The current legislative framework governing South Africa’s customs and excise is the Customs and Excise Act 91 of 1964. This Act is over 50 years old, and will be replaced by a new customs legislation in the 3rd or 4th quarter of 2017.

The current customs legislation is to be replaced by the following three New Acts:

  • Customs Control Act, 31 of 2014, that establishes a customs control system for all goods imported into or exported from the Republic and that prescribes the operational aspects of the system;
  • Customs Duty Act 30 of 2014, that provides for the imposition, assessment and collection of customs duties; and
  • Excise Duty Act, 1964 (i.e. the Customs and Excise Act, 1964, as amended by the Customs and Excise Amendment Act, 32 of 2014) that provides for the imposition, assessment and collection of excise duties and related levies. This Act will be rewritten in the second phase of the project.

Implications of the new legislation

There are several issues that become relevant with the implementation of the new Acts:

Re-registration of all existing Customs registrations and licenses issued under the current legislation.  All applications for registration/licensing to be submitted to SARS within 30 days of the Customs Control Act effective date

Increased focus on Customs compliance Emphasis on self-assessment of Customs compliance

Advance rulings The new legislation assists importers and exporters with the ability to secure advance rulings on tariff and valuation issues

Voluntary disclosure Provision is made for codified voluntary disclosure processes

General Clearance and release processes: Timing of certain clearance procedures will change

Treatment of Movements within SACU: Movement of product between SACU member states will now be treated as imports and exports between the individual states

Reporting requirements:  Additional reporting requirements and changes in data retention management

Improved and tested knowledge: SARS will be implementing exams for representatives of companies that wish to register as importers or exporters that will have to be passed by representatives before new registrations will be issued

Important change-over processes: The change-over from the current legislation to the new legislative framework requires a complete understanding of how your company interfaces with SARS Customs to ensure no operational disruptions

Are you ready for these new Acts?

XA will do a mapping of your customs operations and assist you in getting ready for the implementation date.

Contact us on:  012 665 1721 or minize@xa.co.za