industry protection iv) Administer trade policy measures and industry schemes; and v) Collect revenue. 5 GOVERNING LEGISLATION a) The Act and its Rules also include the following Schedules: i) Schedule 1 Part 1 Ordinary Customs Duty; Revision: 2 Page 5 of 14

6 EFFECTIVE DATE ii) Schedule 1 Part 2A Specific Excise Duties and Specific Customs Duties on Imported goods of the same class or kind; iii) Schedule 1 Part 2B Ad Valorem Excise Duties and Ad Valorem Customs duties on imported goods of the same class or kind; iv) Schedule 1 Part 3 Environmental levy; v) Schedule 1 Part 5A Specific drawbacks and refunds of Customs duties and Fuel Levy; vi) Schedule 1 Part 5B Road Accident Fund Levy; vii) Schedule 1 Part 8 Ordinary Levy; viii) Schedule 2 Part 1 Anti-dumping and Countervailing duties on imported goods; ix) Schedule 3 Industrial Rebates of Customs Duties; x) Schedule 4 General Rebates of Customs duties, Fuel Levy and Environmental Levy; xi) Schedule 5 Specific Drawbacks and Refunds of Customs Duties, Fuel Levy and Environmental Levy; and xii) Schedule 6 Refunds and Rebates of Excise duties, Fuel Levy and Environmental Levy. b) As required by the Customs legislation, before any person can start to do any of the Customs activities on which the relevant Customs duty and/or a rebate of duty is applicable, he/she must first either license or register with SARS, depending on the type of operation he/she intends to perform and must provide surety to SARS where applicable. c) The application forms for licensing and registration are available on the SARS website, at d) The Customs Control Area (CCA) storage warehouses equipment and security in an Industrial Development Zone (IDZ) must comply with SARS requirements and the Department of Trade and Industry (DTI) requirements. 6 CUSTOMS PROCEDURES 6.1 Arrival and departure of goods and travellers in South Africa a) Goods arrive in South Africa by one (1) of the following modes of transport: Air, Sea, Road, Rail or Post. In order for Customs to safeguard any revenue due to the State and to ensure compliance with national legislation, the importer must declare to Customs what he/she has brought into the country and the mode of transport utilised. b) National legislation allows an importer/agent seven (7) days, additional seven (7) days in which to make due entry for loose or break bulk cargo, imported by sea, air or rail i.e. fourteen (14) days or 28 days in the case of goods in a container depot, in which to clear goods from the time it has landed in South Africa. c) Goods not declared or cleared within this time period may be removed and detained in a State Warehouse. Certain goods will require an import permit, which must be produced at the time of clearance. Application for Import Permits must be made to the International Trade Administration Commission (ITAC). d) Goods arriving in South Africa may only enter through approved entry points (i.e. in terms of Section 6). Telephone numbers for each office are published on internet. e) Specified hours of operations are specified in the Rules. f) Non Designated Ports i) As stipulated in Rule 120A.03 (d), non designated ports can be used for import/export of commercial goods (See SC-CF-13). ii) These ports are controlled by the South African Police Service (SAPS)/Home Affairs on behalf of SARS in terms of a Memorandum of Understanding (MOU). iii) The SAPS control commercial goods that are allowed to pass through these ports of entry once SARS has granted approval to use these ports. iv) The list of Non Designated Ports is in SC-CF-12-A3. Revision: 2 Page 6 of 14

