IT plays key role as SA gains traction as an assembly port

With the markets in the
developed countries still
under post-crisis pressure,
Africa’s emerging markets
are starting to draw the
world’s eyes, according to
Nachi Mendelow, sales and
marketing manager with
systems specialists Compu-
Clearing.
“This is true with all
established markets,” he
told FTW, “and is especially
pronounced in terms of
trade with the Far East. As
cargo into Africa increases,
so too does South Africa’s
desirability as a cross-trade
and assembly port.”
Another factor which is
increasing this attraction
is that SA’s ports and
infrastructure compare
favourably with other African
countries. So goods are often
first landed in this country,
and then transported onwards
by road.
These goods normally
remain in bond, without
duties being paid on them,
and are at a later stage
transported out of SA.
“Special customs
documents need to be
produced to notify SA
Revenue Services (Sars)
about these entries,” said
Mendelow.
“Another scenario that can
occur is that duties are paid
on the goods as they arrive
in SA. When these goods are
then exported, a refund claim
procedure is done, in order to
recover the paid duties.”
Certain strategic initiatives
have also been undertaken
to make this country an
attractive and advantageous
location for part and goods
assembly.
“These,” said Mendelow,
“include rebates on duties as
well as on local parts used in
the assembly.”
A point that must be
remembered is that goods
may not remain in-bond for
longer than two years without
being cleared – unless special
permission has been received.
“It is therefore vital
that goods in the bonded
warehouse are carefully
monitored to ensure that all
goods are cleared as needed,”
Mendelow said, “and that
they don’t overstay their
allowed duration.”
Compu-Clearing offers
systems to facilitate all
these activities. All required
documents can also be
produced – along with any
items imported as bonded
warehouse entries being
automatically integrated into
the Compu-Clearing Bonded
Warehouse system.
“This means that goods
can now be tracked and
reported on,” said Mendelow,
“helping to ensure correct
stock levels as well as
clearing these goods in the
required time.
“In addition, when the
time comes to produce the
export entry, all that the user
needs to do is select which
stocks are going where and
the Compu-Clearing Bonded
Warehouse system will
automatically do all required
calculations. Also, customs
refunds procedure documents
as well as acquittal
documents can be produced
through the system.”
There’s a parallel between
continental trade growth and
SA’s attractiveness as a trade
hub.
“As Africa continues
to grow as an export
destination, so SA continues
to evolve as an important link
in this supply chain,” said
Mendelow.
“With reliable and
recognised information
technology (IT) systems like
Compu-Clearing facilitating
the procedure, we are sure
to see much growth and
opportunity developing along
these channels.”