paperless export monitoring system
DESCRIPTION
PAPERLESS EXPORT MONITORING SYSTEM. by Exchange Control Department. Introduction. Legal framework. Export documentation – Customs and SARB. Current export process. Process improvement initiatives. How to generate an Unique Consignment Reference (UCR). Introduction…. - PowerPoint PPT PresentationTRANSCRIPT
Updated 2010-05-05 1
PAPERLESS EXPORT MONITORING SYSTEM
04/20/23
by
Exchange Control Department
Updated 2010-05-05 2
Introduction
Legal framework.
Export documentation – Customs and
SARB.
Current export process.
Process improvement initiatives.
How to generate an Unique Consignment
Reference (UCR).
04/20/23
Updated 2010-05-05 3
Introduction…
SAD 500: Box 28 - UCR.
Paperless data reporting.
Authorised Dealer reporting.
Data matching.
Way forward.
Paperless Export Monitoring System.
Questions.
04/20/23
Updated 2010-05-05 4
Legal framework
Customs and Excise Act (Act No. 91 of 1964), regulate:• Physical movement of goods;• Single Administration Document (SAD) 500
usage. Exchange Control Regulations, 1961 (i.t.o
Section 9 of Currency and Exchanges Act, 1933 (Act No. 9 of 1933))• Sub-regulation (10) (a) of Regulation 6
prescribes the completion of declaration.• Form F178 declaration, is a format prescribed
by Section 5 of Orders and Rules, to monitor exports.
04/20/23
Single Administrative Document (SAD) 500
Replaced DA550 in Oct 2006
Completed by exporter or exporter’s freight agent
To be completed irrespective of the value
of the export
Export documentation - Customs
04/20/235Updated 2010-05-05
•Form F178For exports to countries
outside the Common Monetary Area, exceeding
R50,000
Completed by exporter or exporter’s freight agent
Attested, followed up and acquitted by bank.
Export documentation - SARB
04/20/236Updated 2010-05-05
Updated 2010-05-05 1
•Acquits F178 & reports export
proceeds
•5
•RESIDENTEXPORTER
•3
•NON-RESIDENTIMPORTER
•2
•Goods
•SAD 500and
Original attested Form F178
•CUSTOMS
•4•SAD 500 data and original
Form F178•SARB
Current export monitoring system
04/20/23
AUTHORISED DEALER
•1
•Attested Form F178
•Receive proceeds
Updated 2010-05-05 8
Process improvement initiatives
SARB –initiated Export Pilot Project (EPP) to monitor exports electronically. From 2007 to current EPP on Phase 2.
Customs – initiated paperless reforms, introduced SAD 500 in 2006 and Electronic Data Interface (EDI) accreditation.
04/20/23
SARB F178(only when value export exceed R50 000)
Customs SAD500 (complete irrespective of value of export)
Box 28
Process improvement initiatives…
04/20/239Updated 2010-05-05
SARB – added 4 features on SAD 500: Box 28 to complete info on Form F178, viz :
• Unique Consignment Reference (UCR),• Transaction Value & Swift Currency Code,• Receiving Bank & Bank Code, • Credit Terms.
Process Improvement Initiatives…
04/20/2310Updated 2010-05-05
Updated 2010-05-05 11
Process Improvement Initiatives…SAD 500 : BOX 28
ACTUAL CREDIT TERMS
BOX 28FINANCIAL DATA
UCR
TRANS VALUE
12000000
RECEIVING BANK
STANDARD
CREDIT TERMS
30 (001 – 180)
VAT CLAIM
0ZA00011111454
USD
CURRENCY
AD/BANK CODE
016
04/20/23
Updated 2010-05-05 12
VAT CLAIM
CREDIT TERMS
RECEIVING BANK
TRANS VALUE
UCR
BOX 28. FINANCIAL DATA
0ZA00011111454
12,000,000 USD
STANDARD 016
030 ( 001 – 180)
Process Improvement Initiatives…SAD 500 : BOX 28
ADVNEP
000
AD CODE
04/20/23
Updated 2010-05-05 13
Process Improvement Initiatives…Unique numbers
Match by using unique numbers as a link.
Unique numbers used - exporting at Customs.
Same unique numbers supplied to the bank when payment is received.
SARB uses unique numbers to tie up exports with receipts.
04/20/23
Updated 2010-05-05 14
Process Improvement Initiatives…Unique numbers
Customs Client Number (CCN):
• The CCN is issued by SARS and must be reported in a eight digit format. Should the CCN be less than 8 characters, zero’s must be added in front of the number.
Unique Consignment Reference (UCR) – generated
by the exporter or exporter’s freight agent.
