Clearing and forwarding agents face considerable legal risks under the Customs and Excise Act, despite receiving minimal compensation. It is imperative to manage this risk diligently, cautions Quintus van der Merwe, a partner at Shepstone & Wylie Attorneys, because failure to do so could result in significant financial and legal consequences for agents.“Moreover, when agents are designated as the shipper or consignee on behalf of their principals, they encounter potential liability under the contract of carriage,” he says. “This dual exposure underscores the importance of having meticulous contractual arrangements and risk mitigation strategies within the clearing and forwarding industry.” The sector is constantly being challenged to find and retain new business, and is often under scrutiny due to the actions of some dubious agents. Taryn Hunkin, the firm’s senior associate, explains: “There are some clearing agents operating at the moment who charge impossibly low rates for their service, or who are prepared to act unscrupulously to land cargo at costs below the norm. This has a negative impact on the reputation of the industry as a whole and leads to increased scrutiny by the South African Revenue Service (Sars).” Both Van der Merwe and Hunkin emphasise that in this industry agents are reliant on the integrity of their clients. “It is imperative that an agent f lag any irregularities when working through the documents provided by a client. If these irregularities contravene the Customs and Excise Act, report them to Sars customs,” says Van der Merwe. “And when dealing with new clients in particular, it is important to verify the information provided, especially insofar as it relates to tariff, value and origin. “When a client provides the agent with, for example, the customs code of a warehouse or remover of goods in bond, the agent must confirm that the client has permission to utilise the code provided and that the warehouse and remover of goods are aware of the relevant bill of entry.”Johann de Goede, a customs consultant at Shepstone & Wylie, stresses the importance of clearing agents having sufficient knowledge of all legislation and procedures governing the import and export of goods. “It is imperative that in this ever-changing industry, clearing agents remain abreast of any changes that may impact on their clients,” he tells Freight News.Asked about any recent regulatory changes, De Goede cites two: the Advance Import Payment rules, which took effect from December 1, 2023; and the electronic submission of applications for drawbacks and refunds of Schedule 5 and 6 rules, which were effective from September 15 last year.
