Solution in the pipeline for clearance at first port of entry condundrum

A workable concept
designed to solve the
problems around
clearance at first port
of entry – one of the major areas of
concern in the new Customs Act – is
currently on the planning boards.
Industry has raised concerns
about the ruling which they believe
will sound the death knell for the
likes of City Deep – and further
down the line the Tambo Springs
development – because all cargo
would now be cleared at the port of
entry, most likely Durban.
Customs however points out that
based on current stats, more than
80% of all cargo is cleared prior
to arrival at Durban port. “So we
believe we are in a good position
to implement clearance at the first
port of entry,” executive, Customs
& Excise Centre of Excellence,
Beyers Theron, told delegates at an
FTW/JCCI business breakfast in
Johannesburg recently.
Under the New Customs Act
Programme (NCAP), we are working
on the technological and process
features that we have to build to give
effect to the new Customs Control
Act – looking at how we can make
things that have been legislated work
in practice.
“We have been formulating a
solution which has not been finalised
as yet. When we reach a point where
we are ready to engage with
you, we will engage trade
through our co-creation
model and unravel where the
pitfalls in the process may be.”
The concept as it stands is that
all goods arriving at Durban will be
categorised at three levels – medium
risk, low risk and high risk.
“We have trade programmes like
the Authorised Economic Operator
(AEO) and Preferred Trader (PT)
that will be implemented soon and
we want to give preference to those
operators to fast-track their cargo
to City Deep or
Tambo Springs.”
The problem
however arises
when there
is a high-risk
consignment
and we want to
formalise in our
processes
the right to intervene at first port of
landing.
“If you think of our land borders
and road freight shipments, a similar
concept could be used for City Deep
and for Tambo Springs in that in
Durban we reserve the right to
intervene on high-risk consignments
– and tell you to proceed to a depot
of your choice in Durban. The rest
will go straight to City Deep with a
“Proceed to Port” message.
“We haven’t formalised any form of
design so I’m giving you the concept
of what we believe can be used in
terms of addressing the problem of
clearance at first port of entry as it is
perceived at this point in time.”
We will engage with the applicable
trade stakeholders and look to pilot
this envisaged solution well before
the implementation of the new
Acts to ensure we minimise any
potential impact on legitimate
trade,” chief officer Customs
and Excise, Jed Michaletos,
emphasised.
INSERT & CAPTION
We have been
formulating
a solution which
has not been
finalised.
– Beyers Theron