04/20/23
Updated 2010-05-05 15
1st character = last digit of the year of export – i.e., ‘0’ for 2010.
Next 2 characters = the Society for World Interbank Financial Telecommunication (SWIFT) country code of the country of export , i.e. ‘ZA’ for South Africa.
Next 8 characters = CCN, ‘00011111’
• Note! If the customs client code is less than 8
digits, then zeroes (0’s) must be added in front
to make up 8 digits.
How to generate an UCR
04/20/23
Updated 2010-05-05 16
Last 24 characters = the unique number of the document that the exporter will use to link export proceeds with a specific export shipment, can be: invoice, quotation, order, shipment no., foreign customer code, etc. - e.g., ‘454’ if the invoice number is the link.
The four parts combined make up the UCR - 0ZA00011111454.
It must be on the SAD 500.
0ZA00011111454
How to generate an UCR …
04/20/23
• 0ZA00011111454
• BOX 28
• FINANCIAL DATA
• UCR
• 2009 – Year of Payment
SAD 500: Box 28 - UCR
•The UCR “Year of export” is the date of actual export or anticipated export in the case of the
receipt of an advance payment.
Pre-paymentsPre-payments
• 2010 – Year of Export
04/20/2317Updated 2010-05-05
• 0ZA00011111454
• BOX 28
• FINANCIAL DATA
• UCR
Bulk prepayment...multiple exports
•Allocate one single UCR and use on all related export entries
•$•$•$•$
• 0ZA00011111454
SAD 500: Box 28 – UCR …
04/20/2318Updated 2010-05-05
Instalment payments...multiple exports
•Allocate one UCR on first payment and use on all related export entries and later payments.
• 0ZA00011111454
• BOX 28
• FINANCIAL DATA
• UCR• 0ZA00011111454
•$•$•$•$
•30%•Up-front
•$•$•$•$
•30%•SOB+10
•$•$•$•$
•40%•30-days
SAD 500: Box 28 – UCR…
04/20/2319Updated 2010-05-05
short supply...prepaid exports•One UCR for first payment •One UCR for 2nd payment
•$•$•$•$
• 0ZA00011111454
•Two items ordered
•$•$•$•$
• 0ZA00011111456
•Two further items ordered
•plus...outstanding order now available...
•Two separate entries
required
•Only one item shipped
•SAD 500: Box 28 – UCR…
04/20/2320Updated 2010-05-05
Updated 2010-05-05 21
Paperless data reporting
SARB receives two streams of data.
SARB
CUSTOMSAUTHORISED
DEALERS
Export data post-clearance with CCN & UCR
Export proceeds withCCN & UCR
CCN & UCR
04/20/23
Customs provide SARB with export data.
Banks report to SARB the cross-border transactions via the Cross Border Foreign Exchange Transaction Reporting System (CBFETRS).
Updated 2010-05-05 22
CBFETRSReporting
with UCR and CCN
1st Query Directed toBank perSAD 500
info
2nd Query directed
to exporter
•EXPORTER•Authorised
Dealer
Authorised Dealer Reporting
Match payment againstoriginal SAD 500 details
and UCR & CCN
Advice of payment
Instructions to Cr CFC or convertto ZAR and CR Current a/c etc.
Must provide UCR & CCN
•SARB
04/20/23
SAD 500 DATA BANK CBFETRS DATA
A to Z LtdExporter
00011111CCN
0ZA00011111454UCR
100,000.00 - USDTrans. Value
Standard - 016Trans. Bank
060Credit Terms
R80,000.00FOB Value
A to Z LtdResident
00011111CCN
0ZA00011111454UCR
USD100,000.00 Amount
016Bank Code
2010 – 03 – 15 Value Date
101 - 105, 201Category
Data matching
04/20/2323Updated 2010-05-05
Updated 2010-05-05 24
The Minister of Finance announced in the 2009 Medium
Term Budget Policy Statement that the current paper-
based system of monitoring exports (Form F178) will
be replaced with a more efficient electronic (paperless)
system.
Important component of an efficient paperless system:
Communication!!!
• Complete & correct data reporting to:
Customs - SAD 500 data by exporters,
SARB - CBFETRS data by exporters.
Way forward
04/20/23
25
00011111
Paperless export monitoring system
SARB
Non SA
1st leg: Physical Export
RESIDENTEXPORTER
RESIDENTEXPORTER1
0ZA00011111454
R 1,000,000.00
3
0ZA00011111454
R 1,000,000.00
2nd leg: Payment for goods
2 4
NON-RESIDENTIMPORTER
Payment advice00011111 Macro
04/20/2325Updated 2010-05-05
CUSTOMSAUTHORISED
DEALER
Updated 2010-05-05 26
Questions
04/20/23