ADVANCED
PA Packet
PL Pail
PE Pallet
PC Parcel
PI Pipe
PH Pitcher
PN Plank
PZ Planks or Pipes in bundle / bunch / truss
PG Plate
PY Plates, in bundle / bunch / truss
PT Pot
PO Pouch
RT Rednet
RL Reel
RG Ring
RD Rod
RZ Rods, in bundle / bunch / truss
RO Roll
SH Sachet
SA Sack
SE Sea-chest
SC Shallow crate
ST Sheet
SM Sheet metal
SZ Sheets, in bundle / bunch / truss
SW Shrink wrapped
SK Skeleton case
SL Slip sheet
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SD Spindle
SU Suitcase
TK Tank, rectangular
TY Tank, cylindrical
TC Tea-chest
TN Tin
PU Tray pack
TR Trunk
TS Truss
TB Tub
TU Tube
TD Tube, collapsible
TZ Tubes, in bundle / bunch / truss
TO Tun
NE Unpacked or non-packed
VP Vacuum-packed
VA Vat
VI Vial
WB Wicker bottle
Rules & Usage:
The purpose of this data field is to declare a quantity specifically
for stock taking purposes. An example will be textiles where the
statistical quantity required is kilograms (KG) and a classification
quantity required is area in square meters (SM). The wholesale
packaging of textile fabric will most probably be rolls and
therefore the number of rolls must be declared in this field with
the applicable countable quantity code of “RO”. Please note that
the provision in terms of Section 20 (6) of the Customs and Excise
Act which clearly indicate that goods packed for retail sale shall
not be entered for storage in a storage warehouse unless they are
packed in outer containers normally used in the wholesale trade
in respect of such goods still apply. In these cases, the countable
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quantity will be the outer containers normally used in the
wholesale trade. Required for all warehouse and ex warehouse
declarations.
NORM INCOM PROV SUPPL P. OTHER
P
M SUPPLM
ORIGIN AMEND REPLAC CANCE IMPORT EXPOR
AL E L T
Box 45 Code-4 Denotes the unit of measure for Quantity – 4.
(18.14)
Operational Ref;
SC-CF-04-A2 – Supplementary Unit Codes
SC-CF-04-A4 – Other Quantities Countable
Code list: Refer to Code list above
Rules & Usage:
Refer to notes on usage in item 14.13 Countable Quantity, above.
Required for all warehouse and ex warehouse declarations.
NORM INCOM PROV SUPPL P. OTHER
P
M SUPPLM
ORIGIN AMEND REPLAC CANCE IMPORT EXPOR
AL E L T
Box 46 Actual Price Description: Denotes the amount required for actual price as
(18.16) defined in Rule 38.05 (b). The actual price must be entered to the
nearest rand. If the goods are supplied free of charge "NC" must
be entered in this field.
Rules & Usage:
Notes concerning
• Cost of Repair (COR). As of Release 1, it will be no longer
necessary to insert COR in the Additional Information field on the
clearance declaration. The new requirement when declaring COR
is as follows: :
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o Customs Value field = value of goods temporarily exported
o Actual Price field = cost of repair.
• Intellectual Value (INT). As of Release 1, it will be no longer
necessary to insert INT in the Additional Information field on the
clearance declaration. The new requirement when declaring INT
is as follows:
o Only applicable to import clearances.
o INT is only applicable to the clearance of good classified within
Tariff
o Customs Value field = cost of the carrier medium.
o Actual Price field = cost of the carrier medium plus intellectual
value.
NORM INCOM PROV SUPPL P. OTHER
P
M SUPPLM
ORIGIN AMEND REPLAC CANCE IMPORT EXPOR
AL E L T
Box 47 Duty Tax Description: Denotes the amount of duty or tax assessed. First 10
(18.24) Type / Duty digits represent ZA Rand and the last 2 digits cents. Must be
Tax Amount expressed in ZA Rands and cents. This field has up to 10
occurrences meaning that the clearance format can
accommodate up to 10 different tax types per line item. The
following duty/tax types are provided for and are determined
according to the Customs tariff:
Code Duty Tax Type- Future
1P1 Ordinary Customs Duty
12A Duty Schedule 1 Part 2A
12B Duty Schedule 1 Part 2B
13A Duty Schedule 1 Part 3A
13B Duty Schedule 1 Part 3B
13C Duty Schedule 1 Part 3C
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13D Duty Schedule 1 Part 3D
15A Duty Schedule 1 Part 5A
15B Duty Schedule 1 Part 5B
1PB Ordinary Levy
2P1 Duty Schedule 2 Part 1
2P2 Duty Schedule 2 Part 2
2P3 Duty Schedule 2 part 3
VAT Value Added Tax Amount
SUR Surety Amount
PEN Penalty Amount
FOR Forfeiture Amount
DLA Diamond Export levy Amount
Rules & Usages:
Data field is required for Hoe Use clearances.
May be applicable to certain Processing for Home Use (3rd
Schedule) clearances according to the extent of rebate specified.
May be applicable to certain Re-importation (of temporarily
export) clearances where a value add has occurred. In this
instance the Actual Price must reflect such value-add. This will be
the amount applicable for duty assessment purposes.
NORM INCOM PROV SUPPL P. OTHER
P
M SUPPLM
ORIGIN AMEND REPLAC CANCE IMPORT EXPOR
AL E L T
Box 47 Amount Denotes the amount overpaid in a previous excise account. Must
(19.4)
Overpaid on be expressed in ZA Rands and cents. This field is not applicable for
Previous Customs import and export clearances
Excise Rules & Usage:
Account Only required in respect of existing type ZDP excise clearances.
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There is no CPC equivalent for ZDP purpose code, therefore ZDP
must be inserted in the PCC field
NORM INCOM PROV SUPPL P. OTHER
P
M SUPPLM
ORIGIN AMEND REPLAC CANCE IMPORT EXPOR
AL E L T
Box 47 Amount Denotes the amount underpaid in a previous excise account.
(19.5)
Underpaid on Must be expressed in ZA Rands and cents. This field is not
Previous applicable for Customs import and export clearances
Excise Rules & Usage:
Account Only required in respect of existing type ZDP excise clearances.
There is no CPC equivalent for ZDP purpose code, therefore ZDP
must be inserted in the PCC field
NORM INCOM PROV SUPPL P. OTHER
P
M SUPPLM
ORIGIN AMEND REPLAC CANCE IMPORT EXPOR
AL E L T
Box 47 Total Duties Denotes the total sum of duties due. In other words, this field
(19.6) Due must contain the summary of duties for each line item on the
declaration. Whereas each line item will reflect the individual tax
amounts as specified in DUTY TAX TYPE / DUTY TAX AMOUNT,
such amounts for ‘TOTAL DUTIES DUE’ field must be consolidated
according to the table below
Code Duty Tax Type – Line Item Duty Tax Type – Total
Duties Due
1P1 Ordinary Customs Duty Customs Duty
12A Duty Schedule 1 Part 2A Customs Duty
12B Duty Schedule 1 Part 2B Duty Schedule 1 Part
2B
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13A Duty Schedule 1 Part 3A Customs Duty
13B Duty Schedule 1 Part 3B Customs Duty
13C Duty Schedule 1 Part 3C Customs Duty
13D Duty Schedule 1 Part 3D Customs Duty
15A Duty Schedule 1 Part 5A Customs Duty
15B Duty Schedule 1 Part 5B Custom Duty
1P8 Ordinary Levy Customs Duty
2P1 Duty Schedule 2 Part 1 Customs Duty
2P2 Duty Schedule 2 Part 2 Customs Duty
2P3 Duty Schedule 2 Part 3 Customs Duty
VAT Value Added Tax Amount VAT
SUR Surety Amount -
PEN Penalty Amount -
FOR Forfeiture Amount -
DLA Diamond Export Levy -
Amount
Rules & Usage:
• Required for all import declarations.
• Applicable to export declarations where Diamond Export Levy is
applicable.
• When used in conjunction with message type 4 (amendment),
this value represents the difference in duty overpaid or under
paid
NORM INCOM PROV SUPPL P. OTHER
P
M SUPPLM
ORIGIN AMEND REPLAC CANCE IMPORT EXPOR
AL E L T
Box 47 Total VAT Denotes the total sum of VAT due in respect of an amendment to
Due an original clearance. In other words, this field must contain the
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(19.7) summary of VAT for each line item on the declaration. Whereas
each line item will reflect the individual tax amount as specified in
item 18.24 DUTY TAX TYPE / DUTY TAX AMOUNT, such amount
for ‘TOTAL VAT DUE’ field must be consolidated according to the
table above
Rules & Usage:
• Required for all declarations.
• When used in conjunction with message type 4 (amendment),
this value represents the difference in VAT payable.
NORM INCOM PROV SUPPL P. OTHER
P
M SUPPLM
ORIGIN AMEND REPLAC CANCE IMPORT EXPOR
AL E L T
Box 48A Deferment Denotes the nominated trader ID (Customs Code No.) whose
(15.42) Number deferment account the declarant wishes to utilise for payment of
duties and taxes, or otherwise for deposit of duty refunds
See Code List in 48B below will also apply
Rules & Usage:
• Either the Broker’s TIN, or Importer’s TIN can be referenced in
this field.
