The Department of Immigration in Zimbabwe has advised the Government to consider formalising two proposed borders with South Africa to relieve pressure on Beitbridge and curb irregular migration and smuggling along the border’s flanks.
Beitbridge is the only land border with South Africa and two more tourism borders have been proposed at Shashe (120km west of Beitbridge town) and at Tshituripasi some 125km east of the border town.
One house (for immigration officials) and a road have been constructed at Shashe, while a road has been constructed and land for housing has been cleared at Tshituripasi.
Shashe was created in 2007 to facilitate groups of tourists during the Wildrun and the Tour de Tuli that are held annually.
Tour de Tuli attracts 500 visitors, while Wildrun attracts 80, all from across the globe and the events are usually held three months apart.
Assistant Regional Immigration Officer-in-Charge of Beitbridge, Mr Nqobile Ncube, made the call during a recent visit by parliamentarians from the committee on Defence, Security and Home Affairs.
He said though the sites were identified a decade ago and initial bilateral engagements had been done, nothing much had happened on the ground.
Mr Ncube said the borders should be set up in the mould of Maitengwe, Mpoengs and Mlambapele, which Zimbabwe share with Botswana.
He said the creation of such ports that can be manned by a few officers will help to reduce smuggling and irregular migration (border jumping).
“We are concerned with cases of illegal crossing on the flanks of the legal border (Beitbridge),” said Mr Ncube. “Such a scenario is not good in terms of security and the country being able to collect revenue through imports/exports which are leaking via the many non-formal entry/exit points.”
Mr Ncube said in some instances, those living along the border areas did not see the need to travel for more than 100km or 200km to gain legal access to a place, which is just across the river.
He said such a reality could not be overlooked, hence the need to formalise the already existing points, which can open on specified times to cater for all those travelling on family or tourism-related business in those areas.
The two borders, he said, will help boost arrivals of tourists, with the Shashe point catering for people visiting the Greater Mapungubwe Trans-frontier conservation area which coversBotswana, South Africa, and Zimbabwe (west of Beitbridge).
“The Tshituripasi border will take locals, traffic to other western parts of Zimbabwe and to the Greater Limpopo Trans-frontier Conservation Area, which involves Mozambique, South Africa, and Zimbabwe,” said Mr Ncube.
“We have had to use these borders during major annual tourism events, albeit on a temporary basis and that has been done successfully. We have seen it, we can manage. This will be a relief to Beitbridge, which clears half a million people every month.”
From 1 January 2021, the transition period with the European Union (EU) will end, and the United Kingdom (UK) will operate a full, external border as a sovereign nation. This means that controls will be placed on the movement of goods between Great Britain (GB) and the EU.
The UK Government will implement full border controls on imports coming into GB from the EU. Recognising the impact of coronavirus on businesses’ ability to prepare, the UK Government has taken the decision to introduce the new border controls in three stages up until 1 July 2021.
Her Majesty’s Revenue & Customs (HMRC) published the first iteration of the Border Operating Model in July 2020, setting out the core model that all importers and exporters will need to follow from January 2021 as well as the additional requirements for specific products such as live animals, plants, products of animal origin and high-risk food not of animal origin. We also provided important details of Member State requirements as traders and the border industry will need to ensure they are ready to comply with these, and not just Great Britain (GB) requirements. Indeed, as set out in the recently published ‘Reasonable Worst Case Scenario’ assumptions, it is largely the level of readiness for Member State requirements which will determine whether there is disruption to the flow of goods at the end of the transition period. This is why we have included additional signposting to those requirements throughout the document, and are encouraging all GB businesses not just to ensure their own readiness but also the readiness of EU businesses to whom they export, and throughout their supply chains.
Since July, the HMRC has worked closely with industry to further develop plans for the end of the transition period, and also to respond to industry questions since the publication of the first iteration of the Border Operating Model. This latest iteration of the Border Operating Model provides additional information in a number of key areas as set out below as well as clarifying a number of questions from industry.
The British government has started to conduct research on its new post-Brexit customs IT system, with four months left before the service is due to go live.
Her Majesty’s Revenue & Customs, which is in charge of handling the new customs paperwork that will apply to UK-EU trade from 2021, has invited hauliers to participate in rounds of remote-user testing in the coming months for its Goods Vehicle Movement Service (GVMS), according to a memo to the freight forwarding industry.
