To understand why that question is being asked, it is important to know how we have arrived at this point, and the current environment within which the new Acts play a role. For context, the first version of the Customs Duty Act was published in 2009 for comment and was assented to by the President in 2014 along with the Customs Control Act and the Customs and Excise Amendment Act. These Acts will only take effect on a date determined by the President by proclamation. It is also important to note that SARS agreed, in a Parliamentary hearing, that the Acts would only take effect once the Rules had been published for comment, and this process began in 2014 and was completed in 2016. Hence the question, in the second quarter of 2024, when will the new Acts come into effect?
In fact, several parts of the new Customs Control Act are already in effect and have been for some time. Reporting of Conveyances and Goods (RCG) was rolled out in 2018 and Registration, Licensing, Accreditation (RLA) was implemented in 2020. These, along with Declaration Processing (DPS), are key pillars of the Control Act but have actually been implemented by amending the current Customs and Excise Act of 1964 and the Rules. This allows SARS to initiate parts of the new Acts under its Customs Modernization Programme. Confusing, yes, but looking at the bigger picture, it makes perfect sense as one can only imagine the chaos that could occur if the new Acts were to be implemented in their entirety. Implementing parts of the new Acts under the current Act will prevent total confusion and a possible collapse of the SARS electronic system. It is for this reason that Declaration Processing, the third pillar of the Control Act, is currently under review by SARS and will also be rolled out as part of the Modernization Programme. Enhanced and new Customs Procedure Codes, Incomplete and Provisional clearances, Expedited Releases and amendments to the data fields on the SAD 500 will all be included in this phase.
These are all positive steps taken by SARS and are welcomed by trade even though implementation has been challenging. There are, however, still matters of concern relating to the delay in the new Acts coming into effect. Firstly, taking into account that the Acts were assented to by the President in 2014 but not yet in effect, are the new Acts and the Rules not already outdated? The Control and Duty Acts also contain several key benefits to trade which, due to the delay, are not yet available and these include the time period to claim refunds extended from two to three years, the provision for electronic record keeping, more relaxed warehousing procedures, as examples. The general impact the new Acts will have must also not be overlooked in that they have been written in a language and grammar style that alleviates misinterpretation, as just one example. Further, the corresponding Rules are in great detail, avoiding grey areas that may lead to confusion, and these are vast improvements in comparison to the current Act. The question of when the new Acts will come into effect remains unanswered but taking into account the current status of the Customs Modernization Programme, not before 2026 may be a reasonable assumption.