• Required for declarations where either a remittance or refund
claim is involved.
NORM INCOM PROV SUPPL P. OTHER
P
M SUPPLM
ORIGIN AMEND REPLACE CANCE IMPORT EXPOR
AL L T
Box 48B Payment Denotes the declarant’s preferred payment method, for example,
(15.23) Code cash, deferment, VAT-only deferment
Code Description
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C Cash
V VAT only
D Defer
F Free
I Importer Deferment Account
T Importer VAT only Deferment Account
R Refund Amendment (refund to trader)
J Refund Amendment (refund to trader’s
nominee)
Z Reversal of declaration processed, where duties
are billed but not yet paid (clearance
cancellation request)
M Refund Amendment (refund to credit
deferment)
Rules & Usage:
Payment codes must be reflected international import
declarations. The payment methods are summarised as follows:
• Free [F] – Any original declaration or declaration amendment
(including refund vouchers of correction) on which no duties or
VAT is payable must be marked “F”.
• Cash [C] – Any original declaration or amending declaration on
which duties and/or VAT is payable and the clearer elects to pay
the duty and/or VAT by cash, must be marked “C”.
• Defer [D] – Any original declaration or amending declaration on
which duties only, Vat only, as well as duty and VAT is payable,
and the clearer elects to defer such amount/s must be marked
“D”.
• VAT Only Defer [V] – Any original declaration or amending
declaration on which duties and VAT are payable and the clearer
elects to ‘defer the VAT’ and pay the duty, must be marked “V”.
Only [V] and [C] payment codes apply to cross border
transactions.
SARS WILL NOTIFY WHEN THE FOLLOWINGCODES WILL BECOME
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APPLICABLE:
• Importer Deferment Account [I] –
• Importer VAT-Only Deferment Account [T] –
• Refund Amendment (Refund to trader) [R] –
• Refund Amendment (Refund to trader's nominee) [J] –
• Reversal of declaration processed, where duties are billed but
not yet paid. (Clearance Cancellation request) [Z] –
• Refund Amendment (Refund to Credit Deferment Account) [M]
-
NORM INCOM PROV SUPPL P. OTHER
P
M SUPPLM
ORIGIN AMEND REPLACE CANCE IMPORT EXPOR
AL L T
Box 49 To Denotes the customs code allocated to a licensed operator of a
(15.19) Warehouse / customs warehouse who has confirmed notice of intended
Consignee receipt of imported un-cleared goods. Goods entered for
warehousing, the Customs client number allocated to the
licensed warehouse must be entered here. The code consists of a
maximum of 11 characters of which the first three (alphabetic)
indicate the Customs district office. The next two or three
(alphabetic) the type of warehouse, e.g. storage (OS) special
storage (SOS), manufacturing (VM), etc. and the next five
characters (numeric) reflect the number or the warehouse.
Rules & Usage:
This field must be completed when goods are cleared for the
warehouse procedure, as follows:
• Entry of un-cleared imported goods for warehousing,
• Goods removed in bond to another customs warehouse,
• Re-warehoused in another customs warehouse, or
• Undergo change of ownership.
Caution: If goods are placed under the warehouse procedure
specifically for re-exportation (E 42) such goods may not be re-
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warehoused. If such goods are no longer required for export, they
may either be cleared for home use or one or other permissible
procedure.
NORM INCOM PROV SUPPL P. OTHER
P
M SUPPLM
ORIGIN AMEND REPLAC CANCE IMPORT EXPOR
AL E L T
Box 59 Remover Denotes the Customs code allocated to a licensed remover, being
the company / person appointed to undertake the removal of
(SAD 592 Code bonded goods
Box 5) Rules & Usage:
IMPORTS: Where goods are entered for direct removal in bond by
rail, sea or air, this data field must be left blank. The removal of
goods in bond by a licensed remover is exempt in the following
instances:
a) In the case where the goods are removed by a foreign haulier
which will not be licensed in South
Africa. The Customs broker presenting the declaration will be
responsible for the removal and therefore the clearing agent
Customs client number, name and physical address should be
declared in the remover Customs client number and name box.
These consignments must always be moved under cover of some
surety (consignor bond or provisional payment). Foreign hauliers
will only be allowed to move goods in and out of the Common
Customs Area (SACU).
This excludes removals between warehouses.
b) In the case where the goods are removed to a bonded
warehouse and the physical remover of the goods is the owner of
either the warehouse from where or the warehouse to which the
goods are removed, the Customs client number and name of the
warehouse licensee must be declared in the remover box. In
these cases, the removal of the goods will be under cover of the
bond lodged by the warehouse owner at the time of the licensing
of the warehouse and the remover need not be licensed.
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EXPORTS: A Remover code must be used where goods are
removed in bond by road. A Remover Code is required in the
following instances:
a) In the case of a clearance bearing CPC H 67 (XE), F 53 (XES), H
68 (ZE) or F 52 (ZES) and the goods are removed by road
transport to the destination or place of exit, the Customs code of
the licensed remover responsible for the transportation of the
goods must be inserted in this field.
b) In the case of a declaration with a CPC of H 68 (ZE), F 52 (ZES)
and the cargo removed in bond is locally produced excise
products, i.e. wine, sorghum beer, sorghum powders, ciders and
tobacco products, the goods are to be removed by a Licensed
Remover.
c) In the case of a declaration with a CPC of H 67 (XE), F 53 (XES)
and the cargo removed in bond is imported excise products, i.e.
spirits, beer, fuel levy goods (Petroleum Products), wine, and
tobacco products, the goods are to be removed by a Licensed
Remover.
A Subcontractor Remover Code must be inserted in this data field
in the event that such party undertakes liability for the movement
of the consignment on behalf of the remover. The subcontractor
must be a licensed remover with SARS
A Remover Code is not required in the following cases:
a) Where the goods are removed by a foreign haulier not licensed
in South Africa.
The Customs broker (clearing agent) presenting the declaration
will be responsible for the removal and therefore the broker’s
Customs code must also be declared in the remover code field.
Such consignments must always be moved under cover of a
surety to be declared in the additional information box on the 1st
item on the declaration. Foreign hauliers are only permitted to
move goods to and from the Common Customs Area (SACU). This
excludes removals between Customs warehouses.
b) Where the goods are moved in bond to a Customs warehouse
and the physical remover of the goods is the owner of either the
warehouse (i) from where, or (ii) the warehouse to which the
goods are removed, the warehouse code must be declared in the
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remover box. In these cases, the removal of the goods
guaranteed by the bond lodged by the warehouse owner.
c) In the case of a declaration with a CPC of H 68 (ZE) or F 52 (ZES)
and the cargo is of locally produced excise goods, i.e. beer, fuel
levy goods (Petroleum products) and spirits (excluding wine,
sorghum beer, sorghum powders and ciders), the goods are not
required to be removed by a licensed remover, but surety will be
applicable
NORM INCOM PROV SUPPL P. OTHER
P
M SUPPLM
ORIGIN AMEND REPLAC CANCE IMPORT EXPOR
AL E L T
SAD 507 House Denotes the date of issue of a ‘house’ waybill and must be
Waybill Date declared in the following format CCYYMMDD.
Rules & Usage:
Required in all instances where the consignment being declared is
covered by a house bill of lading or house airway bill.
NORM INCOM PROV SUPPL P. OTHER
P
M SUPPLM
ORIGIN AMEND REPLAC CANCE IMPORT EXPOR
AL E L T
*Boxes may vary depending on the form you fill, I.e. Import or export.
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Import Forms are as follows:-
Declaration Forms are as follows:-
- SAD 500 Goods Declaration
- SAD 501 Goods Declaration Continuation Sheet
- SAD 502 Transit Control (cross border movements)
- SAD 505 Bond Control (internal bonded movements)
- SAD 507 Form to reflect any additional information in cases where the space provided
onthe SAD 500 is not sufficient
Voucher of Correction (VOC) - SAD Voucher of Correction: (Direct) 504
- SAD Voucher of Correction: Transfer of Liability 514
- SAD Voucher of Correction: ex warehouse (imported goods) 604
- SAD Voucher of Correction: South African Products (ex warehouse or fuel levy goods ex
duty paid stocks) 614
Continuation Sheet for VOC
- SAD Continuation Sheet (direct) 506
- SAD Continuation Sheet (ex warehouse) imported goods 601
- SAD Continuation Sheet (ex warehouse or fuel levy goods ex duty paid stocks) 611
EXPORT FORMS
Forms
Declaration:
- SAD 500 Goods Declaration
- SAD 501 Goods Declaration Continuation Sheet
- SAD 502 Transit Control (cross border movements)
- SAD 505 Bond Control (internal bonded movements)
- SAD 507 Form to reflect any additional information in cases where the space provided
on the SAD 500 is not sufficient
Voucher of Correction (VOC)
- SAD Voucher of Correction: Export 554
Continuation sheet for VOC
- SAD Continuation Sheet (export) 551
AMENDMENTS, CANCELLATION, AND REPLACEMENT CLEARANCES
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Specific Instructions for the Declarant
Parties compiling or framing Customs clearances are recommended to take note of the
following rules which impact on what information is required for each of the specified
transaction types.
A transaction type defines the type of clearance being submitted, for example:
9 = An original clearance.