The GVMS – which is set to be used to police cross-Irish Sea trade from Jan 1 2021, and then all UK-EU goods flows from July – will give freight companies a unique reference number that proves that they have filed the necessary post-Brexit paperwork, such as customs declarations.
Without a reference from the GVMS, trucks will not be allowed to cross between the UK and EU.
The fact that the GVMS is still in the research and design phase less than 90 working days before it is due to be introduced is a cause for concern in the logistics industry: one freight forwarder, who spoke under condition of anonymity, said they are worried the service won’t be completed and functional on time.
The new system will be required even if Britain and the EU sign a free-trade agreement.
And while consultation with the industry is welcome, it would have been preferable to do such research during the system design process, said Anna Jerzewska, founder of Trade and Borders, a customs and trade consultancy.
“The Government has made it clear that GVMS is unlikely to be ready for January 1 and as far as we understand there will be back-up procedures in place,” she said.
“It will be crucial to ensure that such alternatives are available in places where traffic management will be important,” she said, citing Kent and the Irish Sea.
In the memo, HMRC says it wants to start the first round of testing “ASAP” due to the shortage of time.
The tests will involve hour-long video calls where hauliers try prototypes and give feedback.
“When designing a system that the industry will be using, it is important we work in partnership with them to make sure it suits their and our needs,” HMRC said by email.
“We will continue to develop our systems in readiness for the end of the transition period and when full border controls are implemented from July 2021.”
Source: Bloomberg, article authored by Joe Mayes, 28 August 2020
President Cyril Ramaphosa has signed the Border Management Authority Bill of 2020 into law.
The new legislation is in force from today, 21 July 2020.
The legislation addresses a need identified by government and diverse stakeholders in the economy for an integrated and well coordinated border management service that will ensure secure travel and legitimate trade in accordance with the Constitution and international and domestic law.
The new Border Management Authority will, as an objective of the Act, replace the current challenge of different agencies and organs of government all playing different roles in managing aspects of border control.
The integrated Authority will contribute to the socio-economic development of the Republic and ensure effective and efficient border law enforcement functions at ports of entry and borders.
The new law provides for the establishment, organisation, regulation, functions and control of the Border Management Authority, the appointment of its Commissioner and Deputy Commissioners and officials.
The law also provides for their terms of office, conditions of service and functions and powers.
Furthermore, the law provides for the establishment of an Inter-Ministerial Consultative Committee, Border Technical Committee and advisory committees, for the review or appeal of decisions of officers, and the definition of certain things offences and the levying of penalties.
The legislation therefore contributes to the security of the country and the integrity and ease of trade and the general movement of persons and goods in and out of the country.
On 30 June 2020 the Secretariat of the Federal Revenue of Brazil (Receita Federal do Brasil), launched its first ever nation-wide Time Release Study (TRS) during an online live broadcasted event attended by over 4000 participants – including border agencies and the private sector, as well as Customs administrations from across the globe. The TRS, which follows the World Customs Organizations (WCO) TRS Methodology, constitutes a milestone for the Brazilian Customs Administration as it enhances transparency while providing an opportunity for an evidence based dialogue between all key stakeholders to tackle the identified bottlenecks and improve the effectiveness and efficiency of border procedures.
The TRS report was validated by the WCO in collaboration with the World Bank Group and with support of the UK’s Prosperity Fund. Speaking at the Opening Session of the launch event, WCO Deputy Secretary-General, Ricardo Treviño Chapa said: “This is a big step forward towards increased trade facilitation and provides a baseline to measure the impact of actions and reforms”. He also underlined that the Brazilian experience would be valuable to share with the wider Customs community and added that “the current health emergency shows that it is key to keep the flow of goods going”. Throughout the event the importance of the WCO’s TRS methodology was highlighted by various speakers as a vital tool for strategic planning and the implementation of the WTO’s Trade Facilitation Agreement.
The study shows an average time measured of 7.5 days considering air, sea and road modes of transport. The Customs clearance stage accounts for less than 10% of the total time measured, while those actions under the responsibility of private agents represent more than half of the total time spent in all flows analysed.
To further increase transparency for importers and exporters, the Secretariat of the Federal Revenue of Brazil also intends to publish the raw data of the TRS.
The recording of the full launch event with Portuguese/English translation can be watched here (YouTube).
The TRS report and its Executive Summary are available here.
As the title suggests, the latest edition of WCO Newscontains a variety of articles concerning Customs approach to COVID-19 and even one article relating to Customs Brokers on COVID-19. Other features include C-2-C cooperation and information exchange, Risk Management and the future invisible supply chain and Secure Border . Of interest for Customs Policy are articles on improvements to simplification and harmonisation of components to the Revised Kyoto Convention; WCO’s development of draft “Practical Guidance on Free Zones” as well as Internet domain name ownership data – understanding changes and useful suggestions for Customs. All in all another great read!
The Southern African Development Community (SADC) is gearing up for a full reopening of cross-border trading.
This comes after experts in the region expressed satisfaction over the precautionary measures countries within the 16-member bloc have taken to prevent further spread of the novel coronavirus which causes Covid-19.
The move comes after about 50 days when the body adopted its regional guidelines for harmonising and facilitating movement of critical goods and services across the region during the Covid-19 pandemic.
The guidelines, adopted after a meeting of the SADC Council of Ministers on April 6, 2020, aimed at –
limiting the spread of Covid-19 through transport across borders;
facilitating the implementation of transport related national Covid-19 measures in cross-border transportation and facilitating flow of essential goods such as fuel, food and medicines.
The guidelines also sought to limit unnecessary and mass movement of passengers across borders and harmonising and coordinating transport-related national Covid-19 policies, regulations and response measures.
But with some countries – including Tanzania – making some important milestones in their fight against Covid-19, a virtual meeting of experts met yesterday to draw the roadmap for a meeting of SADC Council of Ministers today (Thursday, May 28) resolved that some things must now change.
“This meeting is being held in preparation for a meeting for the SADCCouncil of Ministers. Key on the agenda that we will be presenting to the Sadc Council of Ministers is that some of the issues that we knew about Covid-19 must now change,” said the meeting chairman and Permanent Secretary (PS) in Tanzania’s Foreign Affairs and East African Cooperation Ministry, Colonel Wilbert Ibuge.
He said permanent secretaries for SADC foreign affairs ministries had agreed in principle to remove a provision that allowed only the facilitation of movement of critical goods and services across the region during the Covid-19 period.
“The truth is that all products that [move across borders] seek to improve lives of our people within SADC. All business goods must move across our borders,” he said.
He said recommendations from the meeting of PS’ would be forwarded to a virtual meeting of council of ministers today (Thursday) for deliberations.
The meeting of experts comprised senior officials from six ministries from each Sadc member state.
They deliberated on eight items that had been approved by the council of ministers last early month.
“The experts noted that people must learn to live with Covid-19 because the disease could be here to stay and therefore, all kind of businesses must continue so that together we can build our economies,” he said.
The ministers will also deliberate on issues pertaining to the financial position of SADC, implementation of a resolution on disaster management within the bloc and progress towards implementation of the theme that was adopted during the 39th Sadc meeting.
The ministers will also deliberate on the state of business operations among SADC member states, industrial development in Sadc and implementation of the SADC Industrial Development Strategy and its work plan.
Source: Article by Kelvin Matandiko, The Citizen, Dar es Salaam, 28 May 2020
The U.K. risks failing to recruit the 50,000 customs agents the logistics industry says are needed before Britain’s final parting with the European Union, spelling potential chaos at the country’s busiest border.
The coronavirus has hampered efforts to train staff to handle the extra paperwork firms will need to complete after the U.K. exits the EU’s customs union at the year-end, according to industry bodies involved with the process. One lobby group says its offer to help plug the shortage of recruits has met with silence from Whitehall.
Without enough agents, goods traveling to and from the EU, the U.K.’s single biggest trading partner, risk being delayed at ports, disrupting supply chains and heaping more pain on companies reeling from coronavirus. Even if the two sides strike a trade deal by December, agents will still be needed to process an additional 200 million customs declarations, according to estimates by Her Majesty’s Revenue and Customs.
“This is all blown out the water by the virus,” said Robert Keen, director-general of the British International Freight Association, which is helping to train workers to process the new paperwork with funding from a 34 million-pound ($43 million) government program. “Everybody is fighting to keep their businesses going.”
Keen’s industry group has postponed its classroom training until at least June. The number of monthly registrations for its online learning course has dropped by 80% since February.
Asked by lawmakers on April 27 how many agents have been recruited so far, Cabinet Office Minister Michael Gove said he didn’t know.
He told members of Parliament the government had been in talks with the logistics industry about creating a training school. Such an initiative already exists — the U.K. Customs Academy was started in September with the Institute of Export. 876 courses have been initiated or completed since the academy opened, according to KGH Customs, which helps run the program.
