SADC FRAMEWORK FOR COOPERATION IN THE SUPPRESSION OF CUSTOMS OFFENCES by Willie Shumba, Senior Programme Officer- Customs 1
OVERVIEW OF PRESENTATION � To show that SADC has a framework of � To show that SADC has a framework of cooperation and collaboration in order to contribute to the progress and well being contribute to the progress and well being of the people of Southern Africa 2
SADC TREATY � Signed on 17 Aug 1992 Heads of States by in g g y Windhoek, Namibia � Southern African Development Community (SADC) replaced Southern African Development Coordinating Conference (SADCC) � Objectives of Obj i f the Treaty range from promoting h T f i sustainable and equitable economic growth to promoting common political values democracy promoting common political values, democracy, peace and stability in the region � Areas of cooperation are agreed upon in the form Areas of cooperation are agreed upon in the form of a Protocol 3
REGIONAL ECONOMIC INTEGRATION � agreement among countries in a � agreement among countries in a geograghic region to reduce, and ultimately remove tariff and nontariff ultimately remove, tariff and nontariff barriers to enable the free flow of goods, services and factors of production services, and factors of production amongst the members 4
SOME PILLARS OF SADC TRADE SOME PILLARS OF SADC TRADE PROTOCOL � Liberalize intra-regional trade in goods Lib li i t i l t d i d � Improvement of the climate for cross- border and foreign investment � Industrialization of the region g � Establish an FTA in SADC ( free of quotas quotas, tariff and non tariff barriers) tariff and non tariff barriers) � Issues supervised by Committee of Ministers of Trade (CMT) Ministers of Trade (CMT) 6
OTHER AREAS OF COOPERATION IN OTHER PROTOCOLS � Investment issues � Cooperation in Tax matters � Cooperation in Tax matters � Trade in Services � Mining 7
FREE TRADE AREA � A group of 2 or more countries which agree that A group of 2 or more countries which agree that goods produced by themselves can be traded without payment of customs duties. � Note that EXCISE and VAT remain payable � Rules of origin determine qualifying goods � There is closer cooperation amongst Customs Th i l ti t C t Administration although each Customs Administration still remain autonomous Administration still remain autonomous � Each MS maintains its own external tariff
SADC MEMBERSHIP ANGOLA* NAMIBIA BOTSWANA RSA DRC* SWAZILAND LESOTHO TANZANIA MADAGASCAR ZAMBIA MALAWI ZIMBABWE MAURITIUS SEYCHELLES* MOZAMBIQUE 9
COOPERATION BY CUSTOMS � Cooperation in Customs matters is p through a technical committee the SUB-COMMITTEE ON CUSTOMS SUB COMMITTEE ON CUSTOMS COOPERATION (SCCC) 10
Areas of cooperation for SCCC from the A f ti f SCCC f th Trade Protocol � Tariff and Statistical Nomenclatures T iff d St ti ti l N l t � Harmonization of Valuation Laws � Simplification and Harmonization of Customs Laws and procedures � Computerization of Customs Operations � Training, skills exchange,share resources g g � Enforcement & Suppression of Customs offences � Exchange of information 11
PROTOCOL ON TRADE � There � There are are various various Conventions Conventions, developed to provide a framework for cooperation cooperation and and offering offering international international benchmarks, for Customs Administrations cooperate in various areas cooperate in various areas -Enforcement & Suppression of Customs offences Customs offences -Exchange of information 12
Cigarettes and tobacco � These are amongst the top list of products being trafficked in the region products being trafficked in the region � Contributing factors are -quality tobacco produced in the region lit t b d d i th i -they attract excise and local taxes duties -high rate of customs duties for imports 13
ILLICIT TRADE � Ranges from private individuals smuggling packets to big consignments li k t t bi i t eg 20’ and 40’ containers � Those produced in export processing zones also find ways into local market without payment of excise, or customs duties or VAT � 12 out 15 MS share porous land borders � Governments lose revenue; Customs fail Governments lose revenue; Customs fail to meet revenue obligations to Govts 14
ILLICIT TRADE � A study conducted in 2010, showed that illicit illicit trade trade in in cigarettes cigarettes resulted resulted in in cosiderable leakage of tax revenue across SADC MS of approx US$350m across SADC MS of approx US$350m 15
INITIATIVES IN SADC � Agreement to cooperate in fighting g p g g Customs offences; -Customs to Customs cooperation; Customs to Customs cooperation; -Partnership with other stakeholders; � Border Management programmes to B d M t t ensure that the balance between trade f facilitation and enforcement/control is ilit ti d f t/ t l i maintained � Sharing of skills 16
INITIATIVES IN SADC � Accession to international instruments in order to benchmark with best practice � Joint training programmes Joint training programmes � Giving more weight to enforcement activities activities � Transit Management System being d developed l d � Gg
THANK YOU THANK YOU Willie Shumba Senior Programme Officer, Customs Trade Industry Finance & Investment (TIFI) Directorate Trade, Industry, Finance & Investment (TIFI) Directorate Southern African Development Community (SADC) P Bag 0095 Gaborone, Botswana. T l Tel +267 395 1863 267 395 1863 Cell +26773419651 wshumba@sadc.int
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