5 = A replacement clearance. (Substitution)
4 = A change or amendment clearance. (Change or Cancellation of a line item)
1 = A cancellation clearance. (Cancellation of a complete clearance)
General Rules
The LRN cannot be changed, and must remain the same for the lifecycle of a declaration.
The District Office data field cannot be changed. If an amendment is required, the
declaration must be replaced, and the original clearance cancelled.
When a line item is cancelled, that line number can never be reused.
When a line item is added, it must always be added to the end taking into account any lines
which may have been cancelled.
Specific Rules In Regard To Declaration Transaction Types
Transaction Type Rules and Exceptions
‘Transaction Type’ 9 a) Only one PCC and requested / previous CPC combination is
[ORIGINAL], used for allowed per clearance.
first b) Exception: in the case of ex-warehousing, the previous CPC may
time clearance of an be different across line items. In other words, previous CPC
import, 40, 41, and 44 can be used on a single clearance on multiple line
export, or transit items, respectively.
consignment
‘Transaction Type’ 4 a) The original MRN must be inserted in the field provided at
[CHANGE], used in header level.
instances where the b) When making a change / amendment to a clearance
content of an original declaration:
clearance other than i) Always provide full header, totals and all line details.
the ii) In respect of import clearance amendments, always provide
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PCC and / or ‘Total Duties Due’ and ‘Total VAT Due’.
Requested c) When editing a header, any data field can be amended /
CPC and Previous CPC changed, except:
is
i) The declarant’s Local Reference Number (LRN);
being amended,
(Exception: in the case ii) The Procedure Category Code (PCC); and
of iii) The District Office.
ex-warehousing, the d) When editing information on a clearance line item, any data
previous CPC may be field can be amended / changed, except:
different across line i) The line number;
items. ii) The Requested CPC, and
In other words, iii) The Previous CPC, except in the case of an ex warehouse
previous
scenario as described above
CPC 40, 41, and 44 can
be e) When cancelling a line item, the following:
used on a single i) A cancelled line number must never be reused; and
clearance ii) Let’s assume the original declaration (original) has lines 1,
on multiple line items, 2, 3, 4, and 5. The Trader then wishes to amend the
respectively). declaration and cancel (remove) line items 2 and 5. The
declarant must submit an amending declaration with items
1, 3, and 4 making sure to keep the ‘Sequence Numbers’ (line
numbers) of the remaining items the same. The
Total no. of Lines (header) in this instance must be 3.
f) When adding a line item, the following:
i) Where any line item needs to be added to the declaration,
such line must always be added to the end of the declaration;
ii) Using the above scenario - a trader wishes to add an
additional line item in a second amendment, he / she must
submit a declaration reflecting line items 1, 3, 4 and 6; and
iii) If lines are deleted, and a new line is thereafter to be added,
such line must not be declared in the space of the deleted lines.
For example: If line items 2 and 5 were deleted, a new line must
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‘Transaction Type’ 1 be inserted as line 7, i.e. the amending declaration will therefore
[CANCELLATION], used contain lines 1, 3, 4, 6 and 7.
where a full original a) Only supply header and total details on the cancellation
clearance is cancelled clearance.
b) The ‘Total Duties Due’ and ‘Total VAT Due’ must be inserted on
‘imports’.
c) ‘Total Lines’ must always reflect zero.
d) The original MRN must be inserted in the field provided at
header level.
e) SARS WILL NOTIFY USERS WHEN THE FOLLOWING RULES
BECOME APPLICABLE:
i) Cancellation scenario: A declaration is lodged, but
goods did not arrive. Indicate relevant ‘payment code’:
A) R = Refund to trader;
B) J = Refund to trader’s nominee; or
C) M = Refund to trader’s deferment account.
ii) Cancellation scenario: Goods have been declared with
incorrect PCC. Indicate relevant ‘payment code’:
A) R = Refund to trader;
B) J = Refund to trader’s nominee; or
C) M = Refund to trader’s deferment account.
iii) Cancellation scenario: A declaration is lodged, but
goods cannot be used according to the PCC / CPC
combination declared, OR, the trader is not entitled to
clear goods under the original PCC / CPC combination
declared. Indicate relevant ‘payment code:
A) R = Refund to trader;
B) J = Refund to trader’s nominee; or
C) M = Refund to trader’s deferment account
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Transaction Type 5 a) The original MRN must be inserted in the ‘previous MRN’ field
[REPLACE-MENT] provided at header level.
(substitution), used to b) Used in combination with ‘Cancellation’ of a full clearance, or,
replace an original ‘Amendment’ to a portion of a clearance.
clearance declaration i) Full consignment scenario:
where the incorrect A) Where a full consignment is required to be cleared
PCC under a different PCC; and / or
was declared. Is used B) A ‘Replacement” clearance is required, followed by
in
a ‘Cancellation’ clearance in respect of the ‘Original’
conjunction with
‘Transaction Type 1’ declaration.
ii) Partial consignment scenario:
being
a new clearance A) Where part of the consignment is required to be
replacing cleared under a different PCC and the balance
a complete original remains as cleared on the ‘Original’; and / or
clearance or part of an B) A ‘Replacement’ clearance is required for the
original clearance portion where the PCC differs from the ‘Original’;
and an ‘Amendment’ clearance is required on the
‘Original’ declaration for the portion where the PCC
remains as entered.
Manual Capture and Print Format Requirements SAD 500 / 504 / 554 / 604
With the view to facilitate manual capture by Customs, as well as the printing of a Customs
clearance declaration for any Customs or official purpose, parties preparing such clearances
for submission to Customs must ensure the following:
SAD 500 (Original Clearance)
In regard to information required on a manually completed or printed SAD 500 on Line Item
level–
Duty Tax Types - as specified in paragraph 3.4.24 DUTY / TAX TYPE and DUTY / TAX
AMOUNT – must be inserted in Box 47 together with the calculated duty / tax amount.
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Example: Where the line item attracts ‘Ordinary Customs Duty’, ‘Duty Schedule 1 Part
2B’, and ‘Value Added Tax’ Box 47 must contain the following Duty Tax Type codes and
their corresponding calculated duty / tax amounts – 1P1, 12B, and VAT.
SAD 504 / 554 / 604 (Voucher Of Correction)
In regard to information required on manually completed or printed Voucher of Correction
SAD 504 /554 / 604 on Totals Level - Calculated duties and taxes must be inserted as per
current requirements.
In other words, the VOC must specify ‘Totals Before Correction’, ‘Totals After Correction’ and
‘Differences’ in the fields provided
In regard to information required on a manually completed or printed Voucher of
Correction SAD 504 /554 / 604 on Line Item Level – Duty Tax Types - as specified in
paragraph 3.4.24 DUTY / TAX TYPE and DUTY / TAX AMOUNT
The EDI CUSDEC format provides for up to 10 repeated fields for Duty / Tax Type and
Amount and a further 10 repeats for other Additional Information Codes.
For manually prepared clearances, the declarant must complete as stated above.
If there is insufficient space to insert all required codes and amounts the declarant may
insert these in the ‘Description of Goods’ field on the VOC.
As the Learner you should now be familiar with the layout and contents of the fields or
boxes as reflected on the SAD 500 and its relationship to performing a Customs
Declaration. You have also had an opportunity to understand the important Sections of
the Customs & Excise Act as regards the Declaration information that is provided to the
Customs Authorities and the importance of a CORRECT Customs Declaration.
SOUTH AFRICAN REVENUE SERVICE
NO. R. 869 1 September 2005
CUSTOMS AND EXCISE ACT, 1964 This is when it was brought
into the Rules of the
AMENDMENT OF RULES (NO. DAR/6) Customs & Excise Act.
The Rules show each
Under sections 6 and 120 of the Customs and Excise Form.
Act, 1964, the rules published in Government Notice
R1874 of 8 December 1995 are amended to the extent
set out in the Schedule hereto with effect from 1 September 2005.
(f) by the substitution for the forms SAD 500, SAD 501, SAD 502 and SAD 503 in the
Schedule to the Rules of the following forms:
SAD 500 Customs Declaration Form
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SAD 501 Customs Declaration Form (Continuation Sheet)
SAD 502 Customs Declaration Form (Transit Control)
SAD 503 Customs Declaration Form (Bill of Entry Query Notification /
Voucher of Correction)”
REFERENCE TO LEGISLATION & OTHER REFERENCES
This procedure must be read with the following:
TYPE OF REFERENCE
Legislation and Rules Administered by SARS:
Customs and Excise Act, Act No. 91 of 1964: Sections 20, 38, 39,
40, 45, 59, 66 & 75
Customs and Excise Rules: Rules 66, 59A.03 (1), 38 & 202.01 to 202.08
Customs Duties are imposed by the Customs and Excise Act 91 of 1964. They are levied
on imported goods with the aim of raising revenue and protecting the local market.
The SARS Commissioner is responsible for the administration of Customs legislation.
WHAT DUTIES ARE LEVIED ON IMPORTED GOODS?
Three kinds of Duties are levied on imported goods:
Customs Duties (including additional ad valorem Duties on certain luxury or non-
essential items);
anti-dumping and countervailing Duties; and
VAT (which is also collected on goods imported and cleared for home
consumption).
