sc-cf-19 - licensing registration and designation ... · external policy . licensing, registration...

EFFECTIVE DATE 26 June 2012

Licensing, Registration and Designation – External Policy SC-CF-19

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CUSTOMS AND BORDER MANAGEMENT

EXTERNAL POLICY

LICENSING, REGISTRATION AND DESIGNATION



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TABLE OF CONTENTS 1 SCOPE 3 2 POLICY 4 2.1 Application 4 2.2 Licence Conditions 5 2.3 Change of particulars 6 2.4 Authentication verifications 6 2.5 Approved exporters 6 2.5.1 Trade Agreements 6 2.5.2 Rules 7 2.5.3 Approved quotas 8 2.5.4 Consideration for the granting of approved exporter status 8 2.6 Industrial Development Zones 9 2.6.1 Specific IDZ Requirements 9 2.6.2 Designation of Customs Control Areas in an IDZ 10 2.6.3 Rebate provision for IDZ and CCA Enterprises 12 2.6.4 CCA storage warehouse in an IDZ 13 2.7 Suspension and Cancellations 14 2.8 Penalties 14 2.9 Appeals against decisions 15 2.10 Record keeping 14 3 REFERENCES 15 3.1 Legislation 15 3.2 Cross References 16 4 DEFINITIONS AND ACRONYMS 16 5 DOCUMENT MANAGEMENT 17



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1 SCOPE a) This policy deals with the types of licences, registrations and designations administered by Customs

and sets the requirements that must be met prior to and subsequent to licensing, registration or designation for selected activities.

b) Licensing is a regulatory activity that also dictates when and for what purposes security is required.

The following Customs client licences are covered by this policy:

i) Customs and Excise Warehouses: A) Special Manufacturing Warehouses; B) Manufacturing Warehouses including Customs Controlled Area (CCA) Enterprises; C) Storage Warehouses including CCA Enterprises; and D) Special Storage Warehouses;

ii) Clearing Agents; iii) Removers of goods in bond (Local or Foreign); iv) Container Depots; v) Wrecks; and vi) Degrouping depots.

c) There are two (2) categories of registered clients, namely:

i) The first category is general importers and exporters. The client pays all duties / taxes upfront before taking possession of the goods.

ii) The second category is clients registered for rebate facilities. These clients are allowed to import goods without paying duties under certain conditions, i.e. for processing, manufacturing, and packaging with an intention of exporting them.

d) The following Customs client registrations are covered by this policy:

i) Importers (Local or Foreign); ii) Exporters (Local or Foreign):

A) (General); B) Exporters for SADC, the Trade, Development and Cooperation Agreement (TDCA) and

Southern African Customs Union (SACU) / European Free Trade Association (EFTA); C) Exporters for African Growth and Opportunity Act (AGOA); D) Approved Exporters for TDCA, SACU / EFTA; E) Exporters / Producers for Generalised System of Preference (GSP);

iii) Rebate users (Schedule 3, 4 and 6); iv) Manufacturers; v) Special Manufacturing Warehouses – Motor Industry Development Program (MIDP); vi) Electronic communication with SARS (for whatever purpose); vii) Industrial Development Zone (IDZ) Operators; viii) Deferment; and ix) Manufacturers in terms of drawback items 502.00 to 521.00; x) Registered Agents in terms of Rule 59A.01

e) The designation of Customs Controlled Areas in IDZs is also covered in this document. f) In respect of approved exporters this policy:

i) Covers the requirements for application as an approved exporter with regards to: A) Protocol 1 of the Agreement on Trade, Development and Co-operation between the

European Community and its Member States and South Africa (TDCA); and B) The Free Trade Agreements (FTAs) between the European Free Trade Association

(EFTA) and the Southern African Customs Union (SACU) (SACU-EFTA FTA). ii) Does not cover the application and verification process to consider the approval of approved

exporters. Refer to SC-CF-19-S17 for these processes. iii) Exporters of quota products exported in terms of the free trade agreements will be excluded

from applying for Approved Exporter status in respect of such products. The effect of this exclusion is that in respect of such products an application for a movements certificate EUR1



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must be submitted and a certificate of origin will be issued. No invoice declarations, whatever the value thereof, may be made out for this purpose. The reason for this exclusion is to ensure complete control of quota deductions and to enable effective monitoring of trade in such products.

iv) The Manager: Trade Administration may, in some cases, grant Approved Exporter status to exporters of certain quota products after consultations with the relevant Government Department.

v) Exporters of quota products under the TDCA of which a quota has not been approved by the Department of Agriculture, Forestry and Fisheries (DAFF) cannot apply for approved exporter status. Such exporters must complete EUR1 movement certificates and cannot issue invoice declarations.

g) The following are excluded from this policy:

i) Surety/Bonds – please refer to SC-SE-05; and ii) Other designations that are not IDZ / CCA related activities.

2 POLICY 2.1 Application a) The Commissioner may require any person participating in any activity regulated by the Act to either

be licensed, registered, approved or be designated. b) A person may apply for registration, approval, licensing or designation to participate in any activity

contemplated in Rule 59A.02(1) if such person is –

i) A natural person who is a citizen or a permanent resident of South Africa or has an established place of business (fixed physical address) in South Africa and is at least 21 years old at time of application;

ii) A juristic person that has an established place of business (fixed physical address) in South Africa;

iii) The person having the effective management of an association of persons whether or not formed in South Africa that has an established place of business (fixed physical address) in South Africa;

iv) A partnership or a trust composed of individuals each of whom is a natural person who is a citizen or a permanent resident of South Africa or has an established place of business (fixed physical address) in South Africa and is at least 21 years old at time of application;

v) In the case of – A) A deceased estate, the executor of the estate; B) An insolvent estate, the trustee; C) An organ of state, the official to whom the function in respect of the activity for which

registration is required, is delegated; and D) Any institution, the person having the effective management of such institution.

c) Foreign entities:

i) A foreign importer, exporter or licensed remover may apply for registration or licensing if represented by a registered agent and such registered agent is: A) A natural person, as a reference to a natural person ordinarily resident in South Africa at

a fixed physical address in South Africa; and B) A juristic person, as a reference to a juristic entity:-

I) Which is incorporated, registered or recognised in terms of the laws of South Africa or of another country; and

II) Which has a place of business at a specific physical address in South Africa. ii) The registered agent is liable for the fulfilment of all obligations imposed on either the importer,

exporter or licensed remover. iii) If the applicant is a foreigner and is not represented by a registered agent or has not yet

nominated a registered agent his/her application will be entertained but suspended until a nominated and approved registered agent has been appointed and approved.



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d) Any registration, license or designation is issued subject to the condition that the participant or at least one (1) of the participant’s employees are permanently employed at the premises where or from where the business will be conducted and must have sufficient knowledge of Customs laws and procedures to ensure that the activities to which the application relates are conducted efficiently and in compliance with the provisions of such laws and procedures.

e) No third party may apply for registration, licensing, approval or designation on behalf of an applicant. f) The applications for a registration, licence, approval or designation must be submitted to the

respective Branch Office / Hub. g) The Commissioner may require any person to furnish the surety in the form, nature or amount

determined. The Commissioner may review the form, nature or amount of surety at any time. See SC-SE-05.

h) Section 59A(2)(b) read with Section 60(2) empowers the Commissioner to refuse any application, for a

new registration, and Section 60(2) empowers the Commissioner to refuse any application for a new licence or refuse any application for licence renewal, subject to review by the High Court, if the applicant:

i) Does not comply with the requirements of such application as specified by Rule or by any

condition imposed by the Commissioner. ii) Has made a false or misleading statement with respect to any material fact or omits to state any

material fact which was required to be stated in the application for a licence. iii) Or an employee of the applicant has:

A) Contravened or failed to comply with the provisions of the Act; B) Been convicted of an offence under the Act; C) Been convicted of an offence involving dishonesty; D) Failed to comply with any condition or obligation imposed by the Commissioner in respect

of licensing; or E) Failed to comply with any condition or obligation imposed by the Commissioner in respect

of registration. iv) The above-mentioned subparagraphs shall not apply in respect of an employee if it can be

proven that the applicant was not a party or could not prevent any such act or omission by the employee.

i) The use of general code

i) The use of general code 70707070 has been withdrawn at Botswana, Lesotho, Namibia and Swaziland land ports of entry / exit where Service Manager has been rolled-out [see Rule 59A.03(1)(a)].

ii) Therefore any person whether or not located in South Africa who imports or exports goods or removes bonded goods must apply for registration / licensing on the prescribed DA 185 and respective annexures. If the importer, exporter, remover is not located in South Africa they have the additional obligation to nominate a registered agent.

j) The Commissioner may before approving or refusing an application for registration as an agent other

than a clearing agent conduct an investigation to verify the statements made by the applicant in the application and ascertain any facts relating to the activities in respect of which the registration will operate. The applicant must make available books, accounts and other documents and furnish fully all information necessary to conduct such investigations.

k) All new registrations and licences may be subject to investigation prior to approval or refusal of

applications. 2.2 Licence Conditions a) A license will be issued for the respective premises based on the type of application received and

approved by Customs.



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b) The activities for which the licence is required, the person and the conditions imposed will be reflected on the specific licence issued.

c) No alterations may be effected on such licence by the applicant and the licence must be available for

inspection by Customs when requested. d) No licence may be transferred from one (1) person to another person, however a licence may be

endorsed by the Commissioner to allow a transfer from one (1) approved premises to another approved premises within the same area of control and subject to no alteration in legal ownership.

2.3 Change of particulars a) The Commissioner must be advised of change - whenever any of the particulars furnished in any

application for registration or a license changes in any material way, the licensee must advise the Commissioner within seven (7) working days from the date of the occurrence of such event by submitting a DA 185 and the appropriate annexure(s) reflecting the changed particulars.

b) Changes in any material way shall include -

i) Relocation; ii) Alterations; or iii) Where the legal status or name of the registrant or licensee changes for any reason.

c) On approval of the application for the changed particulars, the Commissioner may issue a new

registration in respect of such change. d) Changes will only be effective once final approval has been received from the Commissioner. 2.4 Authentication verifications a) SARS requires that any new applications (that is first time applications for any Customs functionality)

and current clients amending any of their profile details (DA 185) have to physically present themselves at the nearest SARS Customs Office in order for SARS staff to authenticate the applicant or representative in person.

b) The application (DA 185) must be supported by the supporting documents as called for on the DA 185. c) To enable SARS staff to authenticate the applicant or representative in person the following

documents must be provided when the person approaches the SARS Customs Office:

i) Original identity document/passport or a temporary identity document/passport of the actual applicant / representative of the applicant; or

ii) Certified copy of identity document/ passport or temporary identity document/passport of the actual applicant / representative of the applicant; and

iii) Original resolution / authorisation specifying who is authorised to act on behalf of the applicant (company, trust, close corporation, etc) if applicable.

d) A letter of Authority is required when the applicant sends a representative to SARS for the

authentication process. 2.5 Approved exporters 2.5.1 Trade Agreements a) The Preferential trade under Protocol 1 of the Agreement on Trade, Development and Co-operation

between the European Community and South Africa (TDCA); and Annex V of the Free Trade Agreement between the European Free Trade Association (EFTA), and the Southern African Customs Union (SACU), is regulated by Rules of origin, for which certificates of origin are issued in the country of export. Exceptions to this requirement is for:



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i) Goods of a commercial value per consignment which does not exceed EUR 6000 for which an invoice declaration by the exporter in the format prescribed may be accepted, and

ii) The granting of approval status to certain exporters who may issue invoice declarations, irrespective of the value of the consignment, subject to compliance with specific criteria and conditions, as elaborated in the Standard Operating Procedure.

b) Article 14(1)(b) of Protocol 1 to the TDCA and Article 14(1)(b) of Annex V to the SACU-EFTA FTA

provides for products traded between the member countries to benefit on importation from the agreements, upon submission of an invoice declaration, in the cases provided in Article 19(1) in both the agreements in accordance with the text provided in Protocol 1 and Annex IV. Such invoice declaration must be given by the exporter on an invoice, a delivery note or any other commercial document which describes the products concerned in sufficient detail to enable them to be identified.

c) Article 19 (Conditions for making out an invoice declaration) in both the agreements provides for the

making of invoice declarations by an Approved Exporter within the meaning of Article 20 (Approved Exporter) of Protocol 1 and Article 22 of Annex VI, provided:

i) The products are originating in a member country and fulfil all requirements of the Protocol; ii) The exporter is prepared to submit all appropriate documents proving fulfilment with the

requirements at the request of the Customs authority; iii) The exporter gives a written undertaking accepting responsibility for invoice declarations which

identifies him/her; and iv) The declaration is not made later than two (2) years after the importation of the products to

which it relates. d) Article 20 (Approved Exporter) of Protocol 1 and Article 22 of Annex VI, provides for Customs

authorities in the export country to issue approved exporter status to exporters who make frequent shipments of products which will enable them to make invoice declarations, irrespective the value of a shipment, subject to:

i) Providing all guarantees necessary that the products fulfil all requirements of the Protocol; ii) Complying with such conditions as the Customs authority may impose; iii) Include the Customs authorisation number on all invoice declarations; iv) The monitoring of the use of the authorisation by the Customs authority; and v) The withdrawal of the authorisation by the Customs authority upon non-compliance with the

requirements. e) Exporters granted approved exporter status may make invoice declarations for all their exports using

the prescribed format for invoice declarations and quoting their approved status number therein. 2.5.2 Rules a) Rule 49A.18 (19), (20) provides for Rules for Articles 19 (Conditions for making out an invoice

declaration) and 20 (Approved Exporter) of Protocol 1 to the TDCA. b) Rule 49D.18 (19), (22) provides for Rules for Articles 19 (Conditions for making out an invoice

declaration) and 22 (Approved Exporter) of Annex V of the SACU-EFTA FTA. c) Rule 49A.26.03 (a)(i), export to the Community of goods subject to tariff quotas, provides for the

administration of tariff quotas in accordance with the conditions relating to the issue of export permits and the requirements of the Community as published by DAFF by notice in the Government Gazette.

d) Rule 49A.26.03 (a)(ii) stipulates exporters of goods subject to quotas may not issue invoice

declaration contemplated in Articles 19 and 20 of Protocol 1, except if:

i) Granted approved exporter status; and ii) A quota is approved by DAFF.



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2.5.3 Approved quotas a) Approved quotas are quotas approved by DAFF for their control. DAFF approved of only wine quotas

provided for in the TDCA for their control. Control over the quotas will be exercised by them and would apply to the following products:

i) Sparkling wine of tariff subheadings 2204.10.19.91, 2204.10.19.99, 2204.10.99.91 and

2204.10.99.99; and ii) Other wine of tariff subheadings 2204.21.93.19, 2204.21.93.29, 2204.21.94.19, 2204.21.94.29,

2204.21.94.61, 2204.21.94.71, 2204.21.95.11, 2204.21.95.21, 2204.21.96.11, 2204.21.96.61, 2204.21.96.71 and 2204.21.97.11.

b) Tariff subheadings provided above are that of the Community Tariff and not of the South African Tariff.

In view of the fact that the quotas will not be administered by SARS exporters of these products may in accordance with Rule 49A.26.03 apply for approved exporter status.

2.5.4 Consideration for the granting of approved exporter status a) Criteria - in order to be considered for approved exporter status an exporter must on application

satisfy all the following criteria:

i) Make at least twelve (12) shipments per annum of products enjoying preferential status under the free trade agreements;

ii) Must not have contravened the requirements of the free trade agreements; iii) Must not have committed any offence in terms of the Customs and Excise Act for the past two

(2) years; iv) Must hold satisfactory evidence of origin that the goods comply with the origin criteria specified

by the free trade agreements; and v) Must provide the guarantees necessary to verify the originating status of the goods.

b) When considering the number of shipments per annum referred to above shipments for which

certificates of origin were issued as well as those for which no certificates of origin were issued must be taken into account.

c) Conditions - for the purpose of Articles 19 and 20 of Protocol 1 to the TDCA and Articles 19 and 22 of

Annex V to the SACU-EFTA FTA, an Approved Exporter must comply with the following conditions:

i) Exporters must apply before export for approval if any goods to be exported, were not specified in the original application, i.e. goods for which the origin has not been verified;

ii) Ensure that the goods for which approval has been granted comply with the relevant provisions of origin, i.e. general origin criteria, cumulation, list Rules, etc. (also refer to SC-R0-01-01 for guidance on understanding preferential Rules of origin);

iii) The format of the invoice declaration must be made out as prescribed in the agreements; iv) Accept full responsibility for any invoice declaration submitted electronically bearing the

exporter’s identification; v) Invoices bearing declarations must be submitted together with export declarations. If invoice

declarations are made out after export documents have been processed, it must be cross-referenced with the original declaration and submitted to the Customs office where the export declaration was made;

vi) Describe the goods on invoices, delivery notes, or other commercial documents with sufficient details for the purpose of identification and classification;

vii) Reflect on any such documents the applicable tariff heading / sub-heading, i.e. four (4) or six (6) digits;

viii) Indicate clearly on such documents by means of an asterisk which goods are not of preferential origin, i.e. goods imported from third countries, locally manufactured goods not meeting the origin criteria, etc.;

ix) Comply with any other conditions or obligations imposed by Customs for ensuring compliance with the requirements and the Rules;

x) Keep proper records to verify the originating status of the goods as required by Protocol 1 to the TDCA and Annex V of the SACU-EFTA FTA as well as Rules 49A and 49D, i.e. invoices for raw materials, manufacturing specifications, bill of material, etc.;



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xi) State proper references, or other particulars on the invoice whereby the goods exported can be readily traced in the exporter’s records i.e. file reference, use serially numbered invoices, etc.;

xii) Inform Customs of any change in legal identity, any matter affecting the originating status of goods exported and when the export of any goods for which approval has been granted are discontinued; and

xiii) Approved exporter may only make out an invoice declaration from the date on which approval status is granted and may not use this authority retrospectively.

d) Disqualification - any approved exporter who issues any invoice declaration in the circumstances

contemplated in the agreements may be prohibited from issuing such invoice declaration if:

i) A false declaration concerning the origin or value of any consignment is made; ii) The requirements of the agreements or of the Rules are not complied with; and / or iii) Customs has not been notified that the goods no longer fulfil the required origin conditions, i.e.:

A) Change in the source of materials; B) Change in the manufacturing process; C) The need for approval ceases; and D) If a change in the legal identity or address of the approved exporter has occurred.

e) Exporters shall apply for a form EUR1 in respect of all exports for which originating status is claimed,

for such time as Customs may determine, if their approved exporter status has been withdrawn, or the use of an invoice declaration has been prohibited.

f) Coverage of the approved status

i) The approved exporter status will apply to all qualifying products specified in the application, and exported by the applicant under a specific trade arrangement.

ii) The effect will be that an approved exporter will not be allowed to issued invoice declaration for some of the products and apply for certification for others.

2.6 Industrial Development Zones 2.6.1 Specific IDZ Requirements a) Section 21A read with Section 59A and the Rules thereto requires that an IDZ Operator must be

registered. A Customs Control Area (CCA) must be designated and participants in the IDZ Programme must also be registered under the rebate provision of Rebate Item 498.00 before any activities may be conducted in an IDZ. These activities apply only to IDZ Operators and CCA Enterprises.

b) Any person who is in possession of an IDZ Operators permit issued by the Minister of Trade and

Industry authorising such person to develop and operate a new or existing IDZ may in terms of Rule 21A.04(b) and Rule 59A apply for registration as an IDZ Operator with Customs.

c) It will be required of all applicants who apply for registration as IDZ Operators in terms of the Customs

Act to conform to the requirements stipulated by the Commissioner which will include that -

i) The applicant is a holder of a valid IDZ Operator permit granted by the Minister of Trade and Industry;

ii) The applicant is a registered VAT vendor; and iii) The applicant can demonstrate, with regard to the operation of a Customs Controlled Area that

the following duties and functions, included but not limited to, can be fulfilled: A) Maintain the buildings; B) Maintain the roads; C) Maintain the equipment; and D) Maintain the security of the area.

d) It will not be required of an applicant for registration as an IDZ Operator to furnish any security at time

of application. . However, for registration as a rebate user or a CCA Enterprise refer to SC-SE-05 – Bonds – External Policy.



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e) Responsibilities of the IDZ Operator:

i) On approval of the application the IDZ Operator immediately becomes responsible for the keeping of books, accounts and documents as mentioned in 2.10, as well as: A) Allocating a reference number to, and quoting such on all documents relating to goods

received or manufactured in and exported or otherwise removed from a CCA according to which those goods can be readily identified in the production or other accounting records of an IDZ Operator or CCA Enterprise.

B) Ensure any accounting records kept in respect of the business of an IDZ operator shall utilise information prepared in a manner consistent with generally accepted accounting principles (GAAP) appropriate for such business and for fulfilment of the requirements of the Act and the Rules relating to the activities performed in a CCA.

ii) The IDZ Operator will be responsible for the maintenance in the IDZ regarding the following: A) The buildings; B) The roads; C) The equipment available to SARS; and D) The security.

2.6.2 Designation of Customs Control Areas in an IDZ a) A registered IDZ Operator may apply to the Commissioner to designate a portion of the landmass of

the IDZ as a Customs Controlled Area (CCA). b) Any application for designation of a CCA will only be considered if the under-mentioned requirements,

in addition to the general requirements, are met:

i) The applicant has been registered with Customs as an IDZ operator; ii) A DA 185 with the appropriate annex is submitted for the application for designation of a CCA;

and iii) The application is supported by the required documents and contains fully the information

requested in the DA 185 and the annex. c) The applicant must provide building plans that reflect the material to be used in the construction of,

height, etc of the fencing. Although no maximum or minimum requirements are specified the following points may be regarded as guiding principles for the perimeter -

i) The fencing may be of any material but should not allow any goods to be passed through /

thrown over the fencing; and ii) Minimum height for the fencing should not be less than two (2) meters.

d) The applicant must provide office space and facilities for Customs Officers in the IDZ. e) Comprehensive security arrangements must be provided:

i) In order to monitor any unauthorised access the applicant must demonstrate that comprehensive security arrangements are provided. Although security arrangements are not specified the following points may be regarded as guiding principles: A) The fencing may be electrified in full or on the top; B) The fence must be patrolled by security guards; and C) The monitoring of the perimeter by:

I) Surveillance cameras (CCTV) operational 24 / 7, during office hours or after hours; II) 24 / 7 patrols by security guards, with or without dogs; III) A management system to monitor perimeter tampering; IV) Lighting of the perimeter after hours; and V) A number of security staff per shift, during office hours, weekends and public

holidays. ii) The applicant must demonstrate fully the processes to be implemented to:

A) Control the movement of persons and vehicles entering and exiting the CCA; B) Control the movement of goods as per Customs requirements; C) Control the delivery of services to and in the CCA for adherence to the VAT requirements; D) Record the movements of persons and vehicles entering and exiting the CCA;



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E) Issue identification badges to visitors (these would include persons of any trade or profession who visit the CCA temporarily), IDZ operator personnel, CCA enterprise personnel and IDZ security personnel; and

F) Supply SARS with electronic or paper reports, containing the under-mentioned information within 24 hours when requested by a SARS official: I) Full names, South African identification number / passport number and times of

entry / exit of visitors to the CCA; II) Full names, South African identification number / passport number and title of

persons employed by the IDZ Operator and CCA Enterprises; and III) In and out movement of goods to and from registered CCA Enterprises.

iii) The applicant shall also furnish any such further particulars as the Commissioner may require in each case.

f) Requirements in respect of premises, equipment and security for a CCA manufacturing warehouse:

i) An application for a CCA Manufacturing Warehouse shall only be approved if the premises, equipment and security conform to the requirements determined by SARS and the Department of Trade and Industry.

ii) The requirements may include the following; A) The building must be structurally sound and safeguarded against fire and burglary; B) The walls of the building should be of brick, stone or concrete and the roof of slate, tiles

or iron; C) Windows, doors, gates and other means of access must be fully secured with adequate

locking devices; D) The building must be equipped with electrical security measures to prevent illegal delivery

and despatch of goods; E) The building must comply with health and safety regulations; F) A separate area for the safekeeping of goods which have not being released due to

detention and seizure must be provided; G) Sufficient space and facilities relevant to conduct examination and necessary staff must

be provided to ensure reliable service for the opening, unpacking and re-packing of goods;

H) The building must be independent from other buildings that serve a different purpose; I) Entry and exit into and out of warehouse should not lead to another building apart from

the warehouse, i.e. if another floor or a portion of the building is a duty free store, there must be means of access to the latter other than through the warehouse;

J) Suitable accommodation such as office furniture, parking facilities and toilet facilities shall be provided to Customs officials at any reasonable time free of charge;

K) Building approval issued by the local municipality; and L) An attached plan of the intended facility must reflect the above information.

g) Inspection of CCA infrastructure:

i) As a general principle the construction of the CCA infrastructure may only proceed when the Commissioner notifies the IDZ Operator that the application for designation of the CCA has been approved.

ii) In terms of Rule 21A.04(c) an application for designation of a CCA will only be approved if the premises, security and equipment of the proposed CCA conform to requirements determined by the Commissioner and the Director General: Department of Trade and Industry.

iii) In view of the above SARS will conditionally approve the application if the application, annex and supporting documentation is found to be acceptable. This would allow the applicant to import or move material from the local and foreign markets as required for the construction of the CCA infrastructure. On completion of the CCA infrastructure the IDZ Operator must inform the Controller / Branch Manager in writing thereof.

iv) The Customs Controlled Area shall be fenced and - A) All industrial and office buildings shall be constructed at least five (5) meters from the

CCA perimeter; B) Entrances and roads within the IDZ shall be constructed in manners that facilitate the

expedient movement of vehicles, machines, persons and security personnel; C) Adequate lighting which must be operational at all times shall be installed on a permanent

basis throughout the CCA and must illuminate the perimeter surrounding the CCA;



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D) The business plan must include / demonstrate the security provisions; E) Provision shall be made for comprehensive security arrangements; and F) Entrances and exits for persons and goods may be located at the same or different

segments of the CCA but must be under surveillance on a 24 / 7 basis. v) The IDZ Operator shall ensure that persons who enter the CCA display identification badges at

all times in accordance with the following categories: A) IDZ Operator personnel, with a clear identification between security, administration and

operational personnel; B) CCA Enterprise personnel; C) Customs Officers; and D) All visitors who temporarily visit the CCA.

vi) The IDZ Operator shall submit monthly reports electronically or manually of the movement of persons and goods into and out of the CCA and any other IDZ Operator’s function. This may include: A) Names and Identification Document (ID) numbers of persons employed in the CCA; and B) Names and ID numbers of persons who entered the CCA and times of entry.

h) Duties of the CCA Enterprise

i) The CCA Enterprise shall – A) Maintain the buildings, roads, equipment, security and other requirements as SARS may

require, including walkways, refuse area and parking areas; and B) Install and maintain an information system to record the movement of material and

components imported into and exported from the CCA Manufacturing Warehouse. ii) The CCA Enterprise shall keep records as mentioned in 2.10. iii) The licensed premise shall be open to authorised Customs Officers at all reasonable times for

inspection, verification of records and operations including supervision of tallying operations. iv) The licence holder shall not allow any other person to use such licence in any Customs

business or transaction. v) Any directives issued by the Commissioner in connection with procedures applicable to licence

subsequent to the date of application or during the validity period of the licence issued on approval of the said application, shall be deemed to be part of the afore-mentioned terms and conditions from the date on which such directives are issued and shall be observed by the licensee as if they were included therein and duly subscribed to by the licensee.

vi) The premise where the transactions take place must be the one (1) approved by SARS. A licensee shall not perform any process of manufacturing goods on any premise other than the licensed premise without the written permission and approval of the Controller / Branch Manager.

vii) A licensee must present a copy of a licence when demanded by Customs Officials. viii) A contract concluded between a CCA Enterprise and another person to perform any of its

functions shall not relieve the licensee of its responsibilities under the Act and this policy. 2.6.3 Rebate provision for IDZ and CCA Enterprises a) Rebate Item 498.00 provides for the IDZ Operator and CCA Enterprises to import goods of any

description into the CCA without the payment of Customs duty and VAT for manufacturing purposes or for the basic structural elements permanently installed in a CCA.

b) The rebate provision is sub divided into -

i) 498.01 - Goods of any description imported by a registered CCA enterprise into the CCA; and ii) 498.02 - Goods of any description imported by a registered IDZ operator for use in the

construction and maintenance of the infrastructure of a CCA in an IDZ. Infrastructure in item 498.02 shall be limited to the basic structural elements permanently installed in a CCA, including sanitation, supply of electricity, roads, bridges, buildings and the like.

c) SARS needs to ensure that goods imported are used in the CCA for the manufacturing of goods or for

the construction of the CCA infrastructure and that control measures are in place to ensure that the goods are used as declared.



