Working together to globalise trade standards

Pravin Gordhan, SARS commissioner

This is according to SARS commissioner Pravin Gordhan, who addressing the members of the CGCSA at a breakfast held yesterday, 3 May 2006, in Johannesburg. "It is essential that we, in partnership with business stakeholders, establish minimum international standards by which we govern global trade,' he said.

South Africa - and the global economy - is faced with a range of new threats including trans-national organised criminal networks, illicit trade (smuggling), international terrorism, counterfeit goods, greater need for economic security. These threats recognise no national borders and negatively impact on facilitation of local trade.

Gordhan explained that traditionally, customs has performed fiscal and economic missions based on revenue collection administrating controls over movement of people, goods, and conveyances. Today, customs faces significantly more challenges, which include combating terrorism, the need to regulate valuation and eliminate entry of counterfeits and illegal goods to local shores, as well as eradicating dumping and protection of the environment.

"Capacity building is a new initiative which has been implemented by the WCO, seeing investment from developed countries in the EU and US. Through this initiative, customs organisations in developing countries will benefit from customs-to-customs information sharing and advanced electronic equipment, alignment of risk management systems, inspections using non-intrusive inspection scanners and clearer customs-to-customs and customs-to-business standards."

In addition, effective capacity building will lead to integrated border management, one channel to government (Single Window) and defined facilitation benefits for authorised economic operators.

He added, "We need to take a longer term, more collaborative view, being committed to a broader trade infrastructure to create a platform for cross-border trade."

According to Gordhan, South Africa needs to strengthen its collective position, ultimately identifying and rewarding businesses with compliance guarantees. To do this, it is critical to strengthen the local framework for mutual recognition, in line with global standards being set.

It is a shared responsibility to build on existing co-operation initiatives by clamping down on non-compliance to ensure a level playing field. Gordhan said that SARS is committed to providing efficient, secure, transparent, consistent, predictable and non-discriminatory service, and that the business sector must promote compliance and integrity within the supply chain.

Michael Broughton, spokesman for the CGCSA, concluded, "Business is committed to forging a new compliance culture with a view to facilitating legitimate trade to benefit and protect not only the South African economy, but every South African consumer."