Overview of Changes – Release 1f o r C U S T O M S U S E R S

N O V E M B E R 2 0 1 0 - M G P O V E R E L L O

Customs ProceduresC U S TO M S C L E A R A N C E P R O C E S S I N G

• SARS’ accession to the RKC :– Implementation of customs clearance by

procedure.

– Implementation of simplified procedures.

• Customs Control Bill introduces Customs Procedures.

• Regional and International trading partners both apply Customs Procedures.

Reasons for Change

Context of Procedures in the Bill

Trader Management

Cargo Control

Declaration Processing

Financials

PRE-ENGAGEMENT PRE-ARRIVAL / DEPARTURE ARRIVAL / DEPARTURE / CLEARANCE POST CLEARANCE

[28] REGISTRATION

[29] LICENSING

[30] ACCREDITATION

[2] DESIGNATION [Chapter 3] CUSTOMS CONTROL – VESSELS, CRAFT & PEOPLE

[Chapter 1] DEFINITIONS

[4, 12] COASTWISE & TRANSHIPMENT TRAFFIC

[Chapter 5] MOVEMENT OF GOODS

[6] PROCESSING OF PEOPLE

[Chapter 8] TAX STATUS OF GOODS

[Chapter 22] IN TERNATIONAL POST

[Chapters 7, 9 – 11, 13 -21] CLEARANCE & RELEASE OF GOODS

[Chapter 24] FAST-TRACK PROCEDURES

[Chapter 23] ACCESS TO SAMPLING

[Chapter 25] DAMAGED, DESTROYED, LOST GOODS

[Chapter 26] ABANDONED & UNCLAIMED GOODS

[Chapter 27] SWH

[Chapter 31] SECURITY[31] SECURITY

[31] DEBT COLLECTION

[Chapter 33 -36] GENERAL ENFORCEMENT FUNCTIONS INCL. DETENTION, SEIZURE , COUNTERFEIT AND P&R GOODS

[38] DISPUTE RESOLUTION[38] DISPUTE RES.

[37] RULINGS

[39] JUDICIAL MATTERS

[40] MISCELLANEOUS

[Chapter 27] SWH

Home Use

National transit procedure

International transit procedure

Transhipment procedure

Temporary admission procedure

Warehousing procedure

Tax free shop procedure

•Stores procedure

•Export procedure

Temporary export procedure

Inward processing procedure

Processing for home use procedure

Outward processing procedure

The Customs Control Bill is arranged to accommodate the treatment and Customs control of goods according to specific Procedures, as follows:

Impacts Cargo Processing

Impacts Declaration Processing

Procedures and the Customs Bill

(A) Home UseDP, OL, TOL, XDP, XOL [GR, TGR, XGR, Items 403.00; 405.00;406.00, 407.04; 407.06; 408.00; 412.00; 413.00; 460.00; 495.00;497.00], IM4

(B) National Transit Procedure RIB, IM8.

(B) International Transit Procedure RIT

(C)Transhipment Procedure *** (occurs on the inward and outward manifest)

(D) Temporary Admission Procedure [GR, TGR, XGR, Items 470.01; 470.02; 480.00; 490.00], IM5, EX3, EIG

(E) Warehouse Procedure WH, XIB, XRW, WE, ZIB, ZRW.

(F) Stores Procedure EAS, XES, ZES.

(G) Tax Free Shop Procedure WH, XIB, XRW.

(H) Export Procedure EIG, ELG, ZE, XE, EX1.

(I) Temporary Export Procedure [GR, TGR, XGR, Items 407.01/00.00/01.02; 409], IM6, EX2, EIG, ELG.

(J) Inward Processing Procedure [GR, XGR, TGR Items 470.03; 498.00], EIG, ELG, ZE, XE.

(L) Outward Processing Procedure [GR, XGR, Items 409.04; 409.07] EIG, ELG, ZE, XE.

(K) Processing for Home Use Procedure [IR, XIR, TIR (All 3rd Schedule Items)].

Customs Procedure / Procedure Code

• 1 x Purpose Code per declaration.• All line items cleared according to

purpose code declared.

