WCO News – June 2020

As the title suggests, the latest edition of WCO News contains 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!

Source : World Customs Organisation

WCO-IMO Partnership for maritime digitalization to support flow of trade by ship

The WCO and the International Maritime Organization (IMO) strengthened their partnership recently to further facilitate the exchange of information in a harmonized way by updating the IMO Compendium on Facilitation and Electronic Business and mapping it to the WCO Data Model. The updated Compendium, which is a set of standards on the submission of maritime related data, will enable the integration of Maritime and Customs Single Windows and allow closer coordination between Customs administrations and Maritime authorities. 

It is known that when ships enter and leave ports, vital information concerning cargo, dangerous goods, crews, vessel details and other pieces of information have to be exchanged with the authorities ashore. However, under the International Maritime Organization (IMO) Convention on Facilitation of International Maritime Traffic (FAL), public authorities are now required to set up systems for this all to happen digitally. 

With a view to sustaining the maintenance work of the Compendium and to allow more involvement of different stakeholders in the maritime supply chain, within the framework of existing partnerships, the IMO, the WCO, the United Nations Economic Commission for Europe (UN/ECE) and the International Standards Organization (ISO) have come together to support this increased maritime digitalization. 

The renewed partnership paves the way for updating the IMO Reference Data Model and for its further development towards the harmonization of data standards in other areas, beyond the FAL Convention, such as exchanging operational data that could help facilitate the just-in-time operation of ships. Just-in-time operations allow ships to optimise their speed, so they arrive at their destination port when their berth is ready for them, thereby saving energy and cutting costs and emissions. 

The partners involved have been cooperating to develop the IMO Reference Data Model, which is a key element of the IMO Compendium on Facilitation and Electronic Business and covers the reporting requirements defined in the FAL Convention to support transmission, receipt, and response of information required for the arrival, stay, and departure of ships, persons, and cargo via electronic data exchange.  This work ensures interoperability between the respective standards of each organization, such as the WCO Data Model.

Source: WCO, 14 May 2020

Guide: Goods and Conveyance Reporting in South Africa

A companion guide in support of increased compliance in the reporting of goods and conveyances (RCG) to Customs, South Africa.

Necessary information for – Air, Sea and Road carriers, vessel’s agents, NVOCCs, freight forwarders, Air and Sea terminal operators, container depot operators, transit shed operators and de-grouping depots. Also, all private software service providers to the trade.

The guide offers easy navigation through –

  • registration and electronic trading with SARS Customs
  • the various electronic messages mandated by law, covering import and export movements, across all modes of permissible international transportation
  • message types for each transaction type
  • scenarios to facilitate easier understanding across operators in the supply chain on how the various electronic reports are sequenced, ensuring that Customs formulates a comprehensive end-2-end view of a international trade transaction
  • reference webpages, official notifications, Customs rules and other pertinent information concerning cargo reporting.

All information is hyperlinked to SARS documentation, found on the official SARS website www.sars.gov.za

You may download the Guide below (File size: 3MB)

SARS Customs to introduce 24-hour Advance Rule and other Supply Chain reporting

SARS-RCG

Enter SARS RCG Webpage here!

This Friday, 20 April 2018, SARS Customs will implement its new Cargo, Conveyance and Goods Accounting solution – otherwise known as the Cargo Processing System (CPS). In recent years SARS has introduced several e-initiatives to bolster cargo reporting in support  its electronic Customs Clearance Processing System (iCBS), introduced in August 2013.

Followers of SARS’ New Customs Acts Programme (NCAP) will recognise that the CPS forms part of one of the three core pillars of the new legislative programme, better known as Reporting of Conveyances and Goods (RCG). The other two pillars are, Registration, Licensing and Accreditation (RLA) and Declaration Processing (DPR). More about these in future articles.  In order to expedite the implementation of the new Acts, SARS deemed it necessary to introduce elements of the new functionality via a transitional manner under the current Customs and Excise (1964) Act.

Proper revenue accounting and goods statistical reporting, can only be adequately achieved if Customs knows what goods ‘actually’ arrive, transit and exit it’s borders. Many countries, since the era of heightened security (post 9/11), have invested heavily in the re-engineering of policies and systems to address the threat of terrorism. This lead to a re-focus of resources and energies to develop risk management systems based on ‘advanced information’. SARS has invested significantly in automated systems in the last decade. Shortly, SARS it will also introduce a new automated risk engine with enhanced capabilities to include post clearance audit activities.