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d) Any application for registration of a rebate store must comply with the general requirements as well as the following specific requirements:

i) Any application for registration as a rebate user in a designated CCA will only be considered if

the applicant complies with the provisions of Section 75(2) and Rules 75.01 to 75.10 thereto. ii) The applicant shall furnish a business plan which must cover aspects such as the following:

A) Location of rebate store in the CCA - A map(s) / aerial photograph(s) which- I) Depict the geographical boundaries of the storage warehouse; and II) Depict the actual boundaries of the rebate store.

B) Supply full particulars of the storage warehouse employee permanently employed by the storage warehouse who must have sufficient knowledge of Customs laws and procedures to ensure that the activities that will be conducted by the storage warehouse are conducted efficiently and in compliance with the provisions of the laws and procedures.

C) The warehouse size and activities to be conducted there such as: I) The relative size of the rebate store; II) The material that will be used in the rebate store; and III) The estimated date of operationalisation.

iii) A list of plant and machinery must be kept at the premises for inspection purposes. e) Surety

i) The Controller / Branch Manager / Hub Manager will inform the applicant (contact person) of the surety that would be required to cover the duty which would be payable in normal circumstances if no rebate provision existed. Item 498.00 of Schedule 1 of the VAT Act does not provide for security to be called for where the VAT is exempted upon importation. If, however, the goods are brought into the country for local consumption, via the CCA, VAT is applicable at the time of clearance.

ii) The applicable bond amount will be calculated by the Controller / Branch Manager / Hub Manager in consultation with the applicant based on the External Policy on Bonds, SC-SE-05.

iii) The Controller / Branch Manager will print the respective surety document and request the applicant to obtain approval thereof by an approved financial institution or insurance company.

iv) The client may lodge the security only by obtaining a surety bond as prescribed in SC-SE-05. 2.6.4 CCA storage warehouse in an IDZ a) An application for a CCA Storage Warehouse shall only be approved if the premises, equipment and

security conform to the requirements determined by SARS and the Department of Trade and Industry. b) The requirements may include the following;

i) The building must be structurally sound and safeguarded against fire and burglary; ii) The walls of the building should be of brick, stone or concrete and the roof of slate, tiles or iron; iii) Windows, doors, gates and other means of access must be fully secured with adequate locking

device; iv) The building must be equipped with electrical security measures to prevent illegal delivery and

despatch of goods; v) The building must comply with health and safety regulations; vi) A separate area for the safekeeping of goods which have not being released due to detention

and seizure must be provided; vii) Sufficient space and facilities relevant to conduct examination and necessary staff must be

provided to ensure reliable service for the opening, unpacking and re-packing of goods; viii) The building must be independent from other buildings that serve a different purpose (Entry and

exit into and out of warehouse should not lead to other building apart from the warehouse i.e. if another floor or a portion of the building is a duty free store, there must be means of access to the latter other than through the warehouse);

ix) Suitable accommodation such as office furniture, parking facilities and toilet facilities shall be provided to Customs official at any reasonable time free of charge;

x) Building approval issued by the local municipality; and xi) An attached plan of the intended facility must reflect the above information.



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2.7 Suspension and Cancellations a) A Licensing, Registration and Cancellation Committee (LRCC) at Head Office deals with applications

for possible licence, designation and registration suspensions and cancellations. b) The licence / designation / registration of the holder may be suspended if the following instances

occur:

i) Failed to pay any amount demanded under the Act within thirty (30) days from the date of the demand.

ii) If the applicant or an employee has: A) Contravened or failed to comply with the provisions of the Act; B) Been convicted of an offence under the Act; C) Been convicted of an offence involving dishonesty; D) Failed to comply with any condition or obligation imposed by the Commissioner in respect

of the licence; or E) Failed to comply with any condition or obligation imposed by the Commissioner in respect

of registration. iii) The above-mentioned subparagraphs shall not apply in respect of an employee if it can be


c) The licence / designation / registration of the holder may be cancelled under the following instances:

i) If sequestrated or liquidated; ii) If the holder of licence is deceased or sold the company; iii) No longer carries on the business for which the licence was issued; iv) Is no longer qualified according to the qualifications prescribed in the Rules; v) Failed to pay any amount demanded under the Act within thirty (30) days from the date of the

demand; or vi) If the applicant or an employee has:

A) Contravened or failed to comply with the provisions of the Act; B) Been convicted of an offence under the Act; C) Been convicted of an offence involving dishonesty; D) Failed to comply with any condition or obligation imposed by the Commissioner in respect

of the licence; or E) Failed to comply with any condition or obligation imposed by the Commissioner in respect

of registration. vii) The above-mentioned subparagraphs shall not apply in respect of an employee if it can be


d) The foreigner or registered agent applications will be suspended and not approved unless the

respective nominations have been assigned, accepted and approved. 2.8 Record keeping a) Every client must keep the following for a period of five (5) years:

i) Books, accounts and documents in respect of all transactions relating to the Rules for the purpose of any Customs procedure;

ii) Include in such books, accounts and documents any requirements prescribed in any provision of the Act in respect of the activity for which the registration or licence is issued; and

iii) Any data related to such documents created by means of a computer. b) The five (5) year period is calculated from the end of the calendar year in which the document was

created, lodged, or required. (Sections 101 and 101A) c) Every client must produce such books, accounts, and documents on demand by SARS. Failure to

adhere to the provisions of the Act, as set out in this document and the related standard operating procedures are considered an offence.



Revision:2 of 17

d) Such books, accounts, documents and data must include, where applicable proper accounting records

of each type of goods manufactured, imported, received, stored, repacked or used or removed which include copies of invoices, dispatch delivery notes, declarations, transport documents, orders, payments received and made and proof of delivery to the consignee in respect of goods removed for any purpose excluding home consumption and payment of duty.

2.9 Penalties a) Failure to adhere to the provisions of the Act, as set out in this document, is considered and offence. b) Offences may render the client liable to the following, as provided for in the Act:

i) Monetary penalties; ii) Criminal prosecution; and / or iii) Suspension / cancellation of registration / license / designation / accreditation.

2.10 Appeals against decisions a) In cases where clients are not satisfied with any decision taken in terms of the Customs and Excise

Act they have a right of appeal to the relevant appeal committee. The policy in this regard, as well as the process to be followed, is contained in document SC-CC-24.

b) Should applicant be unhappy with a decision of any appeal committee their recourse will be to lodge

an application for ADR (Alternative Dispute Resolution) with the relevant appeal committee. The committee will add its comments thereto and forward the application to the ADR Unit for attention. The policy in this regard, as well as the process to be followed is contained in document SC-CC-26.

3 REFERENCES 3.1 Legislation TYPE OF REFERENCE REFERENCE Legislation and Rules administered by SARS:

Customs and Excise Act No. 91 of 1964: Sections 1(1), 4, 19, 19A, 21, 21A, 22, 23, 25, 27, 38, 41, 43, 44, 44A, 47, 47A, 48, 49, 59, 59A, 60 – 64, 64A – G, 65, 73, 75, 77, 78 to 86A, 99A 101, 101A 105, 107A, 113(1), 113(2) and 114. Customs and Excise Rules: 00.03, 21A.01 to 21A.13, 38.01 to 38.16, 39.04 to 39.08, 39.14, 41.01 to 41.05, 45.01 to 45.02, 49A, 49D, 59A, 60 – 64, 64A – G, 65.01 to 65.03, 75.01 to 75.24, 101.01 to 101.03, 101A.01 to 101A.12, 120.03 to 120.04, 120A.03, and 120.08 to 120.09. Rebate items 412.07 of Part 1 and 498.00 of Part 6 of Schedule No. 4. Items 860.05 and 860.10 of Schedule No. 8.

Other Legislation: Promotion of Administrative Justice Act No. 3 of 2000: Section 3, 4 and 5 Manufacturing Development Act No. 187 of 1993: Section 10 IDZ Regulations published in Government Notice R 1224 of December 2000. Industrial Development Zone (IDZ) programme operational guidelines Value-Added Tax Act No. 89 of 1991: Sections 1, 7 to 11, 13, 18 and Schedule 1. VAT Interpretation Note 40 dated 4 December 2007

International Instruments:

Kyoto Convention General Annex Chapter 3 Clearance and other Customs Formalities: Standards 3.6 and 3.21; Chapter 5 Security: Standards 5.1; 5.2; 5.4; 5.6 and 5.7; Chapter 7 Information Technology : Standards 7.1 and 7.4; Chapter 8 Relationships between Customs and Third Parties: Standards 8.1; 8.2; 8.3; 8.4; 8.6 and 8.7; Chapter 9 Information, Decisions and Rulings Supplied by Customs: Standards 9.4 and 9.8; Chapter 10 Appeals in Customs Matters: Standards 10.1; 10.2; 10.3; 10.5; 10.6; 10.7; 10.8; 10.9; 10.10; 10.11 and 10.12 Kyoto Convention Specific Annex A: Chapter 2 Temporary Storage of Goods Paragraph 2 and 6; Specific Annex B Chapter 3 Relief from import duties and taxes – Paragraph 7 (b); Specific Annex D: Chapter 1 Customs Warehouses: Paragraph 4; Specific Annex E Customs Transit: Chapter 1 Paragraph 5; Specific Annex K Origin: : Chapter 2 Paragraphs 5, 6, 9, 10, 11



Revision:2 of 17

TYPE OF REFERENCE REFERENCE Agreement on Trade, Development and Co-operation between the European Community and its Member States and the Republic of South Africa: Protocol 1, Articles 14(1)(b), 19 and 20

Free Trade Agreement between the European Free Trade Association (EFTA) and the Southern African Customs Union (SACU): Annex V, Articles 14(1)(b), 19 and 22

3.2 Cross References

DOCUMENT # DOCUMENT TITLE APPLICABILITY SC-CC-24 Internal Administrative Appeal – External Policy All SC-CC-26 Alternative Dispute Resolution – External Policy All SC-CF-19-S01 Licensing of Special Manufacturing Warehouse – Internal SOP All SC-CF-19-S02 Licensing of Manufacturing Warehouse – Internal SOP All SC-CF-19-S03 Licensing of Storage Warehouse – Internal SOP All SC-CF-19-S04 Licensing of Special Storage Warehouse – Internal SOP All SC-CF-19-S05 Licensing of Storage Warehouse for Second Hand Vehicles –

Internal SOP All

SC-CF-19-S06 Licensing of Clearing Agent – Internal SOP All SC-CF-19-S07 Licensing of Remover of Goods in Bond – Internal SOP All SC-CF-19-S08 License to Search Wreck or to Search for Wreck – Internal SOP All SC-CF-19-S09 Licensing of Degrouping Depot – Internal SOP All SC-CF-19-S10 Licensing of Container Depot – Internal SOP All SC-CF-19-S11 Registration of Importers and Exporters – Internal SOP All SC-CF-19-S12 Registration of Rebate User (Schedule 3, 4 and 6) – Internal SOP All SC-CF-19-S13 Registration of Special Manufacturing Warehouse (MIDP) – Internal

SOP All

SC-CF-19-S14 Registration for Electronic Communication – Internal SOP All SC-CF-19-S15 Registration as a Manufacturer in terms of Drawback Items 501.00

to 521.00 – Internal SOP All

SC-CF-19-S16 Registration for participation in Deferment Scheme All SC-CF-19-S17 Approved Exporters – External SOP All SC-CF-19-S18 Industrial Development Zones – Requirements for Registration and

Designation - Internal SOP All

SC-CF-23 Manual for the completion of DA 185 All SC-IM-03-04 Provisional Payments - External Policy All SC-RO-01-02 External reference guide – Guide to understanding preferential

rules of origin All

SC-SE-05 Bonds – External Policy All 4 DEFINITIONS AND ACRONYMS Act Customs and Excise Act No. 91 of 1964 AGOA African Growth and Opportunity Act CCA Customs Controlled Area CCA enterprise means any person permanently located in a CCA and who is registered or licensed as

contemplated in the Customs and Excise Rules CCTV Close Circuit Television Clearing agent Any person who transacts Customs business on behalf of others Controller / Branch Manager

The Officer designated by the Commissioner to be the Controller of Customs and Excise in respect of that area and includes an officer acting under the control or direction of any officer so designated.

Commissioner Commissioner for the South African Revenue Service Customs Control Area

An area within an industrial development zone, designated by the Commissioner in concurrence with the Director-General: Department of Trade and Industry, which area is controlled by the Commissioner

DTI Department of Trade and Industry EFTA European Free Trade Association



Revision:2 of 17

Foreign Principle The foreign principal is a registered importer, exporter or licensed remover of goods in bond not located in South Africa as prescribed in Rule 59A.01(a)

FTA Free Trade Agreement GSP Generalised System of Preference IDZ Industrial Development Zone IDZ operator The holder of a valid IDZ operator permit granted by the Minister of Trade and Industry IDZ SARS Office A South African Revenue Service Customs and Excise office located in the IDZ

operating under the Controller for the area within which the IDZ is designated which has been established by the South African Revenue Service on premises provided by an IDZ operator for the purpose of performing its functions in relation to any activity carried on in that CCA.

IPR Intellectual Property Rights Licensing A formal permission from a government or any constituted authority to perform a

specified business or profession that also contains Rules and regulations on how such business or profession must be conducted

MIDP Motor Industry Development Program Registered Agent An agent of a foreign principle who is located in South Africa and registered as

prescribed in Rule 59A.01(a) Registration An activity that is permitted by right Regulation or regulations

A regulation or regulations or any amendment thereof enacted in terms of the Manufacturing Development Act, 1993 regulating any matter relating to an IDZ or a CCA

SACU The Southern African Customs Union, consisting of: The Republic of South Africa; The Republic of Botswana; The Kingdom of Lesotho; The Republic of Namibia; and The Kingdom of Swaziland

SACU-EFTA The Free Trade Agreement between the EFTA States and the SACU States SADC Southern African Development Community TDCA The Trade, Development and Cooperation Agreement between the European

Community and its member States and the Republic of South Africa VAT Value-added tax leviable in terms of the VAT Act VAT Act The Value-Added Tax Act No. 89 of 1991 5 DOCUMENT MANAGEMENT Business Owner Group Executive: Customs Trade Operations Document Owner Executive: Process Solutions Customs & Support Services Author P Jones Detail of change from previous revision

Updating to bring in aspects of RAS authentication process for banking and master details and business owner

Template number and revision

ECS-TM-02 - Rev 11


Licensing of Storage Warehouse - External SOP SC-CF-19-S03

Revision: 1 Page 1 of 15


EXTERNAL

STANDARD OPERATING PROCEDURE

LICENSING OF A STORAGE WAREHOUSE




TABLE OF CONTENTS 1 SCOPE 3 2 PROCEDURE 3 2.1 Client Authentication Process Flow 3 2.2 Licensing of a Storage Warehouse Process Flow 5 2.2.1 Person(s) who may apply 5 2.2.2 Documents needed for an application for a Storage Warehouse licence 6 2.2.3 Licence fee provisions 6 2.2.4 Additional Information 6 2.2.5 Storage Warehouse requirements 7 2.2.6 Conditions for Licensing of a Storage Warehouse 7 2.2.7 Processing of a Storage Warehouse licence applications 8 2.2.8 Rejection of a Storage Warehouse licence application 8 2.2.9 Issuing of a Storage Warehouse licence 8 2.2.10 Duties of the licence holder 9 2.2.11 Change in particulars of a Storage Warehouse licence 9 A) Change of Ownership of a Storage Warehouse 10 2.2.12 Change of Name of a Storage Warehouse 10 2.2.13 Amalgamation of a Storage Warehouse 10 2.2.14 Relocation of a Storage Warehouse 10 2.2.15 Alteration of a Storage Warehouse 11 2.2.16 Refusal of an application for a Storage Warehouse licence 11 2.2.17 Suspension of a Storage Warehouse Licence 11 2.2.18 Reinstatement of a Storage Warehouse Licence 12 2.3 Cancellation of a Storage Warehouse licence initiated by SARS 12 2.4 Cancellation of a Storage Warehouse initiated by a Licensee 13 3 QUALITY RECORDS 14 4 REFERENCES 14 4.1 Legislation 14 4.2 Cross References 14 5 DEFINITIONS AND ACRONYMS 14 6 DOCUMENT MANAGEMENT 15




1 SCOPE a) This document details the standard operating procedure for licensing of a storage warehouse. b) The document also outlines the processes of client and bank detail authentication, suspension,

cancellation and reinstatement of a storage warehouse licence. 2 PROCEDURE 2.1 Client Authentication Process Flow

PROCEDURE STEP a) All first time applicants and existing clients amending any existing details must have the master data

(company name, registration number and physical address) and bank details validated. b) Existing clients amending any details must, in addition to the details being amended, complete the

master details (company name, registration number and physical address) of the DA 185 together with the portion on banking details. It is not a requirement to complete the entire form.

c) Supporting documents required for an application by an individual:

i) A completed DA 185 – Registration / Licensing of Customs clients and, if applicable, the relevant annex signed by the applicant or the appointed representative.

ii) Original identity document/passport or a temporary identity document/passport of the person signing the application and where required for the authorised representative.




PROCEDURE STEP iii) One (1) of the following documents not older than three (3) months to prove the account

holder’s name, bank account number and bank branch code: A) A legible certified copy or original bank statement; B) An original letter from the bank on a letterhead; or C) An original auto bank statement.

iv) Original or certified municipal account not older than three (3) months to confirm the business address and residential address details.

v) VAT, IT, PAYE, SDL, UIF letters from SARS to confirm revenue registration details. vi) Telkom and/or cell phone account not older than three (3) months to confirm contact details.

d) Supporting documents required for an application by a company, trust, close corporation:


ii) Founding document: A) Certificate of Incorporation (CM1) in case of unlisted public/private company; B) Founding statement and Certificate of Incorporation (CK1) in case of a close corporation;

or C) A trust deed or other founding statement in the case of a trust.

iii) Resolution specifying who is authorised to act on behalf of or represent the company, trust, close corporation, etc.

iv) One (1) of the following documents not older than three (3) months to prove the account holder’s name, bank account number and branch code: A) A legible certified copy or original bank statement; or B) An original letter from the bank on the bank’s letterhead.

v) Original or certified municipal account not older than three (3) months to confirm the business address details

vi) Original identity document/passport or a temporary identity document/passport of the person signing the application and where required for the authorised representative.

e) Where the applicant or representative is not available or the application was not submitted in person

the client will be informed to physically present themselves to the nearest SARS Customs Office. f) The SARS Customs Office checks the master data and banking details with the client in person and

where such cannot be done a duly authorised representative must appear in person. g) The representative must be appointed with a letter of authority on the company’s letterhead, signed by

the responsible individual and two (2) witnesses. The following wording must be utilised: “I, the undersigned <insert full names, ID/Passport: <insert ID/Passport details> in my capacity as <insert title>, for <insert company, trust, etc. details> hereby appoint <insert full names and title of representative>, <insert ID/Passport of representative> in his / her capacity as <insert designation of representative> to be the representative in respect of changing the profile and / or banking details of client number(s) <insert all numbers>. This is done and executed at <insert place> on this <insert date> day of <insert month> 20<insert year>.”

h) Only the original copy of this document is acceptable and must be presented to SARS. A new letter of

authority (LOA) must be produced every time a change in profile and/or banking details as authenticated and approved with SARS occurs or when requested to do so by SARS.

i) The letter of authority must be submitted with the DA 185 and supporting documents required. j) If any of the required details do not match or any details are missing the applicant / representative will

be informed. k) If the process was successful the applicant / representative will be issued with the SC-CF-05-A20 and

the DA 185 and supporting documents will be submission to the SARS Customs Office for further processing and capturing purposes.




2.2 Licensing of a Storage Warehouse Process Flow

PROCEDURE STEP 2.2.1 Person(s) who may apply a) A natural person who is a citizen or permanent resident of South Africa who is at least 21 years old

and has an established place of business (fixed physical address) in South Africa. b) A juristic person incorporated in South Africa or if not incorporated in South Africa must have an

established place of business (fixed physical address) in South Africa.




PROCEDURE STEP c) In case of a juristic person incorporated in South Africa the majority of the directors or members must

be citizens or permanent residents of South Africa. The amount of shares that each director holds is not necessary.

d) A partnership or a trust consisting of individuals who are citizens or permanent resident of South Africa

and are at least 21 years old. e) A person having the effective management of an association of persons whether or not formed in

South Africa that has an established place of business (fixed physical address) in South Africa. f) In case of the following:

i) A deceased estate, the executor of the estate; and ii) An insolvent estate, the trustee.

2.2.2 Documents needed for an application for a Storage Warehouse licence a) Any person who wants to apply for a Storage Warehouse licence must complete DA 185 and

DA 185.4B3. (See manual SC-CF-23 on how to complete the DA 185 and DA 185.4B3). The applications for a storage warehouse licence must be submitted to the relevant Controller / Branch Manager in whose control area their business is situated.

b) The applications must be originally completed and signed. c) The following originally certified copies, or original documents where applicable must accompany the

application for a Storage Warehouse licence:

i) Registration certificate of the business as issued by the Registrar of companies or Master of the Supreme Court in the case of a Trust.

ii) Resolution / consent or other authority as applicable. iii) Identity or passport documents of individual, partners, all members of close corporation,

trustees and all directors of company. iv) An originally signed and date stamped site plan. v) Proof of ownership, not older than three (3) months lease or address of the proposed site where

Customs transactions shall take place. Such proof can be: A) An affidavit issued by the Commissioner of Oath; B) Proof of residence issued by the local chief in case of applicants residing in a village; or C) Utility account not older than three (3) months issued in the name of the applicant i.e.

water, electricity or telephone account. 2.2.3 Licence fee provisions a) Schedule 8 prescribes licence fees for a Storage Warehouse and the validity period, and is payable for

the duration of the licence fee or part thereof in full. b) In terms of Schedule 8, the licence for a Storage Warehouse needs no renewal. c) The licence fee will not be refunded when the licensee ceases operation prior to the end of the

licensing period. 2.2.4 Additional Information a) The applicant must also disclose on the DA 185 as to whether the following instances had occurred in

the past five (5) years prior to submitting the application:

i) Contravention or failure to comply with the provisions of the Act. ii) Failure to comply with any condition, obligation or other requirements imposed by the

Commissioner.




PROCEDURE STEP iii) Conviction of any offence under the Act. iv) Conviction of any offence involving dishonesty. v) Made any false or misleading statement in any material respect or omitted to state any material

fact which was required to be stated in the application for licence or renewal or for any other purpose under the Act.

vi) Insolvency or in liquidation. b) Full details must be furnished with the application if any of the above did occur. c) The applicant must inform the Commissioner within seven (7) days of occurrence of any of the

instances mentioned above or any of the following two (2) even when the application has been submitted or licence has been issued.

i) No longer carries on the business for which the licence was issued; or ii) Is no longer qualified according to the qualifications prescribed in the Rules.

