Customs to curtail promissory notes for Reserve Bank requirements

CUSTOMS IS getting hedgy about promissory notes from exporters or their agents and intends to put a stop to this procedure.
This, according to information released to FTW by Safcor Panalpina, is where these previously acceptable notes relate to the Reserve Bank requirements which have to be met before customs accepts and processes export bills of entry.
In the legislation, a declaration to the Reserve Bank (form F.178) has to be completed by the exporter and endorsed by his bank. This is required for all consignments with values exceeding R50 000. Even where no payment is involved, an appropriate declaration (form NEP) is required.
But, up to now, customs has often accepted documents without the F.178 or NEP, provided that the agent or exporter concerned has furnished them with a promissory note. This is a written undertaking to submit the relevant Reserve Bank declaration within a specified period - usually 14 days.
But the authorities have now stressed that there is no legal basis for this system of promissory notes. It also suggests that
it has been widely abused and many exporters have failed to keep that promise.
As a result, the department has warned that the use of promissory notes is to be curtailed.