It should also not come as a surprise to anyone conversant with Customs practice, that international Customs standards such as the WCO’s SAFE Framework of Standards, the RKC and the Data Model are prevalent in the new Customs legal dispensation and its operational business systems.

South Africa will now follow several of its trading partners with the introduction of ‘advance reporting of containerised cargo’ destined for South African sea ports. This reporting requires carriers and forwarders to submit ‘advance loading notices’ to SARS Customs at both master and house bill of lading levels, 24 hours prior to vessel departure.

The implementation of CPS is significant in terms of its scope. It comprises some 30 odd electronic cargo notices and reports across the sea, air, rail and road modalities. These reports form the ‘pipeline’ of information deemed necessary to ensure that the ‘chain of custody’ is visible and secure from point of departure to final destination. For the first time, South Africa will also require cargo reporting in the export domain.

SARS_RCG_ Message_Schema 2018

Download a high resolution map of SARS Cargo Report Messages here!

It is no understatement that the CPS initiative is a challenge in particular to new supply chain entities who have not been required in the past to submit electronic reports. In order to meet these reporting requirements, a significant investment in systems development and training is required on the part of SARS and external trade participants. To this end, SARS intends to focus on ramping up compliance amongst all cargo reporters across all transport modalities. The first modality will be road, which is the most significantly developed and supported modality by trade since the inception of manifest reporting under the Customs Modernisation Programme. The remaining transport modalities will receive attention once road is stabilised. 

 

WCO News – February 2018

wconews_85

This edition of WCO News features a special dossier on the theme chosen by the WCO for 2018, namely “A secure business environment for economic development”, with articles presenting initiatives and related projects that contribute to creating such an environment. The articles touch on authorized economic operators, national committees on trade facilitation, coordinated border management, performance measurement, e-commerce, data analysis, and partnerships with the private sector.

For sub-Saharan African readers, look out for the write up of the Customs systems interconnectivity and the challenges and opportunities for Customs administrations in the SACU region.

Other highlights include articles on Customs systems interconnectivity in the Southern African Customs Union, on the experience of a young Nigerian Customs officer who participated in the Strategic Management and Intellectual Property Rights Programme at Tokyo’s Aoyama Gakuin University, on how the WCO West and Central Africa region is using data to monitor Customs modernization in the region, and on the benefits that can be derived by facilitating transit procedures.

Source: WCO, February 2018

WCO Data Model – speaking the ‘Global Customs Language’ in the Maluti’s

Copy of Enhancing Images

At least 30 representatives of the Southern African Customs Union (SACU) recently met in Maseru – capital of the ‘Mountain Kingdom’ – Lesotho, to undertake a 5-day training workshop on the WCO Data Model, between 29 May to 2 June.

The training formed part of capacity building support to Member States to implement IT connectivity and information exchange between SACU Customs Administration. The training was facilitated by WCO Data Model Expert, Mr Carl Wilbers from South African Revenue Service (SARS) and GEFEG.FX software tool Expert, Mr. Martin Krusch from GEFEG, Germany.

The recent ratification of Annex E to the SACU agreement – on the use of Customs-2-Customs (C-2-C) Data Exchange between member states – paves the way for participating countries to exchange data within the terms of the agreement on the basis of the GNC Utility Block, also greed to by the respective member states. It also coincides with recent work on the establishment of a SACU Unique Consignment Reference (UCR) which must be implemented by the SACU countries in all export and transit data exchanges between themselves, respectively.

Just recently, in May 2017, the heads of SACU Customs administrations were presented a prototype demonstration of data exchange between the respective systems of the South African Revenue Service and the Swaziland Revenue Authority.

The WCO Data Model provides a maximum framework of standardized and harmonized sets of data and standard electronic messages (XML and EDIFACT) to be submitted by Trade for Cross-Border Regulatory Agencies such as Customs to accomplish formalities for the arrival, departure, transit and release of goods, means of transport and persons in international cross border trade.

The course was extremely comprehensive, providing SACU customs users the full spectrum of the power and capability which the GEFEG.FX software tool brings to the WCO’s Data Model. GEFEG is also the de facto Customs data modelling and data mapping tool for several customs and border authorities worldwide. It significantly enhances what was once very tedious work and simplifies the process of mapping data, ensuring that the user maintains alignment and consistency with the most up-to-date version of WCO data model. One of the more significant capabilities of the GEFEG.FX software is its reporting and publishing capability. For examples of this please visit the CITES electronic permitting toolkit and the EU Customs Data Model webpages, respectively. Pretty awesome indeed!