Purpose CodePAST HEADER :

Old Clearance Procedure

• 1 x PCC per declaration.• 1 x CPC combination per line, per declaration.• Multiple CPC combinations* per declaration as long as

Requested Procedure for each line is permissible with the PCC declared.

Procedure Category Code (PCC)

Requested Customs Procedure Code (RPC)

Previous Customs Procedure Code (PPC)

Procedure Measure (PM)

HEADER

LINE

NEW

* For Legacy Phase (1 November 2010) multiple Previous CPCs only for ex warehouse.

++

+

optional

:

:

New Clearance Procedure

Procedure Combinations

Example 1: Home Use (entry for home consumption) has no less than 5 possible Procedure Code combinations. The ‘previous’ procedure codes specify the immediate state of the goods at time of clearance:• 00 = no previous procedure. The goods are being introduced to customs for the 1st time.• 20 = goods moved under ‘national transit’.• 40 = goods placed in a customs warehouse.• 41 = goods having undergone a change of ownership in a customs warehouse.• 44 = goods having been re-warehouse while under the warehouse procedure.

DESCRIPTIONSCustoms Procedure Category / Home Use Code

+ Requested Procedure / Home Use Code

+ Previous Procedure / Home Use Code

+ Procedure / Home Use Measure

↘ Description of Customs Procedure ↘ Description of Customs Requested Procedure ↘ Description of Customs Procedure Combination [RequestedCPC + PreviousCPC + ProcedureMeasure]

Header Line item Line item Line item

A Chapter 10 - Home use, including goods intended for 'home use' for which there is a relief of duties and taxes.

A 10 Clearance of 'ordinary levy' goods for 'Home Use', destined for the Republic and BLNS countries.

A 11 Clearance of goods for Home Use, and free circulation.

A 11 00 --- Home Use of goods, on imported goods. DP

A 11 20 --- Home Use' of goods previously moved under the 'National Transit' procedure. DP

A 11 40 --- Home Use' of goods, previously placed under the 'Warehousing' procedure. XDP

A 11 41 Home Use' of imported goods previously subject to a change of ownership under the 'Warehouse' procedur XDP

A 11 44 --- Home Use' of goods, previously re-warehoused under the warehouse procedure. XDP

EXTENDED PROCEDURE Current Purpose Codes being replaced by Procedure Category, Customs Procedure & Procedure Measure codes

Use the SARS Guide to Application of Customs Procedures

Example 2: Home Use into free circulation of ‘replacement goods’:• Procedure Measure = Rebate Item.• Previous CPC determines if ‘direct’ clearance or ‘ex-warehouse’ clearance.

DESCRIPTIONSCustoms Procedure Category / Home Use Code

+ Requested Procedure / Home Use Code

+ Previous Procedure / Home Use Code

+ Procedure / Home Use Measure

↘ Description of Customs Procedure ↘ Description of Customs Requested Procedure ↘ Description of Customs Procedure Combination [RequestedCPC + PreviousCPC + ProcedureMeasure]

Header Line item Line item Line item

A Chapter 10 - Home use, including goods intended for 'home use' for which there is a relief of duties and taxes.

A 10 Clearance of 'ordinary levy' goods for 'Home Use', destined for the Republic and BLNS countries.

A 11 Clearance of goods for Home Use, and free circulation.

A 12 Clearance for Home Use and payment of VAT, of free circulation goods arriving from a BLNS country.

A 13 Clearance for 'Home Use' and free circulation of warranty replacement goods.

A 13 00 412.26 or 412.27 Home Use' and release into free circulation of replacement goods GR

A 13 20 412.26 or 412.27 Home Use' and release into free circulation of replacement goods, previously under the National Transit pro GR

A 13 40 412.26 or 412.27 Home Use' and release into free circulation of replacement goods, previously cleared under the warehouse XGR

A 13 41 412.26 or 412.27 Home Use' and release into free circulation of replacement goods, previously subject to a change of owners XGR

A 13 44 412.26 or 412.27 Home Use' and release into free circulation of replacement goods, previously rewarehoused under the ware XGR

EXTENDED PROCEDURE Current Purpose Codes being replaced by Procedure Category, Customs Procedure & Procedure Measure codes

Procedure Measures

Release 1: CPC Look & Feel

Procedure Category Code

Requested & Previous CPCs

Procedure Measure