TradeSmart - Special edition: September 2010
Customs Modernisation: Customs Procedure Category Codes (Purpose codes changes effective 1 November 2010)
In keeping with the international rules for each of the different procedures contained in the Revised Kyoto Convention, the different customs procedures are contained in chapters 10 to 21 of the Customs Control Bill. The new Customs Integrated Business Solutions is being developed in tandem with the Customs Control Bill; however the South African Revenue Service (“SARS”) Customs will introduce the new format for customs clearances in advance of the promulgation of the Bill.
In line with the above, the SARS Customs Modernisation Division has implemented the following:
- As of 1 November 2010, traders are required to submit clearances via the new clearance (CUSDEC) format. In terms of the new clearance, the data requirements for clearance purposes have been re-aligned to the requirements of the WCO3 Data Model. In this new format, certain additional data fields have been identified to augment the changes required to implement customs clearance under an integrated clearance processing environment. Please note that the following boxes on the SAD500 are affected by the new changes: Box 1, Box 37, and Box 44 (Rebate Code).
- A new standard format Customs Declaration Form 1 (CD1) is being designed for customs clearance, and will also be introduced to replace the existing SAD500. The content of this new format compliments the information/data structure which SARS has defined for EDI transmission, ensuring that both electronic format and documents are aligned. It is anticipated that the new forms will be implemented during the first quarter of 2011.
Clearance of goods for import, export, transit and cross border movement is covered by the provisions of the various purpose codes. These purpose codes define the ‘purpose/intention’ for which the goods are to be administered and controlled.
It is also important to note that from 1 November 2010 purpose codes TIR, TGR and TOL will no longer be a valid purpose. A Customs Procedure code will not be provided for these transactions, as all traders in the future must be registered with SARS.
Should you require our assistance relating to the above, please contact: