Day / May 2, 2012

by Mike Poverello

SARS issues Compliance Programme 2012/13 – 2016/17

SARS has issued its inaugural SARS Compliance Programme, a high-level overview of its plans for the next five years to further grow compliance with tax and customs legislation. More so than perhaps any other time in history, the current global economic conditions have thrust domestic resource mobilisation into the spotlight, highlighting sustainability built on a foundation of tax compliance. Countries lacking this solid base have found their room for manoeuvre in these uncertain times severely curtailed and, in some cases, completely absent. The impact of self-reliance on self-determination is self-evident.

Many tax administrations publish similar compliance programmes (including Australia, Brazil, Canada, Denmark, Netherlands, New Zealand, Poland, Spain, Sweden, Turkey, USA, UK) and SARS has based it’s Compliance Programme on their ground-breaking work. To download and read the SARS Compliance Programme, click here! For Customs specialists and trade practitioners no less than 3 priority areas involve Customs –

Illicit cigarettes: the trade in and consumption of illicit cigarettes is detrimental to the fiscus and to the health of South Africans. SARS interventions will continue to focus on clamping down on cigarettes smuggled via warehouses as well the diversion of cigarettes destined for export back into the local market. SARS also plans to modernise it’s warehousing management and acquittal system.

Undervaluation of imports in the clothing and textile industry: Undervalued imports pose a significant risk not only to the fiscus but to local industry and job creation. SARS will continue to work together with other government agencies and industry stakeholders to clamp down on this practice including through the establishment and frequent revision of a reference pricing database to detect undervaluation, increasing inspections as well as supporting an integrated border management model.

Tax Practitioners and Trader Intermediaries: Regulation of this industry will be pursued to ensure that tax practitioners and trade intermediaries are all persons of good standing, are fully tax compliant in their personal capacity and provide a high quality service and advice to their clients. SARS will also develop a rigorous risk profiling system to identify high risk practitioners and trade intermediaries.

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by Mike Poverello

African countries top tobacco exports

African countries have taken up a combined 43 percent of tobacco exports with South Africa topping the list, the Tobacco Industry and Marketing Board has said. This is an increase from the same period last year when African countries consumed only 18 percent of the total exports. Latest statistics from TIMB show that current seasonal tobacco exports to the Far East rose by 4 percent from last season’s 26 percent.

The increase in exports has been attributed to improved exports in China. The Middle East, which used to take more than 15 percent of total tobacco exports, made a huge slump to 2 percent in March this year.According to TIMB, this is a result of an 81 percent decrease in exports to the region. United Arab Emirates is the major player in the region with current monthly imports pegged at 133 000kgs.The UAE consumes cutrag tobacco, which has firmed up both in volume and price over the past two years.

Exports to the European Union have decreased from 36 percent to 18 percent. As at April 13, South Africa had imported 2,4 million kg of tobacco worth US$7,5 million from Zimbabwe at an average price of US$3,16 per kg followed by China which bought 2,3million kg at US$US$6,35 per kg and Belgium 1,6million kg at US$1,43 per kg.

Hong Kong was offering the highest price buying 415 800 kg of tobacco at US$6,70 per kg.Countries also offering high prices were Poland US$6,62 per kg, and Azerbaijan which bought 19 800kg at US$6 per kg. Zimbabwe exports tobacco to African countries which include Mozambique, Angola, Kenya, Congo, Malawi, Tanzania and Lesotho.

Tobacco stocks on hand are expected to go up as a result of increased stocks from the current crop.Flue cured tobacco imports remained stagnant at 515 152kg at an average price of US$2,70 per kg.

However, seasonal import permits issued increased to almost 12 million kgs as a result of authorisation granted to import 11 million kgs of tobacco. Tobacco production has been on the increase due to the favourable prices being offered on the market. The land reform programme has also contributed towards the increase in production with more than 80 percent of tobacco producers coming from the A1 and small-scale sectors. Source: The Herald (Zimbabwe).

For related information visit: All you need to know about Tobacco

by Mike Poverello

Royal Malaysian Customs implements Smartag Solution

Smartag Solutions, a homegrown total radio frequency identification (RFID) solutions provider, will handle 1.3 million containers at all Royal Malaysian Customs (JDKM) checkpoints in Malaysia starting June.The company has entered into a two-year agreement with the government to implement and operate the Container Security and Trade Facilitation System using its RFID solutions at the JDKM checkpoints.

This is the first electronic and electrical Entry Point Project, under the 12 National Key Economic Areas to monitor containers and facilitate clearance within domestic ports and selected high volume routes. The enhancement of container security using the RFID track and trace system reduces the risk of terrorism, dangerous chemicals and contraband from reaching borders while increasing the efficiency of container movement through Customs checkpoints.

The system allows users to use the RFID seal to secure their containers when entering, leaving and moving within the country. Smartag Solutions is expected to handle 50 per cent of the total transactions at the Customs approved by JDKM, or 500,000 containers. Source: BTimes.com

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