1. Customs Control Bill B45-2013 Submission by Business Unity South Africa January 2014

2. Business Unity South Africa Confederation of business organisations including Chambers of Commerce and Industry.Confederation of business organisations including Chambers of Commerce and Industry. Official voice of business in South AfricaOfficial voice of business in South Africa Represent RSA businesses on macro economic issues at national and international levels.Represent RSA businesses on macro economic issues at national and international levels. Main aim is to ensure that business plays a constructive role in the country’s economic growth, development and transformation.Main aim is to ensure that business plays a constructive role in the country’s economic growth, development and transformation. Support an environment in which businesses of all sizes and in all sectors can thrive, expand and be more competitive.Support an environment in which businesses of all sizes and in all sectors can thrive, expand and be more competitive.

3. Overarching position Bill as drafted results in a radical policy shiftBill as drafted results in a radical policy shift ›Ports like City Deep currently designated as inland ports for customs purposes will no longer be so designated Customs fraud and illicit trade apparently the basis for this shift. BUSA agrees this scourge must be addressedCustoms fraud and illicit trade apparently the basis for this shift. BUSA agrees this scourge must be addressed BUSA does not believe that proposed policy shift is only solution to the problemBUSA does not believe that proposed policy shift is only solution to the problem Cannot risk an intervention which will have a negative impact on tradeCannot risk an intervention which will have a negative impact on trade

4. Trends in economic activity

5. Trade trends (the dti, 2011)

6. Engagement with SARS Extensive engagement with SARS is recognisedExtensive engagement with SARS is recognised Unable to reach common ground on this one issueUnable to reach common ground on this one issue Recognises the attempt by SARS to provide alternative to address concernsRecognises the attempt by SARS to provide alternative to address concerns However they are not sufficient to alleviate the concernsHowever they are not sufficient to alleviate the concerns

7. Current RSA situation Goods are only consigned by the exporter to a specific port, which may be inland Goods are only consigned by the exporter to a specific port, which may be inland ›Goods transferred directly from ship to train and transported to inland port where customs procedures are carried out No intervention by importer until port of customs clearanceNo intervention by importer until port of customs clearance New approach will require intervention by importer at first port of entryNew approach will require intervention by importer at first port of entry Special Economic Zone legislation provides for licensed customs controlled areas within the SEZ (s29)Special Economic Zone legislation provides for licensed customs controlled areas within the SEZ (s29)

8. World Trade Organisation WTO agreement on trade facilitation, Ministerial Decision 7 December 2013WTO agreement on trade facilitation, Ministerial Decision 7 December 2013 “Article 9: Movement of goods under customs control intended for import Each Member shall, to the extent practicable, and provided all regulatory requirements are met, allow goods intended for import to be moved within its territory under customs control from a customs office of entry to another customs office in its territory from where the goods would be released or cleared.”

9. USA Customs port where entry documents are filed may not be the place where goods physically entered the US Customs port where entry documents are filed may not be the place where goods physically entered the US Port of entry for an inbound shipment is where shipment is cleared by Customs not port of physical crossingPort of entry for an inbound shipment is where shipment is cleared by Customs not port of physical crossing

10. Proposal (1) Provisions of Section 18 of the current Customs and Excise Act allowing for carriers to deliver containers to inland destination should be retained.Provisions of Section 18 of the current Customs and Excise Act allowing for carriers to deliver containers to inland destination should be retained. Include provision for the Commissioner to prescribe the information the manifest must contain by RuleInclude provision for the Commissioner to prescribe the information the manifest must contain by Rule

11. Proposal (2) Make provision for a definition of an Inland Port as a recognised place of entry or exit along the following lines: “Inland Port” means – a ‘dry port’ or terminal located in the hinterland serving as dry port for customs examination and clearance of containerised cargo.

12. Proposal (3) “Designation of places of entry and exit 31. (1) The Commissioner must for the proper exercise of customs control, and consistent with any applicable Acts of Parliament and decisions of the national executive, by rule designate any number of— Insert additional provision along the following lines (f) Inland Ports as places where customs procedures may be carried out

13. Proposal (4) “Purposes for which places of entry and exit may be used Insert additional provision along the following lines 32. (5) (g) if the goods were imported on board a foreign- going vessel, within three working days of arrival of the goods at the Inland Port where the goods are to be off- loaded from the vessel;

14. Proposal (5) 90. When clearance declarations for goods imported through places of entry must be Submitted Insert additional provision along the following lines ( g) if the goods were imported on board a foreign-going vessel, within three working days of arrival of the goods at the Inland Port where the goods are to be off-loaded from the vessel;

15. Conclusions BUSA believes that the risks of the radical policy shift of no longer allowing customs clearance at inland ports are so high that further efforts should be made to understand the implications before proceeding with the BillBUSA believes that the risks of the radical policy shift of no longer allowing customs clearance at inland ports are so high that further efforts should be made to understand the implications before proceeding with the Bill BUSA therefore urges the Committee not to approve the Bill unless this matter is addressedBUSA therefore urges the Committee not to approve the Bill unless this matter is addressed

16. Thank you