Despite a commitment by the NRCS to the Portfolio Committee of Trade and Industry that the turnaround time for processing of Letter of Authority applications would be reduced from 120 calendar days to 120 working days, they have recently – and without consultation or reason – reverted to the initial calendar day time frame, says Clifford Evans, customs liaison manager for Berry & Donaldson, who has been actively engaging parliament with regard to NRCS issues since 2015. “It is common knowledge that only a small percentage of applications are processed within this time frame.” Evans agrees that the NRCS inaction must be considered a non-tariff trade barrier which is negatively impacting international trade with South Africa. “Trade accepts the fact that the NRCS is mandated to protect the South African consumer and to prevent South Africa from becoming a dumping ground for noncompliant goods. What is required, however, is that it carries out this function as efficiently and cost effectively as possible – and the organisation fails dismally on both counts,” says Evans. “The issuing of LOAs remains in the spotlight but there are several other issues that are of concern and have not been addressed. Specific to the issue of LOAs, NRCS has made it known that “random targeting” using a vessel’s manifest for risk profiling will still be the basis of intervention even though SA Revenue Service Customs has advised Parliament that a manifest is not suitable for risk assessment as it contains limited information. The NRCS however insists on using this option instead of the Sars risk engine which is used by all other government agencies. Evans believes random targeting is the least effective means of risk management as legitimate traders are caught in the same net as those contravening the law. “And it is, unfortunately, the legitimate traders who bear the brunt of delays, additional costs and ‘black sheep’ branding whilst many who are in contravention escape, in most cases, unhindered.” The impact on international trade, says Evans, is significant. “It is restricting and discouraging imports due to delays, excessive red tape and double administration, it is impacting the economy (NRCS levies, storage costs, loss of sales, testing costs, and additional transport costs) and restricting consumer choice.” According to Evans, in 2015 trade made recommendations to parliament which included amendments to the NRCS legislation, accepting international certificates instead of issuing LOAs, fair and equal treatment of all importers without any form of discrimination or selective targeting – and to allow Sars to act as a nondiscriminatory agent. “At the time of writing, NRCS has yet to appoint a permanent CEO after Asogan Moodley resigned last year and there has been no improvement in either the processes, time frames or efficiency. It is apparent that there is lack of commitment by NRCS to answer even to parliament – this at the expense of international trade facilitation. If the chairman of the EU Chamber of Commerce voices his concerns publicly about NRCS, should we not be concerned?”
INSERT with IMAGE
NRCS has made it known that ‘random targeting’ using a vessel’s manifest for risk profiling will still be the basis of intervention. – Clifford Evans