2.2.5 Storage Warehouse requirements a) The following, but not limited, requirements of the warehouse are applicable:

i) The building must be structurally sound and safeguarded against fire and burglary. ii) The premise must be securely fenced. iii) The walls of the building should be of brick, stone or concrete and the roof of slate, tiles or iron. iv) Windows, doors, gates and other means of access must be fully secured with adequate locking

device which is compatible with Customs seal. v) The building must be equipped with electrical security measures to prevent illegal delivery and

despatch of goods. vi) The building must comply with health and safety regulations. vii) A separate area for the safekeeping of goods which have not being released due to detention

and seizure must be provided. viii) Sufficient space and facilities relevant to conduct examination and necessary staff must be

provided to ensure reliable service for the opening, unpacking and re-packing of goods. ix) The building must be independent from other buildings that serve a different purpose. Entry

and exit into and out of warehouse should not lead to other building apart from the warehouse i.e. if another floor or a portion of the building is a duty free store; there must be means of access to the latter other than through the warehouse.

x) Suitable accommodation such as office furniture, parking facilities and toilet facilities shall be provided to Customs officer at any reasonable time free of charge.

xi) Building approval issued by the local municipality. b) An attached plan of the intended facility must be provided to SARS reflecting the above information. 2.2.6 Conditions for Licensing of a Storage Warehouse a) No person may transact business with SARS until all obligations relating to the licence have been met. b) The applicant may be required to pay a licence fee as prescribed in Schedule 8 before a licence is

issued. c) An agent may not apply for a licence on behalf of the storage warehouse applicant. d) The licence shall be subject to the rights of any other person to whom a similar licence has been or

may be issued. e) An applicant may apply for an additional licence to conduct business at another Customs Office. f) The requirements to apply for and hold an additional licence are the same as for a new licence and all

steps in the application process must be followed.




PROCEDURE STEP g) The licence is issued subject to the condition that the licensee or at least one (1) of the licensee’s

employees has sufficient knowledge of Customs laws and procedures to ensure that activities relating to the licence are conducted efficiently and in compliance with the provisions of such laws and procedures.

h) SARS may at any reasonable time inspect the warehouse in order to verify whether it complies with

the requirements as stated in the policy and Rules. i) A warehouse licence may cater for more than one (1) approved warehouse within the same

Controller’s / Branch Manager’s Area. 2.2.7 Processing of a Storage Warehouse licence applications a) All applications for a licence must be submitted to the enquiry or admin counter. b) When all required information and completed documentation has been submitted, the Customs Officer

will issue an acknowledgement of receipt. c) The Customs Officer will make an appointment for a physical inspection of the warehouse. The

inspection of the premises will be conducted to assess amongst others the requirements prescribed in paragraph 2.2.5 above).

d) Where security is applicable, the client needs to comply and provide such on the applicable form as

per policy SC-SE-05. e) Once the surety from the financial institution has been provided the client must return such to the

respective SARS Customs Office. f) SARS will then further process the application together with the bank stamped security form and if

applicable, the licence fee must be paid. g) If the applicant meets all the requirements as prescribed in the Customs legislation and this procedure

a Customs code will be generated and issued. h) Refer to the flowchart for detailed process (see 2.2 Licensing of a storage warehouse). i) The applicant is then legible to conduct business with SARS as per approved client type. 2.2.8 Rejection of a Storage Warehouse licence application a) If at any point during the application process, the application is found to be incomplete, it shall be

rejected and returned to the applicant. b) The reason(s) for rejection will be communicated to an applicant in writing. c) The application may be resubmitted once all requirements have been met. 2.2.9 Issuing of a Storage Warehouse licence a) The licence will be issued in the name of the applicant. b) No alterations may be effected on the licence document by the licensee. If mistakes occur during

completion of the form, the Customs Officer must re-issue a new licence. No correction fluid (tippex) is allowed on these documents.

c) The following contents will appear on the licence:

i) Name of the licensee - client must ensure that the correct legal names are recorded on the licence;




PROCEDURE STEP ii) Customs client number; iii) The purpose for which the licence is issued; iv) Unique warehouse number; v) Any special conditions to which the licence is subjected to; vi) The address of the premises to which the licence is issued; and vii) The date from which the licence takes effect and where applicable the expiry date.

d) An approval letter will be issued by the respective SARS Customs Office and the licence will be

handed to the applicant upon collection or be sent by registered mail to the applicant. 2.2.10 Duties of the licence holder a) The Customs client number must be:

i) Quoted in all communications to SARS or any other organ of state and reflected on all prescribed documents for transacting Customs business.

ii) Reflected in the authorisation for any agent to transact the business to which the licence relates. b) The licence holder may not allow any other person to use such licence in any Customs business or

transaction. The obligation for the safeguarding and usage of the client number is vested with the client.

c) The licensed premise must be open to authorised Customs officers at all reasonable times for

inspection, verification of records and operations including supervision of tallying operations. d) The licensee must keep proper records of books, accounts any data created by means of a computer,

of all transactions relating to the activity in respect of the licence for a period of five (5) years calculated from the end of the calendar year in which any such document was created, lodged or required for any customs procedure.

e) Any directives issued by the Commissioner in connection with procedures applicable to licence

subsequent to the date of application or during the validity period of the licence issued on approval of the said application, must be deemed to be part of the afore-mentioned terms and conditions from the date on which such directives are issued and must be observed by the licensee as if they were included therein and duly subscribed to by the licensee.

a) The premise where the transactions take place must be the SARS Customs approved premises. f) A licensee must always present a copy of a licence when demanded by Customs Officers. g) A contract concluded between a licensee and another person to perform any of its functions may not

relieve the licensee of its responsibilities under the Act and this procedure. 2.2.11 Change in particulars of a Storage Warehouse licence a) Whenever any of the particulars furnished in any application for licence changes, the licensee must

advise the Controller / Branch Manager within seven (7) days of the occurrence of such event by submitting a DA 185 and / or the relevant annexure, reflecting the changed particulars.

b) The changes may include:

i) Where the legal status or the name of the licensee changes for any reason; ii) Address; iii) Directors of an entity; or iv) Individual(s) who has / have sufficient knowledge of Customs laws and procedure.




PROCEDURE STEP 2.2.12 Change of Ownership of a Storage Warehouse a) In case of ownership change, the legal entity holding the licence prior to the change has to continue to

exist after the change. If the original licence holder ceases to exist as a result of a change of ownership, a new licence application has to be made.

b) For example, if another company purchases the assets of a dissolved licensed entity, the licence is no

longer valid. The purchasing entity has to submit an application for a new licence and meet the prescribed requirements.

c) The notification must include the following in respect of the new name:

i) A certified copy of revised articles or certificate showing the new legal name; ii) A list of current directors; and iii) If security is needed, endorsement to the bond must be submitted to reflect the new name.

d) Change of ownership is not allowed in case of sole proprietorships or individual partnerships as the

licence is granted to an individual or a partnership. e) A change in legal identity will require a new application supported by all relevant documents and

bonds. 2.2.13 Change of Name of a Storage Warehouse a) In case of name change, the notification must include the following:

i) A certified copy of revised articles showing the legal name; ii) A list of current directors; and iii) If security is needed, endorsement to the bond must be submitted to reflect the change.

b) In case of an individual’s own name change, the notification must include an originally certified copy

on an identity document reflecting such change. If security is needed, an endorsement to the bond must be submitted to reflect such change.

2.2.14 Amalgamation of a Storage Warehouse a) During amalgamation, the final legal entity which results from the amalgamation has to have existed

and been licensed prior to the amalgamation. If the amalgamation results in a new or a previously unlicensed legal entity, a new application must be submitted.

b) The notification must include the following in respect of the amalgamation:

i) A certified copy of amendment to the articles of incorporation; ii) The names of the current and any new directors that may have joined as a result of the change;

and iii) If security is needed, endorsement to the bond must be submitted to reflect the change.

2.2.15 Relocation of a Storage Warehouse a) The relocation of the warehouse will only be allowed if the proposed site is located in the same

Controller / Branch Manager’s area and subject to meeting the terms and conditions of the licence. b) The existing warehouse number will be retained if relocation occurs in the same Controller / Branch

Manager’s area. c) If the warehouse is to relocate to another area of control the warehouse licence will be cancelled and

a fresh application lodged for the new address. d) When the change in location is contemplated, the licensee must advice the Controller / Branch




PROCEDURE STEP Manager in writing of the intention to relocate. Such notice must be provided at least sixty (60) days prior to the effective date of relocation.

e) An application for relocation will be treated in the same manner as the new application. The same

DA 185 and its applicable annexure must be completed. f) An inspection will once again be conducted to ascertain that the new business location meets all the

prescribed requirements. g) Where the licence fee is applicable, it will not be charged for the new location falling within the same

Controller / Branch Manager’s area unless the date of issue coincides with the renewal date of existing licence.

h) The Controller / Branch Manager will cancel the existing licence if the licensee relocates without

obtaining prior approval. 2.2.16 Alteration of a Storage Warehouse a) Where alteration to the existing building is contemplated, an originally signed and date stamped site

plan must be submitted to the Controller / Branch Manager in whose control the premise is situated at least sixty (60) days prior to the effective date of alteration.

b) The application for alteration will be treated in the same manner as the new application. c) A plan must be submitted and approved and the building inspected by the SARS Customs Office

before commencement of any Customs operations occurs. d) Where the licence fee is applicable, it will not be charged for the alteration unless the date of issue

coincides with the renewal date of the existing licence. 2.2.17 Refusal of an application for a Storage Warehouse licence a) When an application for licence / licence renewal is refused, the SARS Customs Office will inform the

client. The client will be notified of the reason(s) on the form. b) In cases where clients are not satisfied with any decision taken in terms of the Customs and Excise

Act they have a right of appeal to the relevant appeal committee. The policy in this regard, as well as the process to be followed, is contained in SC-CC-24.

c) Should clients be unhappy with a decision of any appeal committee their recourse will be to lodge an

application for ADR (Alternative Dispute Resolution) with the relevant appeal committee. The committee will add its comments thereto and forward the application to the ADR Unit for attention. The policy in this regard, as well as the process to be followed is contained in SC-CC-26.

d) The applicant may also refer the matter to the High Court. 2.2.18 Suspension of a Storage Warehouse Licence a) Where the licence is to be suspended, the holder will be advised in writing by the relevant SARS

Customs Office. b) A licensee whose licence has been suspended may only perform outward entries until the final

decision has been taken about the suspension. c) Before any licence is suspended, except when any demand for any amount remains unpaid for a

period exceeding thirty (30) days from the date of the demand, the Commissioner will:

i) Give 21 days’ notice to the licensee of the proposed suspension; ii) Provide reasonable information concerning any allegation and grounds for the proposed




PROCEDURE STEP suspension;

iii) Provide a client with a reasonable opportunity to respond and make representation as to why the licence should not be suspended.

d) When the suspension is finalised the SARS Customs Office will inform the client in writing. e) The registered letter will stipulate:

i) The reasons for such suspension; ii) The effective date of the proposed suspension; and iii) The duration of the proposed suspension.

f) No part of any licence fee is refundable on suspension of a licence. g) In cases where clients are not satisfied with any decision taken in terms of the Customs and Excise


h) Should clients be unhappy with a decision of any appeal committee their recourse will be to lodge an


i) A client may also refer the matter to the High Court. 2.2.19 Reinstatement of a Storage Warehouse Licence a) If the request for reinstatement is approved and the appropriate steps have been taken to prevent

occurrence(s) of a similar nature in future, the proposed licence will be reinstated. b) The client will be informed of the reinstatement by the relevant SARS Customs Office. c) A cancelled licence will not be reinstated. The holder of the licence that has been cancelled has to re-

apply for a new licence to conduct business with SARS. 2.3 Cancellation of a Storage Warehouse licence initiated by SARS




PROCEDURE STEP a) Where the licence is to be cancelled, the holder will be advised in writing by the relevant SARS

Customs Office. b) Before any licence is cancelled, except when any demand for any amount remains unpaid for a

period exceeding thirty (30) days from the date of the demand, the Commissioner shall:

i) Give 21 days’ notice to the licensee of the proposed cancellation. ii) Provide reasonable information concerning any allegation and grounds for the proposed

cancellation. iii) Provide a client with a reasonable opportunity to respond and make representation as to why

the licence should not be cancelled. c) The cancellation letter will be sent via registered mail to the client stipulating the reason(s) for such

cancellation. d) No part of any licence fee is refundable on cancellation. e) Once the office is satisfied that the client has no outstanding debt with SARS, the licence will be

cancelled. f) A client whose licence has been cancelled may not perform any Customs activity relating to that

licence. g) In cases where clients are not satisfied with any decision taken in terms of the Customs and Excise




i) A client may also refer the matter to the High Court.

2.4 Cancellation of a Storage Warehouse initiated by a Licensee




PROCEDURE STEP a) The client must submit a cancellation request on a DA 185 to the relevant SARS Customs Office. a) An inspection will be conducted and once the application has been verified the SARS Customs Office

will acknowledge receipt and submit the application to Debt Collection if required. b) If no debt follow-up is required the client’s bond, licence and client number will be cancelled

appropriately. c) The client will be informed accordingly of the cancellation. 3 QUALITY RECORDS Number Title DA 103 Customs and Excise Licence DA 185 Application form: Registration / Licensing of Customs and Excise Clients DA 185.C Security Particulars DA 185.4B3 Storage Warehouse SC-CF-05-A19 Requirements to process DA 185 SC-CF-05-A20 Confirmation of Authentication SC-CF-05-FR01 Request for cancellation / suspension of licence / registration / designation SC-SE-05-A1 Assessment for Security Requirements 4 REFERENCES 4.1 Legislation TYPE OF REFERENCE REFERENCE Legislation and Rules administered by SARS:

Customs and Excise Act No. 91 of 1964: Sections 19, 60, 77A-I and 79-84 Customs and Excise Rules: 19, 60 and 77H

Other Legislation: Promotion of Administrative Justice Act No. 3 of 2000: Section 3 International Instruments: Kyoto Convention General Annex Chapter 3 Clearance and other Customs

Formalities: Standards 3.6 and 3.21; Chapter 5 Security: Standards 5.1; 5.2; 5.4; 5.6 and 5.7; Chapter 7 Information Technology: Standards 7.1 and 7.4; Chapter 8 Relationship between Customs and Third Parties: Standards 8.1; 8.2; 8.3; 8.4, 8.6 and 8.7; Chapter 9 Information, Decisions and Rulings Supplied by Customs: Standards 9.4 and 9.8; Chapter 10 Appeals in Customs Matters: Standards 10.1; 10.2; 10.3; 10.5; 10.6; 10.7; 10.8; 10.9; 10.10; 10.11 and 10.12; Specific Annex A Chapter 2 Temporary Storage of Goods: Paragraphs 2 and 6; Annex D Chapter 1 Customs Warehouses: Paragraph 4; Annex E Chapter 1 Customs Transit: Paragraph 5 WCO SAFE Framework of Standards: None

4.2 Cross References DOCUMENT # DOCUMENT TITLE APPLICABILITY SC-CC-24 Administrative Appeal All SC-CC-26 Alternative Dispute Resolution All SC-CF-19 Licensing, Registration and Designation Policy All SC-CF-23 Manual for the completion of DA 185 All SC-SE-05 Securities All 5 DEFINITIONS AND ACRONYMS Act Customs and Excise Act No. 91 of 1964




Applicable Officer Officer assigned to perform any of the functions relating to Licensing and Registration

Controller / Branch Manager

The Officer designated by the Commissioner to be the Controller / Branch Manager of Customs in respect of that area and includes an officer acting under the control or direction of any officer so designated

CRM Customs Risk Management Licensing Licensing is a formal permission from a government or any constituted authority

to perform a specified business or profession that also contains rules and regulations on how such business or profession shall be conducted. The purpose of licensing is to restrict unauthorised entry into a specified business or profession and also serves as a regulatory activity that gives guidance on acceptable behaviour and practice. It must be seen as a privilege to conduct these types of functions

LRCC Licensing, Registration and Cancellation Committee PCI Post Clearance Inspection RAS Registration and Accreditation System Rule Rule to Customs and Excise Act VO Verification Officer 6 DOCUMENT MANAGEMENT Business Owner Group Executive: Customs Trade Operations Document Owner Executive: Process Solutions Customs & Support Services Author P Jones Detail of change from previous revision



ECS-TM-15 – Rev 3


License To Search Wreck Or Search For Wreck - External SOP SC-CF-19-S08



EXTERNAL


LICENCE TO SEARCH A WRECK OR TO SEARCH

FOR A WRECK




TABLE OF CONTENTS 1 SCOPE 3 2 PROCEDURE 3 2.1 Client Authentication Process Flow 3 2.2 Licence to search wreck or to search for wreck 5 2.2.1 Person(s) who may apply for a license to search wreck or search for wreck 6 2.2.2 Documents needed for an application to search wreck or search for wreck 6 2.2.3 Licence fee provisions 6 2.2.4 Additional Information 7 2.2.5 Conditions for license to search wreck or search for wreck 7 2.2.6 Processing of application for license to search wreck or search for wreck 9 2.2.7 Rejection of application for license to search wreck or search for wreck 9 2.2.8 Issuing of license to search wreck or search for wreck 9 2.2.9 Duties of the license holder 11 2.2.10 Change in particulars of a license to search wreck or search for wreck 11 2.2.11 Change of ownership of an entity 12 2.2.12 Amalgamation of an entity 12 2.2.13 Change of name of a licensee 12 2.2.14 Renewal of license to search wreck or search for wreck 12 2.2.15 Refusal of an application for license / license renewal to search wreck or search for wreck 13 2.2.16 Suspension of license to search wreck or search for wreck 13 2.2.17 Re-instatement of license to search wreck or search for wreck 13 2.3 Cancellation of a licence to search a wreck or to search for a wreck initiated by SARS 14 2.4 Cancellation of a license to search wreck or to search for wreck initiated by a licensee 15 3 QUALITY RECORDS 15 4 REFERENCES 15 4.1 Legislation 15 4.2 Cross References 16 5 DEFINITIONS AND ACRONYMS 16 6 DOCUMENT MANAGEMENT 16




1 SCOPE a) This document outlines the procedures for the licensing to search a wreck or to search for a wreck. b) The document also outlines the processes for client and bank detail authentication, refusal,

suspension, cancellation and reinstatement of licence to search wreck or to search for wreck. 2 PROCEDURE 2.1 Client Authentication Process Flow



master details (company name, registration number and physical address) of the application together with the portion on banking details. It is not a requirement to complete the entire form.


i) A completed application form and, if applicable, the relevant annex signed by the applicant or the appointed representative.


iii) One (1) of the following documents not older than three (3) months to prove the account holder’s name, bank account number and bank branch code:




PROCEDURE STEP A) A legible certified copy or original bank statement; B) An original letter from the bank on a letterhead; or C) An original auto bank statement.

















i) The letter of authority must be submitted with the application and supporting documents required. j) If any of the required details do not match or any details are missing the applicant / representative will


the application form and supporting documents will be submitted to the SARS Customs Office for further processing and capturing purposes.




2.2 Licence to search wreck or to search for wreck




PROCEDURE STEP 2.2.1 Person(s) who may apply for a license to search wreck or search for wreck a) A natural person who is a citizen or permanent resident of South Africa who is at least 21 years old


established place of business (fixed physical address) in South Africa. c) In case of a juristic person incorporated in South Africa the majority of the directors or members must






2.2.2 Documents needed for an application to search wreck or search for wreck a) Any person who wants to apply for a Wreck licence must complete DA 261 and the relevant bond.

These forms are available from the SARS website (www.sars.gov.za); or they can be collected from the nearest SARS: Customs Office.

b) The following originally certified copies, or original documents where applicable must accompany the

application for a Wreck licence:

i) Registration certificate of the business as issued by the Registrar of companies or Master of the Supreme Court in the case of a Trust;

ii) Resolution / consent or other authority as applicable; iii) Identity or passport documents of individual, partners, all members of close corporation,

trustees and all directors of company; and iv) Proof of ownership, lease or address where Customs transactions shall take place not older

than three (3) months. Such proof can be: A) An affidavit issued by the Commissioner of Oath; or B) Proof of residence issued by the local chief in case of applicants residing in a village; or C) Utility account issued in the name of the applicant i.e. water, electricity or telephone

account. 2.2.3 Licence fee provisions a) The applications for a license must be submitted to the relevant Controller / Branch Manager in whose

control area their business is situated. b) Schedule 8 prescribes licence fees for a Wreck and the validity period, and is payable for the duration

of the licence fee or part thereof in full. c) The licence fee will not be refunded when the licensee ceases operation prior to the end of the

licensing period. d) The Commissioner may require security before any licence is issued. Refer to policy SC-SE-05

regarding security.

http://www.sars.gov.za/




PROCEDURE STEP 2.2.4 Additional Information a) The applicant must also disclose on a separate page as to whether the following instances

haveoccurred in the past five (5) years prior to submitting an application:

i) Contravention or failure to comply with the provisions of the Act; ii) Failure to comply with any condition, obligation or other requirements imposed by the

Commissioner; iii) Conviction of any offence under the Act; iv) Conviction of any offence involving dishonesty; v) Made any false or misleading statement in any material respect or omitted to state any material

fact which was required to be stated in the application for licence or renewal or for any other purpose under the Act; or


instances mentioned above or any of the following two even when the application has been submitted or licence has been issued:


2.2.5 Conditions for license to search wreck or search for wreck a) No person is allowed to search for any wreck unless the person is licensed by the Controller / Branch

Manager to do so and has furnished such security as the Controller / Branch Manager may require in each case.

b) Any person who has in his / her possession any wreck must without delay notify the nearest Controller

/ Branch Manager and must deliver that wreck or permit such to be delivered to the said Controller / Branch Manager. No person may without the permission of the Controller / Branch Manager remove or alter in quantity or quality any wreck.

c) Wreck(s) found in or brought into South Africa may, at any time after it has come under the control of

the Controller / Branch Manager be disposed of by him / her in the manner set forth in Section 43, but shall be subject to all other provisions of the Act.

d) Goods un-shipped, landed or brought into South Africa or washed ashore from wrecked or distressed

ships or aircraft:

i) The person in control of goods recovered from wrecked or distressed ships or aircraft must compile a list, in duplicate, of such goods.

ii) The list must contain such particulars thereof as the Controller / Branch Manager may require and the said person must declare in writing that the content of such list is true and correct.

iii) If the goods are not immediately Customs cleared and duties paid after examination, the said person must remove such goods to a Customs controlled area.

iv) The said person must also furnish security in the form approved by the Controller / Branch Manager and for a sum to the satisfaction of the Controller / Branch Manager or such other security as may be required (i.e. to cover the duty on such goods and to ensure compliance with the Customs requirements in respect of the goods).

v) If any such goods are prohibited, they may be liable to forfeiture unless they are immediately warehoused for exportation or are dealt with in another manner as prescribed by the Controller / Branch Manager, e.g. destruction.

vi) Immediately upon receipt of advice that a vessel or aircraft has become stranded or wrecked, the circumstances of such must be reported to the Head: Customs Operational Support.

vii) If deemed necessary by the Controller / Branch Manager, Customs Officers should be despatched to the place of stranding.




PROCEDURE STEP viii) The Officers stationed at the wreck should submit daily reports to the Controller / Branch

Manager. ix) If Officers are not stationed at a wreck, the Head: Customs Operational Support is to be advised

accordingly. x) Other precautions, which may have been taken or may still have to be taken to safeguard

revenue, should be mentioned, i.e. police conducting patrols, etc. xi) The logbook, manifests and other documents belonging to the stranded vessel or aircraft must

be obtained from the master / pilot or his / her agent, if possible, to enable the Controller / Branch Manager to establish the nature and quantities of the cargo wrecked.

e) The licence is issued subject to the condition that the licensee or at least one of the licensee’s

employees have sufficient knowledge of Customs laws and procedures to ensure that activities relating to the licence are conducted efficiently and in compliance with the provisions of such laws and procedures.

f) The applicant may be required to furnish the security and a prescribed licence fee as determined by

the Commissioner before any licence is issued (Refer to SC-SE-05). g) An agent may not apply for licence on behalf of an applicant. h) The licence to search wreck or search for wreck is issued subject to the condition that the licensee or

at least one (1) of the licensee’s employees have sufficient knowledge of Customs laws and procedures to ensure that activities relating to licence are conducted efficiently and in compliance with the provisions of such laws and procedures.

i) The Commissioner may by rule prescribe the circumstances under which and the conditions under

which a licence may be issued to any person entitling that person to search for any wreck. No such licence will give the holder thereof the exclusive right to search for any particular wreck. The Controller / Branch Manager may issue more than one (1) licence for the search or salvage of a particular wreck.

j) Any person who furnishes false information on any application for a license is, unless such person

proves that he / she was ignorant of the falsity and that such ignorance was not due to negligence on his / her part, guilty of a serious offence in terms of Section 84.

k) Any person who makes improper use of a license issued in terms of the Act or operates any business

requiring a license without obtaining such license will be guilty of an offence in terms of the Act (contravention of Sections 60(1), 64(C) and 112, punishable in terms of Section 80(1)).

l) Any licence issued to search a wreck or search for a wreck shall:

i) Not be transferable; ii) Expire on the 31st day of December of each year unless it is renewed on or before such date; iii) Be subject to the rights of any other person to whom a similar license has been or may be

issued; iv) Not limit the holder of such licence to any particular wreck or confine the searching activities to

any particular section of the coast; v) Only cover wrecks which have been abandoned; vi) Preclude any licensee from salvaging any goods on any wrecks where other licensed parties

are still exercising their salvage rights - the obligation to ascertain whether a wreck has been abandoned or the rights of such other parties shall rest with the licensee;

vii) Be subject to such general or special conditions, including conditions relating to payment of duty, as may be specified in any such licence; and

viii) Be subject thereto that the licensee may not disturb or remove any wreck, if the wreck is older than fifty (50) years, without a permit issued by the relevant provincial heritage resources authority.

m) With regards to the abandonment of a wreck:

i) An abandoned thing is something which the owner has thrown away or discarded with the




PROCEDURE STEP intention of relinquishing ownership. The property or thing therefore is not owned by anyone.

ii) On interpretation of common law “an owner of wrecked property (other than flotsam, jetsam and lagan) ‘automatically’ abandons the right to such property to the State, where such owners fail to take steps to salvage the property within a period of a year and six (6) weeks of the ships foundering or where, after taking such steps, the owner discontinues any salvage operations for a period of a year and six (6) weeks”.

iii) There is also authority for the view that, although the State may claim a right of custody of wreck, abandonment of wreck is not presumed, there is no automatic abandonment of an owner’s right of ownership to the State and salvaged wreck or proceeds from the sale thereof may be claimed by the owner. The salvor would then only have the right to claim the costs and charges of salvage from the owner.

iv) Ownership of an abandoned wreck may be acquired by taking possession thereof and is not lost by failure to remain in physical possession.

v) The State claims royalties (15% of the value) in addition to Customs duties on salvaged wreck “automatically” abandoned.

