cocaineDubai customs arrested a woman who was trying to smuggle 2.3 kilograms cocaine in her shorts at Dubai International Airport. Customs officers stopped the 31-year-old South African passenger when she arrived at the airport’s transit terminal.

One of the officers suspected the woman passenger and took her inside a private search room as she seemed perplexed. She was reportedly found to be smuggling 16 pouches of cocaine that were secretly stitched inside her mini-shorts.

The Dubai Court of First Instance convicted the South African of smuggling cocaine in transit and jailed her for 10 years. When she appeared in court, the defendant admitted that she smuggled the substance in her clothes but maintained that she did not know that she carried a banned substance.

She confessed that she agreed to carry the substance for money [the amount was not specified] but did not realize that she was carrying cocaine. The passenger claimed in court that she had intended to take the substance to her homeland and not to Dubai. The court fined her Dh50,000 (US$13, 000) and will be deported after serving her punishment. The defendant was cited confessing to prosecutors that she smuggled the drugs via Dubai in transit. Source: customstoday.com.pk

goldZimbabwean Customs (ZIMRA) seized 48 kg illicit gold worth R 20 million and arrested 46 people for initial investigations. Forged gold serial-number stamps, specially designed armoured vehicles, clandestine refineries, fake customs clearance papers and documents with links to the black market.

These and other pieces of evidence are the keys that the Hawks believe link a Zimbabwean and South African gold-smuggling syndicate to scores of buyers in Europe masquerading as dealers in precious metals. For two years police have been zeroing in on the syndicate, whose roots are in illegal gold mining in Zimbabwe. Inside were 48kg of gold bars valued at R20-million.On Friday, they acted. In the early hours teams from the Hawks, the Special Task Force and Crime Intelligence raided luxury homes and farms across Gauteng and the North West.

In one of the raids police discovered a walk-in vault at a warehouse outside OR Tambo International Airport. Inside were 48kg of gold bars valued at R20-million. They were being prepared for stamping with official South African gold serial numbers designating that the metal had been officially mined and refined in the country. Police sources say the gold was to have been flown to at least three European countries at the weekend before being smelted, re-refined and distributed.

A source with knowledge of the investigation has revealed the inner workings of the syndicate, from how and where the gold is mined to how corrupt customs and mining officials facilitate the metal’s passage across borders.(Now should’nt this prompt some serious cause for concern, if true?)

“The amount this syndicate has handled is immeasurable. We have known about them for two years and in that short time we have recovered R40-million,” he said.

“They have operated both in South Africa and Zimbabwe as well as other SADC [Southern African Development Community] countries for years, well before we even discovered them”

Illegal miners in Zimbabwe supplied the syndicate. “With the instability and corruption there [South Africa?] it’s dangerous but easy. Once they have the gold, runners take it to the border where, through corrupt officials, it is smuggled across disguised as things such as household products.”

The gold was taken to farms in and around Modimolle in Limpopo where illicit refineries smelted and refined it, the source said. With the help of South African mining officials, gold clearance documentation and special serial and insignia stamps were sourced.

“Once stamped you would never know the difference. We have placed it next to legitimate bars and it looks and feels the same.” He said the gold was distributed through legitimate channels in Europe.

“Those running the syndicate know what they are doing. They are well-connected and influential businessmen with ties to Africa, Europe, the US and Asia”.

“They are linked to the gold powerhouses of the world. These are not ‘mickey-mouse’ people. They are immensely powerful and extremely well connected to some of the world’s top legal firms. Within hours of Friday’s raids lawyers were arriving at their clients’ homes and businesses.”

He said police seized hundreds of official gold clearance documents, serial stamps and other paperwork with links to mines and importers and exporters. Source and picture: CustomsToday.com

cigarettes1Three Zimbabweans and a South African were arrested in Limpopo province for allegedly teaming up and smuggling cigarettes worth $200,000 into the neighbouring country. The Zimbabwean trio, Takuzo Mutswiro, 22, Tatenda Nyamhunga, 31, Joseph Mhembwe, 27 and Gilbert Mamburu, 54, a South African from Tshiozwi village in Limpopo province, were arrested last week at Tshilwavhusiku near Thohoyandou after police intercepted a truck they were using to transport the cigarettes.

