New Customs Act Programme

1. New Customs Act Programme A Secure Business Environment for Economic Development

2. A Secure Business Environment for Economic Development Introduction How SARS Customs through NCAP will: Enable the environment for business to thrive; Make the business environment safer; and Make the business environment fair and sustainable Modern Customs should not only collect revenue but must also play two other critical national roles: expediting cross-border trade to promote economic development and preventing international trafficking in illicit goods.

3. A Secure Business Environment for Economic Development “ By “secure,” we mean an environment that is enabling, safe, fair and sustainable, all wrapped into one. Such an environment will help businesses, especially micro, small and medium-sized enterprises (MSMEs), to expand their activities and create incentives for them to participate more fully in international trade, as well as encourage them to innovate, generate employment and invest in human resources, thereby boosting economic growth and raising living standards. .” KunioMikuriya – Secretary-General: World Customs Organisation New Customs Acts Programme - Context “As part of our wider mandate SARS plays an important role in expediting legitimate cross border trade and travel activities while disrupting harmful illicit trade activities. We have sought to improve our efficiencies and reinforce our risk management capabilities .” Commissioner Tom Moyane: South African Revenue Service The New Customs Acts and the implementation thereof, provides trade with a predictable, automated and trade facilitative value proposition, by introducing an efficient and transparent control environment benefiting legitimate trade and applying stringent enforcement regimes for the non compliant .

4. New Customs Acts Programme • Allow for Duty Paid and Duty Free goods to be stored in same bonded facilities • New declaration types supporting extraordinary trade requirements • An exemption in the processing chapters from licensing for SMME’s where subcontracting is below a certain threshold. POLICY ENABLING ENVIRONMENT PROCESS • Automated workflow allowing full audit trails and providing improved turnaround times, governance, and trader interfaces • Policies, procedures and processes aligned to international instruments e.g. WCO Revised Kyoto Convention, WTO Agreement on Trade Facilitation, etc. SYSTEMS • Automated Licensing & Registrations Systems with trader interfaces providing for online application and relationship management • Automated integration of supply chain data providing for end-to-end control, improved risk targeting and AEO properties for cross border mutual recognition. • Full automation of all declaration types including enhanced Customs Procedures and increased messaging, providing flexible service offerings to trade and faster turnaround times • CSK that will enhance the level of customs knowledge within industry to make sure clients get value for money from service providers • Focus resources on value-add activities through the automation of mundane manual processes • Training of SARS staff that will ensure that service delivery is not given lip service • Travellers : streamlined processes making tourism attractive to SA in turn making the industry flourish PEOPLE The Acts support the National Development Plan to promote exports, and business competitiveness, and stimulating domestically orientated activity and supporting SMME’s.

5. New Customs Acts Programme • Securing of supply chain through registration and licensing of all players in movement of goods • Reporting of cargo before loading in the country of export • Enforcement functions of Chapter 33 enhances the safe movement of goods POLICY SAFE ENVIRONMENT PROCESS • Integration of taxpayer, trader and traveller data across SARS products with improved risk management and vetting • Command Centre exception management-, workflow- and inspection processes with tailor-made operational responses • Safety & Security specific risk targeting and inspection workflows SYSTEMS • Development of Single Window properties to provide integrated processes with trade, OGA’s, other regulating bodies and foreign Customs administrations • End-to-end supply chain management capabilities with track & trace, seal integrity management, gate control and transit management properties • Automation of entity management to enable full control over the trader base and supply chain entities • Focus resources on value-add activities through the automation of mundane manual processes • Automation reduces the margin for error caused by human intervention • The introduction of risk management for enforcement activities will result in improved accuracy in detection for enforcement resources • Specialised skills for safety and security interventions PEOPLE The greatest challenge for Customs will be to offer facilitated treatment of the vast majority of international cargo movements and passenger traffic, while identifying and dealing with the small percentage that pose a genuine risk to security. WCO Customs Guidelines on Integrated Supply Chain Management

6. New Customs Acts Programme • Predictability enhanced with introduction of advance rulings • Provisions of PAJA to ensure every individual’s rights are protected • Interest payable to client whose refund is not paid within 21 days POLICY FAIR & SUSTAINABLE ENVIRONMENT PROCESS • Non intrusive inspection capabilities to reduce cost • End-to-end workflow with time stamps and full auditability • Clear dispute resolution mechanism is mapped out for speedy resolution of disputes SYSTEMS • Two-step declaration capability providing data as it becomes available without punitive measures • Re-usability of data previously submitted resulting in a improved trader experience and faster turnaround times • Level playing fields through the matching of supply chain and declaration data benefiting compliant traders • Investment in Training, coaching and mentoring for ongoing sustainability • Dispute resolution provides trade with fair engagement on interpretive matters as well as provide staff the ability to learn from cases • Management accountability and control PEOPLE The development of Customs-Business partnerships through a formal mechanism of regular consultation and engagement will support consistency, harmonization, transparency, predictability, fairness, automation and efficiency in customs and business processes. WCO Customs-Business Partnership Guidance

7. New Customs Acts Programme The Journey • RLA Release 1 - Feb • Online Application • DPS Tactical Release 2– May • Simplified Clearance • RCG Release 2B – Nov • Automated Case Workflow • RLA Release 2 - Nov • Automated workflow • DPS Tactical Release 3 - Oct • Enhance Regular Clearance • Special clearances • Immediate Release 2018 2019 2020 • RCG Release 3 – Feb • DPS interface • Transhipment Release • Container Release • BFE Manual Manifest Capturing for Road modality • DPS Tactical Release 4 - Oct • Regular Periodic Clearance • CTC’s • RCG Release 1 – Mar • Receipt and processing of cargo and outturn reports • Notification to Depots • Transhipment Management • Goods Accounting • Fiscal • Safety and Security • Manifest view • RCG Release 2A – Sep • Interface with RLA • Rail Goods Accounting • Part-shipment Administration • DPS Tactical Release 1 – Nov • 2 Step Process 2021 • RLA Release 4- Dec 2023 • Excise Registration • Casual importer Registration • Automated letters • Permission & Approvals • NCAP Releases 2022 - 2025 • DPS - 2025 • Enhance clearance types • Creation of messages 2022 - 2025 • RCG Release 4 – June • Advance crew and Traveller report. • Bus Reports • Notifications and permission • RLA Release 3- Nov • Full Automated workflow • Renewal Process • Relationship Management

8. New Customs Acts Programme Achieving A Secure Business Environment For Economic Development Through Implementation of CCA and CDA NCAP Customs have migrated from the traditional role of gatekeeper…. It is evolving to be that of an economic participant, enabling international market access for local trade and flexible trade regimes for importers and investors alike, whilst maintaining strong socio-economic protective controls. NCAP is geared to provide the secure business environment in which economic development could flourish…