Customs and Excise Roadshow July – August 2017 1
Presentation Structure 1. Legal Context 2. NCAP Contextualisation 3. Registration, Licensing & Accreditation (RLA) 4. Reporting of Conveyances and Goods (RCG) 5. Declaration Processing System (DPS) 6. Way Forward
Legal Context 3
Transitional Provisions • Published guide on understanding the transitional provisions (moving from 1964 to 2014) • EXCISE : As of effective date, excise will be governed by the Excise Duty Act consisting of all the 1964 provisions of excise. • SCHEDULES : As of the effective date 1964 schedules will be split into Customs Tariff and Excise Tariff. The Customs Tariff CDA and the Excise Tariff (which includes RAF and environmental levies ) Excise Duty Act • RULES : Only those dealing with Excise will continue. The rest will be replaced by final rules to CCA and CDA • SECTION 927 DEFAULT POSITION • This is a roadmap in determining which Act will apply as of the effective date. It has a default position and exceptions: • CCA , CDA & EDA to apply to all goods, persons and matters that are meant to be regulated by these Acts from “day one” • SECTION 927 EXCEPTIONS • These relate to goods and persons who entered the Customs space BEFORE the effective date and have not yet exited the space as at effective date 4
Transitional Provisions • Categories of goods and person that will be regulated by 1964 Act – Goods whose entry was done under 1964; – In bound travellers and crew who arrived in the Republic before the effective date together with their baggage ; – International postal articles to which 1964 Act continues to apply ito s943 • Entry in terms of 1964 Act – “enter” for purposes of 1964 Act means the submission to the Commissioner of the declaration for ie: • Home consumption • Removal in bond • Warehousing • Goods must have been actually entered in terms of 1964. • Does not relate to time of arrival in the Republic. • E.g : goods arriving at port but not entered for days and by the time entry is done, the new legislation is applicable, such goods will be governed by new legislation 5
Transitional Provisions • CCA/CDA/EDA will apply to all goods that, as of the effective date, have not been actually entered. These also include detained or seized . Also transport goods such as containers that are not required to be entered • Section 929 – Puts a limit to the application of 1964 Act after effective date: – When the same goods must now be entered for anothe r procedure, then such secondary entry will be governed by the new legislation – Guide has clear and detailed 5 categories • Measures – If there is a corresponding measure in the new legislation , then a measure issued under the 1964 Act will continue to apply after the effective date. If not then such a measure will come to an end on effective date. An example of this might be the “concessions”. There is no provisions for these in the new legislation – Section 931 and 939 will prevail over section 928 where some of the measures require more than just a “continuation” 6
Transitional Provisions • Continuation of Existing Customs and Excise Registration – Will lapse 30 days after effective date unless before the end of 30 days the holder applies for a new registration. If application is received within 30 days, the 1964 registration will continue as “measure” as per 928 till SARS finalises the application – For Excise, the current registration will continue unless withdrawn by EDA • Continuation of Existing Customs and Excise Licences – Will lapse 30 days after effective date unless before the end of 30 days the holder applies for a new licence. If application is received within 30 days, the 1964 licence will continue as “measure” as per 928 till SARS finalises the application – For Excise, the current licences will continue unless withdrawn by EDA • Continuation of Accredited Status – 1 st level accreditation lapses and a fresh application will be necessary – 2 nd and 3 rd level accreditation will continue as a “measure” under 928 but will move one level down – For Excise, the accreditations will continue as a measure till withdrawn or terminated by the EDA 7
