On 29 November 2024, the South African Revenue Service (SARS) announced that Cape Town would become the centre for global customs and trade facilitation discussions when South Africa hosts the World Customs Organization (WCO) Policy Commission meetings in the city over 3 days from 03 to 05 December 2024. As the WCO Council Chairperson, the SARS Commissioner will oversee the proceedings.
The WCO, originally established in 1952 as the Customs Cooperation Council, includes 186 Customs administrations that collectively process approximately 98% of world trade. As the preeminent international organisation tasked with enhancing the effectiveness and efficiency of Customs administrations worldwide, the WCO is critical in ensuring that global Customs operations are efficient, transparent and secure. The WCO does this by providing leadership, guidance, and support to Customs administrations by developing international standards, fostering international cooperation, and building capacity to facilitate legitimate trade, secure fair revenue collection, and protect society.
South Africa has been an active member of the WCO since joining in 1964 and currently forms part of the management team of the WCO East and Southern Africa (ESA) Region, one of the WCO’s 6 Regional Bodies, and SARS hosts one of the WCO ESA’s Regional Training Centres focusing on organisational development. South Africa was instrumental in the establishment of the WCO Capacity Building Directorate and has been a key participant in discussions at the WCO on various issues, including Customs in the 21st Century Policy Paper (a blueprint for Customs in the future); Globally Networked Customs and the development of the SAFE Framework of Standards.
More than 20 years after first hosting it, next week will be the second time South Africa will host the Policy Commission. The hosting of the 91st Session comes at a critical time as the global trade landscape evolves with the rise in digital trade, growing sustainability demands and calls for the modernisation of Customs systems increases. Effective and efficient customs administration and trade facilitation are key to minimising trade barriers such as tariffs, regulatory delays and inefficiencies. By enhancing supply chain resilience, they ensure that goods and services move efficiently and securely across borders. As a result, modernising customs administration practices reduces transaction costs, boosts global competitiveness, and promotes sustainable business growth.
The meeting also comes at a time when South Africa assumes the Presidency of the G20, which will coincide with a call for greater attention to revenue mobilisation and building efficient and effective tax and customs administrations, which are imperative for achieving the Sustainable Development Goals. This becomes even more important, considering three-quarters of the WCO members are developing countries. The Policy Commission oversees and guides the WCO’s technical work to ensure that members can apply modern techniques and technologies while improving the quality of controls in an internationally harmonised manner.
A key focus area proposed for the WCO’s “2025 – 2028 Strategic Plan” by its members is Technology and Innovation (integrating AI, IoT, machine learning and blockchain into customs operations and processes). It is fitting that South Africa hosts this prestigious meeting at a time when SARS is building a smart, modern SARS with unquestionable integrity that is trusted and admired whilst leveraging on strategic partnerships such as its membership in the WCO.
The SARS Commissioner said that “customs plays a seminal role in trade facilitation, not for its own sake but to extricate people from poverty, hunger and unemployment, which disproportionately affect developing countries. Accordingly, harnessing technology to ensure seamless movement of goods between borders must necessarily result in a tangible impact on changing people’s lives. The Policy Commission will afford us the opportunity to make that tangible impact.”
For further information, please get in touch with SARS at SARSMedia@sars.gov.za.
The opening ceremony will be live-streamed on SARSTv (YouTube).
Date: 3 December 2024
Time: 09H30 to 10H15 (CAT)