“There is a significantly long way to go,” said Marco Forgione, director-general of the Institute for Export. According to him, the 50,000 figure is almost certainly a conservative estimate of how many agents will be needed. He is calling on the government to encourage people who have lost their jobs because of the virus to re-train as customs officials.
In a sign of how the virus has sapped attention away from Brexit in Whitehall, the Freight Transport Association submitted a proposal to the Treasury on March 17 about how to set up a mass education program to train up agents. More than a month later, the lobby group hasn’t received a reply.
“My impression is it has come to a full stop,” said Rod McKenzie, managing director of policy and public affairs at the Road Haulage Association. He expressed surprised he hadn’t seen any job ads for customs agents.
Talks to seal a trade deal between Britain and the EU have been disrupted by the virus. The U.K. is seeking a Canada-style accord which would eliminate tariffs on goods but create new non-tariff barriers like customs declarations and rules-of-origin paperwork. Without a deal, the U.K. would trade with the EU on terms set by the World Trade Organization, meaning steep duties on products from cars to beef.
Need to Prepare
The two sides have until the end of June to extend the standstill period Britain entered after Brexit on Jan. 31 – but the government has repeatedly ruled out seeking a delay. Business groups such as BIFA and the FTA have called for an extension, arguing firms shouldn’t have to face the double whammy of higher trade costs while still recovering from the negative effects of coronavirus.
A government spokesman said thousands of agents, freight forwarders and parcel operators had used the 34 million-pound fund to improve their IT hardware and train staff.
“The U.K. has a well-established industry of customs intermediaries who serve British businesses trading outside the EU,” the spokesman added.
Even if firms are able to divert resources into training later in the year, by when the virus might have abated, companies will still need time to prepare, said Arne Mielken, founder of Customs Manager, an advisory firm for importers and exporters.
“You can’t hammer in customs knowledge overnight,” he said. “We urge companies not to neglect the fact that Brexit is still happening.”
Source: Article by Joe Mayes, Bloomberg, 4 May 2020
Many African states have closed their borders due to COVID-19. The movement of goods continues, albeit slowly. For people, transiting countries is difficult and the consequences for workers and small businesses are dire.
2020 should be the year of open borders in Africa. After years of negotiations, the concrete implementation of the African Free Trade Area (AfCFTA) was finally on the agenda. The common African passport was also to become a reality this year.
It is true that many countries allow goods to pass through, at least partially. However, the consequences for the continent, especially the long-term effects, can hardly be estimated. The African Union warns that border closures for people and goods could have a “devastating effect on the health, economy and social stability of many African states” that rely on trade with neighbors.
Africa thrives on mobility
The restricted transportation of goods is only one of the negative outcomes of border closures Africa is heavily dependent on the mobility of its workforce, explains to Robert Kappel, Professor Emeritus of the Institute for African Studies at the University of Leipzig. But right now, that workforce is stuck in place.
“Mobility is part of everyday life for most Africans,” Kappel told DW. “You go somewhere else for a while, work, earn income and send it to your family, acquire and bring back skills, create networks across borders,” Kappel said. The economist is certain that the longer mobility is restricted, the more African states will suffer from reduced economic growth.
Kappel cites Ivory Coast as an example. Just as Western European countries depend on eastern European harvest workers, many people come from Burkina Faso to work on Ivorian cocoa plantations.
Even people who have been living in Ivory Coast for a long time are now being sent back because of the COVID-19 pandemic. Kappel said the reason for their expulsion is simply because they are foreigners. “Cote d’Ivoire, one of the world’s largest cocoa producers, has been relying on the exchange of workers for decades and now suddenly has to limit this,” he said.
Southern Africa moving in the ‘right direction’
For goods transported by truck, meanwhile, the restrictions on the continent appear to be slowly easing. That’s according to Sean Menzies, responsible for road freight transport at the South African logistics company CFR Freight. The company’s trucks transport goods to almost all neighboring countries and member states of southern Africa’s regional bloc, SADC, including food to Zimbabwe and mining equipment to the Democratic Republic of Congo or to Zambia. The spread of coronavirus and the resulting border closures brought restrictions for CFR Freight.
Initially, only essential goods such as food, hygiene products or personal protective equipment could be transported across borders, Menzies said. Shortly afterwards, the regulations were also relaxed for cargo that reaches South Africa by sea but is destined for other SADC countries. These containers may be transported across borders, regardless of whether their contents are vital or not.