Limpopo provincial spokesperson Colonel Ronel Otto, in a statement, said police followed up on information they received about suspicious activities at Mamburu’s house. Upon arrival at the scene, the three Zimbabweans attempted to run away, but were apprehended. Cigarettes with an estimated value of more than R2 million were found hidden in a small truck as well as a light delivery truck. It is suspected the cigarettes were smuggled from Zimbabwe, however their origin and destination is still being investigated.

Lately there has been an increase in the number of cigarette smugglers being arrested in the neighbouring country. Some of the cigarettes are smuggled out of the country through undesignated entry points along the crocodile-infested Limpopo River while others find their way into South Africa through Beitbridge Border Post despite the presence of Zimbabwe Revenue Authority (ZIMRA) scanners.The machines are able to detect concealed goods hidden in sealed containers.

The South Africa reportedly charges high rates on cigarette imports, which has resulted in a marked increase in cases of smuggling between Zimbabwe and South Africa. Most of these cigarettes are repackaged when they get to South Africa before being shipped to either Europe or Asia.

According to the South African Revenue Services (SARS), Beitbridge Border Post accounts for 70 percent of the cigarettes which are smuggled into that country. A recent statement from the South African Police Service said cigarette smuggling from Zimbabwe was being prioritised after it emerged the country supplied 55 to 70 percent of the 10 billion cigarettes reaching the neighbouring country’s black market. Source: The Chronical (Zimbabwe) & Customstoday.com

SACU logoPeter Fabricus, Foreign Editor, Independent Newspapers through the Institute of Security Studies writes an insightful and balanced article on the history and current state of the Southern African Customs Union (SACU).

The formula that determines how the customs and excise revenues gathered in the Southern African Customs Union (SACU) are distributed among its members looks, to a layperson, dauntingly complex. But this formula has had an enormous impact on the economic and even political development of the five SACU member states; South Africa, Botswana, Lesotho, Namibia and Swaziland.

The impact has arguably been greatest on South Africa’s neighbours, the four smaller member states that are often referred to simply as the BLNS. But it has also had an impact on South Africa.

SACU was founded in 1910, the year the Union of South Africa came into existence, and is the oldest surviving customs union in the world. Originally it distributed customs revenue from the common external trade tariffs in proportion to each country’s trade..

So, South Africa received nearly 99%. Surprisingly, South Africa’s apartheid government radically revised the revenue-sharing formula (RSF) in 1969 after Botswana, Lesotho and Swaziland had become independent. This gave each of the BLS members first 142% and later 177% of their revenue dues, calculated on both external and intra-SACU imports, with South Africa receiving only what was left. But this apparent economic generosity from Pretoria almost certainly masked a political intention to keep its neighbours dependent and in its fold, as the rest of the world was increasingly turning against it.

However, as Roman Grynberg and Masedi Motswapong of the Botswana Institute for Development Policy Analysis pointed out in their paper, SACU Revenue Sharing Formula: The History of An Equation, the 1969 formula became increasingly unviable for South Africa as it had been de-linked from the common revenue pool. This threatened to burden Pretoria with a commitment to pay out to the BLS states more than the total amount in the pool.

The African National Congress government saw the dangers when it took office in 1994 and soon began negotiations with the BLNS states for a new formula. That was agreed in 2002 and implemented in 2004. But although the 2002 RSF eliminated the risk that the payouts to the BLNS might exceed the whole revenue pool, it actually increased the share of the pool accruing to the BLNS at the expense of South Africa – as Grynberg and Motswapong also observe.

The new RSF was based on three separate components. The first divided the customs revenue pool proportional to each member state’s share of intra-SACU imports. Because of the growing imports of the BLNS states from the ever-mightier South Africa, this meant most of the common customs pool went to the BLNS. This proportion is increasing – but never to more than the entire pool.

