2012
This is a working document, subject to update and clarification, to facilitate a common view and understanding of developments and changes occurring as part of the Customs Modernisation Programme. / Roadmap for external stakeholders
Table of Contents
Information for Stakeholders 3
1. Customs Modernisation – Release 3 (Kopfontein implementation) 4
2. Supplementary Components for Release 3 9
3. New Tariff Management System (TMS) 10
ANNEX A – Customs Status Codes (Code List 14) 11
ANNEX B – Glossary 13
Customs Modernisation Implementation Landscape
Information for Stakeholders
To provide Customs stakeholders insight for planning and migration activities concerning SARS Customs’ planned Modernisation implementations. This document should be considered a ‘living document’ subject to update and elaboration as required.
1. Customs Modernisation – Release 3 (Kopfontein implementation)
Expected date for Trader TestingExpected date for Implementation / 10 February 2012
Abstract / Brief Description
To introduce the new Service Manager front end capability for internal Customs users and to enable electronic supporting document functionality in the cross-border SACU environment. Simultaneously, a new cargo automation solution will be piloted for road freight. Road cargo carriers are in the process of registering for electronic cargo reporting and EDI communication with SARS.
Detail / Scope Description and Impact
1. Customs Clearance at Kopfontein - Commercial and Simplified Processing
· Kopfontein rollout takes the modernisation programme a step further with the migration of cross border commercial clearance processing from the current CCA system to the mainstream CAPE and Export systems.
· The CCA system will be switched off simultaneously with implementation at Kopfontein. All other Customs SACU border posts will continue to operate the CCA system until rollout of CAPE/Export systems at these border posts occurs.
· Clearance of commercial goods for import into South Africa will require a full clearance under the following conditions –
– Where the trader is a non-South African, such entity must register as an Importer. In addition, this registration is subject to a relationship between the foreign entity and a local “Agent” who will assume full liability of the foreign entity. This party will likewise have to register as an Agent which will be a new client type on RAS. It is understood that a local clearing agent may in the interim performs this role. Only a South African licensed clearing agent can affect clearance and release of goods.[1]
– Where the trader is a South African entity with an established place of business in the RSA and is registered as an Importer/Exporter with Customs, full customs clearance can be accomplished by utilising the services of a licensed South African customs clearing agent.
NOTES:
· Pending amendments to the Customs Rules, Rebate Item 407.02 and Schedule 1 of the VAT Act will provide the basis for the above.
· Pending amendment to the Customs Rules concerning security policy which amends the requirement for clearing agents to furnish the R 10 000 bonds per branch office allowing them to conduct business at any branch office and not only the ones for which a bond was furnished.
· In regard to (b) above, discretion will be applied in so far as what constitutes ‘commercial goods’ as this can not merely be based on value.
Payment requirements
· Declarants should not supply the current CCA deferment number in the ‘Deferment Number/Financial Account Number’ field as the declarent’s customs Code number will be used to determine the deferment account, i.e. this is in line with the current CAPE process.
· All payments will be accommodated on the CAPE cash desk. The implication of this is that all payments must be done at Kopfontein.
2. Declaration Form and Clearance requirements
Manual capture of customs import and export declarations will be permissible. A stipulation, however, is that the trader present the SAD500 declaration for capture at Kopfontein Some key criteria needs to be noted in this regard:
· Manual capturing – will only occur for paper clearances at Kopfontein.
· Manual clearance limitations – a declaration may not exceed 10 line items. Only 10 import/export declarations per trader will be allowed per month.
NOTE:
In consideration of the limitations indicated above, traders who prepare manual clearances prior to arrival at Kopfontein should continue to do so in the SAD500 format. When presenting themselves at Kopfontein, they will present the declaration to the Customs official for capture on the Customs system.
· CN-1 Customs Status Notification – to be printed by the Customs Legacy system for all clearances at Kopfontein (EDI or manual). The CN1 indicates the customs status for a given transaction. Together with the CN2 it is only required for presentation to an officer at the exit gate to permit transport of the goods to the other side of the border.