Menzies said the new regulations and controls will not delay the transport too much. “At the very beginning there were problems and a lot of confusion about what is required. But within a week, the customs officers understood and implemented the guidelines,” said the logistics expert. From then on, he said, traffic at the border posts has been fairly smooth. Menzies praised the cooperation in the region regarding the movement of goods during the pandemic.
COVID-19 test for East Africa truck drivers
The East African Community (EAC) is also trying to simplify the transport of goods between member states. On Monday the EAC issued new guidelines. Among other things, the regional bloc suggested that all border crossings should be kept open for freight traffic so that trucks can be cleared as quickly as possible.
EAC member states are interlinked at many levels, Kenneth Bagamuhunda, Director General for Customs and Trade in the Secretariat, the executive body of the EAC, said. “This forces us to really come together and issue regional guidelines,” Bagamuhunda told DW in an interview. Although the guidelines are not binding, they are intended to enable joint action.
The situation at the borders in East Africa could not be described as “very stable,” it was changing from day to day. But things were beginning to improve. Some states had started to test all truck drivers. “This led to some delays at first,” Bagamuhunda said.
30 kilometers (18 miles) – that’s how long the traffic jam was last weekend at the Kenyan town of Malaba on the border with Uganda, a Kenyan media house, Citizen TV, reported. Because truck drivers are particularly mobile, there is a risk that they will contribute to the spread of the virus. At least 20 of the 79 officially registered cases in Uganda are truck drivers, according to the BBC.
The EAC’s new guidelines now require testing for all truck drivers. The states are also to set up special stopping points so that drivers have as little contact with the population as possible.
Impact on farmers and small businesses
Small and medium-sized companies that depend on cross-border trade are particularly threatened by delays and restrictions, economist Robert Kappel said. “Many of the farmers or small entrepreneurs must now try to sell their products elsewhere but often the local market is limited.”
The EAC is now considering how to support these small businesses. According to Bagamuhunda, different approaches are being discussed: “Can we, for example, create an online mechanism so that they can handle their goods? Or systems that help them to trade with as little interaction as possible?” Soon, proposals will be made to politicians.
Source: article by Uta Steinwehr, DW.com, 2 May 2020
Six Chinese fishing trawlers were detained and issued with fines after they had entered South African waters without the required permission.
The trawlers were detected entering the South African Exclusive Economic Zone (EEZ) off the Northern Cape coast on 3 April 2020, after being ordered out of Namibian waters by the Namibian authorities.
The Fishery patrol vessel, the Sarah Baartman, later intercepted the vessels off the Western Cape coast and ordered them to the outer anchorage of the Port of Cape Town. Following the interception of the vessels on 7 April, the Chinese Embassy submitted a Diplomatic Note requesting permission for the vessels to shelter in Cape Town from adverse weather conditions.
The vessels were then boarded by an integrated Operation Phakisa Initiative 5 team and inspected. No fish were found aboard and all fishing gear was stored as per the Marine Living Resources Act. All the vessels were subsequently fined for entering South African waters without permission.
Once the fines had been paid, the six trawlers were released and monitored as they transited South African waters.
Whilst off Port Elizabeth, the vessels requested permission to shelter in Algoa Bay from adverse weather conditions. The request was approved by the South African Maritime Safety Authority. After departing Algoa Bay, the vessels sailed up the coast and left South African waters late on 19 April and early on the morning of 20 April 2020.
There was no evidence of illegal activity whilst in South African waters.
During the COVID-19 lockdown period, integrated teams have been deployed under Operation Phakisa along the coast to support the national effort to protect our marine resources – on the coastline and at sea. The team, which includes enforcement officials, is checking for infringements related to the Marine Living Resources Act, the Road Traffic Act, non-compliance with COVID-19 Disaster Management regulations and other criminal activity in general.
Several media reports have recently published misleading information in regard to the South African Revenue Service and the Border Management Authority Bill. The following statement by Parliamentary Communication Services offers context in the matter –
Border Management Authority bill takes another step towards becoming law
The Portfolio Committee on Home Affairs adopted a report on the Border Management Authority Bill [B9B-2016] and will recommend to the house to adopt and pass the Bill into an Act of Parliament.
The adoption follows the recommendations and amendments made by the Select Committee on Security and Justice while processing the Bill. The committee agreed that the amendments are valid and strengthen the Bill to ensure that it delivers on its mandate.