The second component of the RSF divided 85% of the pool of excise duties (the taxes on domestic production) in direct proportion to the share of the gross domestic product (GDP) of each of the SACU members. The remaining 15% of the excise duties became a development component, distributed in inverse proportion to the GDP per capita of each member. So the poorest members of SACU would receive a disproportionate share of this element of the excise.

Over the years the BLNS countries have grown increasingly dependent on the SACU revenue. It now funds 50% of Swaziland’s entire government revenue, 44% of Lesotho’s, 35% of Namibia’s and 30% of Botswana’s. Because of its own growing fiscal constraints, Pretoria launched a review of the formula in 2010. But this review got bogged down over major disagreements and seems to have gone nowhere.

In his budget speech this month, Finance Minister Nhlanhla Nene raised the issue again, calling for a ‘revised and improved revenue-sharing arrangement,’ and Parliament’s two finance committees examined it. National Treasury spokesperson Jabulani Sikhakhane told ISS Today that while efforts to reform the SACU formula are ongoing, ‘progress has unfortunately been arduously slow.’

Budget documents show that in 2014-15, South Africa paid out some R51.7 billion to the BNLS countries out of a total estimated revenue pool of R80 billion, and was projected to pay out R51 billion again in 2015-16. Kyle Mandy, a PricewaterhouseCoopers technical tax expert, told Parliament’s two finance committees last week that South Africa was paying about R30 billion a year more than it would otherwise under the SACU RSF. He said South Africa contributed about 97% of the customs revenue pool and received only about 17% of it.

The R51.7 billion payout to the BLNS this year represents about 5% of South Africa’s total of R979 billion in tax revenue, a substantial ‘subsidisation’ that was no longer affordable at a time of growing fiscal constraint, which had forced Nene to increase taxes, Mandy said.

He noted that the SACU revenue had allowed all but Namibia of the BLNS countries to set their taxes below South Africa’s. ‘This means South Africa is subsidising the BLS countries to compete with South Africa for investment with their more attractive taxes,’ he said in an interview.

‘This is not sustainable for anyone. It locks the BLNS countries into dependency on South Africa. They have neglected their own fiscal systems. But the moment that the revenue fluctuates, [as Nene’s budget predicted it would in 2016-17, dropping to R36.5 million], it puts them in a difficult position. When South Africa sneezes, they catch flu.’

But what to do about this? Some, like political analyst Mzukisi Qobo, have called for a total overhaul of the SACU agreement, which would make explicit that SACU is a disguised South African development project. The development aid would become transparent and could be tied to conditions such as democratic government.

That is on the face of it an attractive solution, offering the opportunity of leveraging democracy in Swaziland, in particular, by placing a conditional foot on its lifeline of SACU revenues. But Grynberg warns that a sudden withdrawal of the vital direct budgetary support which SACU customs and excise revenues provides, could implode both Swaziland and Lesotho and provoke economic crises in Namibia and even Botswana.

He also points out that the RSF is not plain charity by South Africa to its smaller neighbours. The formula has essentially just compensated them for the cost-raising and polarising effects of SACU – that the BLNS countries have generally had to pay more for imported goods over the years than they would have otherwise done because of import tariffs designed to protect South African industries; and because the duty-free trade within SACU has tended to attract investment to larger South Africa.

Meanwhile, South Africa has benefitted from a ready market for its much larger manufacturing machine. Grynberg wrote in a more recent article for the Botswana journal, Mmegi, that the South African government was thinking of pulling out of SACU because it couldn’t get its way in the negotiations to revise the RSF; and because the 2005 Southern African Development Community Free Trade Agreement now gave it duty-free access to the BLNS countries without the need to pay the re-distributive SACU customs revenues.

It was only President Jacob Zuma who was preventing this, because he didn’t want to go down in history ‘as the man who crippled the Namibian and Botswana economies and created two more “Zimbabwes” – i.e. Swaziland and Lesotho – right on the country’s border.’ Pretoria’s decision had turned SACU into a ‘dead man walking, just waiting for someone to pull the switch and end its life.’

