Customs and Excise Roadshow July August 2017 1 Presentation - - PowerPoint PPT Presentation
Customs and Excise Roadshow July August 2017 1 Presentation Structure 1. Legal Context 2. NCAP Contextualisation 3. Registration, Licensing & Accreditation (RLA) 4. Reporting of Conveyances and Goods (RCG) 5. Declaration Processing
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July – August 2017
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to 2014)
provisions of excise.
The Customs Tariff CDA and the Excise Tariff (which includes RAF and environmental levies )Excise Duty Act
CDA
exceptions:
Acts from “day one”
not yet exited the space as at effective date
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– Goods whose entry was done under 1964; – In bound travellers and crew who arrived in the Republic before the effective date together with their baggage ; – International postal articles to which 1964 Act continues to apply ito s943
– “enter” for purposes of 1964 Act means the submission to the Commissioner of the declaration for ie:
legislation is applicable, such goods will be governed by new legislation
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These also include detained or seized . Also transport goods such as containers that are not required to be entered
– Puts a limit to the application of 1964 Act after effective date: – When the same goods must now be entered for another procedure, then such secondary entry will be governed by the new legislation – Guide has clear and detailed 5 categories
– If there is a corresponding measure in the new legislation , then a measure issued under the 1964 Act will continue to apply after the effective date. If not then such a measure will come to an end on effective date. An example of this might be the “concessions”. There is no provisions for these in the new legislation – Section 931 and 939 will prevail over section 928 where some of the measures require more than just a “continuation”
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– Will lapse 30 days after effective date unless before the end of 30 days the holder applies for a new registration. If application is received within 30 days, the 1964 registration will continue as “measure” as per 928 till SARS finalises the application – For Excise, the current registration will continue unless withdrawn by EDA
– Will lapse 30 days after effective date unless before the end of 30 days the holder applies for a new licence. If application is received within 30 days, the 1964 licence will continue as “measure” as per 928 till SARS finalises the application – For Excise, the current licences will continue unless withdrawn by EDA
– 1st level accreditation lapses and a fresh application will be necessary – 2nd and 3rd level accreditation will continue as a “measure” under 928 but will move one level down – For Excise, the accreditations will continue as a measure till withdrawn or terminated by the EDA
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– Deferment of customs duty not a measure under 928will expire on effective date (mitigation: holders to be given an opportunity to apply and application dealt with for this benefit under CDA before the effective date) – Deferment of any other tax is a measure and will continue after the effective date in terms of s928
– These approvals for customs protection against counterfeit goods will continue as a measure under s928 provided the right-holder has paid the prescribed fee within 30 days from the effective date
– The continued availability of this security doesn’t stop Commissioner from asking additional ito CCA – Legal proceedings to continue and be finalised ito 1964. Read with s12 of Interpretation Act – Investigations on-going will continue after effective date
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SARS Webpage SARS Webpage SARS Webpage SARS Webpage SARS Webpage CCA CDA CCA Rules New Legislation overview available on the Understanding the Transitional Provisions
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50 years of operation in a radically changing global trade and security landscape Next 50 years and beyond … a robust framework for adaptation to changing needs
…this informs SARS’ approach to NCAP
templates such as letters and forms and terms of reference.
transactional and post clearance compliance.
Pre-engagement Post Clearance Economic Activity Economic Activity Pre-arrival
Exporter Bank
Freight Forwarder
Temp. Storage Export Port/ Airport Carrier Port/ Airport Temp. Storage
Freight Forwarder
Storage/ Mnfr. Importer Bank
NCAP Requirements in relation to SARS Value Chain and Priority Heat Map
Register
2 - Designation 28 - Registration 29 – Licensing 30 - Accreditation
Declare/File
3 – Cargo Reporting (MPR) 4 – Clearance & Release 7 – Clearance & Procedures 8 – Home Use 9 to 20 – Customs Procedures 21 – Traveller processing 22 – International Post 24 – Expedited Release 27 – State Warehouse 31 – Security (Part) 35 – P&R
Pay
6 - Tax Status 31 – Security (Part) 32 – Recovery of Debt
Inspect/Audit
5 – Sealing & Loading 23 - Sampling 25 – Damaged/Destroyed 26 - Abandonment 33 – General Enforcement functions 34 – Detention & Seizure 36 – Counterfeit Goods 39 - Penalties
Dispute
37 – Dispute Resolution 38 - Voluntary Disclosure 40 – Judicial Matters
1 2 3 4 5 SARS Value Chain
Customs Risk Engine (CRE) Case Selection and Tracking Engine (CSE)
Interfront RLA
− Customs-2-Business − Customs-2- Government − Customs-2-Customs
Supply Chain Management:
Declaration Processing:
Release
B-2-Bi
Interfront MPR Interfront DPR
SAP
Interfront Traveller
Interfront GUi User Frontend
Interfront Risk Management
Good Accounting & Reporting:
Interfront Accounting & Reporting
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for certain Customs clients to undertake the “Customs Sufficient Knowledge test”.
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Trader (Employer)
Register for CSK via eFiling Nominate Employees View results
Register for CSK via eFiling Book/ Amend/ Cancel test date Notification on test details
View results
External Trader’s Employee SARS Venue
Invidulator
Authenticate Employee Open session Employee Perform test Close session
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Customs Sufficient Knowledge database
Trade Implementation:
Agent: Importer (non-local) will write a test specifically focused on the chapters applicable to the client type.
been achieved.
all other client types required to write the test.
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Customs Sufficient Knowledge
Booking Authorisation & Examination Legislation & Rule Updates
be updated with rule/legislative amendments and Customs business requirements
RLA, RCG, DPS etc.
Function Usage
The new Registration, Licensing and Accreditation (RLA) capability aims to deliver the following:
required to apply for registration, licensing, approval or accreditation in terms of the Customs Control Act No 31 of 2014, Customs Duty Act No 30 of 2014 and the Excise Duty Act No 91 of 1964.
internally by SARS. This prevents the need for an entity to re-submit all known entity information per application made;
validated and vetted data.
the single, centralised electronic and manual application processing system.
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Functionality offering :
intervention by SARS (in most cases no intervention by SARS is required)
Process New Disclosure Access RMM Dashboard Select and validate nominators details Select and cancel existing relationship Capture and validate nominee’s details Cancel Existing Disclosure
YES
Predefined Processes Channels
Branch Front end
LER Authentication RLA Dashboard for Customs, Excise and APT Product
e- Filing SM
Action Nomination received New RMM disclosure processed Nomination accepted? Accepted disclosure processed Rejected disclosure processed
NO
Cancelled disclosure processed Communications sent to Nominator/ Nominee Customs code, client type, sub-number, FAN number Customs code, client type, sub-number, FAN number Customs code, client type, sub-number, FAN number Customs code, client type, sub-number, FAN number Dashboard Letter, email, SMS Dashboard Letter, email, SMS
Registration, Licensing and Accreditation (RLA) focuses on chapters 12, 17, 28 – 30 and 41 of the Customs Control Act. RLA has been developed against the 2014 Customs Control Act and the first 2014 Rules and is 70% complete. The 2016 “Frozen” rule changes has been analysed and amounts to 88 rule impacts that adjusts the BRS, FRS and development to date. Full implementation of CSK is dependant on RLA readiness and RLA implementation is dependant on the readiness of the other core process streams i.e. RCG and DPS, as well as the readiness for the legislative go-live. Systems implementation and the new registration process will precede the CCA “switch-on”. NCAP/Business may consider implementing key components of RLA prior to legislative “switch-on”
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Customs Operations Trade
Functions performed by Operations:
Creation of an eFiling profile (should you wish to re-register through the
Functions performed by the back office (the location and reporting lines of which has not been confirmed yet):
CSK assessments to be performed for all relevant client types the client want to register for New registration of all client types through eFiling or Branch front end If you cannot view your Customs code/s for re-registration you may have to perform a Legal Entity merge (should be the minority of cases) Current bonds will have to be liquidated and new bonds applied for on all premises Physical inspections may have to be performed Depending on the staffing model and how many of the required resources are provided the TAT to clients may also be negatively impacted Registered / Licensed clients will have to disclose their relationships with each other in order for transactional validations to be performed
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Customs Operations Trade Implementation of a portion of the CCA for RLA The capability for online applications Replacement of RAS as a master registration system with a modernised system and data base The old client can continue trading in the absence
Automated workflow Client Profile management Data accuracy Streamline and shorten turn around times Redirection of staff focus to more value adding activities Creating multiple channels for clients to add to and manage their business relationships on line Automated notifications CSK created the capability to encourage their clients to keep up to date , which encourages staff development Available dashboard statuses for client and Contact Centre feedback. Automated document management
Registration, Licensing & Registration
RLA
2014 Rules RCG 2016 Rules DPS 2016 Rules
workflows.
