Category / Manifests

by Mike Poverello

Reprieve – SARS postpones implementation of Release 2

At a recent strategic session between SARS and a packed auditorium of supply chain stakeholders, it was jointly agreed to postpone the implementation of Release 2 until June 2011. For SARS there remains a significant change integration exercise – that in upskilling staff members in the use and discipline of its new user interface – Service Manager (SM).

A previous post Modernisation Release 2 – Industry testing to commence highlighted the scope for what is a significant enhancement for internal SARS’ staff. While development and testing has progressed reasonably well, stakeholders agreed that stability of certain software components was needed in order to provide all parties the necessary comfort before rolling out live to the trade. Continue reading →

by Mike Poverello

Modernisation Release 2 – Industry testing to commence

Just 3 months since the first release, SARS and Customs stakeholders together with their service providers will commence testing the second phase of the Customs Modernisation Programme. The scope of this release offers some significant opportunity for improved efficiencies benefitting both customs and trade.

There are 3 key pillars for this implementation:

  1. A new case management and inspection solution will support an automated workflow between customs assessment officers and inspectors, eliminating the current manual stop and inspection process. A modern user interface has been developed and integrated with Customs’ legacy declaration processing systems. For Release 2, this interface will allow the customs officer to initiate a case, where goods are automatically risk profiled for an intervention. A ‘case’ is an electronic stop notice where the officer is able to capture inspection outcomes, as well as view supporting documents electronically submitted by traders in mitigation of a stop or detention. In addition, the system will interface with an electronic inspection booking system which aims at expediting the customs inspection process. The outcome of each stage of an inspection triggers a response to the trader advising of the status of the consignment or inspection outcome. This is a significant step forward and SARS intends that the efficiency benefits derived will directly translate into cost savings for trade.
  2. Customs E@sySCAN and E@syPACKER software solutions. Soon traders will no longer have to hand-deliver clearance supporting documents to customs manually. SARS and service providers have collaborated for over a year developing a functionality that will radically improve efficiencies and response times in regard to ‘stopped/detained’ cargoes. It will enable a customs broker, importer or exporter to upload any required trade document which customs may require in the finalisation of a customs inspection. SARS’ ‘E@sy’ software has been made free of charge to service providers for integration into their trade applications. This forms part of SARS’ overall contribution to keeping cost of compliance to a minimum. For traders not using EDI, SARS will also be offering walk-in scanning facilities at its bulk capturing centres across the country. 
  3. A new cargo management system will replace the existing Manifest Acquittal System (MAS). Cargo operators are already working with SARS to improve the level of data cleanliness. Once the level of data integrity meets an accepted level it is SARS intention to perform the matching of import and export clearance declarations against consignment level transport document information in real time. Mismatches occurring will trigger a customs case which may either take the form of a documentary check, and if necessary a physical inspection. The automatic data matching and acquittal will obviate the need for cargo reporters to print and deliver paper manifests to customs. It will also remove the obligation on reporters to submit paper manifest acquittal documents. Similarly, significant cost savings are envisaged for trade.

It is worth mentioning that some of these innovations are a world first in customs processing, and paves the way for future enhancements in support of the new Customs Duty and Control Bills.

by Mike Poverello

Customs Bill – Poser for Cargo Carriers, Handlers and Reporters

MultimodalThe introduction of new clearance and release formalities in terms of customs procedures has a significant impact on all cargo operators, vessel’s agents, freight forwarders, ground handlers etc. Current provisions in the prevailing Customs and Excise Act, no. 91 of 1964, and its associated rules provide for the ‘clearance-free’ movement of uncleared bonded cargo from place/port of discharge to an inland terminal against the carrier’s manifest. This will not be possible once the new Customs Control and Duty Acts come into being.

Cargo manifested for inland ports will need to be removed under the National Transit procedure, implying the submission of a clearance declaration (formerly an RIB) for each consignment moved. It still needs to be determined if a groupage container can move against a single national transit clearance or if each consignment within such container must be declared for national transit. This could become an onerous burden on the controlling operator of such consol with surety implications. The alternative is for all such cargo to be cleared for ‘home use’ or other permissible procedure (other than national transit) at place/port of discharge. For consolidated cargo, can available de-grouping and depot storage facilities at sea ports manage the volumes?

Similarly transhipment cargo will also require a customs clearance declaration (bill of entry); a further consideration for carriers and agents of carriers – do they have the capacity and expertise to transact ‘national transit’ and ‘transhipment’ clearances electronically to customs? Most probably not. Notwithstanding, Customs Brokers (Clearing Agents) are also eligible to act on behalf of a carrier/cargo reporter to clear goods for transhipment.

These are but a few critical considerations which all cargo reporters need to bear in mind for the future.

by Mike Poverello

Mandatory EDI Submission – SARS engages Cargo Manifest Providers

Some 8 years since the initial implementation of the Manifest Acquittal System (MAS), SARS has recently engaged cargo manifest providers with a fresh urgency to prepare themselves for the impending mandatory requirements for the filing of cargo reports to Customs. The legislation has been in place for several years and a fully revamped cargo management system has since been developed by SARS. Cargo Reporters (shipping lines, airlines, ships agents, terminal operators, freight forwarders, consolidation/deconsolidation agents, depot operators, ground handling agents) are now called upon to ensure that their systems are able to meet the cargo reporting requirements of SARS. (The EDI Mapping requirements for CUSCAR is now available on the SARS website).

The first imperative is to ensure the integrity of data reported to SARS. Once this is at a satisfactory level, SARS will commence the matching of cargo and customs clearance information. Not unlike other customs jurisdictions, the availability of ‘clean data’ from both cargo reporters and declarant’s is imperative to facilitate manifest matching, risk assessment and the release of goods.

A further phase will thereafter introduce measures to ensure that South Africa meets its obligations in terms of the WCO SAFE Framework of Standards. This may require some modification to

  • Data reporting requirements via EDI,
  • Some changes to legislation,
  • Introduction of formal licensing of cargo operators, and
  • Introduction of a seal integrity programme as part of the aforementioned licensing arrangement.

SARS has prioritized air and sea modalities (imports only) for initial implementation, with rail and road modes to follow. The priority not only includes cargo reporting (manifest) requirements but also other reports such as vessel call notifications and advices, discharge lists, gate-in and gate out reports, and cargo outturn reports.

SARS cargo management system will be available for test purposes to all cargo reporters as of 1 March 2011. A period of at least 2 months has been contemplated for such testing, with live implementation occurring in May 2011.