An important amendment made by the National Council of Provinces is to highlight the consensus reached between the Minister of Finance and Minister of Home Affairs, which removes the South African Revenue Services from the application of the Act. “We appreciate that the two departments have reached a consensus on how to handle the custom-related issues at port of entries, which has been a major sticking point impeding the completion of the Bill,” said Advocate Bongani Bongo, the Chairperson of the committee.
The committee welcomes the fact that as a result of this consensus, the Bill commits both the Department of Home Affairs and National Treasury to agree on an implementation protocol to enable seamless functioning and co-ordination of border management areas within six months of the implementation of the Act.
The committee is of the considered view that the passing of the BMA Bill is a step in the right direction to secure our borders and end fragmentation within this environment. The committee will table its report before the National Assembly and recommend that the Bill be passed and sent to the President for assent into law.
Regarding the performance of the department in quarter three and four, the committee notes the piloting of an e-visa in Kenya. While the committee is aware that this pilot phase should have been rolled out to six missions across the world, it nonetheless welcomes the announcement that the pilot will be extended to India, Nigeria and China in the course of this quarter. The committee has urged the department to fix teething problems identified and to conclude the piloting stage with the aim of introducing the programme.
The fight against corruption is an important pillar in strengthening accountability and good governance. In line with this, the committee welcomes the announcement that 86.6% of the department’s fraud and corruption cases are finalised within 90 days. The committee continues to emphasise the need for the speedy finalisation of corruption cases and the sanctioning of departmental employees.
The committee will continue to monitor the implementation of the Annual Performance Plan to ensure delivery of services to the people.
For media enquiries or interviews with the Chairperson:
Committee’s Media Officer Malatswa Molepo Parliamentary Communication Services
Customs teams from Durban, Cape Town, Gauteng and the Free State recently dealt a blow to non-compliant traders by busting drugs, illicit cigarettes and undeclared fuel.
Customs officers at OR Tambo International Airport (ORTIA) were responsible for several major drug busts over the past couple of weeks, including the following:
On 8 February, a female passenger arriving from Sao Paulo was stopped and her luggage scanned, which revealed suspicious images. After searching her luggage, officers discovered packages wrapped in black tape and containing a white powdery substance. The powder was tested and confirmed to be cocaine, valued at approximately ZAR54 284 349. Officers also searched a male passenger arriving on the same flight and discovered three body wraps on his torso, containing a white powdery substance. The contents were tested positive for cocaine, valued at about ZAR9 057 566. On the same day, officers intercepted a male passenger about to board a flight for Hong Kong and searched him. They discovered body wraps on his upper torso containing cocaine valued at about ZAR11 700 000.
On 2 February, a male passenger arriving from Sao Paulo was stopped by Customs officers and his luggage searched. After a luggage scan revealed irregular images, officers searched his bags and discovered packages wrapped in black tape containing cocaine, valued at about ZAR5 850 000.
On 27 January, in a similar incident to the above, a male passenger arriving from Sao Paulo was arrested after Customs officers discovered a false compartment in his luggage, which contained cocaine valued at about ZAR6 750 000.
In all the above incidents, the suspects and goods were handed over to the SAPS for further investigation.
In the Durban incident, officers became suspicious of two containers of goods arriving on a vessel in the Durban harbour from China.
The containers, which were declared to contain glassware and household goods, were placed for examination at a cargo depot in Durban.
Upon inspection by Customs officers on 5 February 2020, the containers were found to contain various suspected counterfeit goods, and several cartons with tablets packed in plastic packets.
Members of the Customs detector dog unit reacted positively to the cartons, which were tested and found to contain Methaqualone (Mandrax).
There was a total of 15 cartons, each containing 20 000 Mandrax tablets with a street value of about ZAR24 million. The case has been handed over to the SAPS for further investigation.
In Cape Town, officers were responsible for a massive bust of illicit cigarettes, one of SARS’ key focus areas when it comes to illicit trade (particularly in terms of lost revenue due to the fiscus).
After receiving an alert from the Compliance Risk and Case Selection team about a possible mis-declaration of a container on a ship arriving in South Africa, a detention notice was issued to the shipping liner and the goods were detained in December 2019.
After following the required legal processes, a Customs Branch Physical Inspection team searched the container at the Cape Town harbour on 20 January 2020.
During the inspection, the team discovered 1050 master cases of “LEGATE” cigarettes, each case containing 50 cartons of 10 packets, with an estimated street value of about ZAR3 150 000.