Customs duty
Customs duty is levied on imported goods and is usually calculated as a percentage on
the value of the goods (set in the schedules to the Customs and Excise Act).
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However, meat, fish, tea, certain textile products and certain firearms attract rates of
duty calculated either as a percentage of the value or as cents per unit (for example, per
kilogram or metre).
Additional ad valorem Customs Duties are levied on a wide range of luxury or non-
essential items such as perfumes, firearms and arcade games.
Legislative Changes of the Port or Place of Export (FOB) as it Relates to Calculating the
Customs Value for Imported Goods in Government Gazette No 32605, Dated September
30, 2009’, the South African Revenue Service (SARS) highlights the following:
• The purpose of Proclamation No R. 942, 2009, dated September 30, is to advise all
clients involved in the Declaration of imported goods that October 1, 2009, has
been determined as the date on which sections 97(1), 98(1)(a) and 98(1)(c) of the
Revenue Laws Amendment Act, 2008 (Act No 60 of 2008), come into effect.
• Sections 97(1), 98(1) (a) and 98(1) (c) of the Revenue Laws Amendment Act, 2008,
amend sections 65(1), 67(1) (e) and 67(4) (a) of the Customs and Excise Act No 91 of
1964.
• In the Minister of Finance’s Budget speech last year, reference was made to
legislative changes relating to the alignment of national Customs legislation with
the provisions of the World Trade Organisation (WTO) Valuation Agreement. The
WTO Valuation Agreement does not differentiate between containerised and
break-bulk cargo with respect to inland charges.
• The legislative amendment has changed the status quo with the intention that the
place where goods are packed into a container in a foreign country for export to
South Africa will no longer be regarded as the port or place of export. Therefore,
the full cost of transporting goods from an exporter’s premises to the port or place
where the goods are to be loaded onto a ship or other vehicle will be dutiable. This
will bring the national legislation in line with the WTO Valuation Agreement.
The Customs Declaration Form (SAD 500) is a South African document required by the
South African Revenue Service (SARS). The purpose of this document is to ensure that
exported goods are properly declared to SARS. In effect the document is submitted to
the Commissioner of Customs - a sub-department of SARS - at the time that the goods
are exported. The document(s) will need to be approved by Customs before the goods
will be allowed to be exported. There are several types of Customs Declaration forms
(previously referred to as Bills of Entry Export), divided up as follows:
SAD 500 - This common document needs to be submitted in the case of the export of
South African goods, the re-export of imported goods, and the export of
ships/aircraft stores
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SAD 501 - This document is required when the SAD 500 is not long enough and you
need a continuation sheet to get all the items listed.
SAD 502 - This document is to be used for Transit Control (cross border movements).
SAD 505 - This document is required for Bond Control (internal bonded movements).
SAD 507 - This form is to be used to reflect any additional information in cases where
the space provided on the SAD 500 is not sufficient
SO3
Complete the Customs Declaration.
INTRODUCTION
As part of SARS' commitment to continually improve their service and efficiency to
traders and taxpayers, a Single Administrative Document (SAD) has been introduced to
make the clearance of goods easier and more convenient for importers, exporters and
cross-border traders on 1 October 2006. The SAD complies with international best
practices and Customs standards, with similar documents having been introduced
throughout the world
FRAMING EXPORT DOCUMENTS
Again, there are no set rules about preparing documentation and forwarders develop
their own systems to suit their own operation and environment. Most operations
nevertheless tend to follow a similar pattern.
A computerised run off of documents may simultaneously produce the bill of lading,
export bill of entry and the exchange control declaration F 178. (Remember the F178
may only be signed by the exporter).
It does not matter in which order the documents are prepared. At the end of the
process a complete and correct set must emerge containing the information required by
Regulation and rule.
Let us now examine how to complete and frame the documents necessary for
presentation to Customs in a logical sequence.
SO3
Complete the Customs Declaration.
AC1
Relevant clearance information is inserted into the Customs Declaration for the purpose of
effecting clearance;
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Kindly refer back to the full explanation of each box covered earlier in this course
curriculum for reference purposes to these Assessment Criteria.
The Single Administrative Document or (SAD) is a multi-purpose goods Declaration form
covering imports, exports, cross border and transit movements, which will:
Make clearance easier and more convenient for importers, exporters, and cross-
border traders;
Incorporate all the information necessary for advance Customs clearance and
Customs risk management purposes;
Reduce paperwork and allow for quicker turnaround times, with fewer errors, less
confusion, lower costs and improved trade efficiencies.
Before the recent 2006 introduction of the SAD 500, the document required by Customs
& Excise from exporters, was known as the Bill of Entry Export (DA550). This has been
replaced by the SAD500.
We provide you below with some additional example boxes/fields and further
information for your benefit and further understanding.
EXAMPLE 1
BOX 8 – Importer / Consignee
2. Importer / TIN 12345678
Consignee BSIC 441902345
KLM Stores of
China
39 Under street,
Durbanville,
Cape Town, 1234
Goods moving from BLNS country to RSA
Importer / Consignee
The name and physical address details of the RSA client (importer) must be inserted in
this box. [M]
TIN
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The allocated Customs and Excise client number must be inserted in the “TIN” sub box.
The general Customs and Excise client number 70707070 may only be used in respect of
casual importers, usually private individuals and once-off imports. [M]
BSIC
If a VAT registration number has been issued, this number must be inserted in the
“BSIC” sub box. If no VAT registration number has been issued, the code NA (not
applicable) must be inserted in the sub box. The VAT registration number consists of 10
numeric digits. [M]
EXAMPLE 2
BOX 12 – Value Details
12. Value Details
8 295
The total C.I.F. value, to the nearest rand, must be entered here. The value should be
individually rounded to the nearest unit of currency. The total value of the goods (FOB)
plus all freight/insurance charges must be reflected in this field, for instance: [M]
Selling price of goods from supplier R7 865,35
Packing costs R 23,50
Handling charge R 65,00
Insurance R 78,65
Transport costs R 262,74
R8 295,24
Therefore C.I.F = R8 295
EXAMPLE 3
BOX 15 – Country of Export
15. COE
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GB
Codes have been allocated to all countries and the two-character alphabetic code
allocated to the country from which the goods are exported from the Customs Union
must be inserted in this field. The country of export is the country from which the
goods are first despatched. The country of export must not be confused with the
"place" of export, as defined in Section 66(I) (e) of the Act. [M]
EXAMPLE 4
Codes for the representation of names of countries and which are based on the
International Standards Organisation’s “Alpha 2 Country Code” have been allocated and
the two-character alphabetical code allocated to the country from which the goods are
exported must be inserted in this field. The country of export should not be confused
with the place of export.
The code for the country of export can only be one of the following:
Code Country
BW Republic of Botswana
LS Kingdom of Lesotho
NA Republic of Namibia
SZ Kingdom of Swaziland
ZA Republic of South Africa
EXAMPLE 5
BOX 32 – Item No
32. Item
No
1
On every declaration the items must be numbered consecutively. The item numbers on
declarations will always start with 1 and the item number on the first item on the first
continuation sheet will be 2. [M]
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BOX 33 – Commodity code
33. Commodity Code
999999990(1)
First sub box: Schedule 1 Part 1
The full commodity code (tariff heading), as it appears in part 1 of Schedule No. 1, with
the exception of cases, such as the household effects mentioned below, must be filled in
the first sub box. The check digit (the figure that appears in a separate column after the
tariff heading) must also be inserted in this box.
When personal effects or household effects are cleared, irrespective of the purpose,
99.99.99.90(1) and 99.99(8) respectively must be used in lieu of tariff headings. [M]
Second sub box:
This box is currently not utilised. [R]
Third sub box: Schedule 1 P2A / B
This box is currently not utilised. [R]
Forth sub box: Anti Dumping or countervailing duty, Schedule 2
This box is currently not utilised. [R]
EXAMPLE 6
BOX 42 – Customs Value
42. Customs
Value (FCY)
23 000
The value to be entered in this field is defined in section 64 of the Customs and Excise Act
and must be to the nearest Rand. If the value is less than one Rand such value shall be
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calculated as one Rand. For values in excess of one Rand fractions up to fifty cent is
considered to be less than one half of a Rand and must be rounded off to the lower
amount. Fractions of one Rand in excess of fifty cent are regarded as a full Rand.
Goods, which are supplied free of charge and are included in a shipment for which
payment will be received, must be entered on separate lines.
Values are described in Sections 65, 66 and 67 of the Customs and Excise Act. Enter the
total value/price for each commodity declared. [M]
The field excludes freight and insurance.
SO3
Complete the Customs Declaration.
AC2
Completed Customs Declarations are verified and ratified before submission for
authorisation;
Kindly refer back to the full explanation of each box covered earlier in this course
curriculum for reference purposes to these Assessment Criteria.
Every Declaration is validated for the following:
• Received via EDI
• Releasing Authority EDI enabled (Depot/Terminal code)
• Shipping line identifiable and EDI enabled (Master cargo carrier)
• Warehouse EDI enabled (if quoted)
TITLE V
ARRANGEMENTS FOR ADMINISTRATIVE CO-OPERATION
Article 30
Mutual assistance
1. The Customs authorities of the EC Member States and of South Africa shall provide
each other, through the European Commission, with specimen impressions of
stamps used in their Customs offices for the issue of EUR1 movement certificates
and with the addresses of the Customs authorities responsible for verifying those
certificates and invoice Declarations.
