“Immediate” is the only phrase left to describe the level of availability of supporting documents for Customs today.
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The logic behind this has to do with the fact that in order to have submitted a Customs declaration, one had to have had the relevant documentation to do so. In addition, with the speed of electronic communications today there is little reason why documents cannot be made available on demand, barring public holidays in the supplier’s country, and time zone variants.
In the new Customs legislation it is stated that any documentary requests must be complied within 24 hours of request, unless otherwise specified in writing. When SARS Customs conduct large audits they will generally provide longer periods of time, such as 7 or 14 days. One may in some instances be able to negotiate for longer periods of time.
Most supporting documents may be presented to Customs in photocopy format. They do not need to be original. However, there are some exceptions. When requested, permits, certificates and in some cases invoice declarations must be original. The invoice declaration (which has to do with trade agreements and preferential rates of duty) must in some instances, contain the supplier’s original signature. Traders who qualify for preferential rates of duty via trade agreements such as the TDCA (Trade, Development Cooperation Agreement) commonly referred to as the EU / SA Trade Agreement, and the SADC (Southern African Development Community) must supply original certificates on demand.
Failure to provide documentation on time is an offence in terms of the new legislation. Furthermore, failure to provide full and accurate information which results in revenue prejudice is a disciplinary offence. Such offences are subject to a minimum penalty of R 2,500.
Your LSP (Logistics Service Provider) will have most of the documentary requirements on hand. Most LSPs keep these records in electronic format, which makes it easy to access and to pass on. However, one challenge facing the industry and traders now is the length of time for which records must be stored. In the new legislation, records must be maintained for a period of 5 years including the year in which it was created. This may have the effect of having to keep records for nearly six years in some instances. Records (whether physical or electronic) must be kept on site for a period no less than 12 months.
Literature (which was discussed in the former blog) will remain a challenge for some.