clients under DPS Procedures.
phasing once rules are updated.
with least impact.
using transition instrument such as s119a or enabling this portion of new legislation.
using transition instrument such as s119a or enabling this portion of new legislation.
Function Usage
Registration, Licensing & Registration
RLA
Excise Other Duties & Taxes
Excise client types.
using transition instrument such as s119a or enabling this portion of new legislation.
Other Duty/Tax client types
using transition instrument such as s119a or enabling this portion of new legislation.
Function Usage
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Customs Control Act, 2014 (Act No 31 of 2014)
Title: To provide for customs control of all vessels, aircraft, trains, vehicles, goods and persons entering or leaving the Republic; to facilitate the implementation of certain laws levying taxes on goods and of other legislation applicable to such goods and persons; and for matters incidental thereto. Chapter 3: Reporting Requirements for inbound and outbound vessels, aircraft, trains, buses, trucks, persons and cargo. Rules to Chapter 3: The third draft of the rules published on 24 March 2017 for
Scope: Automate and operationalise provisions of Chapter 3 and its rules.
All CCA cargo and conveyance reports on priority basis Goods Accounting – Part 2: matching at consignment level of CUSCAR, CUSDEC, COARRI, CODECO/ GOVGIO and COSTCO The Basis: Cargo reports, Land border post improvements, Matching and Paperless reporting benefits Risk feed and automated workflow Goods Accounting: Part 1 - matching CUSCAR and CUSDEC on both house and master level, import and export All CCA Outturn reports
SPRINT 5
SPRINT 3 SPRINT 4 SPRINT 1 MPR
17 June 2016
SPRINT 2
Advance containerised cargo loading notice (CUSCAR)
Advance vessel arrival notice (CALINF) Vessel arrival report (CALINF) Outturn reports on containers off- loaded from vessels at sea cargo terminals (COARRI) Outturn reports on containers removed from sea cargo terminals (CODECO) Outturn reports
received at sea cargo terminals (CODECO) Outturn reports on containers removed from sea cargo terminals (CODECO) Outturn reports
received at container depots (GOVGIO) Outturn reports on cargo unpacked from containers at container depots (COSTCO)
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RCG
Documentary Inspector Workflow
Cargo report matched to clearance? Corroborate clearance?
Enforcement Workflow
Pre-Load Voyage Pre- Arrival Arrival Discharge Transfer Release
Load Notice
and Crew Notice
Notice
Gate, Tranship, Transit
Gate and Un-pack Reporting Compliance? Safety and Security risk?
Reporting of Conveyance & Goods
RCG
RCG Data Processing and Data View RCG Matching RCG Case Creation
export, all modalities
security)
(GCP).
benefit.
creation and workflow – DI and Enforcement.