If the consignment of cigarettes was not detected, the potential loss of revenue would have amounted to about ZAR12 208 350 in Customs & Excise duties and VAT.
The Western Cape Customs Branch Inspection team has handed over the case to Criminal Investigations from further investigation.
In the Free State, Customs officers dealt a blow to another key area of illicit trade, ie. ghost exports or false declarations of fuel. On 31 January 2020, officers stopped a truck coming from Lesotho through the Ficksburg border post. They had become suspicious of this particular trucking company, as they had recently changed their route to using South Africa as a transit route from Mozambique to Lesotho.
Officers noticed that the same truck had driven through the border into Lesotho the day before, having declared the truck full with fuel they acquired in Mozambique. The following day it re-entered South Africa, with the driver claiming that the truck was empty (which could indicate a possible ghost export in which they were trying to avoid paying taxes and duties/levies).
They then asked the driver to park the truck at the depot for inspection. However, after the truck was taken to the depot, the truck driver disappeared and the truck company’s lawyer was called to attend an inspection.
Customs officers then discovered the truck contained 26 000 litres of diesel, with the owners having failed to pay duties and taxes totalling ZAR176 000 due to the fiscus. The truck was detained for further investigation.
And in a similar incident, two trucks were stopped at the Maseru Bridge border post on 4 February for falsely declaring fuel coming from Mozambique to Lesotho. The trucks contained 39 388 litres and 39 414 litres of petroleum respectively. Both were detained for further investigation.
Customs and Border Protection (CBP) has expanded its pilot of a new, voluntary scheme to try to improve the security of low-value shipments entering US borders.
The Section 321 Data Pilot is focused in particular on e-commerce, and aims to improve data-sharing between online marketplaces, carriers, technology firms and logistics provider to help protect American consumers from illicit goods arriving by air, ocean, truck, or rail.
That includes, “illicit narcotics, unregulated prescription drugs, brand counterfeits, and unsafe food and beauty products”, according to the CBP, which plans to run the pilot until August 2021.
Nine companies have been selected to participate in the pilot, including e-commerce giants Amazon and eBay, carriers Zulily, FedEx, DHL and UPS, as well as technology firm PreClear and logistics providers XB Fulfillment and BoxC Logistics.
CBP has said that it plans to expand access to all interested and qualified participants “in early 2020.”
The participants will provide cargo origin, content, tracking, recipient and other information to CBP upfront, in addition to the information that is currently legally required for Section 321 shipments – in other words one shipment per day for eligible importers, individuals or companies with a value of $800 or less.
CBP says it wants to see whether having that additional information will enable it to perform “more effective and efficient targeted screening” of these low-value shipments.
Research published in 2018 has suggested that two-thirds of counterfeit goods intercepted by customs around the world are discovered in small parcels sent through postal or courier services.
In part because they are harder for customs officials to track and seize, and also because in many jurisdictions they have not required detailed manifests for their contents. The US stepped up the manifest requirements for Section 321 shipments from January 1, 2019.
CBP broadened the scope of the 321 Data Pilot last month, shortly after the pilot was launched in August, to include ocean shipments and international mail which weren’t included in the original plan.
“Combined with the exponential growth of the online shopping market in the US over the past five years, CBP has seen a significant increase in small, low-value packages,” said the agency in a statement.
“Today, CBP processes more than 600 million express consignment and international mail shipments a year – approximately 1.8m a day. The unprecedented growth in volume of these low-value shipments requires creative solutions to interdict illicit and dangerous products to enter the US.”
Source: article by Phil Taylor, Securityindustry.com, 20 January 2020
An online platform developed by UNCTAD and the African Union to help remove non-tariff barriers to trade in Africa became operational on 13 January.
Traders and businesses moving goods across the continent can now instantly report the challenges they encounter, such as quotas, excessive import documents or unjustified packaging requirements.
The tool, tradebarriers.africa, will help African governments monitor and eliminate such barriers, which slow the movement of goods and cost importers and exporters in the region billions annually.
An UNCTAD report shows that African countries could gain US$20 billion each year by tackling such barriers at the continental level – much more than the $3.6 billion they could pick up by eliminating tariffs.
“Non-tariff barriers are the main obstacles to trade between African countries,” said Pamela Coke-Hamilton, director of UNCTAD’s trade division.
“That’s why the success of the African Continental Free Trade Area depends in part on how well governments can track and remove them,” she said, referring to the agreement signed by African governments to create a single, continent-wide market for goods and services.
