August 2011 One-stop border post and Customs Modernisation – Release 2

1. August 2011 One-stop border post and Customs Modernisation – Release 2 CUSTOMS – LEBOMBO

2. Introduction – Customs Modernisation changes • On 1 November 2010 SARS embarked on the first phase of a new declaration processing system. This included replacing purpose codes for declarations with procedure category and customs procedure codes. • On 6 May 2011, SARS replaced its old Manifest Acquittal System (MAS) with the Automated Cargo Management (ACM) system. • On 10 June, Customs Modernisation Release 2 was implemented at 4 offices: ORTIA, JHB, Durban and Cape Town. • On 5 August Doringkloof , Germiston and Bloemfontein went live. They will be followed by six other offices – King Shaka International Airport, Richards Bay, Port Elizabeth, Port Elizabeth airport, Cape Town International Airport on the weekend of 20 August. Lebombowill be a pilot for land border posts from 3 September. Dates for the other offices have yet to be confirmed.

3. Customs Modernisation: Customs Inspection Release 2 includes the introduction of an electronic case management system (Service Manager) and new inspection process which will help eliminate the current manual stop and inspection process. Electronic Case Management Workflow Submit Declaration • Validation • Payment • Risk Analysis Release Version Control • Call for Docs • Create Case • Docs Received • Assess Case Additional Payments Release Await Docs • Stopped For Inspection Electronic Release Electronic Submission of Supporting Docs Electronic Dashboard Status Tracking

4. Lebombo – proposed cargo declaration process • Import and Export Document Inspection and Finalisation/Adjustment teams will be located at the KM7 office and will perform both Exports and Imports cases. • The cases will be allocated on a ‘get next’ basis to resources in ORTIA & Doringkloof, which will allow optimised capacity for the Border Post. It will also cut out the opportunity for collusion as an inspector sitting in Doringkloof could be assessing a case for Lebombo. • All cases that are submitted outside of the 8am to 5pm office hours will be processed by the Lebombo office. • All cases where the supporting documents arrive manually at Lebombo will be manually allocated to the Lebombo Team for processing on SSM • All Physical Inspections and the results capturing on the SARS system will be performed at the area of Inspection • KM7 for Full Unpacks (Import & Export), Export Tailboards & Export Supervisions • Cargo Bypass Area for Import Tailboards & Export Acquittals • Manual Supporting Document intake will only be accepted at the Service Desk of KM7 • Bookings and General Queries can be made at the KM7 office and the Border Post Service Desk

5. Lebombo – proposed cargo declaration process MAIN BORDER POST KM7 Import & Export Back-Office Processing (DI & FIN/ADJ) (6am-12pm) Exports & Import Full Unpack Inspections & Export Supervision Inspections (6am-12pm) Imports Sample & Tailboard Inspections; Export Supervision Acquittals (6am-12pm) DI & FIN/ADJ processing at HUB (8am to 5pm)

6. Release 2 - Supporting Documents • Under the new release, when a customs broker or trader receives an electronic customs status response message with the code ‘13’, via the EDI channel, this will imply that Customs requires the declarant to submit supporting documents for a desk audit. • Note: this is the equivalent of a ‘detain for customs’ in the past. • The e@syScan package should be used by a customs clearing agent, importer or exporter to directly upload supporting documents as required by Customs. It is available through the various Trade Bureaus. • For traders/declarants who operate electronically via the EDI channel, and who do not have access to the e@syScan software, they will be able to deliver supporting documents to their nearest Customs branch office. Initially, the branch offices at Durban, Cape Town, Johannesburg, and ORTIA were given dedicated scanning facilities where the supplied documents will be uploaded and then returned to the trader. Doringkloof and Germiston will also have branch scanning facilities. • Lebombo will not scan any Supporting Documents and it could take longer to process the case if documents are not submitted through the electronic channels. Please try to submit through the electronically provided channels

7. Supporting Documents ctd… • Bulk scanning facilities have also been made available at SARS Processing Centres in Alberton, Doringkloof, Durban and Cape Town. If clients have supporting documents that need to be scanned for any of the offices that have already gone live, they can go into one of these centres where the documents will be scanned in bulk and returned immediately. • For those who choose not to use e@syScan, bulk scanning or office scanning (in the specified offices), the current manual procedure will apply. However, the manual process will take much longer and traders are urged to make use of one of the electronic options for submission of documents, where possible. • Please note:Clearing Agents and Traders are not to submit or bring supporting documents into Customs offices that have already gone live unless requestedvia a system-generated notification.