Users had the opportunity of mapping the SACU agreed data fields both manually as well as using the tool. The SACU group was able to add additional enhancements to its agreed data model, providing an added benefit of the work session.

WCO – the opportunities and challenges of E-commerce

wco-in-russia

The WCO Policy Commission, held in Moscow, Russian Federation, from 5 to 7 December 2016 under the chairmanship of Mr. R. Davydov, brought to the fore the key role of Customs in creating a sustainable and efficient e-commerce ecosystem, reviving-up the exchange of data between stakeholders and enhancing risk-management through electronic interface. The other main topics discussed during the Commission pertained to trade facilitation, security, the enhancement of the Customs/Tax cooperation and the modernization of Customs administrations.

The newly established WCO Working Group on E-Commerce will work to tackle the different dimensions of e-commerce by collecting and exchanging best practices in the field, stocktaking and leveraging some of the ongoing work being carried out by other entities and drawing up proposals geared towards the development of practical solutions for the clearance of e-commerce shipments, including appropriate duty/tax collection mechanisms and control procedures.

Concerning the in-depth discussions on Custom /Tax cooperation, the WCO issued this year “Guidelines for strengthening cooperation and the exchange of information between Customs and Tax authorities at the national level” and will continue working on topics of common interest for Customs and Tax experts such as transfer pricing, drawback and Illicit Financial Flows (IFF).

During the Commission, WCO Secretary General Kunio Mikuriya, confirmed the WCO Theme for 2017 “Data Analysis for Effective Border Management” and stressed the impact of the digital revolution and the need to address promptly the challenges posed to the global economy. The Secretary General invited all the WCO Members to promote and share information in the coming months on how they are leveraging the potential of data to advance and achieve their objectives and respond to the expectations of traders, transport and logistic operators, and governments.

As data analysis will be emphasized in 2017 as a force multiplier for Customs administrations, it is relevant to highlight that the WCO is carrying out a Study to collect best practices among its members to assess and promote initiatives in the area of e-commerce. A previous analysis of preliminary data underscored the need for digitalization of processes, better sharing of information between e-commerce stakeholders and customs for improved risk management and the necessity for harmonization in the low-value shipment processes. Source: WCO

SARS publishes updated EDI User Manual

sars-edi-user-manualSARS has been operating Electronic Data Interchange (EDI) with its external stakeholders since 2001. More than 98% of all customs declaration (CUSDEC) transactions are today submitted electronically to Customs and the electronic submission of multimodal cargo reports (CUSCAR) is steadily increasing. Today, declaration processing is fully electronic end-to-end thanks to the availability of highly established EDI and Customs software service providers supporting the local customs and logistics community. SARS has also recently introduced a benefit for compliant cargo reporters who will be absolved of certain manual (paper) submission requirements once they attain an acceptable level of electronic submission compliance and data accuracy.

The ultimate objective is to ensure that all Customs-to-Business (C2B) transactions are electronic to enable full supply chain connectivity between the South African business community and Customs. This in turn enables the possibility of SARS accrediting or approving ‘supply chains’ as opposed to just individual trader segments (importers and exporters). The extent of electronic compliance is also a pivotal requirement for traders operating under the new Customs Control Act, to be enacted in the future.

SARS overall EDI capability extends further than declarations and cargo reports. In recent years Customs-to-Government (C2G) messaging has also been successfully established between SARS and the Department of Trade and Industry (dti) as well as the South African Reserve Bank (SARB). SARS is also engaging other government stakeholders concerning IT connectivity and data exchange.

Moreover, developments for cross-border Customs-to-Customs (C2C) data exchange are also in the pipeline and could come to fruition with the partner administrations in Mozambique and Swaziland in the foreseeable future. These initiatives will usher in increased supply chain connectivity through active use of the Unique Consignment Reference (UCR) between participating customs administrations. The ultimate objective here is the creation of mutual recognition benefits for local and cross-border traders based on their accreditation status agreed between the participating customs administrations.

The SARS Electronic Data Interchange (EDI) Manual (which can be downloaded from the SARS EDI webpage) has been updated with the latest versions of SARS Edifact Data Mapping Guides as well as improved diagrams explaining the functional composition of the various electronic messages specified for Customs processing. Also included are the requirements for registering as an EDI user with SARS.

The manual includes recent updates relating to cargo reporting (manifests) as well as the updated customs declaration message incorporating recent inclusion of customs surety, penalty and forfeiture requirements. The latter enhancement removes another document based requirement (the Form DA70 Provisional Payment) for Customs Brokers with the view streamlining data requirements, enhancing customs billing and customs status reporting with the trade and logistics community. This EDI Manual will be an important document over the coming months and years in that it will feature updated electronic requirements in support of the new Customs Control Act. Watch this space!

