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
Recent Research Reports
Steel 2014: A review of South Africa's steel sector (PDF Report)
Creamer Media’s Steel 2014 report provides an overview of the global steel industry and particularly of South Africa’s steel sector over the past year, including details of production and consumption, as well as the country's primary carbon steel and stainless...
Projects in Progress 2014 - First Edition (PDF Report)
This publication contains insight into progress at the delayed Medupi and Kusile coal-fired projects, in Mpumalanga and Limpopo respectively, as well as at the Ingula pumped-storage scheme, which is under construction on the border between the Free State and...
Automotive 2014: A review of South Africa's automotive sector (PDF Report)
The report provides insight into the business environment, the key participants in the sector, local construction demand, geographic diversification, competition within the sector, corporate activity, skills, safety, environmental considerations and the challenges...
Construction 2014: A review of South Africa's construction sector (PDF Report)
Construction data released during 2013 hints at a halt to the decline in the industry during the last few years, with some commentators averring that the industry could be poised for recovery. However, others have urged caution, noting that the prospects for a...
Electricity 2014: A Review of South Africa's Electricity Sector (PDF Report)
This report provides an overview of the state of electricity generation and transmission in South Africa and examines electricity planning, investment in generation capacity, electricity tariffs, the role of independent power producers and demand-focused initiatives,...
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...
This Week's Magazine
Updated 32 minutes ago The power and water sector will come together in May to discuss challenges and celebrate successes at the annual African Utility Week and Clean Power Africa in Cape Town. More than 5 000 power and water professionals, including utility heads from Nigeria, Uganda,...
There is enough water in South Africa to supply communities and the economy, even if some activities may be constrained, such as agriculture in the Limpopo, says National Planning Commission commissioner Mike Muller. Muller was also the director-general from 1997...
South African antenna designer and producer Poynting and provider of professional products, system integration and implementation and commissioning services for the broadcast and telecommunications markets in South Africa, African Union Communications (Aucom),...
Industrial automation giant Festo has been displaying some of the its ongoing research projects and latest automation developments and products at the Hannover industrial fair from April 7 to 11, as part of its Integrated Automation – The Next Steps theme. The...
South African retail companies are responding to the way in which e-commerce is changing their engagement model with customers by improving customer engagement channels and order fulfilment intelligence, says industrial and retail software company JDA Europe, Middle...