SARS Customs ModernisationTransport Forum, Midrand

5 November2015Beyers Theron

RO

AD

MA

P

1980+

Customs automation Trade statistics

1996 - Launch of a Revenue Authority –SARS

2000 +

Customs Transformation Programme

2001 –

Organisational restructuring

EDI

2002 –

Anti-smuggling teams

New systems

2003+

Port of Durban US Container Security Initiative.

2005 – ICRAS

C-2-G EDI

2006 – Customs Green Paper

2007 – Established the Customs Border Control Unit (CBCU).

2008 - X-Ray scanner

Commissioner Gordhandelivers Customs in the 21st Century paper at WCO .

2009+

Customs Control and Duty Bills

Customs Modernisation Programme.

SARS Enterprise Risk Management System.

2010 – Stakeholder - new procedures.

New clearance procedures (CPCs)

2011 –Interfront CMS –

Service Manager

(E@syScan)

New clearance and release procedure for ‘Road’ clearances

New Customs Tariff engine.

New automated Cargo Management solution.

Worlds 1st iPod inspection tool.

2012 +

modernised legacy systems and procedures

New Customs Revenue Accounting solution.

2013 - 10 month parallel systems test-

Interfront Go Live!

2014 - Systems stabilisation and enhancements.

Education and training.

Customs Bills and subordinate rules.

Customs-2-Customs Data Exchange

Deployment of additional X-Ray Scanning facilities.

Gate Keeper Approach Risk Management Approach

Paper driven procedures Automated paperless processing

Customs Modernisation Journey

2

SARS Customs Modernisation >> Key Packages

Innovative & Internationally Aligned Delivery

Delivery

• Standardised and harmonised data - WCO Data Model

• Standardised Customs Procedure Codes.

• Electronic Data Interchange –Less paper

• Automated Risk Management.

• Electronic supporting Documents

• Integrated digitized case and inspection management

• Customs mobile capability

• System driven entry/exit management

• Customs eAccount –electronic statement of account and refunds.

• Legacy system replacement.

• Preferred Trader3

SARS Customs Modernisation >> Achievements

What are some of the “Real Benefits?

4

SARS Customs Modernisation >> Global Landscape

Drivers for change

Revised Kyoto Convention

Proliferation of international trade

agreements

9/11 Terror Attacks

Last 15 Years – Dramatic Changes in the Global Customs and Trade Landscape

US Security Measures – CSI,

CTPAT, etc.

IMO / ICAO Maritime & Air

Security Measures

WCO High-level

Strategic Group

WCO SAFE Framework of

Standards, AEO, DMV3,

etc.

SARS Customs Green Paper

SARSCustoms Bills

Increase in global use of Non-

intrusive Inspection (NII)

equipment

WCO C21 and Globally

Networked Customs

SARS Customs Modernisation

ProgrammeSystems

Modernisation

New SARSCustoms

Control & Duty Acts

Increase in global use of the internet and e-commerce

(B2B)

2000 2015

Gate keeper approach > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > Automated Risk Management Approach

WTO Trade Facilitation Agreement

2014

SA

RS

Cu

sto

ms

Mo

der

nis

atio

n

Draft Border Management

Agency Bill

5

SARS Customs Modernisation >> Strategy & Design

Current Focus Areas...

New Customs Control Act

CCA

Border Management Agency

BMA

Manifest Processing

MPR

Provisional Payments

PP

Regional Integration

IT Connectivity

WCO GNC POC Projects

6

SARS Customs Modernisation >> Interim Initiatives

A. Provisional Payments - Automate declaration based Provisional Payments

Automated Submission,Management and

Liquidation

Comprehensive Validation Rules

&

Case Management Workflow

Integral part of CustomsDeclaration

&

Integrated to Billing System

7

Electronic Acquittal Cargo Report for Sea &

Air Operators

ACM Legacy

to

iCBS -MPR Platform

Road Freight Enhancements,

Improved Validations and Benefits to Trade

B. Manifest Processing – Improved architecture and validations

SARS Customs Modernisation >> Interim Initiatives

Cargo, Conveyance &

Outturn Reporting

Declaration and Release

Registration, Licensing,

Accreditation

A ‘package’ of core requirements necessary for the implementation of the New Customs Acts.

9

SARS Customs Modernisation >> New Customs Act

A. Licensing, Registration and Accreditation

Wizard based application forms (client specific)

Clients can register without coming into office

Pre-population of forms for existing clients

Electronic Workflow which limits multiple

hand-offs

Data rich environment for effective risk management

Provision for unregistered person to

apply as casual importer/exporter

Effective bond/security management for AG purposes

Increased Registration & Licensing Categories / Client Types

Registration certificates to be issued

2 x accredited client types –*importer/exporter

Technical Competency Assessments

Mandatory Renewal Periods

Risk-based Assessment

Mandatory Electronic Applications

10

SARS Customs Modernisation >> New Customs ActKey Features

B. Cargo Reporting

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SARS Customs Modernisation >> New Customs ActKey Features

Mandatory EDI Cargo Reports

Advanced Containerised Cargo

Loading Notices

Matching & Reconciliation

Improved Supply Chain Messaging

Integrated View of the Supply Chain

Multimodal & Transit Control

Audit Capability

Exception Management & Penalty Provisions

Seal Integrity Program for AEO

Quality data for downstream Customs processes incl Refunds, SWH

Expedited and

simplified clearance

Increased declaration

message types

Additional fields for

cusdec

C. Declaration Processing

SARS Customs Modernisation >> New Customs ActKey Features

Regionalisation >> IT ConnectivityBackground

The concept Customs-to-Customs (C-2-C) data exchange emanates from the WCO’s Customs in the 21st Century (C21) strategy. Of the ten building blocks that comprise the strategy, Globally Networked Customs (GNC) ranks first.

Progress Update• In early 2012, SARS formally initiated the IT

Connectivity initiative in collaboration with Swaziland under the guidance of the WCO and SACU. • Adopted the WCO’s GNC approach to

implement regional data exchange between customs authorities.

• Agreed on the data elements to exchange (Export and Transit declaration data) and the technical message infrastructure

• Agreed on the messaging language (UN/EDIFACT or XML),

• Successfully exchanged test data• Agreed on the structure of a unique

consignment reference number (UCR)• SARS and the Mozambique Revenue

Authority (MRA) have engaged in a data exchange project since mid-2012. To date, we have:• Reached consensus on the

communication method and message exchange structure

• Successfully exchanged test dataChallengesCurrently the primary challenges encountered are with regard to unenforced legal instruments required to enable Customs Data Exchange: 13