Grynberg strongly advised the BLNS to prevent this by accepting that the political reality that underpinned the RSF of SACU no longer existed. He says that it should be transformed into a purely development community without the formula, but with mutually agreed spending on development – mainly in the BLNS. He suggested, though, that this radical change would take at least 10 to 15 years to phase in.

All very well. But isn’t that what SADC is supposed to be already? Which suggests that it might be time to take the 105-year-old dead man off life support.

Source: Institute of Secutity Studies (ISS)

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WCO News - Coordinated Border Management Feb 2015Check out the latest WCO News - per usual a wealth of interesting customs and supply chain information:

  • WCO launches IRIS, an application exploiting open source information
  • Harmonized System amendments effective from 1 January 2017
  • Beginning the CBM process: the Botswana experience
  • Inter-institutionality – a distinctive feature of the Colombian AEO model
  • WCO Data Model: the bridgehead to connectivity in international trade
  • Implementing New Zealand’s Joint Border Management System

and a whole lot more…

Source: WCO

A Kenya Wildlife Services officer stands near a burning pile of 15 tonnes of elephant ivory seized in Kenya at Nairobi National Park [Picture - Carl de Souza - AFP]

A Kenya Wildlife Services officer stands near a burning pile of 15 tonnes of elephant ivory seized in Kenya at Nairobi National Park [Picture – Carl de Souza – AFP]

Image - Wikimedia.org

Image – Wikimedia.org

Colombian authorities detained a vessel operated by China’s largest shipping group for illegally transporting thousands of cannon shells, around 100 tons of gunpowder and other materials used to make explosives, the attorney general’s office said.

The Da Dan Xia, operated by Cosco Shipping Co, was headed for Cuba when it was stopped on Saturday in the northern port of Cartagena, on the Caribbean coast, after the materials were detected during an inspection. The cargo was listed in the records of the 28,451dwt ship as grain products. The captain of the Hong Kong-flagged vessel had been arrested, the attorney general’s office said. China’s Foreign Ministry spokeswoman Hua Chunying said the ship was carrying ordinary military supplies to Cuba and was not in violation of any international obligations.

“It is completely normal military trade cooperation. At present, China is communicating with the parties on this matter,” Hua said.

A Cosco Shipping official in the firm’s Guangzhou head office said the ship was operated by the company but added she was unaware of the incident. Cargo documentation the captain presented did not match the load the ship was found to be carrying, Luis Gonzalez, national director of the Colombian attorney general’s office, told reporters.

“Around 100 tons of powder, 2.6 million detonators, 99 projectiles and around 3,000 cannon shells were found,” Gonzalez added.

Photographs from the prosecutor’s office showed wooden cases inside a shipping container with labels stating Chinese defense manufacturer China North Industries Group Corporation as the supplier. The company, known as Norinco, is China’s biggest arms maker. It did not immediately respond to a request for comment.

The recipient was stated as importer Tecnoimport in the Cuban capital Havana. The Cuban company could not immediately be reached for comment. A man who identified himself as the Da Dan Xia’s first officer confirmed the ship had been detained in Colombia when Reuters called the vessel’s phone number on Wednesday. Source: Maritime Executive/Reuters

Artistic impression - Durban Dig-out Port

Artistic impression – Durban Dig-out Port

An international ports expert has expressed serious reservations about Durban’s proposed dig-out port. He said plans for a dig-out port should be put on hold, with efforts rather directed at maximising the existing facilities and potential at Durban Harbour.

International adviser and expert on port development Jamie Simpson, of Canada, has warned Transnet and the eThekwini Municipality against pursuing the dig-out port, saying the current port has to “keep going”. Simpson was a guest speaker at a ports and cities dialogue with Durban businesses, hosted by the municipality’s Edge (Economic Development and Growth eThekwini) at the Moses Mabhida Stadium yesterday. His point of view was supported by two other speakers.

However, Transnet group strategy general manager Irvindra Naidoo was adamant that the parastatal was forging ahead with the project, saying Durban was “running out of capacity” and had to expand.

Naidoo said: “The question was: ‘Okay, do we now go off somewhere else and develop a new maritime cluster around Richards Bay or somewhere else, or do we try to embed or strengthen the cluster… (by extending) the Durban port?’ That’s what this dig-out port really is about. It’s an extension of an existing cluster.”