· CN-2 Summary Declaration – On arrival at the border post (entrance gate), the haulier’s road manifest containing a list of all the LRN’s must be presented to customs. It must contain a summary of all the consignments LRN’s on the truck:
– The road manifest number will be captured onto the customs system allowing the customs officer to view the status of all the declarations associated with the road manifest.
– Upon arrival, the latest CUSRES status will be forwarded to the declarant.
– Only once all the relevant consignments have been “released” or “conditionally released”, a CN2 will be printed by Customs and the driver may proceed to the exit gate. The CN2 will be used as the gate-pass to exit the border post.
– In cases where relevant declarations are ‘stopped’ the driver will proceed into the control area for further processing. Once fully processed and all the statuses have been updated to reflect “released” or “conditionally released”, the CN2 will be printed at the control area permitting the driver to proceed to the exit gate.
3. Declaration Changes contemplated for Kopfontein.
Note: No changes to the CUSDEC DMG are anticipated at this stage.
· “Document/message name, coded” (routing code) on the BGM for Kopfontein clearances must now reflect “929” and 830” for imports and export respectively.
BGM / BEGINNING OF MESSAGE / M
C002 / DOCUMENT/MESSAGE NAME / C
1001 / Document/message name, coded / C / an..3 / 929 = Import
930 = Import - Cross Border
830 = Export
831 = Export - Cross Border
General
· Cross Border declaration data requirements will follow that of International Imports and Export clearances – as indicated in the CUSDEC DMG.
· Declarants entering goods destined for SACU countries must enter the code of the customs office from which the goods are exiting the Republic in the “Office of Entry” data field. In this implementation it will be “KFN”.
4. How are Customs Status Codes affected by the new systems at Kopfontein?
· Declarants will receive CUSRES Status Notifications according to Code List 14.
· CUSRES message sequence will be the same as for international imports and exports, except CUSRES Status 8 (Proceed to Border), which will in all instances, precede the following statuses:
1 / Release
2 / Stop/Detain
3 / Conditional Release
4 / Detain Other (OGA)
5 / Conditional release - Detain Other (OGA)
· Customs “commercial” clearance processing for Kopfontein will only permit clearances for the under-mentioned BLNS CPCs –
– A12-00 [IM4]
– B22-00 [IM8]
– D37-00 [IM5]
– D38-37 [EX3]
– H61-00 [EX1]
– H66-12 [EX3]
– I76-00 [EX2]
– I78-76 [IM6]
Note: Export clearances IG (imported Goods)/LG (local Goods) can be consolidated on a single declaration, until further notice.
· In addition to the above, declarations with the following CPC codes may, at one time or another, arrive at a SACU border post. Such LRN must appear on the road manifest. The format of the manifest must differentiate between CCA and international movements. In other words if a vehicle comprises a mix of cross border and international cargo, the LRNs should be grouped under separate headings specifying local and international goods.
– A10-00/20 [OL]
– B20-00 [RIB]
– B21-00 [RIT]
– E42-37 [WE]
– E43-40/41/42/44 [XIB]
– E45-00/46/47 [ZIB]
– H60-00 [Export]
5. Electronic Supporting Documents
· Traders involved in cross border trade will now be able to transmit supporting documents electronically in the event they are required to do so. A status 13 message initiates the process upon which the declarant scans and appends such documents to a Customs Case No. and transmits to SARS using the E@syScan facility.
NOTE: Where a trader does not have access to the Easy@scan facility, he/she may present the documents to one of the four regional hubs for scanning, or bring the document to Kopfontein branch office where the case will be processed manually.
6. Registration and Trader Validation
· SACU brokers/importers operating deferment accounts in South Africa are to be terminated on the Customs RAS system. This will occur according to BLNS country. Therefore, since Botswana is the first country affected by this change, all existing Botswana deferment account holders will be terminated for the Kopfontein implementation. As the remaining SACU countries become affected, SARS will notify accordingly.
· SACU importers, exporters and road hauliers will be registered as “foreign” entities on the Customs RAS system. Consideration is given to convert the current SACU clients (importer, exporter & haulier) to foreign clients but to only activate a client after the nomination of an agent, signed by both parties and received by SARS.