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2. In order to ensure the proper application of its Protocol, the Community and South
Africa Shall assist each other, through the competent Customs administrations, in
checking the authenticity of the EUR1 movement certificates or the invoice
Declarations and the correctness of the information given in these documents.
TITLE IV
PROOF OF ORIGIN
ARTICLE 14
General Requirements (b) in the cases specified in paragraph 1 of Article 19, a Declaration,
subsequently referred to as the "invoice Declaration", given by the exporter on an invoice,
a delivery note or any other commercial document which describes the products
concerned in sufficient detail to enable them to be indentified; the text of the invoice
Declaration shall read:
"The exporter of the products covered by this document (Customs authorization No. (¹))
declares that, except where otherwise clearly indicated, the products are of.........
preferential origin (²)."
The invoice Declaration must be made out in accordance with the footnotes. However,
the footnotes do not have to be reproduced.
¹ When the invoice Declaration is made out by an approved exporter within the meaning
of Article 23, the authorization number of the approved exporter must be entered in this
space. When the invoice Declaration is not made out by an approved exporter, the word
in brackets shall be omitted or the space left blank.
ARTICLE 19
Conditions for Making out an Invoice Declaration
1. An invoice Declaration as referred to in paragraph 1(b) of Article 14 may be made
out:
(a) by an approved exporter within the meaning of Article 22; or
(b)by any exporter for any consignment consisting of one or more packages containing
originating products the total value of which does not exceed EUR 6 000.
2. An invoice Declaration may be made out if the products concerned can be
considered as products originating in an EFTA State or in SACU and fulfil the other
requirements of this Annex.
3. The exporter making out an invoice Declaration shall be prepared to submit at any
time, at the request of the Customs authorities of the exporting country, all
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appropriate documents proving the originating status of the products concerned as
well as the fulfilment of the other requirements of this Annex.
4. An invoice Declaration shall be made out by the exporter by typing, stamping or
printing on the invoice, the delivery note, or another commercial document, the
Declaration, the text of which appears in paragraph 1(b) of Article 14, in accordance
with the provisions of the domestic law of the exporting country. If the Declaration
is handwritten, it shall be written in ink in printed characters.
5. Invoice Declarations shall bear the original signature of the exporter in manuscript.
However, an approved exporter within the meaning of Article 22 shall not be
required to sign such Declarations provided that he gives the Customs authorities of
the exporting country a written undertaking that he accepts dull responsibility for
any invoice Declaration which identifies him as if it had been signed in manuscript
by him.
6. An invoice Declaration may be made out by the exporter when the products to
which it relates are exported, or after exportation on condition that it is presented
in the importing country no longer than two years after the importation of the
products to which it relates.
ARTICLE 20
Exemptions from Proof of Origin
1. Products sent as small packages from private persons to private persons or forming part of
travellers' personal luggage shall be admitted as originating products without requiring the
submission of a proof of origin, provided that such products are not imported by way of
trade and have been declared as meeting the requirements of this Annex and where there is
no doubt as to the veracity of such Declaration. In the case of products sent by post, this
Declaration can be made on the Customs Declaration CN22/CN23 or on a sheet of paper
annexed to that document.
ARTICLE 22
Approved Exporter
1. The Customs authorities of the exporting country may authorise any exporter,
hereafter referred to as "approved exporter", who makes frequent shipments of
products under this Agreement to make out invoice Declarations irrespective of the
value of the products concerned. An exporter seeking such authorisation must offer
to the satisfaction of the Customs authorities all guarantees necessary to verify the
originating status of the products as well as the fulfilment of the other requirements
of this Annex.
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2. The Customs authorities may grant the status of approved exporter subject to any
conditions which they consider appropriate.
3. The Customs authorities shall grant to the approved exporter a Customs
authorisation number which shall appear on the invoice Declaration.
4. The Customs authorities shall monitor the use of the authorisation by the approved
exporter.
5. The Customs authorities may withdraw the authorisation at any time. They shall do
so where the approved exporter no longer offers the guarantees referred to in
paragraph 1, no longer fulfils the conditions referred to in paragraph 2 or otherwise
makes an incorrect use of the authorisation.
ARTICLE 26
Supporting Documents
The documents referred to in paragraph 3 of Article 15 and paragraph 3 of Article 19, used
for the purpose of proving that products covered by a movement certificate EUR. 1 or an
invoice Declaration can be considered as products originating in an EFTA State or in SACU
and fulfil the other requirements of this Annex, may consist INTER ALIA of the following:
(a) direct evidence of the processes carried out by the exporter or supplier to obtain
the goods concerned, contained for example in his accounts or internal book-
keeping;
(b) documents proving the originating status of materials used, issued or made out in
an EFTA State or in SACU where these documents are used in accordance with
domestic law;
(c) documents proving the working or processing of materials in an EFTA State or in
SACU, issued or made out in an EFTA State or in SACU, where these documents are
used in accordance with domestic law; or
(d) movement certificates EUR. 1 or invoice Declarations, proving the originating status
of materials used, issued or made out in an EFTA State or in SACU in accordance
with this Annex.
ARTICLE 27
Preservation of Proof of Origin and Supporting Documents:
1. The exporter applying for the issue of a movement certificate EUR. 1 shall keep for
at least three years the documents referred to in paragraph 3 of Article 15.
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2. The exporter making out an invoice Declaration shall keep for at least three years a
copy of this invoice Declaration as well as the documents referred to in paragraph 3
of Article 19.
3. The Customs authorities of the exporting country issuing a movement certificate
EUR. 1 shall keep for at least three years the application form referred to in
paragraph 2 of Article 15.
4. The Customs authorities of the importing country shall keep for at least three years
the movement certificates EUR1 and the invoice Declarations submitted to them.
ARTICLE 29
Notifications
The Customs authorities of the EFTA States and SACU shall provide each other, through the
EFTA Secretariat and the SACU Secretariat, with specimen impressions of stamps used in
their Customs offices for the issue of movement certificates EUR. 1, with the information on
the composition of the authorisation number for approved exporters, with a specimen of an
original movement certificate EUR. 1 form and with the addresses of the Customs
authorities responsible for verifying movement certificates EUR., 1 and invoice Declarations.
ARTICLE 30
Verification of Proofs of Origin
1. In order to ensure the proper application of this Annex, the EFTA States and SACU
shall assist each other, through the competent Customs administrations, in
checking the authenticity of the movement certificates EUR 1 or the invoice
Declarations and the correctness of the information given in these documents.
2. Subsequent verifications of proofs of origin shall be carried out at random or
whenever the Customs authorities of the importing country have reasonable doubts
as to the authenticity of such documents, the originating status of the products
concerned or the fulfilment of the other requirements of this Annex.
3. For the purposes of implementing the provisions of paragraph 1, the Customs
authorities of the importing country shall return the movement certificate EUR 1
and the invoice, if this has been submitted, the invoice Declaration, or a copy of
these documents, to the Customs authorities of the exporting country giving, where
appropriate, the reasons for the enquiry. Any documents and information obtained
suggesting that the information given on the proof of origin is incorrect shall be
forwarded in support of the request for verification.
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4. The verification shall be carried out by the Customs authorities of the exporting
country. For this purpose, they shall have the right to call for any evidence and to
carry out any inspection of the exporter's accounts or any other check considered
appropriate.
5. If the Customs authorities of the importing country decide to suspend the granting
of preferential treatment to the products concerned while awaiting the results of
the verification, release of the products shall be offered to the importer subject to
any precautionary measures judged necessary.
6. The Customs authorities requesting the verification shall be informed of the results
of this verification as soon as possible. These results must indicate clearly whether
the documents are authentic and whether the products concerned can be
considered as products originating in an EFTA State or in SACU and fulfil the other
requirements of this Annex.
7. If, in cases of a reasonable doubt, there is no reply within ten months of the date of
the verification request or if the reply does not contain sufficient information to
determine the authenticity of the document in question or the real origin of the
products, the requesting Customs authorities shall, except in exceptional
circumstances, refuse entitlement to the preferences.
SO3
Complete the Customs Declaration.
AC3
Customs Declaration is submitted for authorisation according to organisational procedures;
We have the Customs & Excise Act and the importance of the licensing of the Customs
Clearing Agent as well as his role and responsibilities. A Clearing Agent is at great risk
because he is performing Customs Clearance on behalf of other parties. Furthermore,
the Clearing Agent is declaring shipments to the Customs Authorities based on the
documentation and information provided from his customers and therefore on behalf of
third parties. It should be ensured that the Clearing Instructions are detailed and fully
completed in order for the Clearing Agent to perform his tasks correctly. We mentioned
in our Table in terms of Section 98 and 99 of the Customs & Excise Act that an Agent can
be held liable for the actions of his client and vice versa. In this regard the Customs Act
is extremely strict and penalties can be very heavy and severe.
An incorrect or False Customs Declaration cannot be tolerated and in this respect, when
the Clearing Agent has a deferment account with the Customs Authority they have the
liability to pay the Duty. They have to also secure payment from their client however
Customs is not interested in the relationship between the client and the Clearing Agent.
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The Customs Authorities want to be paid its full Duties on the due date of the payment
of the deferment account.