Function Usage
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Automated reporting of conveyances and goods in an internationally standardised manner (UN/EDIFACT) Facilitation of legitimate trade Secure supply chain paves the way for the Preferred Trade / Authorised Economic Operator (AEO)
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Compliance Uniform treatment Reduced cost of compliance (approximately R2.4 million per annum for a large shipping line)
Description: CCA reporting requirements, risk feed, and automated case creation Implementation Includes What is Changing? What Remains the Same
A. Cargo reports prescribed by CCA developed on priority basis – 1. Vessel and aircraft schedule, as well as arrival / departure reports. 2. Advance container loading notices. 3. Advance cargo arrival notices (sea, air, rail). 4. Advance cargo departure notices (sea, air, rail). Suspended 5. Cargo departure notice (sea, air, rail) - Inserted 6. Advance truck, crew and cargo arrival notices. 7. Reports of arrival of truck, crew and cargo. 8. Advance truck, crew and cargo departure notices. 9. Reports of departure of trucks, crew and cargo.
CCA from those already delivered under MPR.
reports for fiscal assurance (e.g. all duties paid) and for safety and security purposes (e.g. cargo integrity and movement control).
results to the Customs Risk Engine (CRE) as C3P (Customs Third Party) data to corroborate /disprove the customs clearance.
case creation where discrepancies exist.
for compliance and security cases.
Cargo reports already developed under MPR is carried forward to RCG. Enhanced gate process (barcoded manifests, electronic entry/exit messages, etc). Paperless reporting benefits (shipping lines and airlines).
Description: CCA reporting requirements, risk feed, and automated case creation Implementation Includes (Subject to rule finalisation and prioritisation)
10. Outturn reports on containers off-loaded from or loaded on board vessels at sea cargo terminals. 11. Outturn reports on break bulk and bulk cargo off-loaded from or loaded on board vessels at sea cargo terminals. 12. Outturn reports on containers removed from or received at sea cargo terminals. 13. Outturn reports on containers received at or removed from container depots. 14. Outturn reports on cargo unpacked from or packed into containers at container depots. 15. Outturn reports on cargo off-loaded from or loaded on board aircraft at air cargo terminals. 16. Outturn reports on cargo unpacked or packed at air cargo depots. 17. Outturn reports on cargo received at container depots for packing for export 18. Outturn reports on cargo received at air cargo terminals for loading on board aircraft 19. Outturn reports on cargo received at air cargo depots for packing or consolidation 20. Outturn reports on break bulk and bulk cargo received at rail cargo terminals 21. Outturn reports on cargo with no transport documents. 22. Reports on shortlanded, shortshipped, shortpacked or excess cargo. 23. Disclosure of advance cargo arrival notice information to licensees of cargo terminals and depots. B. Transhipment management using cargo reports (e.g. advance cargo notices, landing/loading reports and gate reports), reports and automated enforcement workflow.
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Siyakha
Modernisation Programme
STEERCO
New Customs Act Programme (NCAP)
MAS 27/06/2003 6/05/2011
Improved ICT Platform Land Border Post support
MPR 20/06/2016 2018 RCG 2018
ICBS integration Improved Land Border functionality Matching and enforcement Paperless benefits
ACM 6/05/2011 17/06/2016
Fiscal assurance Supply chain safety and security Compliance with cargo reporting requirements of Customs Control Act, 2014 Transhipment management
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around which import, export and transit goods are accounted for by Customs in terms of their liability, goods description and purpose for being in South Africa.
simplified clearance requirements and formalities. In short this covers: − Chapters 4 to 20 and 24 − Chapters 25, 26, 31, 35, 39 and 41 also impact clearance declaration processing and release of goods.