Transitional Provisions • 1964 Deferments – Deferment of customs duty not a measure under 928 will expire on effective date ( mitigation : holders to be given an opportunity to apply and application dealt with for this benefit under CDA before the effective date) – Deferment of any other tax is a measure and will continue after the effective date in terms of s928 • Continuation of Right-Holder Approvals: Counterfeit Goods – These approvals for customs protection against counterfeit goods will continue as a measure under s928 provided the right-holder has paid the prescribed fee within 30 days from the effective date • Continuation of Security and Judicial Proceedings – The continued availability of this security doesn’t stop Commissioner from asking additional ito CCA – Legal proceedings to continue and be finalised ito 1964. Read with s12 of Interpretation Act – Investigations on-going will continue after effective date 8
Useful tools Understanding the Transitional New Legislation overview SARS Webpage CCA Provisions available on the SARS Webpage CDA SARS Webpage SARS Webpage SARS Webpage CCA Rules 9
NCAP Contextualisation 10
Business Magnitude of “Key shifts”… Next 50 years and beyond … a robust 50 years of operation in a radically changing global trade and security framework for adaptation to changing landscape needs • 130 x Registrants and Licensees. • 76 x Registrants and Licensees. • 60 x Cargo Reports. • 6 x Cargo Reports. • 6 x Declarations types. • 1 x Declaration type. • 79 x new policies to be developed. • 56 x existing policies impacted. • Possible 382 additional documents (Standard operating procedures, guides, manuals, annexures templates such as letters and forms and terms of reference. • 350 + Customs electronic messages to support transactional and post clearance compliance. …this informs SARS’ approach to NCAP
NCAP Requirements in relation to SARS Value Chain and Priority Heat Map 2 3 5 Register 1 Declare/File Inspect/Audit 4 Pay Dispute SARS Value Chain 2 - Designation 3 – Cargo Reporting (MPR) 5 – Sealing & Loading 6 - Tax Status 37 – Dispute Resolution 4 – Clearance & Release 23 - Sampling 28 - Registration 38 - Voluntary Disclosure 31 – Security (Part) 7 – Clearance & Procedures 25 – Damaged/Destroyed 29 – Licensing 32 – Recovery of Debt 40 – Judicial Matters 8 – Home Use 26 - Abandonment 30 - Accreditation 9 to 20 – Customs Procedures 33 – General Enforcement 21 – Traveller processing functions 22 – International Post 34 – Detention & Seizure 24 – Expedited Release 36 – Counterfeit Goods 27 – State Warehouse 39 - Penalties 31 – Security (Part) 35 – P&R Pre-engagement Economic Activity Pre-arrival Economic Activity Post Clearance Temp. Port/ Port/ Temp. Storage/ Freight Freight Exporter Bank Export Carrier Importer Bank Forwarder Storage Airport Airport Storage Forwarder Mnfr. Interfront Interfront GUi SAP Interfront Interfront Interfront MPR Interfront DPR B-2-Bi User Frontend Accounting & Traveller RLA Reporting • • Payment Assessment • EDI – UN/Edifact Supply Chain Declaration Good Accounting • Registration • • XML • Deferment Payment Management: Processing: & Reporting: • Licensing − Customs-2-Business • Manifest (MPR) • Regular • Security(Bonds) • Warehousing − Customs-2- • Accreditation • Conveyenace • Incomplete • Transit Government − Customs-2-Customs • Cargo Outturn • Provisional • Transhipment • Supplementary • ATA • Expedited • Tax Free Shop Release • Stores • Reporting Interfront Risk Management Customs Risk Engine ( CRE ) Case Selection and Tracking Engine ( CSE )
NCAP Context - RLA, RCG and DPS 13
Registration, Licensing and Accreditation (RLA) 14
CSK Overview • Processing of Registration, Licensing and Accreditation requirements • The Customs Control Act No 31 of 2014 requires in Chapter 28, Chapter 29 and Chapter 30 for certain Customs clients to undertake the “Customs Sufficient Knowledge test”. • CCA requires for Traders to provide proof of customs sufficient knowledge. 15
CSK Conceptual Design External SARS Venue Trader (Employer) Invidulator Register for CSK via 6 Authenticate Employee View results Nominate Employees eFiling 1 2 10 7 Open session Trader’s Employee 8 Employee Perform test Notification on test Register for CSK via Book/ Amend/ Cancel View results details eFiling test date 5 10 3 4 9 Close session Customs Sufficient Knowledge database 1 6
CSK Implementation Plan Trade Implementation: • The CSK test for trade is per client type required to write the CSK test, e.g. Registered Agent: Importer (non-local) will write a test specifically focused on the chapters applicable to the client type. • A select group of clients will be invited to write the CSK tests once systems stability has been achieved. • RCG clients will then be invited to write the test first, after which the test will be open for all other client types required to write the test. 17
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