Here we discuss Customs Licensing – Deferment Accounts and the advantages of having a Deferment Account.
Did you know… a Customs Deferment Account allows one to defer Customs duties and VAT till month-end?
A Deferment Facility is a government dispensation designed to alleviate your administrative duties. It helps companies to avoid the hassle of having to pay duties and VAT on each and every Customs declaration. It also reduces the paperwork significantly.
Therefore, you can simplify the administration involved in the day to day running of logistics operations.
More About Deferment Accounts
A Deferment Facility is not a credit facility as such. However, it may have the effect of providing a short a term credit line; particularly for large shipments.
SARS will issue a monthly statement at the end of each month. Clients have 7 x days to settle the deferment account after the closing date.
Deferment Accounts are available to both Customs Clearing Agents and Importers & Exporters of goods.
A recent trend for larger Importers & Exporters is to obtain their own Deferment Facility. The objective, particularly by larger companies, is to self-manage one’s risk exposure to SARS Customs.
How Customs AEO Accreditation Affects Deferment Accounts
Clients who have Customs AEO Accreditation are able to benefit significantly. They are able to reduce or waive their bond / guarantee amounts on the Deferment Accounts.
So, for example, clients with:
- Level 1 (Compliance) Accreditation, may reduce their bonds by up to 80%.
- Level 2 (Compliance and Security) may reduce their bonds by up to 100%.
Please visit our blog for SARS Customs AEO Accreditation for more information, and other benefits contained therein.
Please Contact Us
Contact us for advice or a quotation for Customs Licensing – Deferment Accounts.
We will help you with:
- Documentation Requirements and Application Procedures
- Calculation of Deferment Amounts
- Lodging of Bonds / Guarantees
- Monthly Management of Accounts
