12 Oct 2017

Customs Update - Reporting of Conveyances and Goods

by Taryn Hunkin, Partner, Durban, Quintus van der Merwe, Partner, Durban,

As has been widely publicized, licensing and registration is no longer going to be introduced as the first phase of implementation of the new Customs Legislation.

SARS has announced that it intends to proceed in the first instance with the Reporting of Conveyances and Goods (“RCG”).

It is important for customs clients to note the following:

  1. SARS intends going live with the RCG phase in March 2018;
  2. SARS is upgrading to a new and later version of the EDI system;
  3. Road Haulage is likely to be the least impacted.  However carriers by sea and air need to urgently make sure that their systems are line with those of SARS to ensure their reporting obligations when the first phase / RCG / is implemented.
  4. RCG affects all parties in the supply chain including Freight Forwarders and Customs Brokers.
  5. SARS envisages industry being allowed to test their systems during February 2018 and it is imperative that role players get the necessary systems in place now to ensure that they are able to test compliance as soon as possible.
  6. Although RCG is to be implemented from March 2018, at this stage SARS envisages a two month grace period whereafter they will begin to enforce the new legislation in respect of RCG.

While it is hoped that SARS will extend the periods, there is no guarantee at this stage and it is imperative that you ensure that your house is in order.  You also need to be certain that your service providers are ready, as this could affect your operations. When in doubt you need to engage with SARS to ensure compliance.