WCO Regional Workshop on Coordinated Border Management, Single Window and the Data Model

Wco CBM & Single Window WorkshopThe World Customs Organization (WCO), with the financial support of the Customs Administration of Saudi Arabia, successfully held a Regional Workshop on Coordinated Border Management (CBM), Single Window and the WCO Data Model in Riyadh, Saudi Arabia from 27 to 31 March 2016. Thirty seven middle management officials of the Customs Administrations from the MENA Region, namely Saudi Arabia, Egypt, Lebanon, Jordan, Morocco, Tunisia, Sudan, Bahrain and the United Arab Emirates participated in the Workshop. In addition, twelve officials of Customs’ Partner Agencies and two representatives from the private sector attended the event.

Mr. Abdulah AlMogehem, the Deputy Director General of the Customs Administration of Saudi Arabia in his opening remarks highlighted the importance of Single Window development by governments to simplify cross-border trade regulatory procedures which will reduce inefficiency and redundancy of border management processes.

The event highlighted the importance of CBM principles as the basis for the development of a Single Window Environment to enable coordination and cooperation between all relevant government agencies involved in border management. The Workshop also focused on the importance of strategic planning and formal governance structures in establishing a Single Window Environment. SA Revenue Service’s Intikhab Shaik incidentally facilitated the session and discussion on Single Window.

Other important topics included Business Process Re-engineering as well as Data Harmonization, using the WCO Data Model as the inter-operability framework to lay the foundation for CBM and Single Window. Source: WCO

WCO News – New Edition February 2016

WCO News Feb 2016Another bumper edition of customs news, views and success stories (click here to view!). Several countries showcase their modernization and digital developments under the theme “Digital Customs” from declaration management systems, carnet systems to paperless procedures for AEO’s. Nice to see an article featuring South African Customs once again.

There’s also a section featuring articles on ‘big data’. Learn about Canada’s approach to private sector stakeholder engagement. You’ll also find some interesting points of view regarding use and misuse of valuation databases and a whole lot more.  Source WCO

WCO facilitates Data Model training for SARS

WCO Data Model Workshop, Pretoria, South Africa, Dec. 2015

SARS’ EDI and Customs Business Systems representatives with WCO Data Model facilitators Mr. Giandeo Mungroo (2nd from the left) and Ms. Sue Probert (2nd from the right) [Photo – SARS]

Officials of the South African Revenue Service (SARS) last week attended a WCO workshop on the Data Model facilitated by Ms. Sue Probert and Mr. Giandeo Mungroo. The event, held in Pretoria, South Africa was sponsored by the CCF of China as part of the WCO’s Capacity Building endeavours to promote the adoption and use of customs standards and best practice amongst it’s  member states.

The workshop was requested by SARS ahead of new technical and systems developments and requirements informed by SARS’ new Customs Control and Duty Acts. Moreover, there are also political ambition to institute a Border Management Agency for the Republic of South Africa. All of this requires that SARS Customs has a robust electronic tool to assist the organisation in mapping national data requirements according to specific needs.

Besides the use of a value added Data Model tool – GEFEG, it is imperative for the organisation to develop capacity in the knowledge and understanding of the WCO Data Model. SARS has successfully EDI (Electronic Data Interchange) for the last 15 years with various local supply chain trading partners and government agencies. Over the last few years SARS has been actively pursuing and promoting IT connectivity with regional trading partners with the express purpose to extend the benefits of eCommerce across borders.

GEFEG.FX software is used to model data formats and develop implementation guidelines for data interchange standards such as UN/EDIFACT. It is a software tool that brings together modelling, XML schema development, and editing of classic EDI standards under a unified user interface, and supports the development of multilingual implementation guidelines.

Version 3 of the WCO Data Model brought about a distinct shift towards an ‘all-of-government’ approach at international borders with the introduction of the GOVCBR (Government Cross Border Regulatory) message. The message and underlying data requirements facilitate the exchange of customs and other government regulatory information to support a Single Window environment.

WCO Data Model not only includes data sets for different customs procedures but also information needed by other Cross-border Regulatory Agencies for the cross-border release and clearance at the border. The WCO Data Model supports the implementation of a Single Window as it allows the reporting of information to all government agency through the unique way it organizes regulatory information. This instrument is already 10 years old and is seeing increased use by WCO members.