Therefore, we are aware that we have to keep detailed tracking according to the IT
interface that we have with the Customs Department of what import Duties are due and
on what date. Clearing Agents utilise different types of software to interface with
Customs and they have to ensure that all of these are accurate and record what they
owe Customs in terms of all Customs Declarations so that everything that is due can be
paid on the due date. Customs do not tolerate any lack of payment or late payment in
this respect.
Clearing Agents are also subject to a huge consequence if they do not pay the
deferment on time and they need to be very much aware of the risk they are taking in
terms of firstly declaring the Customs Declaration on behalf of somebody else, and
secondly be liable for the Duties that are payable in terms of that Customs Declaration.
Kindly refer back to the full explanation of each box covered earlier in this course
curriculum for reference purposes to these Assessment Criteria.
SARS Customs does not release cargo until the Customs Declaration has been processed
and the requirements of the any other legislation have been adhered to. On the basis of
the documents submitted by the shipping line – the company operating the vessel –
SARS Customs decides whether there is a potential risk, whether cargo must be
inspected and whether or not goods will be detained.
These are standard Customs procedures that apply daily to any cargo vessel entering a
South African port of entry.
It should also be noted that it is commonplace for landlocked neighbouring states in
southern Africa to use South African ports of entry for the trans-shipment of goods.
CUSTOMS PROCEDURES: PROCESSING
Processing pertains to goods that are:
o brought into the Republic, conditionally relieved from duty and VAT on the basis
that such goods are intended for manufacturing, processing, cleaning or repair
purposes and subsequent exportation (i.e. inward processing);
o temporarily exported for manufacturing, processing, cleaning or repair abroad
and then re-imported with exemption or partial exemption from duty / VAT (i.e.
outward processing);
o imported and processed and thereafter exported, thereby qualifying for a
repayment (total or partial) of the import duties and VAT initially charged on the
goods. This facility is termed a drawback of duty.
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o temporarily admitted for specific purposes pending their re-exportation (also
relevant to travellers).
SO3
Complete the Customs Declaration.
AC4
Principles, rules and legal requirements are explained in the context of relating to the
liabilities for authorising and subscribing to the Customs Declarations.
Kindly refer back to the previous Assessment Criteria where we explained in detail
relevant to the Customs & Excise Act and the applicable Sections of the Act in respect of
Customs Declarations and its legal requirements.
We have included as an example the wording of the current Customs & Excise Act of
Sections 98 and 99 and we also refer you to the original Section of the Act that determines
the liability for Duty.
98. Liability of principal for acts of agent. — Every importer, exporter, master,
container operator, pilot, manufacturer, licensee, remover of goods in bond or
other principal shall, for the purposes of this Act, be responsible for any act done by
an agent acting on his behalf, whether within or outside the Republic.
99. Liability of agent for obligations imposed on principal.—(1) An agent appointed
by any master, container operator or pilot or other carrier, and any person who
represents himself or herself to any officer as the agent of any master, container
operator or pilot or other carrier, and is accepted as such by that officer, shall be
liable for the fulfilment, in respect of the matter in question, of all obligations,
including the payment of duty and charges, imposed on such master, container
operator or pilot or other carrier by this Act and to any penalties or amounts
demanded under section 88 (2) (a) which may be incurred in respect of that matter.
(2) (a) An agent appointed by any importer, exporter, manufacturer, licensee, remover
of goods in bond or other principal and any person who represents himself to any
officer as the agent of any importer, exporter, manufacturer, licensee, remover of
goods in bond or other principal, and is accepted as such by that officer, shall be
liable for the fulfilment, in respect of the matter in question, of all obligations,
including the payment of duty and charges, imposed on such importer, exporter,
manufacturer, licensee, remover of goods in bond or other principal by this Act and
to any penalties or amounts demanded under section 88 (2) (a) which may be
incurred in respect of that matter: Provided that, except if such principal has not
been disclosed or the name of another agent or his own name is stated on the bill
of entry as contemplated in section 64B (6) or the principal is a person outside the
Republic, such agent or person shall cease to be so liable if he proves that:-
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(i) he was not a party to the non-fulfilment by any such importer, exporter,
manufacturer, licensee, remover of goods in bond or other principal, of any such
obligation;
(ii) when he became aware of such non-fulfilment, he notified the Controller thereof as
soon as practicable; and
(iii) all reasonable steps were taken by him to prevent such non-fulfilment.
(b) No importer, exporter, manufacturer, licensee, remover of goods in bond or other
principal shall by virtue of the provisions of paragraph (a) be relieved from liability for
the fulfilment of any obligation imposed on him by this Act and to any penalty or
amounts demanded under section 88 (2) (a) which may be incurred in respect thereof.
(c) For the purposes of the proviso to paragraph (a) a principal outside the Republic
shall be deemed to include the consignee in a country outside the Republic shown on a
bill of entry for removal in bond of imported goods.
(3) Every shipping and forwarding agent and every agent acting for the master of a ship
or the pilot of an aircraft and any other class of agent which the Commissioner may by
rule specify shall, before transacting any business with the Commissioner, and any class
of carrier of goods to which this Act relates which the Commissioner may by rule specify
shall, before conveying any such goods, give such security as the Commissioner may
from time to time require for the due observance of the provisions of this Act: Provided
that the Commissioner may call for special or additional security in respect of any
particular transaction or conveyance of goods from any agent or carrier.
(4) (a) An agent (including a representative or associate of the principal) representing
or acting for or on behalf of any exporter, manufacturer, supplier, shipper or other
principal outside the Republic who exports goods to the Republic, shall be liable, in
respect of any goods ordered through him or obtained by an importer by means of his
services, for the fulfilment of all obligations imposed upon such exporter, manufacturer,
supplier, shipper or other principal by this Act, and to any penalties or amounts
demanded under section 88 (2) (a) which may be incurred by such exporter,
manufacturer, supplier, shipper or other principal under this Act: Provided that any such
agent shall cease to be so liable if he proves that—
(i) he was not a party to the non-fulfilment, by any such exporter, manufacturer,
supplier, shipper or other principal, of any such obligation; and
(ii) when he became aware of such non-fulfilment, he forthwith notified the Controller
thereof; and
(iii) all reasonable steps were taken by him to prevent such non-fulfilment.
(b) Every agent of a class referred to in paragraph (a) and specified in the rules for the
purposes of this paragraph shall register himself with the Commissioner and furnish
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such security as the Commissioner may from time to time require for the due
observance of the provisions of this Act: Provided that the Commissioner may accept
such security from any association of such agents approved by him which undertakes to
give security on behalf of its members.
(c) No agent referred to in paragraph (b) shall transact any business on behalf of any
such exporter, manufacturer, supplier, shipper or other principal after a date specified
by the Minister by notice in the Gazette unless he has complied with the provisions of
paragraph (b).
(d) The registration and operations of any agent referred to in paragraph (b) shall be
subject to such conditions as the Commissioner may impose by rule and the
Commissioner may cancel the registration of any agent who has persistently
contravened or failed to comply with the provisions of this Act or who has committed an
offence referred to in section 80, 83, 84, 85 or 86.
(5) Any liability in terms of subsection (1), (2) or (4) (a) shall cease after the expiration
of a period of two years from the date on which it was incurred in terms of any such
subsection.
99A. Consultant and agent not being clearing agent required to register. — (1) No
person, except:-
(a) a licensed clearing agent referred to in section 64B; or
(b) a person specified by rule,
shall, from a date specified by the Commissioner by notice in the Gazette, represent any
principal referred to in section 99 (2) as a consultant or agent for the purpose of
transacting any business on behalf of such principal in relation to customs and excise
matters unless such a person is registered with the Commissioner.
(2) An application for such registration shall be made on the form prescribed by the
Commissioner by rule and the applicant shall comply with all the requirements
specified therein and any additional requirements that may be prescribed in any
other rule and as may be determined by the Commissioner in each case.
Kindly refer back to the full explanation of each box covered earlier in this course
curriculum for reference purposes to these Assessment Criteria.
The Customs Declaration Form (SAD 500) is a South African document required by the
South African Revenue Service (SARS). The purpose of this document is to ensure that
exported goods are properly declared to SARS. In effect the document is submitted to
the Commissioner of Customs - a sub-department of SARS - at the time that the goods
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are exported. The document(s) will need to be approved by Customs before the goods
will be allowed to be exported. There are several types of Customs Declaration forms
(previously referred to as Bills of Entry Export), divided up as follows:
SAD 500 - This common document needs to be submitted in the case of the export of
South African goods, the re-export of imported goods, and the export of
ships/aircraft stores.
SAD 501 - This document is required when the SAD 500 is not long enough and you
need a continuation sheet to get all the items listed.
SAD 502 - This document is to be used for Transit Control (cross border movements).
SAD 505 - This document is required for Bond Control (internal bonded movements).
SAD 507 - This form is to be used to reflect any additional information in cases where
the space provided on the SAD 500 is not sufficient.
All of these forms require the exporter or his/her agent to indicate the foreign
consignee, the place of export (port or airport), the form of transportation and the
estimated date of departure, on the forms. The Customs authorities also require the
exporter to indicate the words "Form F178 produced" on the SAD 500, where the F178
is required. If it is not required, then the words "Form F178 not required" must be
indicated on the SAD 500. Furthermore, Customs & Excise will require an original and
one copy of the SAD 500 for non-ex warehouse exports and one original and two copies
in the case of export of goods from bond.
