WCO Trade Facilitation Mission South Africa was one of only a handful of countries that did not ratify the World Trade Organisation (WTO) Trade Facilitation Agreement (TFA), which entered into force on 22 February 2017. Despite this, South African Revenue Service (Sars) requested the World Customs Organisation (WCO) to conduct a scoping mission, aimed at familiarising Sars with the operating model for the WCO Mercator Programme, to assess the current trade facilitation situation in Sars and to make recommendations for an implementation plan. The mission took place from 20-24 November. This scoping mission was conducted under the WCOESA Project II “to progress the trade facilitation agenda under the framework of the Mercator Programme in East and Southern Africa Region 2016-2019 funded by the Finnish Government”. According to the WCO, its Mercator Programme was launched to ensure uniform implementation of the WTO TFA, using the WCO instruments and tools. The Mercator Programme provides tailor-made support that takes into account local conditions and environment for implementing trade facilitation measures It is understood that the WCO mission team had opportunities to discuss, amongst other things, the alignment of Sars legislation with the international obligations of the TFA, brief the Sars chief officers on the mission objectives, and participate in briefings on the progress of the Regional Training Centre (RTC) as a Centre of Excellence on the WCO Organisational Development Package. Sars Annual Report delay There is a distinct possibility that Sars will not be publishing its 2016/2017 annual report before 31 December 2017, due in part to the legal challenge of its controversial bonus payments to the executive committee as irregular expenditure. Would be an interesting Annual Report to read. Sars Strategic Plan 2017/18 Sars also has not published its Strategic Plan 2017/2018- 2021/2022, and it seems highly unlikely that it ever will. Customs Acts, 2014 It has been 1 240 days since the Customs Duty Act, 2014, 1 227 days since the Customs Control Act, 2014 were published, and 4 737 days since their drafting commenced. It is quite evident that these Acts will not enter into force in 2017. It is also highly unlikely that these Acts will enter into force, in their entirety, in 2018. Sugar Duty – A Fiscal Measure? Have you been following the proposed imposition of a sugar duty? If you have not, you may want to give it some thought. The intention of the imposition of a duty is twofold. If you are told anything to the contrary it is simply not true. Governments impose duties to either protect their domestic industry, or to generate revenue – a fiscal measure. There is said to be a third. To change behaviour. This is simply not true. The imposition of a duty does not alter or change behaviour. Think about the plastic bag levy – still buying them? So what is happening to the money collected through this duty? Duty Calls’ Watchlist Comment on the creation of a rebate item on digital ‘smart cards’ is due by 08 December
