Appeals with SARS Customs follow a logical process. The process was designed to comply with legislative requirements such as PAJA (Promotion of Administrative Justice Act) number 3 of 2000 and the Customs legislation.
It is not frowned upon therefore to challenge the authority if you have a disagreement. You also do not need to concern yourself with any fear of reciprocity of additional audits. The days of old are long gone. On the contrary in fact, SARS Customs encourages their clients to follow the appeals process.
The new Customs legislation makes provision for a lower order of appeals termed a “reconsideration of decision”. The process explained in the following paragraph will explain this to some degree.
The first step after an assessment is that you will receive a notification from SARS containing an initial finding. For live shipments this will be an electronic notification received by the LSP (Logistics Service Provider).
Disputing electronic notifications is more challenging.
This was discussed in the former Blog (Knowing your Rights: The Customs Demand).
For post audits it will take the form of a Notice of Intent. A Notice of Intent is a notice of their (SARS) initial finding and their intention to issue a Letter of Demand. It provides the Trader with the ability to make representations to Customs. In a Notice of Intent you will generally be provided with a period of 7 or 14 days within which to respond. You do not need to pay any duties, VAT or penalties at this stage. You should assess the applicability of the Customs assessment and if in-applicable, you should write back to them with your own findings. It is extremely important to submit a well-motivated response during this early stage. It is also important to do so within the specified period of time. Failure to do so will result into a Letter of Demand being issued. You may request for an extension of the notice if you run out of time. Any win or termination of the process at this stage will result in the least intrusive consequence of the entire appeals process. If the result of the “reconsideration of decision” is not in your favour, you will then receive a Letter of Demand.
In a Letter of Demand you will be expected to pay or alternatively to revert to litigation. In litigation you do not pay until such time as your case is formally lost in a court of law. However, it is generally advisable to engage in the SARS Customs appeals process prior to reverting to litigation.
By choosing to appeal internally with SARS Customs you must first pay. In so doing, you are agreeing to abide by the Commissioners decision regardless of the outcome. However, there is a process of recourse for adverse decisions at every level of the appeals process. These will be discussed in the blog which follows.