Aug 23, 2013
New automated customs system successfully implementedBack
Africa|Engines|Export|Flow|National Economic Development|SECURITY|System|Systems|Testing|Africa|South Africa|Flow|Legitimate Products|Logistics|Products|Service|Systems|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 (150 word limit)
Other Trade News
Updated 4 hours ago With Africa holding 60% of the world’s arable land, agriculture held one of the keys to unlocking economic opportunities for the continent, but could only be achieved through cooperation with other countries in regions such as Asia. Speaking at the Asia–Africa...
Updated 17 minutes ago Almost a year before Waterfall Estate’s sprawling Mall of Africa, in Midrand, is due to open its doors to the public, property developer Atterbury reports that development of the flagship development remains firmly on track, with some 83% of gross lettable area...
Updated 41 minutes ago South Africa’s delay in migrating from analogue to digital broadcasting has cost the country the first-mover advantage of establishing an electronics manufacturing sector positioned to deliver set-top boxes (STBs) to the rest of Africa. With the now long-gone...
Updated 49 minutes ago Datacentrix is confident of the future as it has secured new three- to five-year contracts valued at around R500-million and extended a further R300-million in contracts. CEO Ahmed Mahomed on Tuesday said the group was well positioned for the new financial year, as...
Recent Research Reports
Steel 2015: A review of South Africa's steel sector (PDF Report)
Creamer Media’s Steel 2015 report provides an overview of the key developments in 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...
Projects in Progress 2015 - First Edition (PDF Report)
In fact, this edition of Creamer Media’s Projects in Progress 2015 supplement tracks developments taking place under the Renewable Energy Independent Power Producer Procurement Programme, which has had four bidding rounds. It appears to remain a shining light on the...
Electricity 2015: A review of South Africa's electricity sector (PDF Report)
Creamer Media’s Electricity 2015 report provides an overview of State-owned power utility Eskom and independent power producers, as well as electricity planning, transmission, distribution and the theft thereof, besides other issues.
Construction 2015: A review of South Africa’s construction sector (PDF Report)
Creamer Media’s Construction 2015 Report examines South Africa’s construction industry over the past 12 months. The report provides insight into the business environment; the key participants in the sector; local construction demand; geographic diversification;...
Liquid Fuels 2014 - A review of South Africa's Liquid Fuels sector (PDF Report)
Creamer Media’s Liquid Fuels 2014 Report examines these issues, focusing on the business environment, oil and gas exploration, the country’s feedstock supplies, the development of South Africa’s biofuels industry, fuel pricing, competition in the sector, the...
Water 2014: A review of South Africa's water sector (PDF Report)
Creamer Media’s Water 2014 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.
This Week's Magazine
Today’s organisations execute projects within increasingly complex environments – particularly in the engineering sector. The ability to successfully execute these projects is what drives the realisation of successful projects and, ultimately, the achievement of...
South Africa’s distribution grid is a twentieth-century relic, which must be changed to serve the country’s modern electricity needs, says South African National Energy Development Institute (Sanedi) Smart Grid Programme manager Dr Minnesh Bipath. “What we are...
There is a disparity in government funding provided to integrated transport networks – bus rapid transit (BRT) networks ¬¬– and that given to conventional bus services, says Putco executive director Thys Heyns. “We have neglected and strangled conventional bus...
The Johannesburg Social Housing Company (Joshco) is building 502 rental housing units, valued at R200-million, in Dobsonville, Soweto, which are scheduled for completion in June 2016.
Automotive component manufacturer and distributor Metair is centralising its research and development (R&D) work in Turkey, in an attempt to bolster the company’s ability to produce affordable start/stop batteries. The new R&D centre is part of an expansion plan in...