2.2.6 Processing of application for license to search wreck or search for wreck a) All applications for a licence must be submitted to the enquiry counter. b) When all required information and completed documentation has been submitted, the Customs Officer

will issue an acknowledgement of receipt of application to the client. c) Where security is applicable, the client needs to obtain the necessary surety from his / her financial

institution on the surety form provided and return such to the SARS Customs Office. d) If the applicant meets all requirements as prescribed in the Customs legislation and this procedure the

client will be informed. e) Refer to the flowchart for detailed process (2.2 Licence to search wreck or search for wreck). f) The applicant is then legible to conduct business with SARS as per approved client type. 2.2.7 Rejection of application for license to search wreck or search for wreck a) If at any point during the application process, the application is found to be incomplete, it will be

rejected and returned to the applicant. b) The reason(s) for rejection will be communicated to an applicant. c) The application may be resubmitted once all requirements have been met. 2.2.8 Issuing of license to search wreck or search for wreck a) The licence will be issued in the name of the applicant. b) Applicability of licenses for wreck(s) - the licenses issued relate only to wrecks which have been totally

abandoned, in other words:

i) Licensees in terms of item 825.05 of Schedule No. 8 are precluded from working wrecks where interested parties are still exercising their salvage rights; and

ii) An obligation rests with the licensed salvor to ascertain whether or not he / she will be infringing on the rights of interested parties by working the wreck.

c) No alteration(s) may be effected on a licence document. If mistakes occur during completion of the

form, the officer must re-issue a new licence. No correction fluid (tippex) is allowed on these documents.

d) Names on special license DA 103 – wreck: care mustbe taken to ensure that the correct legal names




PROCEDURE STEP of licensees are recorded on the DA 103, for example:

i) In the case of a private company trading under its own name – “Alex Green (Pty.) Ltd”; ii) In the case of a private company using a trading name – “Gauteng Industries (Props. Alex

Green (Pty.) Ltd.)”; iii) In the case of a public company trading under its own name – “Alex Green Ltd”; iv) In the case of a public company using a trading name – “Gauteng Industries (Props. Alex Green

Ltd.)”; v) In the case of a sole proprietor trading under his / her own name – “S. Smith”; vi) In the case of a sole proprietor using a trading name – “Gauteng Industries (Prop. S. Smith)”; vii) In the case of a partnership trading under their own names – “S. Smith and B. Brown”; viii) In the case of a partnership using a trading name – “Gauteng Industries (Partners: S. Smith and

B. Brown)”; ix) In the case of a holding company trading under the name of one (1) of its subsidiary companies,

the name of the subsidiary company only must be reflected on the license – Gauteng Holdings Limited trading as Alex Green (Pty.) Ltd., the license must read – “Alex Green (Pty.) Ltd”; and

x) In the case of a licensee in (provisional) liquidation / under (provisional) judicial management the license should be completed as shown above and the words: “In (provisional) liquidation / under (provisional) judicial management” as the case may be, should be added, in brackets, after the name of the licensee.

e) The following content(s)will appear on the licence:

i) The licensee must keep a register which must be open to inspection at all reasonable times by a Customs Officer or any other person authorised by the Commissioner specifying all articles or things whatsoever, nothing excepted, recovered by the licensee, the date of recovery, the manner and the date of disposal of such articles or things and to whom and for what sum or consideration disposed of.

ii) The licensee must within seven (7) days of the date of recovery of any article or thing, furnish the nearest Controller / Branch Manager with full particulars of such articles or things and must remove the same to a place of security approved by the said Controller / Branch Manager unless authorisation has been granted to dispose of the goods in some other manner.

iii) The licensee must keep any unopened safe, chest or other receptacle (which may have been recovered) until the nearest Controller / Branch Manager has been advised of the recovery and such Controller / Branch Manager (or delegated officer) can be present at the opening thereof. The Officers present must compile a list of all goods located in any receptacle.

iv) The licensee must pay to the State through the nearest Controller / Branch Manager a royalty of 15% of the value of all articles or things recovered.

v) The licensee must pay on demand to the nearest Controller / Branch Manager (in addition to the 15% royalty mentioned) any duties leviable in terms of the Customs and Excise Act on any wreckage, articles or things as well as all expenses incurred by the South African Revenue Service in connection with whatever supervision of operations the Controller / Branch Manager may deem necessary for the protection of the revenue.

vi) The duties and royalty must, on any articles recovered, be assessed on either: A) The value of the articles as ascertained by a sworn appraisement; or B) If the article is sold by the licensee, on the sale price according to the decision of the

Controller / Branch Manager; or C) The rated duty if liable to any rated duty.

vii) The licensee must notify the nearest Controller / Branch Manager in writing of all wreck discovered or located within seven (7) days of such discovery or location and must keep a register which specifies the names and contents of the wrecks as far as known and their position or locality. Such register must be open at all times for inspection by Controllers / Branch Managers or Officers delegated, including CBCU teams and PCI Teams.

viii) If any work of recovery is conducted on or from the sea-shore as defined in the Sea Shore Act No. 21 of 1935, as amended, such work shall be subjected to the provisions of that Act, as well as the Nature Conservation Ordinance No. 31 of 1967 and the regulations framed there under.

ix) The said license will be cancelled should the licensee: A) Fail to commence work within three (3) months from date thereof; B) Cease operations or fail to carry on operations to the satisfaction of the Controller /




PROCEDURE STEP Branch Manager; or

C) Fail in any way to comply with any of the conditions. f) An approval letter will be issued by the respective SARS Customs Office. g) The licence will be handed to the applicant upon collection or be sent by registered mail to the

applicant. 2.2.9 Duties of the license holder a) The Customs client number must be:

i) Quoted in all communications to SARS or any other organ of state and reflected on all prescribed documents for transacting Customs business; and



c) The licensee must keep proper records of books, accounts any data created by means of a computer,


d) Any directives issued by the Commissioner in connection with procedures applicable to licence

subsequent to the date of application or during the validity period of the licence issued on approval of the said applicationmust be deemed to be part of the afore-mentioned terms and conditions from the date on which such directives are issued and must be observed by the licensee as if they were included therein and duly subscribed to by the licensee.

e) A licensee must always present a copy of a licence when demanded by Customs Officials. f) The applicability of licences for wreck(s) - the licence(s) issued, relate only to wrecks which have been

totally abandoned, in other words:

i) Licensees in terms of item 825.05 of Schedule No. 8 of the Act are precluded from working wrecks where interested parties are still exercising their salvage rights; and

ii) An obligation rests with the licensed salvor to ascertain whether or not one will be infringing on the rights of interested parties by working the wreck.

g) A contract concluded between a licensee and another person to perform any of its functions may not

relieve the licensee of its responsibilities under the Act and this procedure. h) A licensee must ensure that the licence is renewed before its expiry date. 2.2.10 Change in particulars of a license to search wreck or search for wreck a) Whenever any of the particulars furnished in any application for licence changes, the licensee must

advise the Controller within seven (7) days of the occurrence of such event by submitting a letter reflecting the changed particulars.


i) where the legal status or the name of the licensee changes for any reason; or ii) address; or iii) Directors of an entity; or iv) Individual(s) who has / have sufficient knowledge of Customs laws and procedure.




PROCEDURE STEP c) Change in legal identity will require a new application supported by all relevant documents. 2.2.11 Change of ownership of an entity a) In case of ownership change, the legal entity holding the licence prior to the change has to continue to





i) A certified copy of revised articles or certificate showing the new legal name; ii) A list of current directors; and iii) If security is needed, a bond must be submitted to reflect the change.


licence is granted to individual or partnership. 2.2.12 Amalgamation of an entity a) During amalgamation, the final legal entity which results from the amalgamation has to have existed



i) A certified copy of amendment to the articles of incorporation; ii) The names of any new directors that may have joined as a result of the change; and iii) If security is needed, a bond must be submitted to reflect the change.

2.2.13 Change of name of a licensee a) In case of name change, the notification must include the following:

i) A certified copy of revised articles showing the legal name; ii) A list of current directors; and iii) If security is needed, a bond must be submitted to reflect the change.

b) In case of individual’s own name change, the notification must include an originally certified copy on

an identity document reflecting such change. If security is needed, an endorsement to the bond must be submitted to reflect such change.

2.2.14 Renewal of license to search wreck or search for wreck a) Application for renewal must include a full report on activities during the current licence year and

details of anticipated activities during the following year. b) An application for renewal of licence must reach the office of any Controller / Branch Manager thirty

(30) days prior to the expiry date of the licence. c) No licensee is permitted to transact business relating to the licence with SARS while the licence has

expired. d) The SARS Customs Office will reject clearances of clients who failed to renew their licences in terms

of Schedule 8.




PROCEDURE STEP 2.2.15 Refusal of an application for license / license renewal to search wreck or search for wreck a) The above-mentioned subparagraphs will not apply in respect of an employee if it can be proven that

the applicant was not a party or could not prevent any such act or omission by the employee. b) When an application for licence / licence renewal is refused, the SARS Customs Office will inform the

client. The client will be notified of the reason(s) on the form. c) In cases where clients are not satisfied with any decision taken in terms of the Customs and Excise


d) Should clients be unhappy with a decision of any appeal committee their recourse will be to lodge an


e) The applicant may also refer the matter to the High Court. 2.2.16 Suspension of license to search wreck or search for wreck a) Where the licence is to be suspended, the holder will be advised in writing by the relevant SARS

Customs Office. b) Before any licence is suspended, except when any demand for any amount remains unpaid for a



suspension; and iii) Provide a client with a reasonable opportunity to respond and make representation as to why

the licence should not be suspended. c) The registered letter will stipulate:


d) No part of any licence fee is refundable on suspension of a licence. e) In cases where clients are not satisfied with any decision taken in terms of the Customs and Excise


f) Should clients be unhappy with a decision of any appeal committee their recourse will be to lodge an


g) A client may also refer the matter to the High Court. 2.2.17 Re-instatement of license to search wreck or search for wreck a) If the request for reinstatement is approved and the appropriate steps have been taken to prevent

occurrence(s) of a similar nature in future, the proposed licence may be reinstated. b) The client will be informed of reinstatement by the relevant SARS Customs Office.




PROCEDURE STEP c) A cancelled licence will not be reinstated. The holder of the licence that has been cancelled has to re-

apply for a new licence to conduct business with SARS. 2.3 Cancellation of a licence to search a wreck or to search for a wreck initiated by

SARS

PROCEDURE STEP a) If searching operations do not commence within three (3) months from the date of issue of the licence

or if the licensee fails to comply with any conditions stated on such licence the licence will be cancelled.

b) Where the licence is to be cancelled, the holder will be advised in writing by the relevant SARS

Customs Office. c) Before any licence is cancelled, except when any demand for any amount remains unpaid for a period

exceeding thirty (30) days from the date of the demand, the Commissioner shall:

i) Give 21 days’ notice to the licensee of the proposed cancellation; ii) Provide reasonable information concerning any allegation and grounds for the proposed

cancellation; and iii) Provide a client with a reasonable opportunity to respond and make representation as to why

the licence should not be cancelled. d) The letter will be sent via registered mail to the client stipulating the reason(s) for such cancellation. e) No part of any licence fee is refundable on cancellation. f) Once the SARS Customs Office is satisfied that the client has no outstanding debt with SARS, the

licence will be cancelled. g) A client whose licence has been cancelled may not perform any Customs activity relating to that

licence. h) In cases where clients are not satisfied with any decision taken in terms of the Customs and Excise


i) Should clients be unhappy with a decision of any appeal committee their recourse will be to lodge an

application for ADR (Alternative Dispute Resolution) with the relevant appeal committee. The committee will add its comments thereto and forward the application to the ADR Unit for attention.




PROCEDURE STEP The policy in this regard, as well as the process to be followed is contained in SC-CC-26.

j) A client may also refer the matter to the High Court. 2.4 Cancellation of a license to search wreck or to search for wreck initiated by a

licensee

PROCEDURE STEP a) The client must submit a cancellation request on the applicable application form to the relevant SARS

Customs Office. b) An inspection will be conducted and once the application has been verified the SARS Customs Office

will acknowledge receipt and submit the application to Debt Collection if required. c) If no debt follow-up is required the client’s bond, licence and client number will be cancelled

appropriately. d) The client will be informed accordingly of the cancellation.

3 QUALITY RECORDS Number Title DA 103 Customs and Excise Licence DA 261 Application for a licence to search or search for abandoned wrecks DA 262 Bond to search for abandoned wrecks along the coast of the Republic of South Africa

and to take possession or articles recovered there from SC-CF-19-FR01 Request for cancellation / suspension of licence / registration SC-CF-05-A19 Requirements to process DA 185 SC-CF-05-A20 Confirmation of Authentication SC-SE-05-A1 Assessment for Security Requirements 4 REFERENCES 4.1 Legislation TYPE OF REFERENCE REFERENCE Legislation and Rules administered by SARS:

Customs and Excise Act No. 91 of 1964: Sections 60, 64C, 77A-I and 79-84 Customs and Excise Rules: 60, 64C and 77H




TYPE OF REFERENCE REFERENCE Other Legislation: Promotion of Administrative Justice Act No. 3 of 2000: Section 3, National

Heritage Resources Act No.25 of 1999: Section 34, Nature Conservation Ordinance Act No. 31 of 1967, Wreck and Salvage Act No.94 of 1996: All sections and Sea Shore Act No. 21 of 1935: All sections


Kyoto Convention General Annex Chapter 3 Clearance and other Customs Formalities: Standards 3.6 and 3.21; Chapter 5 Security: Standards 5.1; 5.2; 5.4; 5.6 and 5.7; Chapter 7 Information Technology: Standards 7.1 and 7.4; Chapter 8 Relationship between Customs and Third Parties: Standards 8.1; 8.2; 8.3; 8.4, 8.6 and 8.7; Chapter 9 Information, Decisions and Rulings Supplied by Customs: Standards 9.4 and 9.8; Chapter 10 Appeals in Customs Matters: Standards 10.1; 10.2; 10.3; 10.5; 10.6; 10.7; 10.8; 10.9; 10.10; 10.11 and 10.12; Specific Annex A Chapter 2 Temporary Storage of Goods: Paragraphs 2 and 6; Annex D Chapter 1 Customs Warehouses: Paragraph 4; Annex E Chapter 1 Customs Transit: Paragraph 5 WCO SAFE Framework of Standards: None

4.2 Cross References DOCUMENT # DOCUMENT TITLE APPLICABILITY SC-CC-24 Administrative Appeal All SC-CC-26 Alternative Dispute Resolution All SC-CF-19 Licensing, Registration and Designation Policy All SC-CF-23 Manual for the completion of DA 185 All SC-SE-05 Securities All 5 DEFINITIONS AND ACRONYMS Act Customs and Excise Act No. 91 of 1964 Controller / Branch Manager


Licensing Licensing is a formal permission from a government or any constituted authority to perform a specified business or profession that also contains rules and regulations on how such business or profession shall be conducted. The purpose of licensing is to restrict unauthorised entry into a specified business or profession and also serves as a regulatory activity that gives guidance on acceptable behaviour and practice. It must be seen as a privilege to conduct these types of functions

Rule Rule to Customs and Excise Act SARS Customs Office Relates to the respective SARS Customs Office, Border Post, Hub that

handles and processes the application forms VO Verification Officer Wreck a) Flotsam, jetsam and lagan;

b) Any portion of a ship lost, abandoned or stranded, or of the cargo, stores or equipment thereof or any article thereon; and

c) Any portion of an aircraft which has been wrecked or abandoned, or of cargo, stores or equipment thereof, or any other thereon.

6 DOCUMENT MANAGEMENT Business Owner Group Executive: Customs Trade Operations Document Owner Executive: Process Solutions Customs & Support Services Author P Jones Detail of change from previous revision



ECS-TM-15 – Rev 3


Registration of Special Manufacturing Warehouse: MIDP - External SOP SC-CF-19-S13



EXTERNAL


REGISTRATION OF SPECIAL MANUFACTURING

WAREHOUSE: MIDP




TABLE OF CONTENTS 1 SCOPE 3 2 PROCEDURE 3 2.1 Client Authentication Process Flow 3 2.2 Registration of Special Manufacturing Warehouse: MIDP 5 2.2.1 Person(s) who may apply for a special manufacturing warehouse: MIDP registration 6 2.2.2 Documents needed for an application for a special manufacturing warehouse: MIDP registration 6 2.2.3 Additional Information 6 2.2.4 Requirements for a MIDP warehouse 7 2.2.5 Conditions for registration of a special manufacturing warehouse: MIDP 7 2.2.6 Processing of Special Manufacturing Warehouse: MIDP Registration Applications 8 2.2.7 Rejection of Special Manufacturing Warehouse: MIDP Registration Applications 8 2.2.8 Approval of Special Manufacturing Warehouse: MIDP Registration 8 2.2.9 Duties of the registrant 9 2.2.10 Change in particulars of a special manufacturing warehouse: MIDP registration 9 2.2.11 Change of ownership of a Special Manufacturing Warehouse: MIDP 9 2.2.12 Change of name of a Special Manufacturing Warehouse: MIDP 10 2.2.13 Amalgamation of a Special Manufacturing Warehouse: MIDP 10 2.2.14 Relocation of a Special Manufacturing Warehouse: MIDP 10 2.2.15 Alteration of a Special Manufacturing Warehouse: MIDP 10 2.2.16 Refusal of an application for a Special Manufacturing Warehouse: MIDP Registration 11 2.2.17 Suspension of a Special Manufacturing Warehouse: MIDP Registration 11 2.2.18 Reinstatement of a Special Manufacturing Warehouse: MIDP Registration 11 2.3 Cancellation of Special Manufacturing Warehouse: MIDP Registration Initiated By SARS 12 2.4 Cancellation of Special Manufacturing Warehouse: MIDP registration initiated by a registrant 13 3 QUALITY RECORDS 13 4 REFERENCES 13 4.1 Legislation 13 4.2 Cross References 14 5 DEFINITIONS AND ACRONYMS 14 6 DOCUMENT MANAGEMENT 14




1 SCOPE a) This document outlines the procedures for registration of a special manufacturing warehouse: motor

industry development program (MIDP). b) The document also outlines the process for client and bank detail authentication, refusal, cancellation,

suspension and reinstatement of the customs special manufacturing warehouse: MIDP. 2 PROCEDURE 2.1 Client Authentication Process Flow










2.2 Registration of Special Manufacturing Warehouse: MIDP




PROCEDURE STEP 2.2.1 Person(s) who may apply for a special manufacturing warehouse: MIDP registration a) A natural person who is a citizen or permanent resident of South Africa who is at least 21 years old








2.2.2 Documents needed for an application for a special manufacturing warehouse: MIDP

registration a) Any person who wants to apply for a Special Manufacturing Warehouse: MIDP registration must

DA 185 and DA 185.4A5. The application forms are available from the SARS website (www.sars.gov.za) or they can be collected from the nearest SARS: Customs Branch Office.

b) See SC-CF-23 on how to complete DA 185 and DA 185.4A5. c) The applications must be originally completed and signed, and submitted to the relevant Controller /

Branch Manager in whose control areas their business is situated. d) The following originally certified copies must accompany the application for Special Manufacturing

Warehouse registration:



trustees and all directors of company; iv) An originally signed and date stamped site plan; and v) Proof of ownership, lease or address of the proposed site where Customs transactions must

take place. Such proof can be: A) An affidavit issued by the Commissioner of Oath; or B) Proof of residence not older than three (3) months issued by the local chief in case of

applicants residing in a village; or C) Utility account not older than three (3) months issued in the name of the applicant i.e.

water, electricity or telephone account. 2.2.3 Additional Information a) The applicant must also disclose on the DA 185 as to whether the following instances had occurred in

the past five (5) years prior to submitting an application:

i) Contravention or failure to comply with the provisions of the Act;




PROCEDURE STEP ii) Failure to comply with any condition, obligation or other requirements imposed by the


fact which was required to be stated in the application for registration or for any other purpose under the Act; or


instances mentioned above or any of the following two even when the application has been submitted or registration has been approved:

i) No longer carries on the business for which the registration was issued; or ii) Is no longer qualified according to the qualifications prescribed in the Rules.

2.2.4 Requirements for a MIDP warehouse a) The following, but not limited, requirements of the warehouse are applicable:

i) The building must be structurally sound and safeguarded against fire and burglary; ii) The premise must be securely fenced; iii) Windows, doors, gates and other means of access must be fully secured with adequate locking

device which is compatible with Customs seal; iv) The building must be equipped with electrical security measures to prevent illegal delivery and

despatch of goods; v) The building must comply with health and safety regulations; vi) A separate area for the safekeeping of goods which have not being released due to detention

and seizure must be provided; vii) Sufficient space and facilities relevant to conduct examination and necessary staff must be

provided to ensure reliable service for the opening, unpacking and re-packing of goods; viii) The building must be independent from other buildings that serve a different purpose. Entry

and exit into and out of warehouse should not lead to other building apart from the warehouse i.e. if another floor or a portion of the building is a duty free store, there must be means of access to the latter other than through the warehouse;

ix) Suitable accommodation such as office furniture, parking facilities and toilet facilities must be provided to Customs Officers at any reasonable time free of charge;

x) Building approval issued by the local municipality. b) An attached plan must be submitted of the intended facility and must reflect the above information. 2.2.5 Conditions for registration of a special manufacturing warehouse: MIDP a) No person may transact business with SARS until all obligations relating to the registration have been

met. b) An agent may not apply for registration on behalf of an applicant. c) The registration is issued subject to the condition that the registrant or at least one (1) of the

registrant’s employees have sufficient knowledge of Customs laws and procedures to ensure that activities relating to registration are conducted efficiently and in compliance with the provisions of such laws and procedures.

d) SARS may at any reasonable time inspect the warehouse in order to verify whether it complies with

the requirements as stated in the policy and rules. A registration may cater for more than one (1) warehouse within the same Controller’s / Branch Manager’s area.




PROCEDURE STEP 2.2.6 Processing of Special Manufacturing Warehouse: MIDP Registration Applications a) All applications for a licence must be submitted to the enquiry or admin counter. b) When all required information and completed documentation has been submitted, the Customs Officer







a Customs client number will be generated and issued. h) Refer to the flowchart (2.2 Licensing for a special manufacturing warehouse MIDP) for detailed

process. i) The applicant is then legible to conduct business with SARS as per approved client type. 2.2.7 Rejection of Special Manufacturing Warehouse: MIDP Registration Applications a) If at any point during the application process, the application is found to be incomplete, it will be

rejected and returned to the applicant. b) The reason for rejection will be communicated to an applicant. c) The application may be resubmitted once all requirements have been met. 2.2.8 Approval of Special Manufacturing Warehouse: MIDP Registration a) The Customs client number must be:


ii) Reflected in the authorisation for any clearing agent to transact the business to which the registration relates.

b) The registration will be issued in the name of the applicant. c) No alterations may be effected on a registration approval document by the Registrant. If mistakes

occur during completion of the form, the officer must re-issue a new document. No correction fluid (tippex) is allowed on these documents.

d) The following contents must appear on the registration approval document:

i) Name of the registrant - clients must ensure that the correct legal names are recorded on the registration approval;

ii) Customs client number; iii) The purpose for which the registration is issued; iv) Unique warehouse number; and




PROCEDURE STEP v) Any special conditions to which the registration is subjected to.

e) The registration document will be handed to the applicant upon collection or be sent by registered mail

to the applicant. 2.2.9 Duties of the registrant a) The registrant may not allow any other person to use such registration in any Customs business or

transaction. b) The registered premises must be open to authorised Customs officers at all reasonable times for

inspection, verification of records and operations including supervision of tallying operations. c) The registrant must keep proper records of books, accounts any data created by means of a

computer, of all transactions relating to the activity in respect of the registration for a period of five (5) years calculated from the end of the calendar year in which any such document was created, lodged or required for any Customs procedure.

d) Any directives issued by the Commissioner in connection with procedures applicable to registration

subsequent to the date of application or during approval of the said application, must be deemed to be part of the afore-mentioned terms and conditions from the date on which such directives are issued and must be observed by the registrant as if they were included therein and duly subscribed to by the registrant.

e) The premise where the transactions take place must be the one approved by the Controller / Branch

Manager for that purpose. f) A registrant must always present a copy of a registration when demanded by Customs Officers. 2.2.10 Change in particulars of a special manufacturing warehouse: MIDP registration a) Whenever any of the particulars furnished in any application for registration changes, the registrant

must advise the Controller within seven (7) days of the occurrence of such event by submitting a DA 185 and / or the relevant annexure reflecting the changed particulars.


i) Where the legal status or the name of the registration changes for any reason; or ii) Address; or iii) Directors of an entity; or iv) Individual(s) who has / have sufficient knowledge of Customs laws and procedure.

2.2.11 Change of ownership of a Special Manufacturing Warehouse: MIDP a) In case of ownership change, the legal entity holding the registration prior to the change has to

continue to exist after the change. If the original registration holder ceases to exist as a result of a change of ownership, a new registration application has to be made.

b) For example, if another company purchases the assets of a dissolved registered entity, the registration

is no longer valid. The purchasing entity has to submit an application for a new registration and meet the prescribed requirements.


i) A certified copy of revised articles or certificate showing the new legal name; ii) A list of current directors; and iii) If security is needed, a bond must be submitted to reflect the new name. iv) Change of ownership is not allowed in case of sole proprietorships or individual partnerships as

the registration is granted to individual or partnership.




PROCEDURE STEP d) A change in legal identity will require a new application supported by all relevant documents and

bonds. 2.2.12 Change of name of a Special Manufacturing Warehouse: MIDP a) In case of name change, the notification must include the following:

i) A certified copy of revised articles showing the legal name; ii) A list of current directors; and iii) If security is needed, a bond must be submitted to reflect the change. iv) In case of individual’s own name change, the notification shall include an originally certified copy

on an identity document reflecting such change. 2.2.13 Amalgamation of a Special Manufacturing Warehouse: MIDP a) During amalgamation, the final legal entity which results from the amalgamation has to have existed

and been registered prior to the amalgamation. If the amalgamation results in a new or a previously unregistered legal entity, a new application must be submitted.


i) A certified copy of amendment to the articles of incorporation; ii) The names of any new directors that may have joined as a result of the change; and iii) If security is needed, endorsement to the bond must be submitted to reflect the change.

2.2.14 Relocation of a Special Manufacturing Warehouse: MIDP a) The relocation of the warehouse will only be allowed if the proposed site is located in the same

Controller / Branch Manager’s area and subject to meeting the terms and conditions of the registration. b) The existing warehouse number will be retained if relocation occurs in the same Controller / Branch

Manager’s area. c) If the warehouse is to relocate to another area of control the warehouse registration must be cancelled

and a fresh application lodged for the new address. d) When the change in location is contemplated, the registrant must advice the Controller / Branch

Manager in writing of the intention to relocate. Such notice must be provided at least sixty (60) days prior to the effective date of relocation.


DA 185 and its applicable annexure shall be completed. f) An inspection will once again be conducted to ascertain that the new business location meets all the

prescribed requirements. g) The Controller / Branch Manager may cancel the existing registration if the registrant relocates without

obtaining prior approval. 2.2.15 Alteration of a Special Manufacturing Warehouse: MIDP a) Where alteration to the existing building is contemplated, an originally signed and date stamped site


b) The application for alteration will be treated in the same manner as the new application. c) A plan must be submitted and approved and the buildings inspected by SARS Customs before




PROCEDURE STEP commencement of any Customs operations occur.

2.2.16 Refusal of an application for a Special Manufacturing Warehouse: MIDP Registration a) When an application for licence / licence renewal is refused, the SARS Customs Office will inform the





d) The applicant may also refer the matter to the High Court. 2.2.17 Suspension of a Special Manufacturing Warehouse: MIDP Registration a) Where the registration is to be suspended, the holder will be advised in writing by the relevant SARS

Customs Office. b) A client whose registration has been suspended may not perform any Customs activity relating to that

registration. c) Before any registration is suspended, except when any demand for any amount remains unpaid for a

period exceeding thirty (30) days from the date of the demand, the SARS will:

i) Give 21 days’ notice to the registrant of the proposed suspension; ii) Provide reasonable information concerning any allegation and grounds for the proposed


the registration should not be suspended. d) The registered letter will stipulate:


e) In cases where clients are not satisfied with any decision taken in terms of the Customs and Excise




g) A client may also refer the matter to the High Court. 2.2.18 Reinstatement of a Special Manufacturing Warehouse: MIDP Registration a) If the request for reinstatement is approved and the reason(s) for the suspension no longer exist(s)

and the appropriate steps have been taken to prevent occurrence(s) of a similar nature in future, the applicable registration may be reinstated.

b) The client will be informed of the reinstatement by the relevant SARS Customs Office.




PROCEDURE STEP c) A cancelled registration will not be reinstated. The holder of the registration that has been cancelled

has to re-apply for a new registration to conduct business with SARS. 2.3 Cancellation of Special Manufacturing Warehouse: MIDP Registration Initiated

By SARS

PROCEDURE STEP a) Where the registration is to be cancelled, the holder will be advised in writing by the relevant SARS

Customs Office. b) Before any registration is cancelled, except when any demand for any amount remains unpaid for a

period exceeding thirty (30) days from the date of the demand, the SARS will:

i) Give 21 days’ notice to the registrant of the proposed cancellation; ii) Provide reasonable information concerning any allegation and grounds for the proposed


the registration should not be cancelled. c) The letter will be sent via registered mail to the client stipulating the reason(s) for such cancellation. d) Once the office is satisfied that the client has no outstanding debt with SARS, the licence will be

cancelled. e) A client whose licence has been cancelled may not perform any Customs activity relating to that

licence. f) In cases where clients are not satisfied with any decision taken in terms of the Customs and Excise


g) Should clients be unhappy with a decision of any appeal committee their recourse will be to lodge an


h) A client may also refer the matter to the High Court.




2.4 Cancellation of Special Manufacturing Warehouse: MIDP registration initiated

by a registrant

PROCEDURE STEP a) The client must submit a cancellation request on a DA 185 to the relevant SARS Customs Office. b) An inspection will be conducted and once the application has been verified the SARS Customs Office



3 QUALITY RECORDS Number Title DA 185 Application form: Registration / Licensing of Customs and Excise Clients DA 185.C Security Particulars DA 185.4A5 Special Manufacturing Warehouse: MIDP SC-CF-05-A19 Requirements to process DA 185 SC-CF-05-A20 Confirmation of Authentication SC-CF-05-FR01 Request for cancellation / suspension of licence / registration / designation 4 REFERENCES 4.1 Legislation TYPE OF REFERENCE REFERENCE Legislation and Rules administered by SARS:

Customs and Excise Act No. 91 of 1964: Sections, 59A, 60, 75, 77A-I, 78-96, 101A Customs and Excise Rules: Rules 59A, 75, 77H-I and 120A.04

Other Legislation: Promotion of Administrative Justice Act No. 3 of 2000: Section 3, 4 and 5 International Instruments:

Kyoto Convention General Annex Chapter 3 Clearance and other Customs Formalities: Standards 3.6 and 3.21; Chapter 5 Security: Standards 5.1; 5.2; 5.4; 5.6 and 5.7; Chapter 7 Information Technology: Standards 7.1 and 7.4; Chapter 8 Relationship between Customs and Third Parties: Standards 8.1; 8.2; 8.3; 8.4, 8.6 and 8.7; Chapter 9 Information, Decisions and Rulings Supplied by Customs: Standards 9.4 and 9.8; Chapter 10 Appeals in Customs Matters: Standards 10.1;




TYPE OF REFERENCE REFERENCE 10.2; 10.3; 10.5; 10.6; 10.7; 10.8; 10.9; 10.10; 10.11 and 10.12; Specific Annex A Chapter 2 Temporary Storage of Goods: Paragraphs 2 and 6; Annex D Chapter 1 Customs Warehouses: Paragraph 4; Annex E Chapter 1 Customs Transit: Paragraph 5 WCO SAFE Framework of Standards: None

4.2 Cross References DOCUMENT # DOCUMENT TITLE APPLICABILITY SC-CC-24 Administrative Appeal – External Policy All SC-CC-26 Alternative Dispute Resolution – External Policy All SC-CF-19 Licensing, Registration and Designation Policy – External

Policy All

SC-CF-23 Manual for the completion of DA 185 All SC-RO-01-06 Approved Exporters – External SOP All SC-SE-05 Bonds – External Policy All 5 DEFINITIONS AND ACRONYMS Act Customs and Excise Act No. 91 of 1964 Controller / Branch Manager


MIDP Motor Industry Development Program Registration Registration is defined as an activity that is permitted by right. There are two

categories of registered clients, namely: a) The first category is general importers and exporters. The client pays

all duties/taxes upfront before taking possession of the goods. b) The second category is clients registered for rebate facilities. These

clients are allowed to import goods without paying duties under certain conditions i.e. for processing, manufacturing, packaging with an intention of exporting them.

Rule Rule to Customs and Excise Act SARS Customs Office Relates to the respective SARS Customs Office, Border Post, Hub that

handles and processes the application forms 6 DOCUMENT MANAGEMENT Business Owner Group Executive: Customs Trade Operations Document Owner Executive: Process Solutions Customs & Support Services Author P Jones Detail of change from previous revision



ECS-TM-15 – Rev 3


Licensing of Special Manufacturing Warehouse - External SOP SC-CF-19-S01



EXTERNAL


LICENSING OF A SPECIAL MANUFACTURING

WAREHOUSE




TABLE OF CONTENTS 1 SCOPE 3 2 PROCEDURE 3 2.1 Client Authentication Process Flow 3 2.2 Licensing of Special Manufacturing Warehouse 5 2.2.1 Person(s) who may apply 6 2.2.2 Document needed for application purposes 6 2.2.3 Licence fee provisions 6 2.2.4 Additional Information Error! Bookmark not defined. 2.2.5 Special Manufacturing warehouse requirements Error! Bookmark not defined. 2.2.6 Conditions for licensing of a special manufacturing warehouse Error! Bookmark not defined. 2.2.7 Processing of a special manufacturing warehouse licence applications 8 2.2.8 Issuing of a special manufacturing warehouse licence 8 2.2.9 Rejection of a special manufacturing warehouse licence application Error! Bookmark not defined. 2.2.10 Duties of the licence holder Error! Bookmark not defined. 2.2.11 Change in particulars of a special manufacturing warehouse licence Error! Bookmark not defined. 2.2.12 Change ownership of a special manufacturing warehouse Error! Bookmark not defined. 2.2.13 Amalgamation of a special manufacturing warehouse Error! Bookmark not defined. 2.2.14 Change of name of a special manufacturing warehouse Error! Bookmark not defined. 2.2.15 Relocation of a warehouse Error! Bookmark not defined. 2.2.16 Alteration of a warehouse Error! Bookmark not defined. 2.2.17 Refusal of an application for a special manufacturing warehouse licenceError! Bookmark not defined. 2.2.18 Suspension of a special manufacturing warehouse licence 11 2.2.19 Reinstatement of a special manufacturing warehouse licence 12 2.3 Cancellation of Special Manufacturing Warehouse licence initiated by SARS 12 2.4 Cancellation of Special Manufacturing Warehouse initiated by a Licensee 13 3 QUALITY RECORDS 14 4 REFERENCES 14 4.1 Legislation 14 4.2 Cross References 14 5 DEFINITIONS AND ACRONYMS 14 6 DOCUMENT MANAGEMENT 15




1 SCOPE a) This document outlines the procedure that is required for the licensing of a Special Manufacturing

Warehouse. b) It covers the respective procedures for client and bank detail authentication and the refusal,

suspension, cancellation and reinstatement of a Special Manufacturing Warehouse. c) The licensing of the Motor Industry Development Program (MIDP) special manufacturing warehouse is

excluded from this document – refer to SC-CF-19-S13 for specifics. 2 PROCEDURE 2.1 Client Authentication





i) A completed DA185 – Registration / Licensing of Customs clients and, if applicable, the relevant annex signed by the applicant or the appointed representative.




PROCEDURE STEP ii) Original identity document/passport or a temporary identity document/passport of the person

signing the application and where required for the authorised representative. iii) One (1) of the following documents not older than three (3) months to prove the account





i) A completed DA185 – Registration / Licensing of Customs clients and, if applicable, the relevant annex signed by the applicant or the appointed representative.















the DA 185 and supporting documents will be submitted to the SARS Customs Office for further processing and capturing purposes.




2.2 Licensing of Special Manufacturing Warehouse












2.2.2 Document needed for application purposes a) Any person who wants to apply for a Special Manufacturing Warehouse licence must complete

DA 185 and DA 185.4B1. (See manual SC-CF-23 on how to complete DA 185 and DA 185.4B1). The applications for a licence must be submitted to the relevant Controller / Branch Manager in whose control area their business is situated.

b) The applications must be originally completed and signed. c) The following originally certified copies, or original where applicable must accompany the application

for a Special Manufacturing Warehouse licence:



trustees and all directors of company; iv) An originally signed and date stamped site plan; and v) Proof of ownership, lease or address of the proposed site where Customs transactions must

take place. Such proof can be: A) An affidavit issued by the Commissioner of Oath; B) Proof of residence not older than three (3) months issued by the local chief in case of


water, electricity or telephone account. 2.2.3 Licence fee provisions a) Schedule 8 prescribes licence fees for a Special Manufacturing Warehouse and validity period, and is

payable for the duration of the licence fee or part thereof in full. b) In terms of Schedule 8, the licence for Special Manufacturing Warehouse needs no renewal. c) The licence fee will not be refunded when the licensee ceases operation prior to the end of the

licensing period.




PROCEDURE STEP 2.2.4 Additional Information a) The applicant must also disclose on the DA 185 as to whether the following instances have occurred

in the past five (5) years prior to submitting the application:


Commissioner. iii) Conviction of any offence under the Act. iv) Conviction of any offence involving dishonesty. v) Made any false or misleading statement in any material respect or omitted to state any material



instances mentioned above or any of the following two (2) even when the application has been submitted or licence has been issued:


2.2.5 Special Manufacturing warehouse requirements a) The following, but not limited, requirements of the warehouse are applicable:

i) The building must be structurally sound and safeguarded against fire and burglary. ii) The premises must be securely fenced. iii) The walls of the building should be of brick, stone or concrete and the roof of slate, tiles or iron. iv) Windows, doors, gates and other means of access must be fully secured with adequate locking

device which is compatible with a Customs seal. v) The building must be equipped with electrical security measures to prevent illegal delivery and

dispatch of goods. vi) The building must comply with health and safety regulations. vii) A separate area for the safekeeping of goods which have not being released due to detention

and seizure must be provided. viii) Sufficient space and facilities relevant to conduct examinations and necessary staff must be

provided to ensure a reliable service for the opening, unpacking and re-packing of goods. ix) The building must be independent from other buildings that serve a different purpose. Entry

and exit into and out of warehouse should not lead to other buildings apart from the warehouse i.e. if another floor or a portion of the building is a duty free store; there must be means of access to the latter other than through the warehouse.

x) Suitable accommodation such as office furniture, parking facilities and toilet facilities must be provided to Customs official at any reasonable time free of charge.

xi) Building approval issued by the local municipality must be provided. b) An attached plan of the intended facility must be provided to SARS reflecting the above information. 2.2.6 Conditions for licensing of a special manufacturing warehouse a) No person may transact business with SARS until all obligations relating to the licence have been met. b) The applicant may be required to pay a prescribed licence fee as prescribed in Schedule 8 before a

licence is issued. c) An agent may not apply for licence on behalf of the Special Manufacturing Warehouse applicant.




PROCEDURE STEP d) An applicant may apply for an additional licence to conduct business at another Customs Office. e) The requirements to apply for and hold an additional licence are the same as for a new licence and all

steps in the application process must be followed. f) The licence is issued subject to the condition that the licensee or at least one (1) of the licensee’s

employees has sufficient knowledge of Customs laws and procedures to ensure that activities relating to licence are conducted efficiently and in compliance with the provisions of such laws and procedures.

g) SARS may at any reasonable time inspect the warehouse in order to verify whether it complies with

the requirements as stated in the policy and Rules. h) A warehouse licence may cater for more than one (1) approved warehouse within the same

Controller’s / Branch Manager’s area. 2.2.7 Processing of a special manufacturing warehouse licence applications a) All applications for a licence must be submitted to the enquiry or admin counter. b) When all required information and completed documentation has been submitted, the Customs Officer







a Customs code will be generated and issued. h) Refer to the flowchart (2.2 Licensing for a special manufacturing warehouse) for detailed process. i) The applicant is then legible to conduct business with SARS as per approved client type. 2.2.8 Issuing of a special manufacturing warehouse licence a) The licence will be issued in the name of the applicant. b) No alterations may be effected on the licence document by the licensee. If mistakes occur during



i) Name of the licensee. Clients must ensure that the correct legal names are recorded on the licence;

ii) Customs client number; iii) The purpose for which the licence is issued; iv) Unique warehouse number; v) Any special conditions to which the licence is subjected to;




PROCEDURE STEP vi) The address of the premises to which the licence is issued; and vii) The date from which the licence takes effect and where applicable the expiry date.


handed to the applicant upon collection or be sent by registered mail to the applicant. 2.2.9 Rejection of a special manufacturing warehouse licence application a) If at any point during the application process, the application is found to be incomplete, it will be

rejected and returned to the applicant. b) The reason(s) for rejection will be communicated to an applicant in writing. c) The application may be resubmitted once all requirements have been met. 2.2.10 Duties of the licence holder a) The Customs client number must be:




c) The licensed premises must be open to authorised Customs officers at all reasonable times for



e) Any directives issued by the Commissioner in connection with procedures applicable to the licence


f) The premise where the transactions take place must be the SARS Customs approved premises. g) A licensee must always present a copy of a licence when demanded by a Customs Officer. h) A contract concluded between a licensee and another person to perform any of its functions may not

relieve the licensee of its responsibilities under the Act and this procedure. 2.2.11 Change in particulars of a special manufacturing warehouse licence a) Whenever any of the particulars furnished in any application for the licence changes, the licensee

must advise the Controller / Branch Manager within seven (7) days of the occurrence of such event by submitting a DA 185 and / or the relevant annexure, reflecting the changed particulars.


i) Where the legal status or the name of the licensee changes for any reason; or ii) Address; or iii) Directors of an entity; or




PROCEDURE STEP iv) Individual(s) who has / have sufficient knowledge of Customs laws and procedure.

2.2.12 Change ownership of a special manufacturing warehouse a) In case of ownership change, the legal entity holding the licence prior to the change has to continue to








bonds. 2.2.13 Change of name of a special manufacturing warehouse a) In case of name change, the notification must include the following:




2.2.14 Amalgamation of a special manufacturing warehouse a) During amalgamation, the final legal entity which results from the amalgamation has to have existed




2.2.15 Relocation of a warehouse a) The relocation of the warehouse will only be allowed if the proposed site is located in the same



a fresh application lodged for the new address.




PROCEDURE STEP d) When the change in location is contemplated, the licensee must advice the Controller / Branch


e) An application for relocation will be treated in the same manner as the new application. The DA 185

and its applicable annex must be completed. f) An inspection will once again be conducted to ascertain that the new business location meets all the




obtaining prior approval. 2.2.16 Alteration of a warehouse a) Where alteration to the existing building is contemplated, an originally signed and date stamped site


b) The application for alteration will be treated in the same manner as the new application. c) A plan must be submitted and approved and the buildings inspected by SARS Customs before

commencement of any Customs operations occur. d) Where the licence fee is applicable, it will not be charged for the alteration unless the date of issue

coincides with the renewal date of the existing licence. 2.2.17 Refusal of an application for a special manufacturing warehouse licence a) When an application for licence / licence renewal is refused, the SARS Customs Office will inform the





d) The applicant may also refer the matter to the High Court. 2.2.18 Suspension of a special manufacturing warehouse licence a) Where the licence is to be suspended, the holder will be advised in writing by the relevant SARS




i) Give 21 days’ notice to the licensee of the proposed suspension.




PROCEDURE STEP ii) Provide reasonable information concerning any allegation and grounds for the proposed

suspension. iii) Provide a client with a reasonable opportunity to respond and make representation as to why

the licence should not be suspended. d) When the suspension is finalised the SARS Customs Office will inform the client in writing. e) The registered letter will stipulate:






i) A client may also refer the matter to the High Court. 2.2.19 Reinstatement of a special manufacturing warehouse licence a) If the request for reinstatement is approved and the appropriate steps have been taken to prevent

occurrence(s) of a similar nature in future, the proposed licence will be reinstated. b) The Client will be informed of reinstatement by the relevant SARS Customs Office. c) A cancelled licence will not be reinstated. The holder of the licence that has been cancelled has to re-

apply for a new licence to conduct business with SARS. 2.3 Cancellation of Special Manufacturing Warehouse licence initiated by SARS





Customs Office. b) Before any licence is cancelled, except when any demand for any amount remains unpaid for a period

exceeding thirty (30) days from the date of the demand, the Commissioner will:






licence. e) In cases where clients are not satisfied with any decision taken in terms of the Customs and Excise




h) A client may also refer the matter to the High Court. 2.4 Cancellation of Special Manufacturing Warehouse initiated by a Licensee

PROCEDURE STEP a) The client must submit a cancellation request on a DA 185 to the relevant SARS Customs Office.




PROCEDURE STEP b) An inspection will be conducted and once the application has been verified the SARS Customs Office


appropriately. d) The client will be informed accordingly of the cancellation. 3 QUALITY RECORDS Number Title DA 103 Customs and Excise Licence DA 185 Application form: Registration / Licensing of Customs and Excise Clients DA 185.4B1 Special Manufacturing Warehouse DA 185.C Security Particulars SC-CF-05-A19 Requirements to process DA 185 SC-CF-05-A20 Confirmation of Authentication SC-CF-05-FR01 Request for cancellation / suspension of licence / registration SC-SE-05-A1 Assessment for Security Requirements 4 REFERENCES 4.1 Legislation TYPE OF REFERENCE REFERENCE Legislation and Rules administered by SARS:



Formalities: Standards 3.6 and 3.21; Chapter 5 Security: Standards 5.1; 5.2; 5.4; 5.6 and 5.7; Chapter 7 Information Technology: Standards 7.1 and 7.4; Chapter 8 Relationship between Customs and Third Parties: Standards 8.1; 8.2; 8.3; 8.4, 8.6 and 8.7; Chapter 9 Information, Decisions and Rulings Supplied by Customs: Standards 9.4 and 9.8; Chapter 10 Appeals in Customs Matters: Standards 10.1; 10.2; 10.3; 10.5; 10.6; 10.7; 10.8; 10.9; 10.10; 10.11 and 10.12 Kyoto Convention Specific Annex A Chapter 2 Temporary Storage of Goods: Paragraphs 2 and 6; Annex D Chapter 1 Customs Warehouses: Paragraph 4; Annex E Chapter 1 Customs Transit: Paragraph 5 WCO SAFE Framework of Standards: None






Licensing A formal permission from a government or any constituted authority to perform a specified business or profession that also contains rules and regulations on how such business or profession must be conducted. The purpose of licensing is to restrict unauthorised entry into a specified business or profession and also serves as a regulatory activity that gives guidance on acceptable behaviour and practice. It must be seen as a privilege to conduct these types of functions

Rule Rule to Customs and Excise Act SARS Customs Office

Relates to the respective SARS Customs Office, Border Post, Hub that handles and processes the application forms




ECS-TM-15 – Rev 3


Registration of Exporter and Importer - External SOP SC-CF-19-S11



EXTERNAL


REGISTRATION OF IMPORTER OR EXPORTER




TABLE OF CONTENTS 1 SCOPE 3 2 PROCEDURE 3 2.1 Client Authentication Process Flow 3 2.2 Registration of Importers and Exporters 5 2.2.1 Person(s) who may apply for importer and / orexporter registration 6 2.2.2 Documents needed for various client types 6 2.2.3 Registration forms required per client type 6 2.2.4 Additional information 7 2.2.5 Conditions for registration of importer and / or exporter 8 2.2.6 Processing of importer and / or exporter registration applications 8 2.2.7 Rejection of importer and exporter registration applications 8 2.2.8 Approval of importer and exporter registration 8 2.2.9 Duties of the registrant 9 2.2.10 Change in particulars of importer and / or exporter 9 2.2.11 Change of ownership of importer and / or exporter 9 2.2.12 Change of name of importer and / or exporter 10 2.2.13 Amalgamation of importer and / or exporter 10 2.2.14 Refusal of an application for importer and / orexporter registration 10 2.2.15 Suspension of Importer and Exporter Registration 10 2.2.16 Reinstatement of importer and / or exporter registration 11 2.3 Cancellation of Importer and Exporter registration initiatedby SARS 11 2.4 Cancellation of Importer and Exporter registrationinitiated by a registrant 12 3 QUALITY RECORDS 13 4 REFERENCES 13 4.1 Legislation 13 4.2 Cross References 13 5 DEFINITIONS AND ACRONYMS 14 6 DOCUMENT MANAGEMENT 14




1 SCOPE a) This document outlines the procedures for registration of Customs importers and exporters whether

they are local or foreign persons or entities. b) The document also outlines the processes of refusal, cancellation, suspension and reinstatementof

the specific importer, exporter, producer or manufacturer licence. c) The following types of registration are covered:

i) Importer (Local or Foreign); ii) Exporter(Local or Foreign)

A) (General); B) Exporter/ Manufacturer for AGOA; C) Exporter/ Producer / Approved Exporter for TDCA and SACU / EFTA; and D) Exporter for GSP (various countries).

2 PROCEDURE 2.1 Client Authentication Process Flow







PROCEDURE STEP c) Supporting documents required for an application by an individual:



iii) One (1) of the following documents not older than three (3) months to prove the account holder’s name, bank account number and bank branch code: A) A legible certified copy or original bank statement; B) An original letter from the bank on a letterhead; or C) An original auto bank statement.


















be informed.




PROCEDURE STEP k) If the process was successful the applicant / representative will be issued with the SC-CF-05-A20 and


2.2 Registration of Importers and Exporters




PROCEDURE STEP 2.2.1 Person(s) who may apply for importer and / orexporter registration a) The following person(s) may apply for importer and / or exporter registration:

i) A natural person who is a citizen or permanent resident of South Africa who is at least 21 years old and has an established place of business (fixed physical address) in South Africa.

ii) A juristic person that has an established place of business (fixed physical address) in South Africa;

iii) A person having the effective management of an association of persons whether or not formed in South Africa that has an established place of business (fixed physical address);

iv) A partnership or a trust consisting of individuals who are citizens or permanent resident of South Africa and are at least 21 years old;

v) In case of the following: A) A deceased estate, the executor of the estate; and B) An insolvent estate, the trustee. C) An organ of state, the official to whom the function in respect of the activity for which

registration is required, is delegated; and D) Any institution, the person having the effective management of such institution.

b) A foreign principle not located in South Africa may apply to be registered as an importer and/or

exporter but must be represented by a registered agent having a fixed physical address in South Africa.

2.2.2 Documents needed for various client types a) The following originally certified copies, or original documents not older than three (3) months where

applicable must in addition to respective client type forms mentioned below, accompany the application forms:

i) Registration certificate of the business as issued by the Registrar of Companies or Master of the

Supreme Court in the case of a trust; ii) Resolution / consent or other authority as applicable; iii) Identity or passport documents of individual, partners, all members of close corporation,

trustees and all directors of company; and iv) Proof of ownership, lease or address of the proposed site where Customs transactions will take

place. Such proof can be: A) An affidavit issued by the Commissioner of Oath; or B) Proof of residence issued by the local chief in case of applicants residing in a village; or C) Utility account issued in the name of the applicant i.e. water, electricity or telephone

account. v) Financial statements (if available as a newly established company will not yet have records) for

the last financial year must be signed by the auditors / accounting officer, directors and submitted (i.e. they must submit final copies and not draft copies of the financials): A) Private Company (Pty) Ltd – Audited Financial statements. B) Public Company Ltd – Audited Financial statements. C) Close Corporation (CC) – Financial statements signed by an Accounting Officer.

vi) Latest tax return / tax clearance certificate (if available). b) The documents listed above might not be required where the client is already registered with SARS

and has a party registration number, unless SARS specifically requests such. 2.2.3 Registration forms required per client type a) The respective application forms are available on the SARS website (www.sars.gov.za) or they can be

collected at the nearest SARS Customs Office. b) The application forms for registration must be submitted to the relevant Controller / Branch Manager in

whose control area their business is situated.





PROCEDURE STEP c) The Importer must complete the DA 185 and annexure DA 185.4A1 and if foreign the DA 185. d) The Exporter must complete the DA 185 and annexure DA 185.4A2 and if foreign the DA 185. e) The Exporter for AGOA purposes must complete the DA 185, annexure DA 185.4A2 and

DA 46A1.02 and if foreign the DA 185. Also refer to SC-RO-01-01 relating to Rules of Origin. f) The Manufacturer for AGOA the DA 185, annexure DA 185.4A4 and DA 46A1.03 and if foreign the

DA 185. Also refer to SC-RO-01-01 relating to Rules of Origin. g) The Exporter for SADC must complete the DA 185 and annexure DA 185.4A2 and if foreign the DA

185. Also refer to SC-RO-01-01 relating to Rules of Origin. h) The Producer for SADC must complete the DA 185 and DA 185.4A7. See SC-CF-23 on how to

complete DA 185 and DA 185.4A7 and also refer to SC-RO-01-01 relating to Rules of Origin. i) The Exporter for EC / South African agreement must the DA 185, DA 185.4A2 and if foreign the DA

185. Also refer to SC-RO-01-01 relating to Rules of Origin. j) The Producer for EC / South African agreement must complete the DA 185 and DA 185.4A7. Also

refer to SC-RO-01-01 relating to Rules of Origin. k) The Approved exporter for TDCA and SACU / EFTA must complete DA 185, DA 185.4A2,

DA 49A.02 and if foreign the DA 185. Also refer to SC-RO-01-05 relating to Approved Exporter. l) The Exporter for GSP must complete DA 185, DA 185.4A2, DA 46A.01 and if foreign the DA 185.

Also refer to SC-RO-01-01 relating to Rules of Origin. m) The Producer for GSP must complete the DA 185, DA 185.4A7 and DA 46A.02. Also refer to SC-

RO-01-01 relating to Rules of Origin. n) Refer to SC-CF-23 for the completion process of the DA 185. 2.2.4 Additional information a) The applicant must also disclose on the DA 185 as to whether the following instances had occurred in





vi) Insolvency or in liquidation. vii) Full details must be furnished with the application if any of the above did occur.

b) The applicant must inform the Commissioner within seven (7) days of occurrence of any of the

instances mentioned above or any of the following two (2) even when the application has been submitted or registration has been issued:


c) This would not be applicable to foreigners, however the nominated and registered agent details would

be considered.




PROCEDURE STEP 2.2.5 Conditions for registration of importer and / or exporter a) No person may transact business with SARS until all obligations relating to registration have been

met. b) A clearing / registered agent may not apply for registration on behalf of an importer and / or exporter. c) The applicant must have a nominated an approved registered agent with a fixed physical address in

South Africa acting on their behalf and accepting full liability. d) The registration is issued subject to the condition that the registrant or registered agent or at least one

(1) of the registrant’s or registered agent’s employees permanently employed at the premises where or from where the business will be conducted has sufficient knowledge of Customs laws and procedures to ensure that activities relating to registration are conducted efficiently and in compliance with the provisions of such laws and procedures.

e) SARS may at any reasonable time conduct investigations to verify the statements made by the

applicant and to ascertain any facts relating to the activities in respect of which the registration will operate. The applicant must make available books, accounts and other documents and furnish fully the information necessary to conduct such an investigation.

2.2.6 Processing of importer and / or exporter registration applications a) All applications for a registration must be submitted to the enquiry / admin counter. b) When all required information and completed documentation has been submitted an

acknowledgement of receipt of application will be issued to the client. c) If the applicant meets all requirements as prescribed in the Customs Act and this procedure, a

Customs client number will be generated and issued to the client. d) The applicant is then eligible to conduct business with SARS as per approved client type. 2.2.7 Rejection of importer and exporter registration applications a) If at any point during the application process, the application is found to be incomplete, it will be

rejected and returned to the applicant. b) The reason(s) for rejection will be communicated to an applicant. c) The application may be resubmitted once all requirements have been met. 2.2.8 Approval of importer and exporter registration a) The registration will be issued in the name of the applicant. b) No alterations by the applicant may be effected on a registration approval document. If mistakes

occur during completion of the form, the officer must issue a new document. No correction fluid (tippex) is allowed on these documents.

c) The registration approval will be handed to the applicant upon collection or be sent by registered mail

to the applicant. d) The following contents will appear on the registration approval document:


ii) Customs client number; iii) The purpose for which the registration is issued; and




PROCEDURE STEP iv) Any special conditions to which the registration is subjected to.

e) An approval of registration application will be issued by the relevant SARS Customs Office. 2.2.9 Duties of the registrant a) The Customs client number must be:


ii) Reflected in the authorisation for any agent to transact the business to which the registration relates.

b) The registrant may not allow any other unauthorised person to use such registration in any Customs

business or transaction. The obligation for the safeguarding and usage of the client number is vested with the client.

c) The registrant must keep proper records of books, accounts any data created by means of a




e) A registrant must always present a copy of a registration when demanded by Customs Officials

together with the details of the nominated and appointed registered agent for foreign principles. f) A contract concluded between a registrant and another person to perform any of its functions does not

relieve the registrant of its responsibilities under the Act and this procedure. 2.2.10 Change in particulars of importer and / or exporter a) Whenever any of the particulars furnished in any application for registration changes, the registrant

must advise the Controller / Branch Manager within seven (7) days of the occurrence of such event by submitting a DA 185 and / or the relevant annex reflecting the changed particulars.


i) Where the legal status or the name of the registrant changes for any reason; or ii) Address; or iii) Directors of an entity; or iv) Individual(s) who has / have sufficient knowledge of Customs laws and procedure.

c) A change in legal identity will require a new application supported by all relevant documents. 2.2.11 Change of ownership of importer and / or exporter a) In case of ownership change, the legal entity holding the registration prior to the change has to

continue to exist after the change. If the original registration holder ceases to exist as a result of a change of ownership, a new registration application has to be made and new bonds furnished.






PROCEDURE STEP c) The notification must include the following in respect of the new name:

i) A certified copy of amendment to the articles of incorporation; and ii) A list of current directors.


registration is granted to individual or partnership. 2.2.12 Change of name of importer and / or exporter a) In case of name change the notification must include the following:

i) A certified copy of revised articles showing the legal name; and ii) A list of current directors.


an identity document reflecting such change. 2.2.13 Amalgamation of importer and / or exporter a) During amalgamation, the final legal entity which results from the amalgamation must have existed



i) A copy of amendments to the articles of incorporation reflecting the change; and ii) The names of any new directors that may have joined as a result of the change.

2.2.14 Refusal of an application for importer and / or exporter registration a) When an application for registration is refused, the SARS Customs Office will inform the client. The

client must be notified of the reason for such a refusal. b) In cases where clients are not satisfied with any decision taken in terms of the Customs and Excise




d) A client may also refer the matter to the High Court. 2.2.15 Suspension of Importer and Exporter Registration a) This portion is not applicable to the suspension of the foreigner waiting for approved nominations of

registered agents as these will be automatically lifted once nominations received and approved. b) Where the registration is to be suspended, the holder will be advised in writing by the relevant SARS

Customs Office. c) A client whose registration has been suspended may not perform any Customs activity relating to that

registration. d) Before any registration is suspended, except when any demand for any amount remains unpaid for a

period exceeding thirty (30) days from the date of the demand, the Commissioner must:




PROCEDURE STEP i) Give 21 days’ notice to the registrant of the proposed suspension; ii) Provide reasonable information concerning any allegation and grounds for the proposed


the registration should not be suspended. e) When the suspension is finalised the SARS Customs Office will inform the client in writing. f) The registered letter will stipulate:


g) In cases where clients are not satisfied with any decision taken in terms of the Customs and Excise




i) A client may also refer the matter to the High Court. 2.2.16 Reinstatement of importer and / or exporter registration a) If the request for reinstatement is approved and the reason(s) for the suspension no longer exist(s)


b) The client will be informed of the reinstatement by the relevant SARS Customs. c) Reinstatements can also occur when the decision of cancellation is overturned by either an Appeal

Committee or the Court. In these circumstances the client will be informed accordingly of the reinstatement.

2.3 Cancellation of Importer and Exporter registration initiatedby SARS




PROCEDURE STEP a) Where the registration is to be cancelled, the client will be advised in writing by the relevant SARS


period exceeding thirty (30) days from the date of the demand, SARS must:



the registration should not be cancelled. c) The cancellation letter will be sent via registered mail to the client stipulating the reason(s) for such

cancellation. d) Once the office is satisfied that the client has no outstanding debt with SARS, the registration will be

cancelled. e) A client whose registration has been cancelled may not perform any Customs activity relating to that

registration. f) A cancelled registration will not be reinstated. The client has to re-apply for a new registration to

conduct business with SARS. g) In cases where clients are not satisfied with any decision taken in terms of the Customs and Excise




i) A client may also refer the matter to the High Court. 2.4 Cancellation of Importer and Exporter registrationinitiated by a registrant




PROCEDURE STEP a) The client must submit a cancellation request on a DA 185 to the relevant SARS Customs Office. b) The SARS Customs Office will acknowledge request for voluntary cancellation. c) If no debt follow-up is required the the client will be informed of the cancellation. d) A cancelled registration will not be reinstated. The client has to re-apply for a new registration to

conduct business with SARS.

3 QUALITY RECORDS Number Title DA 46A.01 Exporter’s application for Registration for the purposes of the GSP DA 46A1.02 Exporter’s Application for Registration for the purposes of the AGOA. DA 46A1.03 Manufacturer’s Application for Registration for the purposes of the AGOA DA 49A.02 Application for approved exporter status DA 185 Application form: Registration / Licensing of Customs and Excise Clients DA 185.D Nomination of Agent DA 185.4A1 Importer DA 185.4A2 Exporter DA 185.4A4 Manufacturer DA 185.4A7 Producer SC-CF-05-A19 Requirements to process DA 185 SC-CF-05-A20 Confirmation of Authentication SC-CF-05-FR01 Request for cancellation / suspension of licence / registration 4 REFERENCES 4.1 Legislation TYPE OF REFERENCE REFERENCE Legislation and Rules administered by SARS:

Customs and Excise Act No. 91 of 1964: Sections, 59A, 60, 77A-I, 79-84 and 101A Customs and Excise Rules: Rules 59A, 60, 77H-I and 120A.04


Kyoto Convention General Annex Chapter 3 Clearance and other Customs Formalities: Standards 3.6 and 3.21; Chapter 5 Security: Standards 5.1; 5.2; 5.4; 5.6 and 5.7; Chapter 7 Information Technology: Standards 7.1 and 7.4; Chapter 8 Relationship between Customs and Third Parties: Standards 8.1; 8.2; 8.3; 8.4; 8.6 and 8.7; Chapter 9 Information, Decisions and Rulings Supplied by Customs: Standards 9.4 and 9.8; Chapter 10 Appeals in Customs Matters: Standards 10.1; 10.2; 10.3; 10.5; 10.6; 10.7; 10.8; 10.9; 10.10; 10.11 and 10.12 WCO SAFE Framework of Standards: None

4.2 Cross References DOCUMENT # DOCUMENT TITLE APPLICABILITY SC-CC-24 Administrative Appeal – External Policy All SC-CC-26 Alternative Dispute Resolution – External Policy All SC-CF-19 Licensing, Registration and Designation Policy – External Policy All SC-CF-23 Manual for the completion of DA 185 All SC-RO-01-02 Guide to Understanding Preferential Rules of Origin All SC-RO-01-06 Approved Exporters – External Policy All SC-SE-05 Bonds – External Policy All




5 DEFINITIONS AND ACRONYMS Act Customs and Excise Act No. 91 of 1964 AGOA African Growth and Opportunity Act Controller / Branch Manager


EC European Community EFTA European Free Trade Association Foreign Principle The foreign principle is a registered importer, registered exporter or licensed remover

of goods in bond not located in South Africa as prescribed in Rule 59A.01(a) GSP Generalised System of Preference NPA National Ports Authority Registered Agent An agent of a foreign principle who is located in South Africa and registered as

prescribed in Rule 59A.01(a) Registration Registration is defined as an activity that is permitted by right. There are

twocategories of registered clients, namely: a) The first category is general importers and exporters. The client pays all

duties/taxes upfront before taking possession of the goods. b) The second category is clients registered for rebate facilities. These clients are

allowed to import goods without paying duties under certain conditions i.e. for processing, manufacturing, packaging with an intention of exporting them.

Rule Rule to Customs and Excise Act SACU The Southern African Customs Union, consisting of:

The Republic of South Africa; The Republic of Botswana; The Kingdom of Lesotho; The Republic of Namibia; and The Kingdom of Swaziland.

SADC Southern African Development Community SARS Customs Office


TDCA Trade, Development and Cooperation Agreement VAT Value-Added Tax 6 DOCUMENT MANAGEMENT Business Owner Group Executive: Customs Trade Operations Document Owner Executive: Process Solutions Customs & Support Services Author P Jones Detail of change from previous revision



ECS-TM-15 – Rev 3


Licensing of SOS for Second Hand Vehicles - External SOP SC-CF-19-S05



EXTERNAL


LICENSING OF A SPECIAL STORAGE

WAREHOUSE FOR SECOND HAND VEHICLES




TABLE OF CONTENTS 1 SCOPE 3 2 PROCEDURE 3 2.1 Client Authentication Process Flow 3 2.1.1 Person(s) who may apply for a SOS for second hand vehicle licence 5 2.1.2 Documents needed for an application for a SOS for second vehicle licence 5 2.1.3 Licence fee provisions 6 2.1.4 Additional information 6 2.1.5 Conditions for licensing of a SOS for second hand vehicles 7 2.1.6 SOS for second hand vehicles requirements 7 2.1.7 Terms and conditions 8 2.1.8 Duties of the licence holder 9 2.2 Pre licensing of a SOS for second hand vehicles 10 2.2.1 Pre-approval requirements Error! Bookmark not defined. 2.3 Licensing of a SOS for second hand vehicles 12 2.3.1 Processing of SOS for second hand vehicles licence applications 13 2.3.2 Rejection of a SOS for second hand vehicles licence application 13 2.3.3 Issuing of a SOS for second hand vehicles licence 13 2.3.4 Change in particulars of a SOS for second hand vehicles licence 14 2.3.5 Change of ownership of a SOS for second hand vehicles 14 2.3.6 Amalgamation of a SOS for second hand vehicles 14 2.3.7 Change of name of a SOS for second hand vehicles 14 2.3.8 Relocation of a SOS for second hand vehicles 15 2.3.9 Alteration of a SOS for second hand vehicles 15 2.3.10 Refusal of a SOS for second hand vehicles licence 15 2.3.11 Suspension of a SOS for second hand vehicles licence 16 2.3.12 Reinstatement of a SOS for second hand vehicles licence 17 2.4 Cancellation of a SOS for Second Hand Vehicle Licence initiated by SARS 17 2.5 Cancellation of a SOS for Second Hand Vehicle Licence initiated by licensee 18 3 QUALITY RECORDS 19 4 REFERENCES 19 4.1 Legislation 19 4.2 Cross References 19 5 DEFINITIONS AND ACRONYMS 20 6 DOCUMENT MANAGEMENT 20




1 SCOPE a) This document outlines the procedures for licensing of a special storage warehouse (SOS) for second

hand motor vehicles imported exclusively for export purposes or in bond removals to Botswana, Lesotho, Namibia and Swaziland (BLNS).

b) Only an SOS warehouse may be utilised for the storage of such second hand vehicles. c) The document also outlines the processes of client and bank detail authentication, refusal,

suspension, cancellation and reinstatement of SOS for second hand vehicles licence. 2 PROCEDURE 2.1 Client Authentication Process Flow









PROCEDURE STEP 2.1.1 Person(s) who may apply for a SOS for second hand vehicle licence a) A natural person who is a citizen or permanent resident of South Africa who is at least 21 years old








2.1.2 Documents needed for an application for a SOS for second vehicle licence a) Any person who wants to apply for a SOS for second hand vehicles licence must complete DA 185

and DA 185.4B4. Applications for a licence must be submitted by registered mail to the relevant Controller / Branch Manager in whose control area their business is situated.

b) See manual SC-CF-23 on how to complete DA 185 and DA 185.4B4. c) The applications must be originally completed and signed. d) The following original and / or originally certified copies not older than three (3) months must

accompany the application for a SOS for a second hand vehicle licence:

i) Fire and health department certificate; ii) Police clearance certificate (if available, if not these must be produced at time of importation and

entry to the approved warehouse); iii) Feasibility study for premise; iv) Warehouse site plan; v) Registration certificate of the business as issued by the Registrar of companies or Master of the

Supreme Court in the case of a Trust; vi) Memorandum of Association (including the association Clause) and the Certificate of

Incorporation in the case of a company. vii) Founding statement (CK1) and Certificate of Incorporation in the case of a close corporation. viii) Resolution / consent or other authority as applicable; ix) Department of Trade and Industry permit (if applicable); x) Bond calculation sheet; xi) Financial statements for the last financial year as mentioned below must be signed by the

auditors / accounting officer and directors and submitted (i.e. they must submit final copies and not draft copies of the financials), (for newly established businesses this is not applicable): A) Private company (Pty) Ltd – Audited Financial statements. B) Public Company (Ltd) – Audited Financial statements. C) Close Corporation (CC) – Financial statements signed by an Accounting Officer.

xii) Latest tax return / tax clearance certificate; xiii) Company organogram; xiv) Proof of physical home address, postal address, personal tax numbers and identity documents

in case of a South African Citizen or Passport documents in case of a non-resident:




PROCEDURE STEP A) Individual; B) Partners Close Corporation and Trust – All Members / Partners / Trustees; and C) Company – All directors, including Managing Director and Financial Director.

xv) Identity or passport documents of individual, partners, all members of close corporation, trustees and all directors of company;

xvi) An originally signed and date stamped site plan; and xvii) Proof of ownership, lease (at time of application if available must be produced, if not a letter of

undertaking or affidavit that such will be produced must be given and once application is approved this must be produced), or address of the proposed site where Customs transactions must take place. Such proof can be: A) An affidavit issued by the Commissioner of Oath; B) Proof of residence issued by the local chief in case of applicants residing in a village; or C) Utility account issued in the name of the applicant i.e. water, electricity or telephone

account; xviii) Customs Risk Report (only after interview with second round premises submission); xix) Results of the interview with the client.

2.1.3 Licence fee provisions a) A licensee of an SOS warehouse may not lease or otherwise cede to or allow the use of the license by

any other party. b) The license holder is the only person who may store vehicles in the warehouse, and such

vehicles must be the property of the licensee at the time of importation into South Africa which must so remain until cleared ex-bond. This must be endorsed on the license along with the fact that such licence can be cancelled if all conditions are not complied with.

c) The Commissioner may require security before any licence is issued. See policy SC-SE-05 regarding

Security. d) Schedule 8 prescribes licence fees for Special Storage Warehouse and validity period, the licence

needs no renewal. e) Licence fees must be renewed as prescribed in Schedule 8. f) The licence fee if applicable will not be refunded when the licensee ceases operation prior to the end

of the licensing period. 2.1.4 Additional information a) The applicant must also disclose on the DA 185 as to whether the following instances had occurred in










PROCEDURE STEP i) No longer carries on the business for which the licence was issued; or ii) Is no longer qualified according to the qualifications prescribed in the Rules.

2.1.5 Conditions for licensing of a SOS for second hand vehicles a) No person may transact business with SARS until all obligations relating to licence have been met. b) The applicant may be required to pay a prescribed licence fee as prescribed in Schedule 8 before a

licence is issued. c) An agent may not apply for a SOS for second hand vehicles licence on behalf of the applicant. d) An applicant may apply for an additional licence to conduct business at another Customs office. e) The requirements to apply for and hold an additional licence are the same as for a new licence and all

steps in the application process have to be followed. f) The licence is issued subject to the condition that the licensee or at least one (1) of the licensee’s

employees have sufficient knowledge of Customs laws and procedures to ensure that activities relating to licence are conducted efficiently and in compliance with the provisions of such laws and procedures.


the requirements as stated in the policy and rules. h) A warehouse licence may cater for more than one (1) approved warehouse within the same

Controller’s area. The licence will be endorsed with the particulars for the approved warehouse. The additional warehouse must be similar to the initial warehouse type. An Addendum might be required for this warehouse as the warehouse is been extended refer to SC-SE-05.

i) The licensee must be the owner / importer of the second hand vehicles. 2.1.6 SOS for second hand vehicles requirements a) The walls of the building should as a general rule, be of brick, stone or concrete and the roof of slate,

tiles or iron. The minimum height of the walls or fence must at least be two meters. If the warehouse is an open yard the fence surrounding the area must be constructed of concrete or brick.

b) The main exit must lead directly on to a public thoroughfare (this need not be insisted upon if the

Controller is otherwise satisfied with the warehouse) and the door must be fitted with a hasp and staple to accommodate an official lock.

c) All other doors, lifts or chutes communicating from the warehouse must be capable of being locked

from within. d) All windows on the ground floor and on other floors when accessible from outside and all skylights

must be securely barred. e) Each vehicle should be parked in a numbered parking bay in order to facilitate stock counts. f) The warehouse must be able to accommodate the off-loading of containers. g) The gates of the warehouse must be wide enough to allow a car carrier to off load or load the vehicles

from / into the warehouse. h) The warehouse must comply with Fire and Health department regulations. i) The building must be structurally sound and safeguarded against fire and burglary.




PROCEDURE STEP j) Windows, doors, gates and other means of access must be fully secured with adequate locking device

which is compatible with Customs seal. k) The building must be equipped with electrical security measures to prevent illegal delivery and

despatch of goods. l) The building must comply with health and safety regulations. m) A separate area for the safekeeping of goods which have not being released due to detention and

seizure must be provided. n) The building must be independent from other buildings that serve a different purpose. Entry and exit

into and out of warehouse should not lead to other building apart from the warehouse. o) Building approval issued by the local municipality. p) An attached plan of the intended facility must reflect the above information. 2.1.7 Terms and conditions a) The property lease agreement / letter of undertaking submitted during the pre-approval requirements

must be available prior to approval of the facility. The lease must be for a minimum of three (3) years with an eviction clause of not less than three (3) months.

b) The provisions of the Customs and Excise Act No. 91 of 1964 regarding the terms and conditions must

be complied with at all times. c) No repairs or servicing may be affected on second hand vehicles in SOS warehouses. Except for

the fitment of batteries, reflectors and chevrons, other work done on such vehicles is considered repairs or servicing.

d) Clients must ensure that they understand the requirements of Section 21(3)(d) that states that

notwithstanding the provisions of Section 19(9)(a), no goods to which this subsection relates must be stored in such warehouse for a period of longer than six (6) months from the time the goods were first entered for storage.

e) Re-warehouse of goods within South Africa may under no circumstances be permitted to allow for

extension of the specified time period. The goods must remain the property of the licensee and ownership may not change within South Africa.

f) The removal of goods to the BLNS may only be removed in bond to registered bonded warehouses if

approval for such movement has been provided by the respective BLNS authority. Such movements may only be allowed during week days from 06:00 to 17:00. No imported second hand vehicles are allowed to be moved during weekends or public holidays. Advanced notification must also be produced to the respective BLNS border post.

g) Penalties will be imposed on all overtime goods. h) The client will be informed in writing of the contravention and the fact that he / she is further required to

export the overtime vehicles; to a destination considered satisfactory to the Controller / Branch Manager; within thirty (30) days of the mentioned letter. The client will further have to provide adequate proof of clearance in the country of destination, in addition to any acquittal documents presently required.

i) If the vehicles are not exported after the expiration of the thirty (30) day period the following applies:

i) The Act states in Section 87(1) that “any goods dealt with contrary to the Act shall be liable to forfeiture”. Since the goods were retained in the warehouse contrary to the provisions of the Act, without the permission of the Commissioner, they are liable to forfeiture.




PROCEDURE STEP ii) The vehicles will be detained in terms of Section 88(1)(a) and a detention letter stating the

following will be sent to the client: “The goods mentioned hereunder are hereby detained in terms of Section 88(1)(a) read with Section 87 of the Customs and Excise Act, No. 91 of 1964, to establish whether such goods are liable to forfeiture. If such goods are found to be liable to forfeiture, the goods will be seized in terms of Section 88(1)(c) of the above-mentioned Act”.

iii) After the investigating a second letter (if required) will be sent out informing the client that the goods were found to be liable to forfeiture and will be seized in terms of Section 88(1)I.

iv) In cases where clients are not satisfied with any decision taken in terms of the Customs and Excise Act they have a right of appeal to the relevant appeal committee. The policy in this regard, as well as the process to be followed, is contained in SC-CC-24.

v) Should clients be unhappy with a decision of any appeal committee their recourse will be to lodge an application for ADR (Alternative Dispute Resolution) with the relevant appeal committee. The committee will add its comments thereto and forward the application to the ADR Unit for attention. The policy in this regard, as well as the process to be followed is contained in SC-CC-26.

vi) After the requisite time period sixty (60) days has lapsed or the conditions as specified in Section 89(4)(a) to (c) are fulfilled, the goods will be considered condemned and forfeited. This means that the vehicles cannot be disposed of until the client has exhausted the remedies mentioned above, and only then can the goods be disposed of.

vii) Once the vehicles are considered condemned and forfeited they may be disposed of in terms of the provisions of Section 43(7). Sub Section, (b)(ii) of this section stipulates that the Commissioner may destroy goods condemned and forfeited. Unless the goods can be removed to the satisfaction of the Controller / Branch Manager, or returned to the supplier, the best alternative to deal with this commodity is to destroy it.

viii) Section 43(7)I allows for the Commissioner to be reimbursed for any storage or destruction costs incurred. The client will be informed in writing at the time of seizure that the costs of destruction must be borne by the importer / owner.

j) Where a licensee does not comply, and is detected to have committed any offence in terms of the

Customs and Excise Act, the licensee must be informed that a repeat of such an offence will result in de-licensing.

2.1.8 Duties of the licence holder a) The Customs client number must be:


ii) Reflected in the authorisation for any agent to transact the business to which the licence relates. b) The licence holder must not allow any other person to use such licence in any Customs business or







f) The premise where the transactions take place must be the one approved by the Controller / Branch




PROCEDURE STEP Manager for that purpose.

g) A licensee must always present a copy of a licence when demanded by Customs Officers. h) A contract concluded between a licensee and another person to perform any of its functions must not

relieve the licensee of its responsibilities under the Act and this procedure. 2.2 Pre licensing of a SOS for second hand vehicles

Client collects application forms

(DA185, DA185.4B4) or prints them from the

website

Client hands in completed form to the SARS Customs Office

Is everything in order? No

An interview is arranged with the client

Has the client been successful in the

interview?

No

Yes

SARS Customs accepts

Yes

No

Is the application correct?

Yes

The client is advised to get a premises and thereafter to submit updated application

forms

Yes

Return to client with reasons

Advise client




PROCEDURE STEP a) The importation of second hand vehicles into South Africa is prohibited and / or restricted unless under

a permit issued by ITAC. The inbound / transit removal of such is prohibited from removal on their own wheels and may only be done by carriage on authorised modes of carriage.

b) An SOS may under no circumstances be approved in the immediate vicinity or close proximity of a

land port of entry. All SOS applications may only be approved by Head Office. c) Imported second hand vehicles must be exported and Sections 18, 18A and 64D and the Rules

thereto must be adhered to. d) Customs will peruse the documentation and ensure that everything is in order. e) If the application is not favourable, the client will be informed in writing by the Group Manager / Team

Leader in charge of registrations that the application was unsuccessful, citing the reasons. f) If the application is successful an interview will be set up with the Directors / Client, during which the

following information must be produced:

i) What is the estimated number of imports / units per year to be imported? ii) What is the period of storage? Is the applicant aware of the time limit for the storage of goods in

a warehouse? iii) Who is / are the applicant’s supplier(s)? iv) Will the applicant be importing for him- / herself or on behalf of other importers? v) Is the applicant related in any way to either the supplier(s) or importer(s) vi) Are the supplier and importer related in any way? vii) If the applicant has foreign partners, do they have a registered business in South Africa? viii) Is the applicant registered for VAT, Income Tax and / or the applicable taxes? ix) How many staff members will be employed? x) Who will manage the SOS? xi) Will the applicant own the proposed premises or will it be leased? If it will be leased, please

provide a copy of the lease with the site plan. xii) What type of security measures will be engaged at the premises? If the services of a security

company will be used, which security company will it be? xiii) How many vehicles will the SOS be able to accommodate and will it be able to accommodate

large vehicles, e.g. trucks? xiv) Is the applicant aware of the rules and legislation regarding the removal of vehicles by own

wheels and licensed removers; as well as the receipt, storage and removal of vehicles from the warehouse?

xv) Would you be applying for a license as a remover of goods in terms of Section 64D? xvi) Has or will the Fire department and Health department done an inspection on the premises? If

so please supply a copy of the clearance certificate with the site plan. xvii) Have you registered with the SAPS as a second hand goods dealer? If so please supply a copy

of the approval letter. xviii) How and from where do you intend to source your buyers? xix) How will potential buyers view the vehicles? xx) If necessary, what form of collateral do you intend ceding for your surety / bond? xxi) In terms of the Foreign Exchange Control regulations how and when do you intend making

payment to your supplier/s? xxii) Have you been involved in any Customs contraventions / offences or any other contraventions?

If so please supply details thereof. b) If the interview is successful, the Group Manager / Team Leader in charge of registrations will advise

the client that they can now look for a premises and supply updated application forms with the site plan for final application to the office within thirty (30) days.

c) The client must be advised that no signed contracts etc. are to be entered into at this stage and that

under no circumstances may the warehouse be erected within the immediate vicinity or close proximity of a land port of entry/exit.




PROCEDURE STEP d) Applicants that must still comply with the pre-approval requirements must understand that approval will

be granted only when all obligations have been met and that they may not conduct business until they have received final confirmation of licensing.

2.3 Licensing of a SOS for second hand vehicles




PROCEDURE STEP 2.3.1 Processing of SOS for second hand vehicles licence applications a) All applications for a licence must be submitted to the enquiry or admin counter. b) If the application does not meet all the specified requirements the application will be declined by the

Group Manager / Team Leader in charge of registrations and the applicant informed thereof with the reasons therefore.

c) When all required information and completed documentation has been submitted, the Admin / Enquiry

Officer will issue an acknowledgement of receipt of application to the client. d) If the application is approved the SARS Customs Office will continue with the site inspection and the

warehouse bond. e) If rejected the client will be informed accordingly. f) If the applicant meets all requirements they will be informed and where security is applicable, the

surety on the applicable form will be prepared as per policy SC-SE-05 and the client will be informed to collect it.

g) If the applicant meets all requirements as prescribed in the Customs legislation and this procedure a

Customs code will be generated and issued to the client. h) The applicant is then legible to conduct business with SARS as per approved client type. 2.3.2 Rejection of a SOS for second hand vehicles licence application a) If at any point during the application process, the application is found to be incomplete, it must be

rejected and returned to the applicant. b) The reason(s) for rejection must be communicated to an applicant in writing. c) The application may be resubmitted once all requirements have been met. 2.3.3 Issuing of a SOS for second hand vehicles licence a) The licence will be issued in the name of the applicant. b) No alterations may be effected on the licence document by the licensee. If mistakes occur during

completion of the form, the Customs officer must re-issue a new licence. No correction fluid (tippex) is allowed on these documents.


i) Name of the licensee. Care must be taken to ensure that the correct legal names are recorded on the licence;

ii) Customs client number; iii) The purpose for which the licence is issued; iv) Unique warehouse number; v) Any special conditions to which the licence is subjected to; vi) The address of the premises to which the licence is issued; and vii) The date from which the licence takes effect and where applicable the expiry date.


handed to the applicant upon collection or be sent by registered mail to the applicant.




PROCEDURE STEP 2.3.4 Change in particulars of a SOS for second hand vehicles licence a) Whenever any of the particulars furnished in any application for licence changes, the licensee must

advise the Controller within seven (7) days of the occurrence of such event by submitting a DA 185 and / or the relevant annexure, reflecting the changed particulars.


i) Where the legal status or the name of the licensee changes for any reason; ii) Address; iii) Directors of a entity; or iv) Individual(s) who has / have sufficient knowledge of Customs procedure.

c) Change in legal identity will require a new application supported by all relevant documents and bonds. 2.3.5 Change of ownership of a SOS for second hand vehicles a) In case of ownership change, the legal entity holding the licence prior to the change has to continue to

exist after the change. If the original licence holder ceases to exist as a result of a change of ownership, a new licence application has to be made and new bonds are required.




i) A certified copy of revised articles or certificate showing the new legal name; ii) A list of current directors; and iii) If security is needed, a bond must be submitted to reflect the new name.


licence is granted to individual or partnership. 2.3.6 Amalgamation of a SOS for second hand vehicles a) During amalgamation, the final legal entity which results from the amalgamation has to have existed




2.3.7 Change of name of a SOS for second hand vehicles a) In case of name change, the notification must include the following:



on an identity document reflecting such change. If security is needed, a bond must be submitted to reflect such change.




PROCEDURE STEP 2.3.8 Relocation of a SOS for second hand vehicles a) The relocation of the warehouse must only be allowed if the proposed site is located in the same

Controller / Branch Manager’s area of control and subject to meeting the terms and conditions of the licence.

b) The existing unique warehouse number must be retained if relocation occurs in the same Controller /

Branch Manager’s area with the necessary endorsement of the change on the licence. c) If the warehouse is to relocate to another area of control, the warehouse licence must be cancelled

and a fresh application lodged for the new address. d) When the change in location is contemplated, the licensee must advice the Controller / Branch


e) An application for relocation must be treated in the same manner as the new application. The same

DA 185 and applicable annexure must be completed. f) An inspection will once again be conducted to ascertain that the new business location meets all the

prescribed requirements. g) Where the licence fee is applicable, it must not be charged for the new location falling within the same


h) The Controller / Branch Manager may cancel the existing licence if the licensee relocates without

obtaining prior approval. 2.3.9 Alteration of a SOS for second hand vehicles a) Where alteration to the existing building is contemplated, an originally signed and stamped site plan

must be submitted to the Controller / Branch Manager in whose control the premise is situated at least sixty (60) days prior to the effective date of alteration.

b) The application for alteration must be treated in the same manner as the new application. c) A plan must be approved and the building inspected by the Controller / Branch Manager before

commencement of any Customs operations. 2.3.10 Refusal of a SOS for second hand vehicles licence a) Section 60(2) empowers the Commissioner to refuse any application, for a new licence or refuse any

application for licence renewal, subject to review by the High Court, if the applicant commits the following:

i) Does not comply with the requirements of such application as specified by rule or by any

condition imposed by the Commissioner. ii) Has made a false or misleading statement with respect to any material fact or omits to state any

material fact which was required to be stated in the application for a licence. iii) If an applicant or an employee of the applicant has:

A) Contravened or failed to comply with the provisions of the Act. B) Been convicted of an offence under the Act. C) Been convicted of an offence involving dishonesty. D) Failed to comply with any condition or obligation imposed by the Commissioner in respect

of licensing. b) The above-mentioned subparagraphs must not apply in respect of an employee if it can be proven that

the applicant was not a party or could not prevent any such act or omission by the employee.




PROCEDURE STEP c) When an application for licence / licence renewal is refused, the SARS Customs Office will inform the

client. The client will be notified of the reason(s) on the form. d) In cases where clients are not satisfied with any decision taken in terms of the Customs and Excise


e) Should clients be unhappy with a decision of any appeal committee their recourse will be to lodge an


f) The applicant may also refer the matter to the High Court. 2.3.11 Suspension of a SOS for second hand vehicles licence a) The licence may be suspended if the following instances occurs to the holder:

i) Failed to pay any amount demanded under the Act within thirty (30) days from the date of the demand.

ii) Failed to inform SARS of any changes as required from the licence holder. iii) If the applicant or an employee has:

A) Contravened or failed to comply with the provisions of the Act. B) Been convicted of an offence under the Act. C) Been convicted of an offence involving dishonesty. D) Failed to comply with any condition or obligation imposed by the Commissioner in respect

of the licence. iv) The above-mentioned subparagraphs must not apply in respect of an employee if it can be


b) Where the licence is to be suspended, the holder will be advised in writing by the relevant SARS

Customs Office. c) A licensee whose licence has been suspended may only perform outward entries until the final

decision has been taken about the suspension. d) Before any licence is suspended, except when any demand for any amount remains unpaid for a




the licence should not be suspended. e) When the suspension case has been finalised the client will be informed in writing. f) The registered letter will stipulate:


g) No part of any licence fee is refundable on suspension of a licence. h) In cases where clients are not satisfied with any decision taken in terms of the Customs and Excise

Act they have a right of appeal to the relevant appeal committee. The policy in this regard, as well as




PROCEDURE STEP the process to be followed, is contained in SC-CC-24.



j) A client may also refer the matter to the High Court. 2.3.12 Reinstatement of a SOS for second hand vehicles licence a) If the request for reinstatement is approved and the appropriate steps have been taken to prevent

occurrence(s) of a similar nature in future, the proposed licence may be reinstated. b) The Client will be informed of reinstatement by the relevant Branch Office / Hub. c) Reinstatements can also occur when the decision of cancellation is overturned by either an Appeal

Committee or the Court. In these circumstances the LRCC will inform the client and Branch Office / Hub accordingly of the reinstatement.

2.4 Cancellation of a SOS for Second Hand Vehicle Licence initiated by SARS


Customs Office. a) Before any licence is cancelled, except when any demand for any amount remains unpaid for a period



cancellation.




PROCEDURE STEP iii) Provide a client with a reasonable opportunity to respond and make representation as to why

the licence should not be cancelled. b) Once the office is satisfied that the client has no outstanding debt with SARS, the licence will be

cancelled. c) The cancellation letter will be sent via registered mail to the clients stipulating the reason(s) for such

cancellation. d) No part of any licence fee is refundable on cancellation. e) A client whose licence has been cancelled may not perform any Customs activity relating to that

licence. f) A cancelled licence will not be reinstated. The holder of the licence that has been cancelled has to

apply for a new licence to conduct business with SARS. g) In cases where clients are not satisfied with any decision taken in terms of the Customs and Excise




i) A client may also refer the matter to the High Court. 2.5 Cancellation of a SOS for Second Hand Vehicle Licence initiated by licensee




PROCEDURE STEP a) The client must submit a cancellation request on a DA 185 to the relevant Branch Office / Hub. b) An inspection will be conducted and once the application has been verified the SARS Customs Office



3 QUALITY RECORDS Number Title DA 103 Customs and Excise Licence DA 185 Application form: Registration / Licensing of Customs and Excise Clients DA 185.C Security Particulars DA 185.4B4 Special Storage Warehouse SC-CF-05-A19 Requirements to process DA 185 SC-CF-05-A20 Confirmation of Authentication SC-CF-19-FR01 Request for cancellation / suspension of licence / registration SC-SE-05-A1 Assessment for Security Requirements 4 REFERENCES 4.1 Legislation TYPE OF REFERENCE REFERENCE Legislation and Rules administered by SARS:

Customs and Excise Act No. 91 of 1964: Sections 4, 6 18, 18A, 19, 21, 23, 60, 61, 64D, 77A-I, 78, 79, 80, 84, 87, 88 and 89 Customs and Excise Rules: 18.13, 18, 18A.10, 19, 60, 64D,77H120.08, 120.09, 120.10 and 120.11, and Schedule 8 Value Added Tax Act No. 89 of 1991: Section 13, Schedule 1

Other Legislation: Promotion of Administrative Justice Act No. 3 of 2000: Sections 3, 4 and 5 National Road Traffic Act No. 93 of 1996: All


Kyoto Convention General Annex: Chapter 3 Clearance and other Customs Formalities, Standards 3.6 and 3.21; Chapter 5 Security, Standards 5.1; 5.2; 5.4; 5.6 and 5.7; Chapter 7 Information Technology, Standards 7.1 and 7.4; Chapter 8 Relationship between Customs and Third Parties, Standards 8.1; 8.2; 8.3; 8.4; 8.6 and 8.7; Chapter 9 Information, Decisions and Rulings Supplied by Customs, Standards 9.4 and 9.8; Chapter 10 Appeals in Customs Matters, Standards 10.1; 10.2; 10.3;10.5; 10.6; 10.7; 10.8; 10.9; 10.10; 10.11 and 10.12 Kyoto Convention Specific Annex A Chapter 2 Temporary Storage of Goods, Paragraphs 2 and 6; Annex D Chapter 1 Customs Warehouses, Paragraph 4; Annex E Chapter 1 Customs Transit, Paragraph 5 WCO SAFE Framework of Standards: None


Policy All

SC-CF-23 Manual for the completion of DA 185 All SC-SE-05 Bonds – External Policy All




5 DEFINITIONS AND ACRONYMS Act Customs and Excise Act No. 91 of 1964 Applicable Officer Officer assigned to perform any of the functions relating to Licensing and

Registration BLNS The Republic of Botswana;

The Kingdom of Lesotho; The Republic of Namibia; and The Kingdom of Swaziland



CC Close Corporation ITAC International Trade Administration Commission Licensing Licensing is a formal permission from a government or any constituted authority to

perform a specified business or profession that also contains rules and regulations on how such business or profession shall be conducted. The purpose of licensing is to restrict unauthorised entry into a specified business or profession and also serves as a regulatory activity that gives guidance on acceptable behaviour and practice. It must be seen as a privilege to conduct these types of functions



SOS Special Storage Warehouse 6 DOCUMENT MANAGEMENT Business Owner Group Executive: Customs Trade Operations Document Owner Executive: Process Solutions Customs & Support Services Author P Jones Detail of change from previous revision



ECS-TM-15 – Rev 3


Registration for Deferment - External SOP SC-CF-19-S16



EXTERNAL


REGISTRATION FOR DEFERMENT




TABLE OF CONTENTS 1 SCOPE 3 2 PROCEDURE 3 2.1 Client Authentication Process Flow 3 2.2 Registration for Deferment application process flow 5 2.2.1 Persons who may apply for registration to partake in the deferment scheme 6 2.2.2 Documents needed for application to partake in the deferment scheme 6 2.2.3 Additional information 7 2.2.4 Conditions for registration to partake in the deferment scheme 7 2.2.5 Processing of deferment application 7 2.2.6 Rejection of application for registration to partake in the deferment scheme 8 2.2.7 Approval of registration to partake in the deferment scheme 8 2.2.8 Duties of the deferment registrant 8 2.2.9 Change in particulars of deferment registrant 9 2.2.10 Refusal of application for deferment registration 9 2.2.11 Suspension or termination of the deferment facility 9 2.2.12 Reinstatement of deferment facility 10 2.3 Cancellation of deferment scheme initiated by SARS 10 2.4 Cancellation of deferment account initiated by client 11 3 QUALITY RECORDS 11 4 REFERENCES 12 4.1 Legislation 12 4.2 Cross References 12 5 DEFINITIONS AND ACRONYMS 12 6 DOCUMENT MANAGEMENT 12




1 SCOPE a) This procedure covers the application procedure for registration of deferment concerning Customs

duties and VAT (if and where applicable). b) This procedure outlines the legal requirements of who may participate in the deferment scheme. c) The document also outlines the processes for client and bank detail authentication, refusal,

suspension, cancellation and reinstatement of deferment clients. d) SC-DT-B-02 contains account management and consequences for late or non settlements. 2 PROCEDURE 2.1 Client Authentication Process Flow



master details (company name, registration number and physical address) of the application form together with the portion on banking details. It is not a requirement to complete the entire form.



























the application and supporting documents will be submission to the SARS Customs Office for further processing and capturing purposes.




2.2 Registration for Deferment application process flow




PROCEDURE STEP 2.2.1 Persons who may apply for registration to partake in the deferment scheme a) Clients wanting to partake in the deferment scheme must apply to the local SARS Customs Office and

when registered to partake in the scheme, clients may then defer the payment of Customs duties and VAT at the time of importation for up to thirty (30) days.

b) The DA 650 to register for participation in the deferment scheme is available from the SARS website

(www.sars.gov.za) or they can be collected from the nearest SARS Customs Office. c) The respective application form must be handed in at the SARS Customs Office where the client’s

main business is situated. d) Clients must ensure that they list all the respective offices that they want to participate at on the

application form. e) Deferment applications are open to all clients irrespective of trading profile, i.e. “newly” registered

businesses may apply for this facility and they will be assessed according to SC-SE-05. f) The Commissioner may require security before any registration is approved. g) The following person(s) may apply to partake in the deferment scheme:

i) A natural person who is a citizen or permanent resident of South Africa who is at least 21 years old and has an established place (fixed physical address) of business in South Africa.

ii) A juristic person incorporated in South Africa or if not incorporated in South Africa must have an established place (fixed physical address) of business in South Africa.

iii) In case of a juristic person incorporated in South Africa the majority of the directors or members must be citizens or permanent residents of South Africa. The amount of shares that each director holds is not necessary.

iv) A partnership or a trust consisting of individuals who are citizens or permanent resident of South Africa and are at least 21 years old.

v) A person having the effective management of an association of persons whether or not formed in South Africa that has an established place (fixed physical address) of business in South Africa.

vi) In case of the following: A) A deceased estate, the executor of the estate; and B) An insolvent estate, the trustee.

h) Any individual partaking in the deferment scheme must also be a registered SARS: Customs client. 2.2.2 Documents needed for application to partake in the deferment scheme a) The client must complete the DA 650, and the application must be originally completed and signed. b) The client must comply with the provisions outlined in SC-SE-05. c) The information contained in the application form will be treated confidentially by SARS. d) Any client who has overdue debt(s) to SARS will not be allowed to partake in this scheme. e) The following originally certified copies or original documents where applicable must accompany the

application for participation in the deferment scheme:

i) Proof of financial income for a period of three (3) years, (not applicable to newly established business);

ii) Audited financial statement and balance sheet signed off by the audit officer, also (not applicable to newly established businesses);

iii) Copies of all Directors’ or Members’ identity documents; iv) Board resolution / consent if applicable;





PROCEDURE STEP v) Certificate of Incorporation if applicable; vi) Proof of physical address not older than three (3) months– municipal account or telephone

account, etc.; vii) Proof of previous SARS transactions for at least one (1) financial year, (not applicable to newly

established businesses); viii) Income tax number; ix) VAT registration number; x) Details if applicable of Accountant, and xi) Customs client numbers.

2.2.3 Additional information a) The applicant must also disclose as to whether the following instances had occurred in the past five

(5) years prior to submitting an application:



fact which was required to be stated in the application for registration or renewal or for any other purpose under the Act; and

vi) Insolvency or liquidation. b) Full details must be furnished with the application if any of the above did occur. c) The applicant must inform the Commissioner within seven (7) days of occurrence of any of the


i) No longer carries on the business for which the registration was issued. ii) Is no longer qualified according to the qualifications prescribed in the Rules.

2.2.4 Conditions for registration to partake in the deferment scheme a) It is a SARS requirement that all Customs debts incurred when goods are cleared must be secured if

they are not being paid at that time. b) The granting of deferment of duty and VAT therefore depends on the provision of adequate security,

which will be determined according to the principles outlined in SC-SE-05. c) Clients must only complete the fields where their details are required thereby preserving the integrity

of the content of the forms and agreement. d) The security must be on prescribed form, which is specifically worded to cover the deferment scheme

and no alterations or amendments to this document will be accepted. e) The amount of the security is determined according to the provisions outlined in SC-SE-05. f) SARS does not charge a fee for the approval and acceptance of the security. 2.2.5 Processing of deferment application a) All applications must be submitted to the enquiry or admin counter. b) When all required information and completed documentation has been submitted an

acknowledgement of receipt of application will be provided to the client.