7 g) Legislation states that the master of any ship or the pilot of any aircraft must, on arrival or departure in South Africa, make due report to Customs of all the necessary particulars relating to the journey, cargo, stores, crew, or passengers and subscribe by way of a declaration as to the truth of the report. h) The reports mentioned may take the form of official documents as in the case of shipping vessels and aircrafts carrying passengers as well as goods. The Customs declaration for the importation of goods must be accompanied by the necessary supporting documents as specified by Customs. i) Failure to furnish these reports/declarations may lead to the imposition of penalties and the goods being detained or seized. j) Travellers i) Every person entering or leaving South Africa must report to a Customs office nearest to the point at which he/she crossed the border, and declare all the goods in his/her possession, see SC-PA ii) Arriving travellers are required to list and declare all goods purchased abroad or gifts carried on behalf of other persons to Customs. iii) In line with international best practice, Customs affords travellers various allowances enabling them to import goods; in limited quantities and value, without payment of duty and VAT. iv) At the major international airports a Red and Green Channel system operates. v) Travellers with goods within the allowances or not in possession of any restrictive goods to declare may pass through the Green Channel and travellers with goods in their possession exceeding the allowances or restrictive goods to declare will use the Red Channel. vi) vii) The allowances are listed in SC-PA VAT on these allowances is exempted. Customs duty and VAT must be paid at the applicable rates where travellers import goods exceeding the above allowances. Travellers importing goods for business or commercial intent will not qualify for the above allowances. viii) These allowances may only be claimed once per person during a period of thirty (30) days and if returning after an absence of more than 48 hours. ix) The rebate provision excludes firearms purchased abroad or at any duty free shop or if imported by returning residents after an absence of less than six (6) months (persons wishing to import firearms should contact their local Customs branch office and the SAPS for advice.) x) Tobacco and alcohol will not be allowed to children under eighteen (18) years of age. xi) xii) Travellers leaving South Africa are required to register all expensive items; that are identifiable by means of a serial number e.g. cameras, on a DA 331 to Customs. Such items may not be dutiable upon re-importation, on condition that they have not been subject to any processing. 6.2 Temporary Storage Facilities a) The purpose of a temporary storage facility is to provide for the storage of goods until Customs formalities have been complied with and release of the goods have been granted. b) All temporary storage facilities must be approved by Customs, who reserve the right to request security in an acceptable form. These temporary storage facilities may be approved at entry points such as harbours, airports and land entry points. Examples of these types of facilities are: Airport Transit Sheds Container Terminals Airport transit sheds can only store uncleared goods if approval from Customs has been obtained. No security is required if the transit shed is within the perimeter of the airport and if Customs are satisfied with the control measures. The airport authorities usually own the transit sheds. The airport transit shed operator is either the airline operator or another agent acting on behalf of the airline to store the goods until released by Customs. Container terminals can store containers containing uncleared goods and are approved by customs subject to certain specified conditions. No security is required if the terminals are within the harbour (control area) and if Customs are satisfied with the control measures. Revision: 2 Page 7 of 14

8 Container Depots Seaport Transit Sheds Container depots, usually outside the harbour area, are approved for the purposes of creating additional container capacity as well as for the purposes of unpacking cargo for individual delivery or packaging of goods for export. The Depot Operator must meet the standards and conditions required by Customs and this includes the lodging of security in the prescribed form prior to a license being issued. The seaport transit sheds usually contain break bulk cargo. No surety bonds are required if the sheds are within the harbour area and if Customs are satisfied with the security and control measures. 6.3 Importation a) Goods may be entered into South Africa and declared in accordance with one (1) of the following processes: i) Home consumption i.e. direct entry into the Southern African Customs Union (SACU) (duty is paid on importation or under rebate/relief from duties under specific circumstances/conditions); ii) Warehousing (pending payment of duty or re-export); iii) Transit/in bond movements within the country or through South Africa beyond the borders of SACU; iv) Temporary admission into SACU including inward processing (for manufacturing purposes and subsequent exportation). a) Importers must be registered and their clearing agents licensed in terms of SC-CF-19. b) Every importer of goods shall, within seven (7) days of the date on which goods are deemed imported, make due entry of such goods. c) The person importing goods shall declare such goods on declarations and append his/her signature on such a declaration as a confirmation that the information declared is true and correct, see SC-CF- 04. d) In terms of electronic submissions of declarations, all clients must adhere to the Rule 101A (2) (a). e) Clients submitting declarations electronically must register in terms of Section 101A with SARS. f) The clearance process includes accepting and checking the goods declaration against the documents produced (invoice, bill of lading, certificate of origin, permits, etc.), examination of the goods if necessary and the assessment and collection of duty and VAT. Customs may require additional information and may also request samples. g) Customs must detain goods for the Department of Health, Agriculture and other Government Departments. The relevant Government Department ensures compliance with other applicable laws, regulations and rules. 6.4 Exportation b) The control of goods leaving South Africa is considered one (1) of the core functions of Customs. Key economic decisions are based on trade statistics and it is therefore imperative that SARS accurately record export performance in relation to the level of import dependency. c) Exporters wishing to export must be registered, and their clearing agents licensed in terms of SC-CF- 19. d) Goods must be exported through designated ports, unless authorised to export through non designated ports as stipulated in SC-CF-13. e) Export declarations in South Africa are submitted electronically, however when required, exporters may be requested to submit manual declarations. Revision: 2 Page 8 of 14

