“Leaving the corporate world to start your own business is brave, to say the least. Its hard to find a niche, find your feet and make a decision to specialize“. These are the words of Alon Raiz of Raizecorp on Business Day TV – The Big Small Business Show. This interview of Graeme Lennie by Alon Raiz and Kumaran Padayachee is very inciteful. Watch on YouTube…
The difference between National Transit and International Transit is knowing the difference between RIB (Removal In Bond) and RIT (Removal In Transit). The RIB and RIT codes form part of the old terminology still used extensively today; now replaced by Procedure Category Code B discussed in former blog posts.
The Customs Procedure Codes (CPC) and the Tax Status of goods are inextricably linked. The CPC codes indicate what the Tax Status of goods are.
“export taxes from South Africa may become levied for the first time…”
The following definitions are important in understanding the concept of Tax Status in the new Customs Control Act:
Customs Procedure Codes (CPC) consist of three parts. The first part is the Procedure “Category” Code (PCC), for example:
Customs Procedure Codes (CPC) are not easily explained yet, how they work is fairly simple.
“Procedure” Codes replace the old “Purpose” Codes. The codes follow a common format and common set of rules which all parties can follow. They are designed to indicate the “Purpose” of an import or export Customs declaration. For example, if you intend importing goods for domestic consumption in a free market environment (i.e. free movement of goods), we term this as Duty Paid (Code DP) goods. In the new Customs Acts the corresponding CPC is Home Use (Code A11.00) goods. The tax status of such goods (in this example) is that duty and VAT will be paid upon clearance for importation. Here are some examples of the old Purpose Codes (for imports):