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under the CCA
46 REGULAR CLEARANCE INCOMPLETE CLEARANCE PROVISIONAL CLEARANCE SUPPLEMENTARY CLEARANCE EXPEDITED RELEASE SIMPLIFIED CLEARANCE PERIODIC CLEARANCE
A standard complete declaration – all applicable data A standard complete declaration – certain fields not mandatory due not being available Must be followed by a Supplementary Clearance within a specific timeframe. A standard complete declaration – certain fields are provisional pending verification Must be followed by a Supplementary Clearance within a specific timeframe. A standard complete declaration – all applicable data Mandatory submission for Incomplete and Provisional clearances. Expedited release granted against a supporting document. Must be followed by a full Regular clearance within a specified timeframe. A simplified clearance (less data) defined for a specific purpose for clearance and release, i.e. Stores, Couriers, and “Other”. The latter is open for application for future operational requirements A special process to allow for the periodic clearance for Home Use, International Transit and Export Contemplated under the CCA only for CTC’s (Cross Border Transmission Lines)
Providing guidance on the application of the law across procedures …
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CHAPTER 4 – GENERAL PRINCIPLES GOVERNING THE CLEARANCE AND RELEASE OF GOODS FOR HOME USE OR A CUSTOMS PROCEDURE
working days
requirements, but control over these goods is maintained
regarded to be cleared for home use to enable SARS to collect the tax due.
declared on a full clearance declaration with a status based on risk.
CHAPTER 13 - WAREHOUSING PROCEDURE Provision is made for –
will be allowed in the same warehouse
– allows for the consolidation of imported and locally manufactured goods for export from a single premises
– 2 year and 5 years for specific goods e.g. fibre optic Cable & Ship spares with a further extension up to 180 calendar days
– Second hand vehicles = 30 calendar days storage with a further extension up to 30 calendar days. – All other restricted goods = 90 calendar days with a further extension up to 30 calendar days.
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Envisaged usage per Procedure
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To allow for new clearance requirements under the New Customs Control Act
New ew CPCs
To provide for excise movements and removals under the New Excise Duty Act.
New ew EP EPCs
No longer required under the New Customs Control Act, except for a transitional period to allow for amendments/cancellation within a 2 year period.
With ithdrawn CPCs
To support enhanced requirements under the New Customs Control Act.
Ret Retained & Enh Enhanced CPC CPCs
the current number required under the Customs & Excise Act.
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Customs compliance more than just a clearance declaration Clearance to be discharged within all conditions of a specific procedure – e.g. removal of goods under a clearance for national transit must commence and complete within specific time frames failing which the ‘release status’ may be effected. A supply chain focus Act brings more supply chain players into the net – parties who in the past have had little or no previous electronic interaction with Customs. Significant change management Interpretation and application of the new Acts on practical day to day application to operations – in particular the first 2 years under transitional provisions – e.g. application of goods cleared under old Act and subsequent requirements under the new Act. New concept for release A distinct split in the clearance/release activity - release is subject to arrival of goods. Customs to give ‘final release’ subsequent to OGA intervention Relationship Management Parties participating in the clearance transaction to be ‘related’ to the declarant of the goods - in the Relationship Management Module (RMM).
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Enhanced CPCs Improved CPC combinations to support of trade - offering flexibility especially when moving goods from one procedure to another. Transfer of Ownership Transfer of ownership permissible for goods under Warehousing, Home Use processing and Inward Processing procedures. Expedited Release Release of time-sensitive and ‘relief’ goods. Simplified Clearance To facilitate clearances by couriers. Periodic Clearance To facilitate periodic clearance for Cross-border Transmission Lines. Provisional, Incomplete & Supp. To facilitate clearance where information is not available or it is provisional – must be followed by a supplementary E-messaging & Reporting Provision of e-Message capability on both the current EDI platform as well as ‘e-filing’ for smaller traders – to facilitate trader compliance. Increased e-commerce bandwidth To accommodate increased transactional and post clearance messaging and reporting.
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with SARS in order for SARS and the Trade Associations, Public Sector Entities and OGA’s to:
necessary;
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Public Sector Stakeholder Management Efforts in this division will be aimed at ensuring that all external stakeholders in the Public Sector are adequately informed and will assist in providing the necessary platforms for effective communications on the embedding of the New Customs Acts Implementation programme. This includes:
bi-laterals etc.,) to ensure broad consultation and communications;
The smooth operations of this process will only be achieved through:
These requirements necessitate formal relationships to be leveraged, developed and maintained at various public sector levels to mitigate risks to legitimate trade being negatively impacted on. Government partners will have to ensure collaboration for the successful implementation of this process.
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RLA
DPR
RCG