Amongst the benefits derived from the workshop, SARS staff acquired the following competencies that will not only aid their work but business user support as well –

  • Competence in operating the tool to build a source control collaborative environment to support national and regional harmonization;
  • Competence to build a base to conduct national/ regional data harmonization based on the WCO Data Model to support national Single Window implementation as well as Regional Integration;
  • Competence to build systems/ electronic interfaces between Customs and its partner government agencies including a Border Management Agency; and
  • Provide needed competence to develop, maintain and publish national and regional information packages based on the WCO Data Model.

SA – Hub for computerised Regional Integration?

AfricaFrom time to time it is nice to reflect on a good news story within the local customs and logistics industry. Freight & Trade Weekly’s (2015.11.06, page 4) article – “SA will be base for development of single customs platform” provides such a basis for reflection. The article reports on the recent merger of freight industry IT service providers Compu-Clearing and Core Freight and their plans to establish a robust and agile IT solution for trade on the African sub-continent.

In recent years local software development companies have facilitated most of the IT changes emerging from the Customs Modernisation Programme. Service Providers also known as computer bureaus have been in existence as far back as the early 1980’s when Customs introduced its first automated system ‘CAPE’. They have followed and influenced Customs developments that have resulted in the modern computerised and electronic communication platforms we have today. For those who do not know there are today at least 20 such service providers bringing a variety of software solutions to the market. Several of these provide a whole lot more than just customs software, offering solutions for warehousing, logistics and more. As the FTW article suggests, ongoing demands by trade customers and the ever-evolving technology space means that these software solutions will offer even greater customization, functionality, integration and ease of use for customers.

What is also clear is that these companies are no longer pure software development houses. While compliance with Customs law applies to specific parties required to registered and/or licensed for Customs purposes, the terrain on which the software company plays has become vital to enable these licensees or registrants the ‘ability to comply’ within the modern digital environment. This means that Service Providers need to have more than just IT skills, most importantly a better understanding of the laws affecting their customers – the importers, exporters, Customs brokers, freight forwarders, warehouse operators, etc.

Under the new Customs Control Act, for instance, the sheer level of compliance – subject to punitive measures in the fullness of time – will compel Service Providers to have a keen understanding of both the ‘letter of the law’ as well as the ability to translate this into user-friendly solutions that will provide comfort to their customers. Comfort to the extent that Customs registrants and licensees will have confidence that their preferred software solutions not only provide the tools for trading, but also the means for compliance of the law. Then, there is also the matter of scalability of these solutions to keep pace with ongoing local, regional and global supply chain demands.

The recent Customs Modernisation Programme realised significant technological advances with associated benefits for both SARS and trade alike. For the customs and shipping industry quantification of these benefits probably lies more in ‘improved convenience’ and ‘speed’ of the customer’s interaction with SARS than cost-savings itself. My next installment on this subject will consider the question of cross-border trade and how modern customs systems can influence and lead to increased regional trade.

WCO supported Sub – Saharan Africa Customs Modernization Programmes – 3rd Newsletter

WCO Capacity Building Magazine 3rd Edition.ashxThe WCO – Sub – Saharan African Customs Modernization Programme funded by the government of Sweden comprises four projects, namely the WCO- EAC CREATe , the WCO– SACU Connect, the WCO– WACAM and the WCO– INAMA Projects. In their totality, the projects support regional Customs Unions in Africa in their mission to facilitate trade without compromising the security of their country and the safety of their citizens. The newsletter will appear quarterly and will inform on ongoing tasks as well as give an overview of future activities. Source: WCO

Pakistan and China Customs to accelerate establishment EDI

Sost_Pakistan_Customs_and_Chinese_TrucksPakistan Customs’ experts are in China to make further progress on the establishment of direct Electronic Data Interchange (EDI) with the trusted and neighbouring country to reduce the incidences of revenue losses.

The sources told Customs Today that Chief Customs Automation Abdul Qadir, Director Majid Yousfani, Riaz Chaudhary and Azeem from PRAL flew to China on August 9 to hold series of meetings with the Chinese counterparts to make further progress on the EDI.

The sources said, that the EDI will help access trade documents on real time basis from computers of cross-border customs stations. The directorate had exchanged the technical documents with China for EDI, the sources said, adding that the Chinese Customs had given feedback and counter proposal on the technical documents.

In order to expedite finalisation of the EDI arrangement, earlier a meeting with the Chinese Customs for exchange of data relating to the certificate of origin between the two countries was held on February 2 to 4, 2015 in Beijing. And, this is the second meeting of Pakistan Customs officers with the Chinese Customs, sources added.