SO4
Explain ratified Customs Declarations.
AC1
Processes and procedures are explained for the submission of documents for the
forwarding and clearing of imported, exported and stopped/detained goods through the
airline, banking, insurance industry and South African Revenue Services (SARS);
Remember South Africa is part of the Customs Union.
Computerisation of Customs Operations
1. Member States shall encourage and facilitate the use of data processing techniques
to support Customs operations particularly in the following areas:
- inventory control;
- accounting for goods;
- accounting for revenue;
- goods Declaration processing;
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- production of statistics;
- enforcement.
2. Member States undertake to ensure that their laws cater for computerised Customs
procedures as well as manual procedures. In particular, the laws should provide for:
- other information transmission methods as an alternative to paper based
documentary requirements, e.g. magnetic media and tele-transmission;
- other authentication methods as an alternative to hand-written and other paper-
based signatures;
- the definition of relevant terms using internationally accepted definitions which take
account of data processing media.
3. The Customs authorities of Member States should review and where appropriate
modernise existing manual procedures, documentation and coding practices prior to
introducing the use of data processing techniques.
4. Whenever practicable, computer applications implemented by Customs authorities of
Member States should use internationally accepted standards, especially those
adopted by the World Customs Organisation, the United Nations Economic
Commission for Africa and UNCTAD.
5. The Customs authorities of Member States shall consider developing or adopting
common Customs application systems. They shall consult with other agencies, national
and international, when considering the development or adoption of new systems or
the enhancement of existing ones with a view to avoiding duplication of effort where
possible.
6. In automating procedures, Customs authorities of Member States shall allow the
possibility of interchanging data with trade users by direct link or on machine-readable
media according to the technology available.
SO4
Explain ratified Customs Declarations.
AC2
Methods for transmitting completed documents to Customs are explained in terms of
transaction type;
Customs Declarations may be submitted in the following manners:
a) Accredited clients submitting via electronic data interchange (EDI):
i) In this instance the client will not produce any hard copy supporting documents
unless such an entry is queried by an officer. Once queried the client will produce
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a file containing all the supporting documentation as well as any specific
documentation requested.
ii) Import permits, Duty Credit Certificates (DCCs) and Industrial Rebate Credit
Certificates (IRCCs) are received electronically from the International Trade
Administration Commission (ITAC). Clients making use of such provisions declare
the permit / certificate number on their bills of entry. This allows CAPE to
interface with the permit system and ensures electronic adjustment to the
permissible amount / quantity / weight and / or value.
iii) Other certificates / permits must still be produced in hard copy format to ensure
all requirements have been complied with. Also refer to “Documentation required
by OGAs”.
b) Non-accredited clients submitting via EDI with hard copies to Branch Office:
i) Clients not yet accredited may submit entries in EDI format but remain
responsible for hard copy presentation before release can be effected.
ii) As this group of clients are not accredited, the risk in relation to a decrease in
compliance must be mitigated when supporting documentation are no longer
called for at time of clearance.
c) Non-accredited clients submitting hard copies as either manual / disk:
i) Non-EDI clients submit bills of entry in hard copy (manual) or on a disk.
ii) For both these types of entries, the client is required to submit all clearance
documents to Customs in a folder containing all basic supporting documentation.
iii) Manual entries require a Customs data typist to capture the content of the bills
of entry onto the CAPE system.
iv) Disk entries permit Customs to skip the data capturing step of the process but
require the data loaded onto the system to be verified against the hard copies
provided.
v) With the recent introduction of compulsory electronic communication this group
of clearances will become the exception and very few such transactions are
foreseen.
Member States undertake to adopt in their Customs Laws, common principles for the
Customs procedures which, in the opinion of CMT, are particularly important in intra-
Community trade including:
a) Customs formalities applicable to commercial means of transport;
b) clearance for home use;
c) outright exportation;
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d) Customs transit;
e) drawback;
f) temporary admission, subject to re-export in the same Member State;
g) temporary admission for inward proceeding;
h) free zones;
i) postal traffic
Member States undertake to develop a single Customs document as support of all
Customs procedures, in intra-community trade as well as in trade with third countries.
(from Tralac)
SO4
Explain ratified Customs Declarations.
AC3
Techniques for filing/saving sources documents are explained in terms of Customs
requirements;
COMPUTERISATION OF CUSTOMS OPERATIONS
1. Member States shall encourage and facilitate the use of data processing techniques
to support Customs operations particularly in the following areas:-
- inventory control;
- accounting for goods;
- accounting for revenue;
- goods Declaration processing;
- production of statistics;
- enforcement.
2. Member States undertake to ensure that their laws cater for computerised Customs
procedures as well as manual procedures. In particular, the laws should provide for:
- other information transmission methods as an alternative to paper based
documentary requirements, e.g. magnetic media and tele-transmission;
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- other authentication methods as an alternative to hand-written and other paper-
based signatures;
- the definition of relevant terms using internationally accepted definitions which
take account of data processing media.
3. The Customs authorities of Member States should review and where appropriate
modernise existing manual procedures, documentation and coding practices prior
to introducing the use of data processing techniques.
4. Whenever practicable, computer applications implemented by Customs authorities
of Member States should use internationally accepted standards, especially those
adopted by the World Customs Organisation, the United Nations Economic
Commission for Africa and UNCTAD.
5. The Customs authorities of Member States shall consider developing or adopting
common Customs applications systems. They shall consult with other agencies,
national and international, when considering the development or adoption of new
systems or the enhancement of existing ones with a view to avoiding duplication of
effort where possible.
6. In automating procedures, Customs authorities of Member States shall allow the
possibility of interchanging data with trade users by direct link on machine –
readable media according the technology available.
SO5
Prepare and submit port/airport and carrier documentation.
INTRODUCTION
SCHEDULE
By the insertion after rule 101A.01(c) of the following heading and rules:
Mandatory electronic communication of reports and Declarations
“101A.01A(2) (a) In terms of section 101A(2)(d), the documents required to be submitted
electronically and the person who must submit those documents are the following:
(i) vessel or aircraft schedule reports specified in rule 8.06(a), by the carrier or airport
authority as respectively applicable in terms of that rule.
(ii) vessel or aircraft arrival reports specified in rule 8.06(b), by the carrier or airport
authority as respectively applicable in terms of that rule.
(iii) manifests and empty container lists specified in rule 8.07(b), aircraft pre-arrival
manifests and final manifests specified in rule 8.07(c) and rail manifests specified in
rule 8.07(d), by the carrier, master cargo carrier, cargo carrier, groupage operator,
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courier, cargo carrier or railway authority as respectively applicable in terms of those
rules.
(iv) vessel outturn reports specified in rules 8.08(a), (b) and (c) and aircraft outturn
reports contemplated in rules 8.08 (d), (e) and (f), by the container terminal operator,
wharf operator, depot operator, transit shed operator or de-grouping operator as
respectively applicable in terms of those rules.
(v) imported goods or goods for export required to be entered on a SAD form in terms
of any provision of the Act, by the importer, exporter or agent who is –
(aa) accredited in terms of section 64E of the Act; or
(bb) not accredited in terms of section 64E of the Act, but delivers a total in excess of 20
bills of entry per calendar month to any Controller or the Commissioner.
(b) Every person contemplated in paragraphs (a)(i) to (v) that is required to submit a
report or Declaration electronically to the Commissioner must register as a user in
accordance with the provisions of rule 101A and comply with the rules made
thereunder.
(c) The Commissioner may on application and on reasonable grounds:
(i) temporarily exempt, for such a period and subject to such conditions as the
Commissioner may determine; or
(ii) permanently exempt, any person or category of persons or any such person or
category of persons in respect of any procedure to which the Act relates from the
provisions of this rule.
(d) These rules came into effect on 1 August 2009 and is applicable to –
(i) any voyage, flight or journey commencing on or after that date;
SO5
Prepare and submit port/airport and carrier documentation.
Kindly note that we will deal with all the Assessment Criteria for this Specific Outcome
together.
AC1
Carrier documentation is identified according to shipment type for the purpose of
effecting release and delivery of imported and exported cargo;
AC2
Carrier release charges are calculated in accordance with applicable tariffs;
AC3
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Completed Customs and carrier releases are used to arrange final upliftment and delivery
of goods;
AC4
The risks and consequences for not completing and not submitting carrier
documentation timeously are explained with examples of their impact. (Leon says this
one is not dealt with in the Course Material?)
INTRODUCTION
When the goods are released from Customs & Excise after a correct and valid Declaration
has been made, it will be required to pay any additional charges. These charges can
include Harbour payment or Port charges. Container Depot Charges, and Handling Fees,
Transport, Freight and any other such payments due to obtain release of the shipment
and deliver it to the consignee or the client.
It should be noted that none of these proceedings can be commenced without first
performing the valid Customs Declaration in order to secure Customs Release of the
goods first.
After release has been obtained then a procedure must be followed to conclude all the
additional payments and release formalities. An example here is given of an Export,
Import, Air and Seafreight Release Procedures.
