Effects of new Customs Act need to be understood

Both the importing and exporting businesses are to be affected by the changes to the Customs Acts, which aim to modernise customs control in South Africa and bring it in line with the recommendations of the World Customs Organisation. Clearing and forwarding agents and companies involved in importing, exporting and the manufacturing of excisable goods (such as cosmetics, alcoholic beverages, cigarettes, motor vehicles and electronics) will all be affected.

The CEO of the Johannesburg Chamber of Commerce and Industry (JCCI), Joan Warburton-McBride says, "As many JCCI members are involved in international trade, we are doing whatever we can to alert them to the substantial and significant changes in the customs legislation. Businesses need to understand the implications of the changes so that they can adapt their procedures accordingly."

Self-compliance, self-assessment focus

McBride noted that there is a shift in the focus of the new legislation - where the emphasis is now on self-compliance and self-assessment. Companies will have a greater responsibility in administering and declaring the duty liability on imports and exports and as such, it is therefore vital that they understand the changes and prepare their company systems to comply.

The legislation has expanded the investigative capability of SARS in order to monitor compliance. Customs will be tracking the goods through the entire supply chain and the onus will be on the company to notify Customs ahead of each stage in the cycle. Tax authorities will be able to conduct retrospective audits going back three years. Where SARS suspects fraud, there is no time limit to how far back they can audit the company.

Another feature of the new legislation is the many changes in the terminology used. McBride advises companies not to delay. "We urge companies to get their systems organised and ensure their staff are trained. The new Customs Course being run by the JCCI will be of enormous benefit in explaining the legislative changes and the implications for companies."

The JCCI is running 5-day courses on the New Custom Act - the next course will be starting on 30 June 2015. Call Pam Freeman on +27 (0)11 7265300 or email az.oc.iccj@srebmem.