It is recalled here, that Federal Board of Revenue had issued an alert regarding mis-declaration in imports from China under 50 HS Codes. The Board also showed concerns on the un-warranted concessions granted under various SROs covering preferential or free trade agreements.

The Board had advised verification of suspected Certificates of Origin directly through the commercial missions of Pakistan abroad, discouraging mis-classification of goods to obtain concessions and extending benefits only to goods which strictly matched the description provided in respective SROs.

It may be mentioned, that the export data of China customs for CY 2013 was cross matched with the import data of Pakistan Customs for same period and it transpired that in respect of 376 tariff lines the import value declared before Pakistan Customs was short by $2.437 billion recorded by China Customs as export value to Pakistan.

Moreover, in respect of 13 tariff lines the import value declared before Pakistan Customs was in excess of $829 million that that recorded by China Customs as export value to Pakistan. This is indicative of possible mis-classification of those goods which attract higher rates of duty but are cleared as goods attracting lower rates. Source: CustomsToday

The SACU Utility Block – My Export is Your Entry

SACU IT Connectivity ConferenceRepresentatives from the Southern African Customs Union (SACU) gathered in Johannesburg, South Africa recently to refine requirements towards the development IT connectivity and electronic data exchange to facilitate cross-border customs clearance in the region. The workshop was convened by the SACU Secretariat under the sponsorship of the Swedish government and technical support from the World Customs Organisation.

Work already commenced way back in 2012 on this initiative. Progress in the main has been hampered by the legal agreement which to date not all members of the Customs Union have ratified. One of the features of this initiative, however, has been the continuity of support rendered by the WCO.

This event was indeed fortunate to secure – once again – the services of S.P. Sahu, former head of Information Technology at the WCO. After his secondment to the WCO he is now back in his home country where he is the Commissioner for Single Window based in Delhi, India.

S.P’s years of experience in both the technical and operational spheres of customs and the international supply chain enable him to articulate concepts and solutions in a manner which are practical and simple to understand. The workshop recognised the need to accelerate border processes and to this end the border process should be limited to physical examination, inspection, release; declaration processes should be done away from borders.

While simple enough in theory, the notion of clearance away from borders could pose challenges. Many of Africa’s borders – including those of a ‘One Stop’ kind – have not fully embraced the need to integrate processing and synchronize Customs activities. The challenge posed by ‘regional integration’ is one of surrendering national imperatives for a common regional good. It imposes a co-ordination of and development towards ‘regional objectives’ with the same level of purpose as national states do for their domestic agenda’s. In the case of SACU, it challenges member state’s stance on what real benefits the customs union should aspire to, beyond the mere sharing of the common revenue pool.

The outcome of the workshop resulted in a more refined, do-able scope and objective. With Mr. Sahu’s experience and guidance, the revised Utility Block (UB) speaks to all facets (legal, operational and technical) of the ‘regional agreement’ to the extent it specifies in the required detail the programme of action required on the part of the member stats as well as the SACU Secretariat. Refinement of the UB includes the removal from scope of the Release Message, Manifest Information and bond/guarantee message for the purpose of simplification of customs processes.

What remains are –

  • An Export & Transit Message – which includes the Unique Consignment Reference (UCR) validated and approved by the Export/Exit country.
  • An Arrival Confirmation/Notification Message – where the arrival date time would be when the import country recognises goods as received and places the goods under its customs procedure.
  • A Control Results Message – which includes the results of data matching, inspection and risk assessment based on agreed business rules.

In support of the above, SACU recently agreed on a framework of a UCR which must be further discussed and agreed upon by the respective member states. The UCR is a structured reference number which will be used by customs administrations of the respective member states to ‘link up’ import declaration data with the corresponding ‘export declaration’ data electronically exchanged by the export country.

Regional traders who have electronic clearance and forwarding capability will also play a role in the exchange of data through the exchange of the UCR on export and transit information with their counterparts or clients in the destination country. Once the exchange of data is operational between member states, it will be imperative for the importer to receive/obtain the UCR from the exporting country and apply it to his/her import declaration when making clearance with Customs.

The SACU Utility block will be tabled at a future Permanent Technical Committee meeting of the WCO for consideration and approval. A Utility Block is a concept structure which is proposed under the WCO’s Globally Networked Customs (GNC) initiative which seeks to aid and assist its members in the operationalisation of Mutual Administrative Assistance agreements.