· All “foreign” registrants (importers, exporters, road hauliers) must establish a business relationship with a South African ‘agent’ who will be fully liable and responsible to SARS for the acts of such foreign entity.
– Such agent will constitute a new client type the conditions of which will include registration as an ‘agent for a foreign entity’ and the furnishing of surety as determined by SARS.
– Subject to confirmation, a South African licensed clearing agent (now referred to as a Customs Broker) will be permitted to apply for registration as an ‘agent representing a foreign registrant’. In such instance the broker’s customs code (TIN) will appear twice on the declaration.
· For the interim, the new ‘agent’s customs code number will be carried in the Additional Information field on line 1, as follows:
– When inserting an ‘Agent representing a foreign Importer or Exporter’, the code ‘AFT’ as well as the associated customs code number must be inserted under Additional information (SAD500 Box 44).
– When inserting an ‘Agent representing a foreign Haulier’, the code ‘AFH’ as well as the associated customs code number must be inserted under Additional information (SAD500 Box 44)[2].
· SACU warehouses and rebate users registered with SARS will still remain active on the Customs RAS system to facilitate declaration validations, until further notice. It must, however, be noted that these entities will likewise be terminated in the future and no new registrations will be permitted.
7. What will be the impact on the implementation of the ACM road carrier process?
· Cargo reports may only be submitted electronically to the SARS Automated Cargo Management (ACM) system by means of Electronic Data Interchange (EDI) in the prescribed UN/EDIFACT message standard.
· For the initial phase there will be no real-time matching and acquittal between goods declaration and road manifests. In other words ACM will have no bearing on release of goods and conveyances for implementation at Kopfontein.
· Specification of the required structure of the “Transport Document Number” in respect road cargo:
– Transporter code assigned by SARS (AN8)
– Date of movement / intended movement across border (CCYYMMDD) (N8)
– Master Transport Document Number (AN19)
· ACM manifest reporting requirements have been mapped into the UN/EDIFACT Customs Cargo Report “CUSCAR”. Refer to the Data Mapping Guideavailable on the ACM webpage - http://www.sars.gov.za/home.asp?pid=558 for all information relating to cargo reporting.
1.
2. Supplementary Components for Release 3
Expected date for Trader TestingExpected date for Implementation
Abstract / Brief Description
To introduce a new Passenger Processing system; a new declaration capture frontend; and a New Cash Desk for customs payments.
Detail / Scope Description and Impact
1. New Passenger Processing System
The new Passenger Processing System (PPS) will be introduced. Customs clearance for imported goods accompanying travellers will occur on a simplified basis, with the payment of VAT on transactions exceeding R5000 in value. Travellers exiting the country should be allowed to export goods of a nature usually used in a household to a combined value not exceeding R5000. These goods must be declared at the port of exit and proof of such declaration must be furnished to the traveller. The proof of declaration must be furnished to the entity responsible for VAT refunds.
2. New Declaration Capture frontend (CD1)
Face-2-face declaration via the commercial clearance channel with a customs official at the SARS front desk, where the customs official will capture the clearance to which the importer must attest.
3. New Cash Desk for Customs Payments
Customs revenue accounting for Kopfontein will be administered on the new customs cash desk for “financial clients” (i.e. cash payments, deferment, road and consignor bonds, refund claims).
3. New Tariff Management System (TMS)
Expected date for Trader TestingExpected date for Implementation
Abstract / Brief Description
To introduce the new Tariff Management System.
Detail / Scope Description and Impact
4. Replacement of current legacy loose leaf tariff system with the New Tariff Management System (TMS) system
i. Check digits will be retained until further notice.
5. Introduction of new PRODAT XML schema. Current EDIFACT PRODAT still available.
i. Will commence with the distribution of a full tariff master to enable service providers to load for testing purposes.
ii. Will follow with regular tariff updates.
6. Please note that the UN/EDIFACT PRODAT will be in exactly the same format as it is currently, i.e. none of the new fields introduced into the PRODAT XML (XSD) will be available.