SADC FRAMEWORK FOR COOPERATION IN THE SUPPRESSION OF CUSTOMS - - PowerPoint PPT Presentation

SADC FRAMEWORK FOR COOPERATION IN THE SUPPRESSION OF CUSTOMS OFFENCES

by

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Willie Shumba, Senior Programme Officer- Customs

OVERVIEW OF PRESENTATION

To show that SADC has a framework of To show that SADC has a framework of cooperation and collaboration in order to contribute to the progress and well being contribute to the progress and well being

• f the people of Southern Africa

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SADC TREATY

Signed on 17 Aug 1992 Heads of States by in g g y Windhoek, Namibia Southern African Development Community (SADC) replaced Southern African Development Coordinating Conference (SADCC) Obj i f h T f i Objectives of the Treaty range from promoting sustainable and equitable economic growth to promoting common political values democracy promoting common political values, democracy, peace and stability in the region Areas of cooperation are agreed upon in the form Areas of cooperation are agreed upon in the form

• f a Protocol

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REGIONAL ECONOMIC INTEGRATION

agreement among countries in a agreement among countries in a geograghic region to reduce, and ultimately remove tariff and nontariff ultimately remove, tariff and nontariff barriers to enable the free flow of goods, services and factors of production services, and factors of production amongst the members

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SOME PILLARS OF SADC TRADE SOME PILLARS OF SADC TRADE PROTOCOL Lib li i t i l t d i d Liberalize intra-regional trade in goods Improvement of the climate for cross- border and foreign investment Industrialization of the region g Establish an FTA in SADC ( free of quotas tariff and non tariff barriers) quotas, tariff and non tariff barriers) Issues supervised by Committee

• f

Ministers of Trade (CMT) Ministers of Trade (CMT)

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OTHER AREAS OF COOPERATION IN OTHER PROTOCOLS Investment issues Cooperation in Tax matters Cooperation in Tax matters Trade in Services Mining

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FREE TRADE AREA

A group of 2 or more countries which agree that A group of 2 or more countries which agree that goods produced by themselves can be traded without payment of customs duties. Note that EXCISE and VAT remain payable Rules of origin determine qualifying goods Th i l ti t C t There is closer cooperation amongst Customs Administration although each Customs Administration still remain autonomous Administration still remain autonomous Each MS maintains its own external tariff

SADC MEMBERSHIP

ANGOLA* NAMIBIA BOTSWANA RSA DRC* SWAZILAND LESOTHO TANZANIA MADAGASCAR ZAMBIA MALAWI ZIMBABWE MAURITIUS SEYCHELLES* MOZAMBIQUE

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COOPERATION BY CUSTOMS

Cooperation in Customs matters is p through a technical committee the SUB-COMMITTEE ON CUSTOMS SUB COMMITTEE ON CUSTOMS COOPERATION (SCCC)

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A f ti f SCCC f th Areas of cooperation for SCCC from the Trade Protocol

T iff d St ti ti l N l t Tariff and Statistical Nomenclatures Harmonization of Valuation Laws Simplification and Harmonization

• f

Customs Laws and procedures Computerization of Customs Operations Training, skills exchange,share resources g g Enforcement & Suppression of Customs

• ffences

Exchange of information

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PROTOCOL ON TRADE

There are various Conventions There are various Conventions, developed to provide a framework for cooperation and

• ffering

international cooperation and

• ffering

international benchmarks, for Customs Administrations cooperate in various areas cooperate in various areas

• Enforcement & Suppression of

Customs offences Customs offences

• Exchange of information

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Cigarettes and tobacco

These are amongst the top list

• f

products being trafficked in the region products being trafficked in the region Contributing factors are lit t b d d i th i

• quality tobacco produced in the region
• they attract excise and local taxes duties
• high rate of customs duties for imports

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ILLICIT TRADE Ranges from private individuals li k t t bi i t smuggling packets to big consignments eg 20’ and 40’ containers Those produced in export processing zones also find ways into local market without payment of excise, or customs duties or VAT 12 out 15 MS share porous land borders Governments lose revenue; Customs fail Governments lose revenue; Customs fail to meet revenue obligations to Govts

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ILLICIT TRADE

A study conducted in 2010, showed that illicit trade in cigarettes resulted in illicit trade in cigarettes resulted in cosiderable leakage

• f

tax revenue across SADC MS of approx US$350m across SADC MS of approx US$350m

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INITIATIVES IN SADC

Agreement to cooperate in fighting g p g g Customs offences;

• Customs to Customs cooperation;

Customs to Customs cooperation;

• Partnership with other stakeholders;

B d M t t Border Management programmes to ensure that the balance between trade f ilit ti d f t/ t l i facilitation and enforcement/control is maintained Sharing of skills

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INITIATIVES IN SADC

Accession to international instruments in

• rder to benchmark with best practice

Joint training programmes Joint training programmes Giving more weight to enforcement activities activities Transit Management System being d l d developed Gg

THANK YOU THANK YOU

Willie Shumba Senior Programme Officer, Customs Trade Industry Finance & Investment (TIFI) Directorate Trade, Industry, Finance & Investment (TIFI) Directorate Southern African Development Community (SADC) P Bag 0095 Gaborone, Botswana. T l 267 395 1863 Tel +267 395 1863 Cell +26773419651

wshumba@sadc.int