Aug 23, 2013
New automated customs system successfully implementedBack
National Economic Development|South Africa|Legitimate Products|Currie Pisapia|Pravin Gordhan|Southern Africa
© Reuse this
These export and import declarations represented more than 500 000 consignments that were declared and processed with the new system. Goods with a total trade value of R40-billion moved through South Africa’s borders since the implementation of the new system with more than R2.5-billion having been collected in duties.
The new customs management system centralised the clearing of all import and export declarations using a single processing engine. The new automated system entailed converting 26 older legacy- and paper-based systems into a fully automated system to be used for all commercial trade across South Africa borders, and was aimed at reducing delays at border posts.
“By managing customs declarations and supporting documents in electronic format, the processing of cargo movements by land, sea and air will now be much quicker and more accurate,” Gordhan said.
This was required to reach the target set by the National Development Plan of increasing intra-regional trade in Southern Africa from 7% to 25% by 2030, and increasing South Africa’s trade with regional neighbours from 15% of the country’s total trade to 30%, he added.
The new SARS custom management system reduced end-to-end paper use by up to 95%, cut the time required for physical inspections to about two hours, improved security and risk detection and reduced administrative requirements.
The improved information flow combined with sophisticated risk engines allowed for more accurate targeting of illegitimate goods from dishonest traders while simultaneously facilitating the movement of legitimate products from honest traders, the Finance Minister said.
“The customs risk engines have been enhanced in collaboration with the National Economic Development and Labour Council to look for goods that have been declared at low value. This has been particularly successful as we have seen the declared value of specified commodities increasing by about 25%,” Gordhan pointed out.
SARS conducted an extensive process of engagement with industry stakeholders before implementing the new system and trade stakeholders and their service providers had been involved in the development and testing of the new system over the past year.
“When SARS embarked on the modernisation journey, it was clear that there would be baby steps and some giant leaps. The planning, inclusion and the intensive testing with key supply chain industry members can only be commended. The results speak for themselves; minimum interruption to the supply chain and a couple of blinks later, success,” Bidvest Panalpinia Logistics customs portfolio manager Currie Pisapia commented.
Since implementation the new customs management system had entered a stabilisation process, which was expected to last three to six months, to cater for the cyclical nature of import and export declarations. Customs will then look to use the new management system as a platform for further enhance
Edited by: Mariaan Webb© Reuse this Comment Guidelines
Other Trade News
Recent Research Reports
Defence 2013: A review of South Africa's defence industry (PDF Report)
Creamer Media’s 2013 Defence Report examines South Africa’s defence industry, with particular focus on the key players in the sector, the innovations that have come out of the defence sector, local and export demand, South Africa’s controversial...
Road and Rail 2013: A review of South Africa's road and rail infrastructure (PDF Report)
Creamer Media’s Road and Rail 2013 Report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail network, the funding and maintenance of these respective networks, and the push to move...
Liquid Fuels 2013 (PDF Report)
Creamer Media’s 2013 Liquid Fuels report examines South Africa’s liquid fuels market, focusing on the business environment, oil and gas exploration, the country’s feedstock supplies, the development of South Africa’s biofuels industry, fuel pricing,...
Projects in Progress - Second Edition (PDF Report)
Creamer Media’s second Projects in Progress supplement considers some of the major project developments under way, including high-profile energy and transport projects, as well as a few of the lower-profile public and private developments. What remains apparent is...
Water 2013: A review of South Africa’s water sector (PDF Report)
Creamer Media’s Water 2013 report considers the aforementioned issues, not only in the South African context, but also in the African and global context, and examines the issues of water and sanitation, water quality and the demand for water, among others.
Canadian Mining Roundup for June 2013 (PDF Report)
The June 2013 roundup includes details of the development of TSX-V-listed Aldridge Minerals’ flagship Yenipazar polymetallic project, in Turkey; the Canadian Nuclear Safety Commission’s renewal of Cameco’s uranium mining licence pertaining to the Cigar Lake...
This Week's Magazine
Mitsubishi Motors South Africa (MMSA) has introduced a 4x2 derivative of its Pajero Sport sports-utility vehicle (SUV), which will give it access to a substantial slice of the full-size SUV market, where it will compete with the likes of the Ford Everest, Chevrolet...
South African Energy Minister Ben Martins has affirmed that the government wants the country to be globally competitive in the nuclear sector. "Our responsibility has always been ... to ensure that, in nuclear energy, South Africa can compete with the rest of the...
Mercedes-Benz South Africa (MBSA) president and CEO Dr Martin Zimmermann describes the new S-Class as “a special place to be”, with the car creating a sense of “wellness” once you are seated inside the German brand’s flagship model. It is difficult to argue...
Water scarcity and water-quality issues are broadly recognised and understood in most political, business and civil organisations in South Africa, but solving water issues will require wide and continuous action in catchments and municipalities by organisations and...
Work is well under way on the R212-million Imvutshane dam, 30 km north-west of Stanger, in KwaZulu-Natal, which is a key link in supplying people in rural Maphumulo with a reliable source of safe drinking water.