SARS CUSTOMS SCOF PRESENTATION

WAREHOUSESAND

OSBP AGREEMENT WITH MOZAMBIQUE

5 June 2013

OVERVIEW

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WAREHOUSES 1. Bonded and state warehouses2. Bonded warehouses3. Role of SARS Customs in bonded warehouses4. Purpose of state warehouse5. Management of state warehouses6. Movement of goods out of a state warehouse7. Disposal of goods in a state warehouse8. Auctions

OSBP AGREEMENT AND ANNEXES1. Update on OSBP Agreement and Annexes

WAREHOUSES

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BONDED AND STATE WAREHOUSES

Bonded warehouses

• Privately managed• Approved by the

Commissioner for the storage of imported goods

• Licensing is subject to certain conditions

• Licensee has an obligation to ensure compliance with all customs requirements

State warehouses

• State owned premises managed by SARS for the safekeeping of un-cleared, detained, seized or abandoned goods

• Appointed by the Commissioner

• Goods are removed upon satisfying all customs requirements and payment of rent

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BONDED WAREHOUSES

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ROLE OF SARS CUSTOMS IN BONDED WAREHOUSESLicensing

• Licensing process including application, risk assessment and inspections

Declaration Processing• Declarations for the movement of goods into and out of a

warehouse. Goods are inspected on a risk basisInventory Management

• Tracking and recording of movement into and out of bonded warehouses

Audit • Risk based audits of bonded warehouses:

• Stock checks• Facility checks• Entity checks

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PURPOSE OF A STATE WAREHOUSE

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PURPOSE OF A STATE WAREHOUSE

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PURPOSE OF STATE WAREHOUSE

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MANAGEMENT OF A STATE WAREHOUSE

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STATE WAREHOUSE

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MOVEMENT OF GOODS OUT OF A STATE WAREHOUSE

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MOVEMENT OF GOODS OUT OF A STATE WAREHOUSE

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DISPOSAL OF GOODS IN A STATE WAREHOUSE

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DISPOSAL OF GOODS IN A STATE WAREHOUSE

• Any surplus (“overplus”) is only paid to the owner of the goods after he/she has proved ownership. Such application for payment of overplus must be submitted to the Commissioner within two years of the date of the sale

• Overplus not claimed is paid into the NRF

• The Commissioner may direct the immediate sale of goods if the goods are of a perishable or dangerous nature or if he considers that, unless the goods are sold at once, the value will diminish

• Goods may be sold subject to conditions and if such conditions are not complied with the sale is null and void. The proceeds may be refunded and the goods may be destroyed or appropriated to the State

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DISPOSAL OF GOODS IN A STATE WAREHOUSE

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AUCTIONS• Applicants submitting a tender for the rendering of auctioneering services for

SARS must furnish a guarantee in the amount of R2 000 000 from an approved financial institution

• SARS enters into service level agreements with successful auctioneers• Auctions may take place in Johannesburg, Polokwane, Durban, Port

Elizabeth, Cape Town, Upington and Bloemfontein• No auction may be held where the estimated income of such would be less

than R250 000• Advertising of goods must be performed by the auctioneer and a maximum

amount to be spent on advertising is provided for in the service level agreement

• Auctioneer’s commission is payable by the buyer• The auctioneer is required to lodge a guarantee or surety of the estimated

income from any auction as a deposit two weeks prior to the auction• Goods may under certain circumstances be sold by tender i.e. when the

should be sold before the next auction

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OSBP AGREEMENT WITH MOZAMBIQUE

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ONE STOP BORDER POST - UPDATE

• The One Stop Border Post Agreement between the Republic and Mozambique was signed on 18 September 2007

• A process aimed at developing the terms of the Annexes between the delegations of the two countries was launched in August 2010, and consensus was reached at official level in June 2011

• On 24 August 2011, the Annexes were approved by Cabinet and weresubsequently submitted to the State Law Advisors for verification

• On 13 July 2012, a preliminary briefing was done to SCOF in order to obtain in principle approval for the signature of the Annexes and such approval was obtained

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ONE STOP BORDER POST - UPDATE

• The Annexes were signed by the Minister of Finance September 2012 and were couriered to Mozambique on 4 October 2012

• The Council of Ministers in Mozambique authorised the signature of the Annexes on 16 May 2013

• Indications are that the Annexes will be signed by the Mozambique Minister of Finance during the course of this week

2020

THANK YOU

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