8. Cargo Inspection – Booking process New Inspection procedure • Step 1: A Document Inspector indicates electronically that an inspection is needed on a specific case. • Step 2: The SARS system sends an electronic request to the trader to make an inspection booking. The trader has up to four days to make the booking using the same process per port as they are using today. • Step 3: If a booking is not made after four days, a reminder is sent to the trader via EDI. If they are not an electronic trader, then they will be notified via a Customs branch. • Step 4: When a booking is made using the same method as used in the past, this will be captured electronically on to the new SARS system called Service Manager • While some steps will now be done electronically, other steps remain the same. Traders will use the same process they are using today to make bookings.

9. Cargo Inspection - Finalisation • Another difference for traders is that they will no longer receive a DA 74 (inspection release note) from the branches that are going live with the new inspection process. This has been replaced with a SARS Service Manager-generated release note as the only form of release. • In the past, inspectors manually completed a DA 74 and gave it to the agent. Under the new procedure, the inspector will go back to the office, write a report on his findings which will then be captured on Service Manager. It will then go to a Finalisation Officer who will make a decision based on the report. The final outcome of the case will then be sent to the trader via EDI (if electronic) or the Customs branch (if manual) in the form of a release note. • Traders can also track the progress of their case through the SARS call centre (0800 00 7277) or at a Customs branch where Customs staff members can check the status on a Service Manager dashboard.

10. Release 2 - Customs Clearance • Amendments to Cross border (CCA) clearances will now be administered via a SAD504 in respect of import clearances and the SAD554 in respect of export clearances. The SAD503 is withdrawn from use. • Refund applications (DA66) lodged in respect of refunds and drawbacks will follow the current assessment and approval processes. Traders should take note that refund amendments (vouchers of correction) can also be submitted via the EDI channel for processing by Customs. • Provisional payments (DA70) in respect of ‘surety’, ‘penalty’, and ‘forfeiture’ will follow the current assessment, approval and payment process. • Processing of all other non-declaration financial documents will follow the current processes.

11. Release 2 - VOCs Enhancements to the Voucher of Correction (VOC) process have been introduced. • Note should be taken that if an agent requests a VOC, the agent should not reflect any case number on the VOC when submitting to the office. The system will send you an electronic message to notify you that the VOC has been received and a case number will be reflected. You will use this case number to submit your supporting documents. • The draft VOC and a letter of explanation needs to be submitted as part of your supporting documents, giving a detailed explanation as to why the amendment is required. • If there is an open case on the original declaration then you will not be able to submit a VOC on that case unless you are asked for one by Customs via the Request Amendment (26) message. In this instance, the case number and Change Acknowledgement Indicator (CAI) fields are mandatory as well. • When a trader is submitting a VOC of their own volition (not requested by Customs) they should firstly ensure that there is no open case linked to the LRN and then submit their VOC without a case number or the Change Acknowledgement Indicator.

12. What we need from you • Ensure that staff in your office who actually submit the entries get training on the changes from their bureaus. Check with your bureaus that you have the latest software needed to submit supporting documents through e@syFile. • If you have any issues during or after go-live, please contact your broker/bureau first to make sure there is no problem from their side. You can then follow the SARS escalation process. • SARS will set up an Operational Support Centre for query resolution during go-live. Clients are to firstly contact a person designated by the branch as the first point of contact. They will then escalate the issue to a branch super-user who, if necessary, will escalate it to the OSC. If you still have no luck, then contact the Branch Manager. Last recourse should be the Regional Executive (Leon Potgieter, LPotgieter4@sars.gov.za) and finally the Group Executive (Rae Cruikshank, rcruikshank@sars.gov.za). These details will be made available to trade before go-live.