The AfCFTA, which entered into force in May 2019, is expected to boost intra-African trade, which at 16% is low compared to other regional blocs. For example, 68% of the European Union’s trade take place among EU nations. For the Asian region, the share is 60%.
The agreement requires member countries to remove tariffs on 90% of goods. But negotiators realized that non-tariff barriers must also be addressed and called for a reporting, monitoring and elimination mechanism.
The online platform built by UNCTAD and the African Union is a direct response to that demand.
Complaints logged on the platform will be monitored by government officials in each nation and a special coordination unit that’s housed in the AfCFTA secretariat.
The unit will be responsible for verifying a complaint. Once verified, officials in the countries concerned will be tasked with addressing the issue within set timelines prescribed by the AfCFTA agreement.
UNCTAD and the African Union trained 60 public officials and business representatives from across Africa on how to use the tool in December 2019 in Nairobi, Kenya.
They practiced logging and responding to complaints, in addition to learning more about non-tariff barriers and their effects on trade and business opportunities.
“The AfCFTA non-tariff barriers mechanism is a transparent tool that will help small businesses reach African markets,” said Ndah Ali Abu, a senior official at Nigeria’s trade ministry, who will manage complaints concerning Africa’s largest economy.
UNCTAD and the African Union first presented tradebarriers.africa in July 2019 during the launch of the AfCFTA’s operational phase at the 12th African Union Extraordinary Summit in Niamey, Niger.
Following the official presentation, they conducted multiple simulation exercises with business and government representatives to identify any possible operational challenges.
Lost in translation
One of the challenges was linguistic. Africa is home to more than 1,000 languages. So the person who logs a complaint may speak a different language from the official in charge of dealing with the issue.
Such would be the case, for example, if an English-speaking truck driver from Ghana logged a complaint about the number of import documents required to deliver Ghanaian cocoa to importers in Togo – a complaint that would be sent to French-speaking Togolese officials.
“For the online tool to be effective, communication must be instantaneous,” said Christian Knebel, an UNCTAD economist working on the project.
The solution, he said, was to add a plug-in to the online platform that automatically translates between Arabic, English, French, Portuguese and Swahili – languages that are widely spoken across the continent. More languages are being added.
UNCTAD’s work on the AfCFTA non-tariff barriers mechanism is funded by the German government.
As unrecognisable as the building is, the same can be said for the world of Customs today. Few contemplated a ‘Customs’ parallel at the time; but, when the Department of Homeland Security was launched, the emergence of US Customs and Border Protection (USCBP) ushered in a new way of doing business. The world of Customs was literally ‘turned on its head’. Bilateral overtures seeking agreements on ‘container security’, ‘port security’ as well as an industry focussed ‘Customs and Trade Partnership Against Terrorism’ (C-TPAT) forced the World Customs Organisation (WCO) into swift action. After years of deliberation and negotiation several guidelines were released, later to be packaged as the WCO SAFE Framework of Standards. It seemed that the recent Revised Kyoto Convention (RKC) on simplification and harmonisation of Customs procedures was already ‘dated’. Customs as a proud solo entity was gone for ever, as country after country seemed compelled to address border security through wholesale transformation and upheaval of their border frontier policies and structures. Thus was born ‘border security’ and ‘cooperative border management’. In a manner of speaking, 9/11 put Customs onto the global map. Along with WCO developments, the tech industries brought about several innovations for risk management and other streamlined and efficient service offerings. Prior to 9/11, only the wealthy countries could afford non-intrusive inspection capabilities. One key aspect of the SAFE Framework’s was to include a pillar on Capacity Building. Through this, the WCO and business partners are able to offer tailor-made assistance to developing countries, to uplift their Customs and border capabilities. In particular, countries in Africa now are now in a position to consider ‘automated’ capabilities in the area of Customs-2-Customs information exchange as well as establishment of national Preferred Trader and Authorised Economic Operator (AEO) schemes. At the same time a parallel industry of ‘Customs Experts’ is being developed in conjunction with the private sector. The end result is the availability of ‘standards’, ‘policies’ and ‘guidelines’ fit for Customs and Border operations, focussed on eliminating incompatibilities and barriers to trade. Where these exist, they are largely attributed to poor interpretation and application of these principles. With closer cooperation amongst various border authorities still a challenge for many countries, there are no doubt remedies available to address these needs. In gratitude, let us remember the thousands of public servants and civilians who lost their lives that we can benefit today.