The port, the continent’s busiest, caters for 2.6 million TEU (twenty-foot equivalent units) a year. These result in about 8 000 daily container-related heavy vehicle movements around the Bayhead area. Transnet has repeatedly said that the port will battle to provide the capacity for future demand.

Naidoo said with a dig-out port at the old Durban International Airport site, the containers could reach 8.2 million TEU by 2040, resulting in about 17 500 heavy vehicle movements daily in the South Durban Basin.

Simpson told the panel that the move “might not be a very good solution”. He said: “In view of the likely availability of financing – a lot of uncertainty – I think the port has to keep going and develop a capital investment plan and operational improvement plans to meet demand in the next five to 10 years.”

From there, he said, the parastatal could “weigh up” whether a bigger port “makes sense in view of market conditions… and availability of finance at the time”.

The first phase of construction of the dig-out port was expected to start between 2021 and 2025. A pre-feasibility study started in 2013. To read the full article click here! Source: iol.co.za

loginno3Technology once again demonstrates that it not only ‘enables’ but can also provide companies a ‘differentiator’ to get ahead of the competition – at least for a while. This is the second such innovation in recent weeks which addresses the needs of international shippers and logistics operators in meeting stringent security requirements while at the same time offering a compelling solution for supply chain auditability and the management of their assets. Furthermore, with more and more countries offering authorised economic operator (AEO) programs these same shippers and logistics operators will in the longer term enjoy a certain comfort from such technology investments through swifter customs clearance or green-lane treatment.

Two leading intra-Asia box lines are switching their entire container fleet to smart containers as they attempt to differentiate themselves from competitors. Hong Kong-based SITC Shipping Group and SIPG container shipping arm Hai Hua have both announced they will upgrade their entire container fleet to smart containers using products from Loginno. SITC, which has a fleet of 66 vessels with a total capacity approaching 2m teu, said it had decided to use smart containers to try to offer customers a different service to other carriers.

SITC Shipping Group Xue MingYuan said: “In a market with more and more homogeneous services, we have to think about why our customers would choose us over others.

“Being among the first to offer, as a standard service on all of our containers, full insight into their cargo movements and security, for a very low additional cost, we differentiate ourselves instantly, and hopefully save our customers a lot of logistic costs in their supply chain.”

This view was echoed by Hai Hua general manager JP Wang: “We have been looking for an affordable means to convert our fleet to smart containers. Shippers and Cargo owners have been long waiting for this service.”

Smart container technology has been around for a few years, but the cost of the technology and fears of damage and theft of the equipment has been enough to discourage its widespread take up. There have also been concerns from shipping lines about how to monetize the technology.

But the industry is gradually increasing its use of the technology. CMA CGM just recently announced a major initiative to introduce smart container technology to its fleet. Loginno chief technology officer Amit Aflalo said its device, which is slightly larger than a mobile phone, was inexpensive and easy to install. The device offers GPS, temperature monitoring, intrusion detection and a movement detector and can provide updates to mobile phones. Source: Lloyds Loading / Loginno

Cigarettes+XXX+smokingThe nation awaits the 2015 Budget Speech with trepidation to know if income taxes will rise. But there is unanimous certainty there will, as per usual, be an increase in ‘Specific Excise Duties’. The only question is by how much? Taxation of cigarettes and tobacco products appears to be the path of least resistance for tax-collectors. It receives little backlash from the wider public (unlike e-tolls) and even support in some quarters.

The imposition of the so-called “sin taxes” on cigarettes and liquor products, in addition to generating significant fiscal revenues, does serve an economic purpose. Unlike normal goods and “necessity” products, cigarettes are not an essential good which people need to survive. As far back as the 1700s, Adam Smith averred “Sugar, rum, and tobacco, are commodities which are nowhere necessaries of life … are therefore extremely proper subjects of taxation.” Again, the notion of the importance of tobacco to the fiscal basket is exemplified in utmost simplicity and honesty – if a politician, or an emperor in this case can be believed -

This vice brings in one hundred million francs in taxes every year. I will certainly forbid it at once – as soon as you can name a virtue that brings in as much revenue [Napoleon III (1800s) – reply when asked to ban smoking]

Despite all the furore over public health and governments efforts to decrease the demand for cigarettes, South Africa is no different to other nations – annual tobacco revenues to the state coffers amounts to around R10 Billion! Another round of sin tax increases in the upcoming budget appears inevitable, and these increases are spawning a range of unintended (but not unexpected) consequences – the illicit trade. Source: Polity.org / DNA Economics.