9 f) The original and an audit copy of each export declaration is processed by Customs and retained for record and trade statistics purposes. Any other documents relating to the goods exported, including the transport document should be produced if required by the Controller/Branch Manager. g) Examination facilities are available at most international ports of entry/exit as well as at the transit sheds and container depots. Subject to the provisions of the Act, including conditions relating to security, application may also be made at the discretion of the Controller/Branch Manager for examinations to be conducted on the premises of clients. h) The exportation of a variety of goods is either totally prohibited or may be subject to inspection by other authorities. Special permits/licenses or certificates may also be required. Customs Documentary Inspectors scrutinise these documents in order to ensure compliance with the various laws, regulations and rules. It must be noted that certain goods will require an export permit, which must be produced at the time of clearance. Application for Export Permits must be made to ITAC. i) The No Exchange Provided (NEP), if required, must be submitted with each export declaration and retained by Customs. 6.5 Drawback and refund of duty a) A refund or drawback of duty paid upon importation of goods is described in Schedule 5. b) Such refunds or drawbacks of duty shall be paid to the person who paid the duty on entry for home consumption of the goods in question. c) No drawback or refund of duty shall be applicable if the goods for which a drawback is applied are not used in accordance with the provision of the rebate item. d) The full details regarding qualifying criteria and requirements for the refund and drawback of duty are set out in SC-DT-C Customs Warehouses (Bonded and Rebate Stores) a) Once goods have landed in South Africa, the importer/owner may choose to delay the payment of duties. Such goods are placed in a Customs controlled bonded warehouse for a specified period (at present two (2) years). b) Such warehouses may be licensed either for the storage of dutiable goods (known as customs and excise warehouses) or for the manufacture of dutiable goods (known as customs and excise manufacturing warehouses). Although these warehouses are not owned by Customs, the goods deposited therein are strictly controlled by Customs. c) Duties and VAT must be paid prior to removal of such goods from these warehouses. The goods may also be exported from such warehouses. An example of this would be a duty free shop. The Customs warehousing procedure is to a large extent designed to facilitate trade. d) Customs furthermore provides for rebate stores. These stores may only store goods which have been entered under rebate of duty under the provisions of Schedules 3; 4 and 6 and are regularly inspected by Customs. The reason for such inspections is to monitor the use of the rebated goods that are imported subject to certain conditions, e.g. materials in rolls for the manufacture of infants garments. All or part of the duties is not payable provided the conditions of the rebate item are adhered to. e) The State Warehouse which (means any premises provided by the State for the deposit of goods for the security thereof and of the duties due thereon or pending compliance with the provisions of any law in respect of such goods) is managed by Customs. Goods are placed therein if uncleared; prohibited; seized, detained or abandoned. States warehouse rent is payable by the client for the storage of these goods. Revision: 2 Page 9 of 14

