There is so much confusion in industry about “Customs Licensing – Importer Exporter Code”.
At the same time there are so many Customs clients who are in-fact registered, but still not Onboarded to e-Filing.
In this blog we will clarify who must register and when one is required to be registered.
We will also discuss the consequences of not being properly registered with Customs, and also e-Filing challenges.
What is a Code 70707070?
A Code “70707070” or simply Code 70 is a First Time Importer or Exporter Code.
This is a general Customs code which is allowed to be used as a once-off code only. It is used when declaring goods into or out of South Africa.
The Code 70 in essence replaces a registered Customs Code. With this code one may declare goods on a Customs Clearance Declaration without registering at Customs.
Code 70 though is not without its pitfalls. When one uses a Code 70 it means that you do not declare your name or company name to SARS. SARS therefore does not know or understand “who” you are.
The result of this is that many imports or exports becomes automatically queried or stopped for inspection purposes. SARS may verify who you are and what you are importing.
Who is “Not” Required to Register?
The following persons are not required to register or license with SARS Customs:
- Natural persons who imports or exports for a total value not exceeding R 150,000.00 during a calendar year in one or more consignments
- People who import or export Household or Personal Effects
- A person who is not a South African citizen who exports a motor vehicle to a non-SACU country.
These persons may all use the General Customs Code 70.
Anyone not complying with paragraph numbers 1 – 3 must register or license with SARS Customs.
Who Must Register?
Conversely, and to make it clear, the following persons or companies must register or license with SARS Customs:
- Anyone who is not a natural person (i.e. a company)
- Anyone who imports or exports for commercial purposes or commercial gain
- Anyone who’s imports or exports exceed R 150,000.00 over a calendar year, even a natural person (i.e. a boat or vehicle exceeding R 150,000.00)
- Anyone who exports scrap metal
- Anyone who is involved in other Customs activities such as Rebates, Bond Stores, Trade Agreements, etc.
- Anyone who is required to make an advance payment via the APN (Advance Payment Notification) process.
If you are required to register or license with SARS Customs, then please Contact us for a quotation.
We can take allot of pain out of the process. You do not need to re-invent the wheel.
Exemptions from Customs Licensing – Importer Exporter Code
The following persons are exempt from Licensing with SARS Customs:
- Persons importing or exporting Human Remains
- Goods which in the opinion of the Commissioner for SARS are of no commercial value (i.e. samples which are mutilated or destroyed)
- Goods of a value “not” exceeding R 500.00, and on which no export duty is payable.
These persons are allowed to use the so called “Simplified Clearance Declaration” form “DA 306″. These are generally used at ports or airports and do not require any professional assistance.
e-Filing Challenges when Registering or Licensing
Most but not all license types are required to be performed on SARS e-Filing.
But e-Filing is not without its challenges. The following aspects may be problematic during the licensing process and may prevent one from proceeding.
Examples of e-Filing Challenges:
- Registered Representative issues
- Individual Profile issues
- Customs Agent issues
- Tax Type Merger issues
- APN (Advance Payment Notification) issues
- Company Income Tax issues
- User Rights issues.
Almost all of these issues can result in one not being able to proceed with the e-Filing application.
One is advised to seek professional help during the licensing or Onboarding process. We find that clients simply do not manage to resolve many of these e-Filing challenges by themselves.
These challenges may take a day or two to resolve. They may even take a month or two if not attended to properly. In some extreme examples one can wait up to 3 – 6 months or even longer to resolve.
Incidentally, Customs clients who are registered but not yet Onboarded to SARS e-Filing have become suspended.
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Consequences of Not Registering or Licensing
Here is a list of consequences of not been properly licensed with SARS Customs:
- Firstly – one can attract a penalty of R 5,000.00 per incident, i.e. per SAD 500 Clearance Declaration
- Secondly – Customs will query and stop the consignment for physical inspection, resulting in additional costs and delays
- Thirdly – Customs can audit your books going two years back and “Schedule” you for past contraventions.
Types of Customs Licenses
See our Services page under RLA (Licensing, Registration & Accreditation) for information about the types of licenses.
Contact Us
Please Contact us for advice or a quotation for Customs Licensing and Registrations.
We will help you with:
- Application Process and e-Filing Procedures
- Supporting Documents and Templates
- Overcoming any e-Filing challenges.