Forbes compiled the following list of the world’s top 10 container terminals. For more information visit this link!

TraxensFrench shipping giant CMA CGM will start phasing in ‘smart’ containers this year, allowing the line and its customers to keep track of each box equipped with new sensors at all times. In an industry first, technology being developed with a start-up company, Traxens, would enable data on the location and condition of the container to be monitored at all times throughout a delivery.

The world’s third-largest container line and Ocean Three member said it had contributed to the capital increase of French firm Traxens that will enable CMA CGM to have access to an unprecedented amount of information on each container and offer clients what it describes as unique tracking solutions and real-time data collecting from all over the world.

Elie Zeenny, CMA CGM senior vice-president, Group IT Systems, said the technology would bring the shipping industry into a new era. This year, Traxens plans to equip the first CMA CGM containers with the patented technology so it will be possible to know in real-time not only a container’s position, but also its temperature, the vibrations it will be subjected to, any attempted burglary, the presence of traces of specific substances in the air or even the regulatory status of the cargo.

With its “4Trax” solution, Traxens offers the tracking of containers from cargo loading to their final destination, and the forwarding of data in real time to all actors in the multimodal transport chain. Traxens has also worked closely with French Customs in the development of its solution. In this regard the solution aims to record the legal status of the container (customs clearance) with the view to eradicate false declarations and counterfeits and to facilitate controls. Sources: Lloyds loading, CMA CGM and Traxens

Maputo1Mozambique has the necessary conditions to successfully adopt the Chinese model of Special Economic Zones, which helped to boost the Chinese economy, according to researchers Fernanda Ilhéu and Hao Zhang.

In the study “The Role of Special Economic Zones in Developing African Countries and Chinese Foreign Direct Investment (refer to link below),” researchers from the Lisbon School of Economics and Management noted that over 35 years, the Special Economic Zones have had “a decisive role in the development of places like Shenzhen, Zhuhai, Xiamen, Shantou, Hainan and Shanghai, and that African countries can leverage this experience.

In 2006, the Forum on China-Africa Cooperation gave “significant priority” to creating up to 50 SEZs abroad, which are being implemented, with US$700 million invested by Chinese companies in 16 EEZ, according to information from China’s Trade Ministry.

Increasingly focused on business abroad, China needs raw materials and African markets to which to export its products, but can also benefit from shifting some of its industries to Africa, as the cost of Chinese labour increases.

The approach to Africa has involved through loans and financing for the construction of infrastructure, and “the development of African countries requires China’s increasing involvement,” including “collaborating in the development of SEZs,” the authors argue.

Regarding Portuguese-speaking countries, the average annual growth of trade between 2002 and 2012 totals 37 percent, turning China into the largest trading partner and largest export market for those countries.

The relationship has proved to be “dynamic in both directions,” they added, with hundreds of companies from Portuguese-speaking countries operating in China and Chinese investment in those countries of around US$30 billion, according to China’s Trade Ministry.

As for the SEZ, the two researchers focused their attention on the Mozambican Manga-Mungassa (Beira, Sofala province) SEZ, established in May 2012, under the management of China’s Dingsheng International Investment Company (Sogecoa Group), which has plans to invest close to US$500 million.

Nearing completion, the first phase includes the construction of warehouse units, followed by the “operational” phase, with construction of additional infrastructure such as hotels and housing, and finally the free industrial zone, where high tech units will be installed.

“In terms of knowledge transfer, Mozambique has made active steps in learning from the experience of Chinese SEZs and using this model to attract foreign investment,” they said.