“release authority” means:
any master, pilot or other carrier
a container operator approved by the Commissioner
a container depot
a de=grouping operator;
a Customs and excise storage warehouse
Shipments are subject to verification at the discretion of Customs, which may take up to
48 hours.
Customs may ask for more paperwork to support importation depending on the type of
consignment.
Importers are advised to seek advice from our Gateway Support Desk to ensure imports
are well co-ordinated and proper procedures followed to avoid these delays.
Carrier Release Procedures and Documents – Exports
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Overseas Seller
1. Prepare and Package Goods for Export
2. Completes Commercial Invoice
3. Submits F178 (Foreign Currency Declaration) to
Bank for Authentication
4. Obtains Export Permit (If Applicable)
5. Completes and Signs C&F Instruction
6. Sends Completed Documentation (2; 3; 4 & 5 above)
to C&F Agent
Local Clearing & Forwarding
1. Using Docs Received from Exporter (2; 3; 4 & 5)
Frames Bill of Entry (SAD500)
2. Submits Export Bill of Entry (SAD500) to Customs &
Excise along with Docs 2; 3; 4 & 5 from the Exporter
3. Liaise with Customs and Excise with regards to
relevant shipment and obtain any further
documentation and information that may be
requested by Customs
Customs & Excise Authorities
1. Check Bill of Entry (SAD500) for mistakes and
incorrect declarations
2. If mistakes are present, request (VOC) to be
submitted and impose penalties if applicable. May
also request inspection if required.
3. Once all requirements have been met, Customs
clearance release is issued (Stamped manual entry
with number or EDI release)
Carrier Release Procedures and Documents – Imports
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Importer
1. Receive shipping documents from the Exporter
(Invoice; Transport Doc; etc)
2. Receives notice of imminent arrival of goods in SA
from Clearing Agent
3. Completes and Signs C&F Instruction
4. Sends Completed Documentation (1 & 3) to C&F
Agent
Local Clearing & Forwarding
1. Using Docs Received from Exporter (1 & 3) Frames
Import Bill of Entry (SAD500)
2. Submits Import Bill of Entry (SAD500) to Customs &
Excise along with Docs 1 & 3 from the Importer
3. Liaise with Customs and Excise with regards to
relevant shipment and obtain any further
documentation and information that may be
requested by Customs
Customs & Excise
1. Check Bill of Entry (SAD500) for mistakes and
incorrect declarations
2. If mistakes are present, request (VOC) to be
submitted and impose penalties if applicable and
may also order inspection to be carries out to
validate authenticity of declared goods.
3. Once all requirements have been met, Customs
clearance release is issued (Stamped manual entry
with number or EDI release)
Basic Airfreight Carrier Release Procedures and
Documentation - Exports
Overseas Seller
1. Prepare and Package Goods for Export
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2. Completes Commercial Invoice; packing list;
certificate of origin etc.
3. Submits F178 (Foreign Currency Declaration) to
Bank for Authentication
4. Obtains Export Permit (If Applicable)
5. Completes and signs C&F Instruction
6. Sends Completed Documentation (2; 3; 4 & 5 Above)
to Clearing Agent
Local Clearing & Forwarding
1. Using docs received from Exporter, books flight with
airline and frames Export Bill of Entry (SAD500) and
Airway Bill.
2. Submits Export Bill of Entry (SAD500) to Customs &
Excise along with Docs 2; 3; 4 & 5 from the Exporter
as well as the completed Airway bill.
3. Liaise with Customs and Excise with regards to
relevant shipment and obtain any further
documentation and information that may be
requested by Customs
4. Receives clearance release from Customs & Excise
5. Pays the airfreight, if any, on behalf of the exporter,
collects the cargo and delivers, along with the Bill of
Entry; Airway bill stamped by Customs and Excise
and documents in 2 above, to airfreight warehouse
for loading onto flight
Airline Agent/Carrier
1. Accepts booking from Clearing & Forwarding Agent
2. Will only accept cargo into the Airfreight
Warehouse if a Customs stamped Bill of Entry and
Completed Airway bill accompany the goods
3. The shipping documents (Exporter No. 2 and airway
bill) must accompany the consignment to end
destination
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Basic Airfreight Carrier Release Procedures and
Documentation - Imports
Importer
1. Receive shipping documents from the Exporter
(Invoice; Airway bill; etc)
2. Receives notice of flight arrival in SA from Clearing
Agent or Airline
3. Completes and Signs C&F Instruction
4. Sends Completed Documentation (1 & 3) to C&F
Agent
Local Clearing & Forwarding
1. Using docs received from Importer and collecting
originals from the airline, frames Import Bill of
Entry (SAD500).
2. Submits Import Bill of Entry (SAD500) to
Customs & Excise along with Docs 1 & 3 from
the Importer
3. Liaise with Customs and Excise with regards
to relevant shipment and obtain any further
documentation and information that may be
requested by Customs
4. Receives clearance release from Customs & Excise
5. Submits Customs release; airway bill, other relevant
documentation to airline and pays the airfreight
costs on behalf of the importer, for release. Collects
the cargo and deliver to importer’s nominated
address.
Airline Agent/Carrier
1. Notifies Importer or C&F Agent of arrival of flight and
cargo
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2. Hands Original shipping documents to C&F Agent
3. On receipt of customs release or stamped Bill of
Entry; Airway bill and other relevant documentation,
the cargo is released into the care of the C&F Agent
or Importer
Basic Seafreight Carrier Release Procedures and
Documentation - Exports
Overseas Seller
1. Prepare and Package Goods for Export
2. Completes Commercial Invoice; packing list;
certificate of origin etc.
3. Submits F178 (Foreign Currency Declaration) to
Bank for Authentication
4. Obtains Export Permit (If Applicable)
5. Completes and signs C&F Instruction
6. Sends Completed Documentation (2; 3; 4 & 5 above)
to Clearing Agent
Local Clearing & Forwarding
1. Using docs received from Exporter, books vessel
with shipping line and frames Export Bill of Entry
(SAD500)
2. Submits Export Bill of Entry (SAD500) to Customs &
Excise along with Docs 2; 3; 4 & 5 from the Exporter
as well as the completed Airway bill.
3. Liaise with Customs and Excise with regards to
relevant B/E
4. Receives clearance release from Customs & Excise
5. Completes and pays relevant charges for: Export
Cargo dues and CTO (Container Terminal Order) -
National Ports Authority
6. NPA delivers container to Exporter’s premises and
removes to container terminal for Export
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ADVANCED
7. Completes the Bill of Lading and submits to Shipping
Line
8. Receives stamped B/L from Shipping Line (release)
after sailing
Shipping Line/Agency
1. Accepts booking from Clearing & Forwarding Agent
2. Issues CTO on receipt of Export Cargo Dues from the C&F
Agent and releases containers from the depot. Container
tracking is carried out to ensure arrival at terminal
for shipment.
3. Receives completed B/L and B/E (Customs
Clearance) and issues on sailing of vessel and
payment of freight if applicable
Basic Containerised Seafreight Carrier Release Procedures
and Documentation – Imports
Importer
1. Receive shipping documents from the Exporter
(Invoice; Bill of Lading; etc)
2. Receives notification of arrival in SA from Clearing
Agent or Ships Agency
3. Completes and Signs C&F Instruction
4. Sends Completed Documentation (1 & 3) to C&F
Agent
Local Clearing & Forwarding
1. Receives notification of arrival of vessel from the
Ships Agency and in turn notifies the Importer.
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THIS IS ACCREDITED MATERIAL THAT IS COPYRIGHTED TO GMLS AND AS SUCH SHOULD NOT BE COPIED OR DISTRIBUTED WITHOUT THE
EXPRESS WRITTEN PERMISSION FROM GMLS MANAGEMENT
ADVANCED
2. Using docs received from Importer, frames Import
Bill of Entry (SAD500).
3. Submits Import Bill of Entry (SAD500) to Customs &
Excise along with Docs 1 & 3 from the Importer and
pays the duties and VAT on behalf of the Importer
4. Liaise with Customs and Excise
5. Receives clearance release from Customs & Excise
6. Completes and pays relevant charges for: Export
Cargo dues and CTO (Container Terminal Order) -
National Ports Authority
7. Submits Customs release; B/L, Cargo dues and other
relevant documentation to Ships Agency; pays the
freight costs, receives the release. Issues DRO
(Delivery Release Order); Collects cargo and deliver
to importer’s nominated address.
Shipping Line/Agency/Carrier
1. Notifies Importer or C&F Agent of arrival of vessel
2. Stamps CTO when presented by C&F Agent
3. On receipt of customs release or stamped Bill of
Entry; Original B/L and other relevant
documentation, the cargo is released into the care
of the C&F Agent or Importer
4. If Carrier Haulage has been selected the Ships
Agency will deliver the cargo to the Importer’s
Nominated Address
Documentation for Import
An essential feature of all import sales transactions is import documentation. There are
various categories of documents required in international trade transactions.
This section lists the basic documentation required for an import shipment. Not all the
documents listed below are required for every import transaction; many of them are
applicable to specific products or circumstances.
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THIS IS ACCREDITED MATERIAL THAT IS COPYRIGHTED TO GMLS AND AS SUCH SHOULD NOT BE COPIED OR DISTRIBUTED WITHOUT THE
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