SARS has recently produced a two-part guide to assist Customs Users in the application of Customs Procedure Codes (CPCs). This comes on the back of several enquiries concerning procedures from both the trade community and customs officers. The guides have been prepared in two parts to begin with.

Part 1 provides the user with a table of the permissible CPCs against which he/she can identify the appropriate codes that preceed that which appears in the table. For example, if you wish to clear warehoused goods, in bond, from one customs warehouse to another customs warehouse using CPC E43 42, then you must already have lodged a preceding clearance with CPC E42 00; E42 20; or E42 37. Part 2 provides the same table of CPCs, this time illustrating what CPC codes are available for use for a secondary or followup clearance. For example, , if your original or primary declaration declared goods directly into a Customs Warehouse under CPC E40 00, then your follow-up or subsequent options will be A10 40; A11 40; A13 40; A14 40; A15 40; E41 40; E43 40; F53 40; H67 40; J80 40; or K85 40.

It is important for the Customs User to understand that these are the ONLY applicable CPC combinations, and that the customs system will not permit any variations on these. Most computer service providers have likewise built-in system rules which only allow the CPC codes as permitted. It is precisely because of past mis-use of purpose codes that lead to CPCs being introduced. Users will also now notice that any CPC combination where the previous procedure code is not ’00’ must reference a previous customs declaration. This therefore provides a complete audit-trail of a transaction from point of entry/exit through to its final state, providing the trader improved evidence of his/her compliance with the law. In the coming months, my companion blog Paperless Customs Clearance will provide detailed guidance for all CPCs.

 Related articles

• Modernisation Release 2 – Trader Pocket Guide (mpoverello.wordpress.com)