10 6.7 Free Trade Agreements and Preferential Arrangements with Other Countries a) A number of Agreements have been concluded or are in the process of being negotiated with other countries and trading blocs. b) The Agreement provides for preferential market access into South Africa as well as for South African products into other markets. These are: i) Bi-lateral Agreements (non-reciprocal); ii) Preferential dispensation for goods entering South Africa (Non-reciprocal); iii) Free or Preferential Trade Agreements (FTAs and PTAs) (Reciprocal); and iv) Generalised System of Preference (GSPs) (Non-reciprocal). 6.8 Industrial Development Zones (IDZs) a) The IDZs were developed to attract foreign and local direct investment achieved by granting incentive in order to promote international competitiveness in South Africa s manufacturing sector. b) The IDZ regulations were issued by the Minister of Trade and Industry in December 2000 by way of a Government Notice R1334 under Section 10 of the Manufacturing Development Act No. 187 of c) An IDZ Operator must register with SARS Customs, before conducting activities as an IDZ operator is stipulated in SC CF-05. d) The IDZ Operator must be in possession of a permit issued by the Department of Trade and Industry (DTI). e) Any area demarcated as a Customs Controlled Area (CCA) inside the IDZ must be shown on the IDZ plan. The CCA must be designated by the Commissioner for SARS as well as the Director General for DTI as stipulated in Section 21A(1). f) Although IDZs will not be free zones as they are operated in other parts of the world, certain elements thereof will be incorporated such as temporary relief from Customs duty and VAT on imported goods and the zero rating of goods in free circulation removed to an IDZ from the domestic market. g) Goods manufactured in an IDZ will be allowed to be either exported or sold in the domestic market upon payment of the suspended Customs duties and VAT. 6.9 TRANSIT a) Business may require that goods move in transit. In the context of international movement, all goods arriving in South Africa are subject to Customs control. b) Duties and VAT potentially payable may be secured by way of a surety bond or provisional payment. c) Goods entered for removal in transit must be entered on a removal in bond form. d) Documents relating to the goods in transit, including the transport document and suppliers invoices should be produced if required by the Controller/Branch Manager. e) It is the responsibility of the remover/importer to produce satisfactory evidence of Customs clearance at their final destination or of re-export. This evidence must be forwarded by the remover/importer to the initial port/place of entry for acquittal purposes. f) Failure to produce such evidence may result in duty, VAT and penalties being charged. g) Security is often demanded to cover potential duties and VAT which may become payable should the goods not arrive at the declared destination, or where proof of export cannot be produced or is unsatisfactory, see SC-SE-05. Revision: 2 Page 10 of 14

11 6.10 Processing a) Processing pertains to goods that are: i) Brought into the country, conditionally relieved from payment of duty and VAT on the basis that such goods are intended for manufacturing, processing, cleaning or repair purposes and subsequent exportation (i.e. inward processing). ii) Temporarily exported for manufacturing, processing, cleaning or repair abroad and then reimported with exemption or partial exemption from duty/vat (i.e. outward processing). iii) Imported and processed and thereafter exported, thereby qualifying for a repayment (total or partial) of the import duties and VAT initially charged on the goods. This facility is termed a drawback of duty. iv) Temporarily admitted for specific purposes pending their re-exportation (also relevant to travellers) Customs offences a) The primary task of Customs is to ensure compliance with Customs and related law. b) It is therefore necessary to have powers to investigate and where appropriate, impose penalties against those who are non-compliant with the law. c) Customs has identified 3 categories of offences. These are: Administrative Offences Less Serious Offences Serious Offences An offence where no revenue prejudices to the State exists. The declarant has, however, failed to comply with the administrative provisions of the Act. Offences where it can be reasonably presumed that there was no deliberate attempt on the part of the offender to cause prejudice to the State. In these instances there may be revenue prejudiced to the State. These penalties may be termed Preventative Penalties. In other words the penalty is imposed to avoid recurrence of the offence. Offences where there is evidence of intentional conduct by the declarant to achieve a specific objective, viz., the smuggling of goods and/or the evasion of duty, knowing that the conduct, action or declaration is unlawful. Gross negligence on behalf of the declarant. d) Customs do not impose penalties as a source of revenue for the State but is merely a measure to ensure compliance with the law. e) Sections 78 to 86A deals with penal provisions and depending on the nature of the offence, Customs may impose a penalty as high as three (3) times the value of the goods. Should legal action be instituted such could result in imprisonment. f) SARS does not apply penal provisions in the case of human errors and administrative errors. Where wilful violations are identified, such violators will be severely penalised or prosecuted in a court of Law Postal Goods a) The movement of goods by post has always been one of the most widely used methods to import or export small items. The declaration used to clear goods through the Post Office differs from the usual declaration submitted to Customs. Any form of label affixed to or completed by the sender in respect of the postal item, giving the description of the contents and value, is deemed to be a declaration for importation/exportation as required by the Act, and the same rates of duty and VAT are applicable. b) Some goods must be cleared at the nearest Customs Branch Office prior collection from the Post Office, which are: i) For warehousing; ii) For removal in bond; Revision: 2 Page 11 of 14

12 iii) Cleared under a heading or item of Schedule 1 which requires a certificate or condition to be applied with; iv) To be entered under any item of Schedule 3, 4 or 6. The exceptions being: A) Used personal effects provided for under item ; B) Unsolicited gifts provided under item ; and C) Goods exported for processing/repair and registered for exportation/re-importation in terms of item SA Post Office staff collects duty on the cost of repair; and/or v) Where the exporter intends to claim a drawback or a refund of duty i.r.o. the provision of Schedule 5 or 6, the goods must be entered for export on the prescribed form. c) In South Africa, the Post Office is acting on behalf of SARS. The three (3) main centres where post office parcels are assessed for Customs duty purposes are situated at: i) Oliver R Tambo International Airport; ii) Cap ; and iii) Durmail. d) Customs personnel based at these centres conduct investigations, audits and re-assessments to ensure compliance. e) Further details regarding postal goods are in SC-MT Mandatory electronic communication of reports and declarations a) Electronic submission of declarations allows businesses to conduct their transactions electronically for increased efficiency and productivity. b) It brings inter alia the following benefits to Customs and its trading partners- i) Fully automated process with little or no intervention by either party providing a virtual on-line scenario. ii) Declarations can be accepted round the clock automatically, resulting in maximum productivity iii) Quicker retrieval of cargo through reduction of clearance times. iv) Reduction in manual administrative processes resulting in fewer errors and no duplication. v) Clearance Notifications are speeded up as a result of the electronic releases being generated automatically into the clearing agents system. vi) Communication errors reported and communicated electronically to client. vii) Electronic messaging has the proven advantage of minimising data capture which in turn ensures less errors and quicker releases. viii) Discontinuance of the stiffy disk resulting in consumable cost saving. ix) Disk would not have to be delivered to Customs saving in transport and physical handling costs. x) Communication costs i.e. telephone and facsimile would no longer be required for queries and message verification Accredited Client Scheme a) Customs has established an accredited client scheme, see SC-CF-06. b) The main objective is to fundamentally change the relationship between Accredited Clients and Customs. c) In broad terms the Accredited Client Scheme would be a relationship between a Customs client and Customs to: i) Achieve benefits for both parties; ii) Stamp out misconduct and fraudulent activities; iii) Obtain and maintain a high level of compliance; and iv) Promote legitimate trade facilitation. Revision: 2 Page 12 of 14

13 6.15 Keeping records and notifications a) The MOA shall maintain a register for each net surplus sugar producing non-sacu SADC Member State indicating the following information: i) The name and contact details for their quota allocating authority; ii) The name and contact details for their certificate of origin issuing authority; iii) The names of all registered exporters; and iv) The quota allocated to each registered exporter. b) The MOA shall notify the Customs Administration of other SACU Member States and Controllers / Branch Managers provided in Item (g) of the information provided in paragraph (a) above. c) The other SACU Member States and Controllers / Branch Managers shall notify the SACU CCA of all imports under the quota arrangement for purposes of writing volume off against the quota allocations. d) Every client must keep for record purposes for a period of five (5) years: i) Books, accounts and documents in respect of all transactions relating to the Rules for the purpose of any acquittal procedure; and ii) Any data related to such documents created by means of a computer. e) The five (5) year period is calculated from the end of the calendar year in which the document was created, lodged or required. (Sections 101 and 101A). f) Every client must produce such books, accounts and documents on demand Penalties a) Failure to adhere to the provisions of the Act, as set out in this document, is considered an offence. b) Offences may render the client liable to, as provided for in the Act: i) Monetary penalties; ii) Criminal prosecution; and / or iii) Suspension or cancellation of registration, license or accreditation Appeals against Decisions a) In cases where clients are not satisfied with any decision taken in terms of the Act they have a right of appeal to the relevant appeal committee. The policy in this regard, as well as the process to be followed, is contained in document SC-CC-24. b) Should clients be unhappy with a decision of any appeal committee their recourse will be to lodge an application for ADR (Alternative Dispute Resolution) with the relevant appeal committee. The committee will add its comments thereto and forward the application to the ADR Unit for attention. The policy in this regard, as well as the process to be followed is contained in document SC-CC QUALITY RECORDS a) There are no quality records in this document. 8 DOCUMENT MANAGEMENT Business Owner Document Owner Author Group Executive: Customs Operations Executive: Process Solutions Customs and Support Services P.V. Lupuwana Revision: 2 Page 13 of 14

14 Detail of change from previous revision Template number and revision Updated the purpose, scope, references, definitions and acronyms, Customs procedures and added drawbacks and refunds, record keeping, penalties and appeals. Cancelled -F1, -F2 and -F3. ECS-TM-07 - Rev 6 Revision: 2 Page 14 of 14