A historic milestone for SACU!

Earlier this year, a study of great significance within the Southern African Customs Union (SACU) was released. DEVLYN NAIDOO says it should result in cohesion and collaboration, thereby enhancing economic growth and competitiveness within SACU.

20 May, 2024 will be a date etched in the memories of many private and public sector leaders involved in or impacted by the Oshoek-Ngenwya border post Time Release Study (TRS) and the launch of the TRS report. The World Customs Organization (WCO), in collaboration with UK Aid, supported the South African Revenue Service (SARS) and Eswatini Revenue Service (ERS) in conducting the TRS, which began in the fourth quarter of 2023 and culminated in the report’s launch in Badplaas, Mpumalanga.

Article 7.6 of the World Trade Organization-Trade Facilitation Agreement advocates for the establishment and publication of average release times. Paragraph 1 of this article mandates members to periodically measure and publish the average release time of goods in a consistent manner, using tools such as the Time Release Study of the WCO. Paragraph 2 encourages members to share their experiences with the committee, including methodologies used, bottlenecks identified, and any effects on efficiency.

The addresses by SARS Commissioner Edward Kieswetter and ERS Commissioner General Brightwell Nkambule highlighted the concerted effort and dedication to collaboration, monitoring, and implementing the reforms suggested by the TRS report. Transporters crossing South Africa’s borders must ensure their departure is accompanied by a SARS Customs response (CUSRES) status reporting message code 8: Proceed to Border. This practice contributes to efficient border processing and helps avoid unintended consequences such as increased costs, time delays, and reduced service reliability. 

The importance of pre-clearance cannot be overstated, as it aligns with the objectives of customs modernisation and its affiliated mechanisms. There is a call for greater collaboration among government agencies within South Africa’s borders, aiming to create a seamless cross-border experience for traders. Customs director Beyers Theron emphasised the necessity of implementing, monitoring, and evaluating the TRS recommendations to ensure effectiveness in cost savings, time optimisation, and service reliability.

Identifying bottlenecks is crucial to pinpoint root causes and enable targeted solutions. The TRS report provides precisely that – a tool for the governments of both countries to foster cohesion and collaboration, thereby enhancing economic growth and competitiveness within the oldest customs union, SACU. It is imperative for all stakeholders involved in cross-border cargo movement to communicate business needs through their respective associations, ensuring a consolidated and objective view is presented to lead agencies and government representatives managing cargo flow at our border posts.

The report’s recommendations include increasing network connectivity capacity, dedicated processing windows for truck drivers for BMA immigration and customs, improving import verification efficiency, simplifying the truck retrieval process after marking for arrival, establishing a checkpoint 2.4km before the border on the N17, fostering collaboration among stakeholders, exploring a one-stop border post designation, and ultimately moving towards a non-stop border post with downstream risk management and upstream compliance commitments from trade.

In closing, I echo the words central to the SARS Customs Modernisation framework: “Borders Divide, Customs Connect.” Let us all actively contribute to facilitating legitimate trade by adhering to and optimising our compliance with SARS and other government agency regulations, processes, and procedures. Moreover, let us work collaboratively within the supply chain to achieve excellence in supporting the enforcement, risk management, and legitimate trade facilitation mandates of SARS and all regulatory customs and government agencies.