In 2012 the Mozambican government created the Office for Economic Areas with Accelerated Development (Gazeda) that in addition to Manga-Mungassa, is responsible for the projects of the Belulane Industrial Park, the Locone and Minheuene Free Industrial Zones and the Crusse and Jamali integrated park.

On 6 May, 2014 the Mozambican government approved the establishment of the Mocuba SEZ, a sign of the “determination to create more conditions and to look for more opportunities and economic measures to create jobs and generate wealth,” in the country, the study said.

According to the authors, Mozambique has a strategic location, the ability to attract investment through the diaspora, as well as its model of economic growth and development in its favour, although there remain difficulties in infrastructure and technological development.

“The Chinese SEZ model can be successfully applied to the Manga-Mungassa area,” they concluded. Source: macauhub / MZ

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NanshaChina is planning to build a second Hong Kong city in Nansha, a district in southern China’s Guangdong province.

Preliminary plans indicate a city of around 100 square kilometres will be built to help alleviate the development problems currently experienced by Hong Kong due to land shortages, protests and environmental concerns. Hong Kong has an area of about 1,100 square kilometres and currently houses over seven million people.

The new city is expected to be developed into an international shipping hub. Its commercial importance will be boosted by the Guangdong free trade zone which was approved late last year. This zone will cover around 116 square kilometres.

China’s Xinhua news agency said the zone will deepen cooperation between Hong Kong and Macau which lies on the western side of the Pearl River Delta, across from Hong Kong. Nansha faces the sea and is 38 nautical miles from Hong Kong and 41 nautical miles from Macau. In December 2013, Nansha Port hit the record of 10 million teu since it was open in 2004.

Local media reports that the new city could be completed by 2020. It is expected to have a GDP of $64 billion. Source: Maritime Executive

CigarettesAn intricate web of smugglers, which reportedly involves manufacturers and middlemen, has been illegally carting cigarettes worth millions of dollars out of the country over the years, prejudicing the treasury of vital revenue.

Cigarette manufacturer, Savanna, has been fingered as one of the main culprits, while multinationals like BAT have also been mentioned in the illicit cross-border trade, mainly to South Africa.

Commonly smuggled brands include Remington Gold, Madison, Sevilles, Magazine Blue, Chelsea and Pacific Blue, manufactured by Savanna – which consistently denies smuggling.

A senior police sokesperson said “Even though we don’t always talk about it, we have managed to make significant arrests and the cases have been taken to court. The arrests include smuggling attempts at undesignated spots along the border and through official exit points such as Beitbridge”

A senior customs official told The Zimbabwean that cigarette smuggling, particularly through Beitbridge and Plumtree border posts, was difficult to arrest because of corruption.

“Policing at the border posts involves several agencies, namely the police, CIO (Central Intelligence Organisation), customs and special deployments from ZIMRA (Zimbabwe Revenue Authority). The problem is that these officers work in collaboration with the smugglers and haulage trucks and other containers carrying the cigarettes are cleared without proper checking. Hefty bribes are involved and the money is too tempting to resist,” said the customs official.

“You would be amazed how wealthy these officers have become. They have bought houses, luxury cars and send their children to expensive schools – yet their regular salaries are so low,” he added.

Immigration and customs officials, who also constantly liaise with their South African and Botswana counterparts and meet physically regularly, pretend to be checking the containers but clear them without completing the task, and know what the trucks and other carriers would be ferrying.

ZIMRA has four scanners for detecting contraband and an anti-smuggling team that also uses sniffer dogs, in addition to guard soldiers posted between the Zimbabwean and South African borders.

There are about 15 regular roadblocks along the Harare-Beitbridge road and 10 between Bulawayo and Plumtree that search trucks, buses and private cars. Despite this, the smuggling continues because of the collusion among the officials, said the source.

In early January, the Ferret team, a joint operation involving Zimbabwean and South African officers, intercepted a truckload of 790 Remington Gold cigarettes worth an estimated $119,000 destined for South Africa along the Masvingo-Beitbridge road. The smugglers were caught and arrested while offloading the cartons into small trucks. Source: The Zimbabwean