The International Chamber of Commerce (ICC) announced on May 22 that it had published a collection of standards to help border authorities determine a standardised definition of a ‘diligent trader’.
Against the background of a widely accepted premise that low-risk traders should receive benefits for their investment in security and compliance, a variety of ‘trusted trader programmes’, commonly referred to as authorised economic operator (AEO) programmes, have been implemented worldwide.
Addressing the need for a harmonised under- standing of what criteria should be used to objectively judge whether a company meets the definition of ‘trusted trader’, the ICC paper offers a set of 59 baseline best practices of safe and secure conduct for cross-border traders in goods for use by traders when designing and managing AEO programmes and by governments when assessing the risks represented by operators.
According to the ICC, trade is better facilitated when traders represent a low risk to security by complying with national laws and regulations, and border authorities are more likely to reduce barriers to trade when they are confident that traders have implemented strong security and trade compliance processes and internal controls.
Developed by the ICC Commission on Customs and Trade Facilitation, the ICC guidelines for cross-border traders in goods apply on a voluntary basis and are not binding. The ICC guidelines cover the essentials of trader behaviour and, according to the ICC, will be regularly updated to include relevant developments and to broaden the scope accordingly.
The ICC believes that, with the help of this new set of guidelines, traders and border autho- rities will have a clearer idea of who can be considered ‘trusted traders’ and accord them the various benefits of AEO programmes.
By being able to identify compliant traders, authorities will not only be able to avoid risks but will also be better able to facilitate the smoother flow of goods across borders. The ICC guidelines are intended to contribute to greater prosperity, economic growth and inter- national security in line with the ICC’s overall mission to promote international trade and investment.
The new ICC guidelines have been developed to complement its Customs Guidelines, a comprehensive set of practices that the ICC has established should characterise all modern customs administrations.
China Joins Certificates of Origin Chain
On May 29, the ICC announced that the People’s Republic of China had become the latest country to join its World Chambers Federation (WCF) International Certificates of Origin (CO) Accreditation Chain. China’s membership will strengthen the committee’s work to promote the role of chambers in the delivery of trade facilitation services, especially to small- and medium-sized businesses.
The China Council for the Promotion of International Trade officially joined the ICC WCF International CO Chain on May 16, in Kunshan, during the 2013 China International Import Expo.
The CO Chain was launched in early 2012 as a means of strengthening the global integrity and trust of the CO network and reinforces the status of chambers as a competent, trusted third party with neutrality in the delivery of COs based on internationally accep- ted best practices. It also seeks to give greater international credibility to the COs issued.
Travellers – A Sars Reminder
One of the questions this writer is most frequently asked relates to personal travel and the goods permissible for importation into, or exportation out of, South Africa. The recent update by South African Revenue Service (Sars) of the Travellers section of its website is timely and serves as a gentle reminder for all travellers.
The Sars customs division is responsible for protecting South African borders so that authorised travellers and legitimate goods can pass freely. Sars does this by using world-class risk management technology and customs checks carried out by its officers at sea and land ports of entry as well as at airports.
Sars advises that, if you are planning to travel into or out of South Africa, there are rules about the goods you can bring with you. There are heavy penalties for smuggling, so:
- Never carry anything into South Africa for someone else.
- Never bring prohibited goods into South Africa. These are narcotic and psychotropic substances and habit-forming drugs in any form and any paraphernalia relating to the aforementioned; fully automatic military and unnumbered weapons, explosives and fireworks and weapons of mass destruction; poison and other toxic substances; cigarettes with a mass of more than 2 kg per 1 000; goods to which a trade description or trademark is applied in contravention of any Act (for example, counterfeit goods); unlawful reproductions of any works subject to copyright; and prison-made and penitentiary-made goods.
- If you are driving, make sure everyone travelling with you knows what goods are prohibited or restricted – if you smuggle goods into South Africa in a car, Sars may seize the car.
- If you are in doubt, speak to an officer in the red channel.
Laminates Customs Duty Reduction
Comment is due by June 28 in respect of the proposed reduction in the rate of customs duty on laminates of phenolic resins with a basis of paper, classifiable in tariff subheading 3921.90.05, for 10% ad valorem to free of customs duty, by the creation of a new eight-digit tariff subheading under 3921.90 for ‘laminates of phenolic resins with a basis of paper, thermosetting’.
Screws, Bolts and Nuts
Comment is due on June 28 in respect of the proposed increase in the rate of customs duty on certain screws, bolts and nuts classifiable under tariff subheadings 7318.15.39, 7318.15.43 and 7318.16.80 from the existing 10% ad valorem to the 30% ad valorem bound rate.
Dust Masks Customs Duty Rebate
Comment is due by June 28 in respect of the proposed rebate of the customs duty on:
- polyurethane flat shapes with dimensions not exceeding 50 mm x 10 mm, self-adhesive on one side only, in rolls of a width not exceeding 20 cm, classifiable under tariff subheading 3919.10.07, for the manufacture of dust masks;
- silicone elastomeric straps with a length not exceeding 315 mm and with a width not exceeding 7 mm, classifiable under tariff subheading 3926.90.90, for the manufacture of dust masks;
- natural rubber straps with a length not exceed- ing 315 mm with a width not exceeding 7 mm, classifiable under tariff subheading 4016.99.90, for the manufacture of dust masks;
- and inner and outer shells of nonwoven material, classifiable under tariff subheading 6307.90.10, for the manufacture of dust masks.