PROCEDURE STEP c) Where security is applicable, the client needs to comply and provide such on the applicable form as

per SC-SE-05. d) Once the surety from the financial institution has been provided the client must return such to the

respective SARS Customs Office. e) SARS will then further process the application together with the bank stamped security form and if

applicable, the licence fee must be paid. f) If the applicant meets all the requirements as prescribed in the Customs legislation and this procedure

a Customs code will be generated and issued. g) Refer to the flowchart for detailed process (see 2.2 Registration for deferment application). h) The applicant may then conduct business with SARS. 2.2.6 Rejection of application for registration to partake in the deferment scheme a) If at any point during the application process, the application is found to be incomplete, it will be

rejected and returned to the applicant. b) The reason(s) for rejection will be communicated to an applicant in writing. c) The application may be resubmitted once all requirements have been met. 2.2.7 Approval of registration to partake in the deferment scheme a) Once the application (DA 650) and bond are approved, the client will receive a Certificate of Approval

(DA 652) under cover of the approval letter for participation in the scheme. b) The DA 652 for the BLNS will reflect a unique deferment number which must be quoted on each

request for deferment. c) Alterations may not be effected on the DA 652. If mistakes occur during the completion of the

certificate, the officer must re-issue the certificate. No correction fluid (tippex) is allowed on this document.

d) Any future correspondence must also reflect this number. 2.2.8 Duties of the deferment registrant a) The deferment registrant details / number must be quoted in all communications with SARS and must

be reflected on all prescribed documents for transacting Customs business. b) The deferment registrant is responsible for the usage and safekeeping of the respective deferment

account details. c) The transactions on this account must be open to authorised Customs Officers at all reasonable times

for verification of records, declarations, and transactions relating the deferment holder. d) The deferment registrant mustl keep proper records of books, accounts any data created by means of

a computer, of all transactions relating to the activity in respect of the registration for a period of five (5) years calculated from the end of the calendar year in which any such document was created, lodged or required for any Customs procedure.

e) Any directives issued by the Commissioner, in connection with procedures applicable to deferments,

subsequent to the date of application, or during the validity period of the registration, issued on approval of the said application, must be deemed to be part of the afore-mentioned terms and conditions, from the date on which such directives are issued, and must be observed by the deferment




PROCEDURE STEP registrant as if they were included therein and duly subscribed to by the deferment registrant.

f) A deferment registrant must always present a copy of the DA 652 when demanded by Customs

Officers. g) A contract concluded between a deferment registrant and another person to perform any of its

functions must not relieve the deferment registrant of its responsibilities under the Act and this procedure.

2.2.9 Change in particulars of deferment registrant a) The client is responsible for informing SARS immediately if any of the deferment particulars change. b) SARS must be notified immediately and the procedures as defined in SC-SE-05 must be followed, if:-

i) The Financial Institution changes. ii) The client’s name changes – a certificate of incorporation must be provided. iii) The client’s address changes – proof of physical address must be supplied by way of a

municipal account or telephone account, etc. iv) The client’s VAT registration number changes. v) The entity ceases to trade or if the business is to be carried on by another legal entity. vi) The deferment account must be cancelled. vii) Change of Director, i.e. resignation or additions.

c) Failure to adhere to the FICA regulations will result in the applicable penalties been imposed. d) Any application for amendment of dates, or an increase, or decrease of deferment LIMITS, will require

a bond to be completed and approved accordingly. e) All outstanding amounts must be settled in full before the change will be effected. 2.2.10 Refusal of application for deferment registration a) When an application for deferment is refused, the SARS Customs Office will inform the client. The

client will be notified of the reason(s) on the form. b) In cases where clients are not satisfied with any decision taken in terms of the Customs and Excise




d) A client may also refer the matter to the High Court. 2.2.11 Suspension or termination of the deferment facility a) In the case that a client defaults the following will apply:

i) For the first default, a penalty as prescribed by the penalty policy will be payable plus interest as prescribed by the Commissioner. The client will be suspended from the scheme for a period of one (1) month from statement closing date.

ii) For the second default, a penalty as prescribed by the penalty guidelines will be payable plus interest as prescribed by the Commissioner. The client will be suspended from the scheme for a period of two (2) months from the statement closing date.

iii) For the third default, a penalty as prescribed by the penalty guidelines will be payable plus interest as determined by the Commissioner and the client will be removed from the scheme. In




PROCEDURE STEP this case, the client may not be reinstated on the scheme and would need to submit a new application. A minimum period of a twelve (12) calendar month must elapse before participation can be re-considered.

b) SARS may stop the client from making use of the deferment scheme and / or suspend their approval

at any time for reasonable cause:

i) If the client ceased to trade for a period of six (6) months; ii) If the guarantor has withdrawn the security; or iii) Any other SARS debt is outstanding.

2.2.12 Reinstatement of deferment facility a) The respective SARS Customs Office will reinstate all the first and second default clients. b) All requests for deferment reinstatement after the third default must be forwarded to the Trader

Management Office. c) The SARS Customs Office will inform the client of the outcome. d) Cancelled deferment accounts will not be reinstated. The deferment account that has been cancelled

must re-apply for a new deferment account to conduct business with SARS. 2.3 Cancellation of deferment scheme initiated by SARS







cancellation.




PROCEDURE STEP d) Once the office is satisfied that the client has no outstanding debt with SARS, the registration will be


registration. f) In cases where clients are not satisfied with any decision taken in terms of the Customs and Excise




h) A client may also refer the matter to the High Court. 2.4 Cancellation of deferment account initiated by client


will acknowledge receipt and submit the application to Debt Collection if required. c) If no debt follow-up is required the client’s bond, registration and client number will be cancelled


3 QUALITY RECORDS Number Title DA 650 Application for Deferment DA 652 Certificate of Approval to partake in the Deferment Scheme DA 70 Application for Provisional Payment SC-CF-05-A19 Requirements to process DA 185 SC-CF-05-A20 Confirmation of Authentication





Customs and Excise Act No. 91 of 1964: Sections 39(1b), 40(1)(e), 40(3)(i), 59A(2)(a), 64E(2)(b), 78, 105 and 114(1)(a)(i) Customs and Excise Rules: Rules 39.09, 59A.01, 59A.03(1), 64E, 120.08 and 120.09 Value-Added Tax Act No. 89 of 1991: Sections 13(4), 13(6) and 39(4)

Other Legislation: None International Instruments: Kyoto Convention - General Annexure Chapter 4 – B - Duties and Taxes,

Standards 4.15, 4.16 and 4.17 4.2 Cross References DOCUMENT # DOCUMENT TITLE APPLICABILITY SC-CF-04 Manual for Completion of Declarations All SC-CF-19 Registration, Licensing and Designation – External Policy All SC-DT-B-02 Deferment – External Policy All SC-SE-05 Bonds – External Policy All 5 DEFINITIONS AND ACRONYMS BLNS The Republic of Botswana;

The Kingdom of Lesotho; The Republic of Namibia; and The Kingdom of Swaziland

CAPE Customs Automated Processing of Entries system CCA1 System Common Customs Area System Defer Temporary suspension of duties and taxes for a period of up to thirty (30) days EFT Electronic Funds Transfer FSB Financial Services Board Registered participant / Client

Any client registered with SARS to partake in the deferment scheme

SARS Customs Office Relates to the respective SARS Customs Office, Border Post, Hub that handles and processes the application forms




ECS-TM-15 – Rev 3


Registration for Electronic Data Interchange and ACM Applications - External SOP SC-CF-19-S14



EXTERNAL


REGISTRATION OF ELECTRONIC DATA

INTERCHANGE AND ACM APPLICATIONS




TABLE OF CONTENTS 1 SCOPE 3 2 PROCEDURE 3 2.1 Client Authentication Process Flow 3 2.2 Registration for Electronic Communication with SARS in respect of Electronic Data Interchange

(EDI) 5 2.2.1 Person(s) who may apply to conduct electronic communication with SARS and documents needed6 2.2.2 Additional Information 6 2.2.3 Conditions for registration for electronic communication with SARS 6 2.2.4 Processing of electronic communication with SARS registration applications 7 2.2.5 Rejection of electronic communication with SARS registration applications 7 2.2.6 Duties of the registrant 7 2.2.7 Change in particulars of an electronic communication registrant 8 2.2.8 Refusal of an application for electronic communication with SARS registration 8 2.3 Application for ACM 9 2.3.1 Person(s) who may apply for ACM with SARS and documents needed 10 2.3.2 Rejection of ACM registration applications 11 2.3.3 Change in particulars of a ACM registrant 11 2.3.4 Change of ownership of a ACM registrant 12 2.3.5 Amalgamation of a ACM registrant 12 2.3.6 Change of name of a ACM registrant 12 2.3.7 Refusal of an application for ACM registration with SARS 13 2.3.8 Suspension of a ACM registration 13 2.3.9 Reinstatement of a ACM registration 13 2.3.10 Vessel updates 14 3 QUALITY RECORDS 14 4 REFERENCES 14 4.1 Legislation 14 4.2 Cross References 14 5 DEFINITIONS AND ACRONYMS 15 6 DOCUMENT MANAGEMENT 15




1 SCOPE a) This document outlines the procedures forregistration for electronic data interchange (EDI) for the

following communication areas:

i) Import declarations. ii) Export declarations. iii) Refund applications. iv) Cargo Manifests (outturn reports, manifests, schedule and arrival information, discharge and

load information and gate-in and gate-out information). v) Electronic release messages and release authorities. vi) Cross border movements.

b) It further identifies the requirements relating to the registration of cargo reporters for the purpose of

electronically communicating the prescribed reports set out in the Rules to Section 8 for the effective operation of the Automated Cargo Management System (ACM).

c) The document also outlines the process of refusal, cancellation, suspension and reinstatement of the

registration for electronic communication with SARS. 2 PROCEDURE 2.1 Client Authentication Process Flow




PROCEDURE STEP h) Only the original copy of this document is acceptable and must be presented to SARS. A new letter of





2.2 Registration for Electronic Communication with SARS in respect of Electronic

Data Interchange (EDI)




PROCEDURE STEP 2.2.1 Person(s) who may apply to conductelectronic communication with SARS and documents

needed a) A South African registered user who is responsible for supplying or receiving electronic data too and

from the Commissioner may apply for electronic communication with SARS. b) Such person must complete and submit a DA 185, DA 185.4A6, Electronic Communication User

Agreement as found in Rule 101A. The cell phone number and email address of the authorised person on DA 185.4A6 are compulsory.The application must also be accompanied by a pro-forma agreement specified in Rule 101A.

c) The application forms are available from the SARS website (www.sars.gov.za) or they may be

collected from the nearest SARS Customs Office. d) The User Agreement must be signed and initialled by the applicant and two (2) witnesses on all pages. e) See manual SC-CF-23 on how to complete DA 185 and DA 185.4A6. f) The applications must be originally completed and signed and the applicant must courier the EDI

documents. If the applicant chooses to hand-deliver, the application to the SARS Customs Office it must be handed in to the Client Interface Team.

g) A covering letter on an official company letterhead requesting digital certificate from SARS. This

covering letter must state the company particulars, the client number and whether the applicant is a new or existing Electronic Data Interchange (EDI) User.

2.2.2 Additional Information a) The applicant must also disclose on the DA 185 as to whether the following instances had occurred in








2.2.3 Conditions for registration for electronic communication with SARS a) No person may register to transact business with SARS until all obligations relating to registration

have been met. b) A clearing / registered agent may not apply for registration on behalf of an applicant.





PROCEDURE STEP c) The registration is issued subject to the condition that the registrant or at least one (1) of the

registrant’s employees has sufficient knowledge of Customs laws and procedures to ensure that activities relating to registration are conducted efficiently and in compliance with the provisions of such laws and procedures.

d) The person designated in section D of DA 185.4A6, who also appears on the resolution / consent or

any other authority, must present the application in person and will be subjected to the verification process.

e) A user must enter into a user agreement as prescribed in Section 101A and its Rules. Details

concerning registration can be found under Section 1.6 to the SARS EDI User Manual. f) The user must:-

i) Inform SARS immediately if the digital signature has been tampered with; ii) Be liable for all liabilities and obligations arising from the electronic communication with SARS;

and i) Abide by the conditions as stipulated in the user agreement.

2.2.4 Processing of electronic communication with SARS registration applications a) The Admin / Applicable Officer must issue an Acknowledgement of Receipt (V14) as attached in

SARS EDI USER Manual if it is either a AS2 or AS3 application. b) Once the AS2 / AS3 application has been accepted, the authorised EDI Business Administrator will log

on to the Third Party Server and request a digital certificate. c) A one-time authorisation code and reference number, to enable the download of the certificate must

be sent via email to the email address and SMS to the cell phone number of the Service Provider. d) The Service Provider downloads a Public Key where after a request is logged to set up a profile on the

gateway, if it is a X.400 application the EDI Administrator will log the application. e) On confirmation, the profile will be sent to the client and be activated. f) The applicant is then legible to conduct business with SARS as per approved client type. 2.2.5 Rejection of electronic communication with SARS registration applications a) If at any point during the application process, the application is found to be incomplete, it must be

rejected and the client must be informed. b) The reason for rejection must be communicated to an applicant. c) Once all requirements have been met the client must resubmit all outstanding issues and or

documents. 2.2.6 Duties of the registrant a) The registrant must ensure that adequate measures have been introduced to:

i) Retain control of the digital signature; ii) Prevent disclosure of digital signature to any unauthorised person; iii) Ensure that information remains complete and unaltered; and iv) Ensure that standard of reliability is in accordance with the standard of the user agreement and

the applicable section of the Act and Rule. v) To inform the Commissioner immediately if the digital signature has been compromised in one

way or the other.




PROCEDURE STEP b) The registrant must communicate with the Commissioner by paper document if the computer system

is inoperative. c) The registrant must keep proper records of books, accounts any data created by means of a




2.2.7 Change in particulars of an electronic communication registrant a) Whenever any of the particulars furnished in any application for registration changes, the registrant

must advise the Controller / Branch Manager within seven (7) days of the occurrence of such event by submitting a DA 185 and / or the relevant annexure reflecting the changed particulars.


i) Change of name and the client retains the client number, however the client must submit a new user agreement; or

ii) Where the legal status or the name of the registrant changes for any reason; or iii) Address; or iv) Directors of an entity; or v) Individual(s) who has / have sufficient knowledge of Customs laws and procedure or vi) Communication method; or vii) Service provider.

c) Change in legal identity will require a new application supported by all relevant documents. 2.2.8 Refusal of an application for electronic communication with SARS registration a) When an application for registration is refused, the client will be notified by email or SMS of the reason

for such a refusal. b) In cases where clients are not satisfied with any decision taken in terms of the Customs and Excise




d) The applicant may also refer the matter to the High Court.




2.3 Application for ACM




PROCEDURE STEP 2.3.1 Person(s) who may apply for ACM with SARS and documents needed a) Any person who is required to submit cargo reports must register. b) Every cargo reporter must be:

i) A juristic person registered in South Africa having a place of effective management in South Africa.

ii) A natural person residing in South Africa having a permanent business establishment in South Africa.

c) Any carrier, master cargo carrier, cargo carrier, container terminal operator, wharf operator, or other

principle not meeting the qualifying criteria of a cargo reporter must appoint an agent in South Africa who is so qualified.

d) Any such agent must be duly appointed by the cargo reporter and must furnish a letter of appointment

with the application for registration. e) Any shipping line or airline that complies with the requirements for registration must apply for

registration as a cargo reporter or an agent for such cargo reporter. f) A foreign road haulier must appoint a EDI enabled South African agent who is then required to register

for ACM reporting. g) All South African road hauliers carrying commercial cargo across land ports of entry / exit must

register with SARS as road hauliers for reporting their cargo to the ACM system. h) All foreign licensed remover of goods in bond must also be licensed as a remover of goods in bond

and need to appoint a registered agent. Refer to SC-CF-19-S06 and SC-CF-19-S07. i) The application forms are available from the SARS website (www.sars.gov.za) or they may be

collected from SARS Head Office. j) See manual SC-CF-26, SC-CF-27, SC-CF-28 and SC-CF-45 for the ACM registrations. k) All application must physically be submitted or couriered to Head Office. l) The following original or certified documents as the Commissioner may require in each case and

information must accompany the application:

i) Registrations certificate of business – as issued by the Registrar of Companies; ii) Letter of appointment as agent, if applicable; iii) A resolution passed at a meeting of the Board of Directors; or iv) Express consent in writing of all the members of the close corporation; and v) Identity / Passport documents of the:

A) Individual; B) All members of the Close Corporation; and C) All directors, including the Managing Director and Financial Director of the company.

m) Cargo reporters must also ensure that they have registered as electronic users with SARS after

registration for submitting cargo reports to ACM and cognisance of the following procedures and requirements is vital. The specific application forms for the manifest processes are as follows (refer to SC-CF-26, SC-CF-27, SC-CF-28 and SC-CF-45 for the completion manuals):





PROCEDURE STEP i) Maritime Industry

International sea carrier DA 8, DA 8.01 and DA 8.02 Master cargo carrier and cargo carrier

DA 8 and DA 8.02

Container terminal operator and wharf operator

DA 8 and DA 8.03

Licensed container depot operator DA 8 and DA 8.04

ii) Airfreight Industry

International Air Carrier DA 8A and DA 8A.01 Freight Forwarder and Master cargo carrier

DA 8A and DA 8A.02

Transit Shed Operator DA 8A and DA 8A.03 Off-Airport De-Groupers DA 8A and DA 8A.04

iii) Rail Carrier - DA 8B and DA 8B.01.

iv) Road Carrier –DA 8C and DA 8C.01.

n) The application forms listed above must be submitted to the Head Office: Trader Management, for

processing, and approval purposes. Further details and updates are also available at http://www.sars.gov.za/home.asp?pid=558.

o) Particular care must be taken to ensure that mandatory information is provided to avoid any delay in

the registration process. 2.3.2 Rejection of ACM registration applications a) If at any point during the application process, the application is found to be incomplete, it must be

rejected and returned to the applicant. b) The reason(s) for the rejection must be communicated to the applicant. a) Where the reason(s) for rejection is / are of an administrative nature assistance will be afforded to the

applicant to be compliant. c) The application may be resubmitted once all requirements have been met. 2.3.3 Change in particulars of a ACM registrant a) Whenever any of the particulars furnished in any application for registration changes, the registrant

must advise Head Office within seven (7) days of the occurrence of such event by submitting a DA 185 and / or the relevant annexure reflecting the changed particulars.


i) Where the legal status or the name of the registrant changes for any reason; or ii) Address; or iii) Directors of an entity; or iv) Individual(s) who has / have sufficient knowledge of Customs laws and procedure.

c) Change in legal identity will require a new application supported by all relevant documents and bonds

if required.

http://www.sars.gov.za/home.asp?pid=558




PROCEDURE STEP 2.3.4 Change of ownership of a ACM registrant a) In case of ownership change, the legal entity holding the registration prior to the change has to





i) A certified copy of amendment to the articles of incorporation; and ii) A list of current directors.


registration is granted to individual or partnership. 2.3.5 Amalgamation of a ACM registrant a) During amalgamation, the final legal entity which results from the amalgamation has to have existed



i) A copy of amendments to the articles of incorporation reflecting the change; and ii) The names of any new directors that may have joined as a result of the change.

2.3.6 Change of name of a ACM registrant a) In case of name change the notification must include the following:



an identity document reflecting such change. c) Whenever any of the particulars furnished in any application for ACM registration changes in a

material way, the registrant must advise the Head Office within (7) seven days of the occurrence of such event by submitting a DA 8 and the relevant annex reflecting the changed particulars.

d) The changes may include-

i) The legal status or the name of the registrant; ii) Address; iii) Directors of an entity; or iv) Individuals who have sufficient knowledge of Customs and Excise laws and procedure.

e) In case of ownership change, the legal entity holding the registration prior to the change has to

continue to exist after the change. If the original registration holder ceases to exist as a result of a change of ownership, a new registration application has to be made. For example, if another company purchases the assets of a dissolved registered entity, the registration is no longer valid. The purchasing entity has to submit an application for a new registration and meet the prescribed requirements.




PROCEDURE STEP 2.3.7 Refusal of an application for ACM registration with SARS a) When an application for registration is refused, the client will be notified by email or SMS of the reason

for such a refusal. b) In cases where clients are not satisfied with any decision taken in terms of the Customs and Excise




d) The applicant may also refer the matter to the High Court. 2.3.8 Suspension of a ACM registration a) Where the registration is to be suspended the holder must be advised in writing by email or SMS. b) Before any registration is suspended, except when any demand for any amount remains unpaid for a

period exceeding thirty (30) days from the date of the demand, SARS will:



the registration should not be suspended. c) Final decision on suspension of registration must be made by email or SMS. d) The notification must stipulate:

i) The reasons for such suspension, ii) The effective date of the proposed suspension; and iii) The duration of the proposed suspension.





g) The applicant may also refer the matter to the High Court. 2.3.9 Reinstatement of a ACM registration a) If the application for reinstatement is approved and the reason(s) for the suspension no longer exist(s)


b) Client must be informed of reinstatement by email or SMS. c) Cancelled registration will not be reinstated. The holder of the registration that has been cancelled

has to re-apply for a new registration to conduct business with SARS.




PROCEDURE STEP 2.3.10 Vessel updates a) All applications for vessel / aircraft registrations must be forwarded well in advance to

[email protected]. b) The following vessel / aircraft details are required for ACM registration purposes:

i) Vessel’s / aircraft’s radio call sign; ii) Vessel’s / aircraft’s name; iii) Carrier’s name; iv) Whether the vessel / aircraft is owned, rented or operated by the carrier; and v) Type of vessel / aircraft (cellular, bulk, break bulk or multi-purpose).

c) Once completed the client will be emailed confirmation of vessel update. 3 QUALITY RECORDS Number Title DA 185 Application form: Registration / Licensing of Customs and Excise Clients. DA 185.4A6 Electronic Communication with SARS 4 REFERENCES 4.1 Legislation TYPE OF REFERENCE REFERENCE Legislation and Rules administered by SARS:

Customs and Excise Act No. 91 of 1964: Sections, 7, 8, 59A, 60, 75, 77A-I, 78-96, 101A Customs and Excise Rules: Rules 7, 8, 59A, 75, 77H-I,101A and 120A.04


Kyoto Convention General Annex Chapter 3 Clearance and other Customs Formalities: Standards 3.6 and 3.21; Chapter 5 Security: Standards 5.1; 5.2; 5.4; 5.6 and 5.7; Chapter 7 Information Technology: Standards 7.1 and 7.4; Chapter 8 Relationship between Customs and Third Parties: Standards 8.1; 8.2; 8.3; 8.4; 8.6 and 8.7; Chapter 9 Information, Decisions and Rulings Supplied by Customs: Standards 9.4 and 9.8; Chapter 10 Appeals in Customs Matters: Standards 10.1; 10.2; 10.3; 10.5; 10.6; 10.7; 10.8; 10.9; 10.10; 10.11 and 10.12; Specific Annex D Chapter 1 Customs Warehouses: Paragraph 4; Annex A Chapter 2 Temporary Storage of Goods: Paragraphs 2 and 6; Annex E Chapter 1 Customs Transit: Paragraph 5 WCO SAFE Framework of Standards: None

4.2 Cross References DOCUMENT # DOCUMENT TITLE APPLICABILITY SC-CC-24 Administrative Appeal – External Policy All SC-CC-26 Alternative Dispute Resolution – External Policy All SC-CC-38 Manifests – External Policy All SC-CC-38-S1 Manifests – External SOP All SC-CF-19 Licensing, Registration and Designation Policy – External Policy All SC-CF-23 Manual for the completion of DA 185 All SC-CF-26 Completion Manual for DA 8 – DA 8A.04 – Sea Cargo All SC-CF-27 Completion Manual for DA 8A – DA 8.01 - DA 8A.04 – Air Cargo All SC-CF-28 Completion Manual for DA 8B – DA 8B.01 – Rail Cargo All SC-CF-45 Completion Manual for DA 8C – DA 8C.01 – Road Cargo All V14 SARS EDI User Manual All

mailto:[email protected]




5 DEFINITIONS AND ACRONYMS Act Customs and Excise Act No. 91 of 1964 ACM Automated Cargo ManagementSystem CATS Compaq ASx Transport Service Controller / Branch Manager

Controller / Branch Manager of a Customs and Excise office as prescribed in the Rules

EDI Electronic Data Interchange. It is paperless transaction system which involves the electronic transfer of data of structured data by established message standards from one computer to another

Foreign Principle The foreign principle is a registered importer, registered exporter or licensed remover of goods in bond not located in South Africa as prescribed in Rule 59A.01(a)

ID Identity Document PIN Personal Identification Number Registered Agent An agent of a foreign principle who is located in South Africa and registered as

prescribed in Rule 59A.01(a) Registration Registration is defined as an activity that is permitted by right. There are two (2)

categories of registered clients, namely a) The first category is general importers and exporters. The client pays all

duties / taxes upfront before taking possession of the goods. b) The second category is clients registered for rebate facilities. These clients

are allowed to import goods without paying duties under certain conditions i.e. for processing, manufacturing, packaging with an intention of exporting them.



SMS Short Message Service SSS Systems Software Support 6 DOCUMENT MANAGEMENT Business Owner Group Executive: Customs Trade Operations Document Owner Executive: Process Solutions Customs & Support Services Author P Jones Detail of change from previous revision

Updating to bring in aspects of ACM and road manifests including the RAS authentication process for banking and master details and business owner


ECS-TM-15 – Rev 3


Licensing of Manufacturing Warehouse - External SOP SC-CF-19-S02



EXTERNAL


LICENSING OF A MANUFACTURING

WAREHOUSE




TABLE OF CONTENTS 1 SCOPE 3 2 PROCEDURE 3 2.1 Client Authentication Process Flow 3 2.2 Licensing of a Manufacturing Warehouse 5 2.2.1 Person(s) who may apply 5 2.2.2 Document needed for application purposes 6 2.2.3 Licence fee provisions 6 2.2.4 Additional Information 6 2.2.5 Manufacturing warehouse requirements 7 2.2.6 Conditions for licensing of a manufacturing warehouse 7 2.2.7 Processing of a manufacturing warehouse licence application 8 2.2.8 Issuing of a manufacturing warehouse licence 8 2.2.9 Rejection of a manufacturing warehouse licence application 9 2.2.10 Duties of the licence holder 9 2.2.11 Change in particulars of a manufacturing warehouse licence 9 2.2.12 Change of ownership of a manufacturing warehouse 10 2.2.13 Change of name of a manufacturing warehouse 10 2.2.14 Amalgamation of a manufacturing warehouse 10 2.2.15 Relocation of a manufacturing warehouse 10 2.2.16 Alteration of a manufacturing warehouse 11 2.2.17 Refusal of an application for a manufacturing warehouse licence 11 2.2.18 Suspension of a manufacturing warehouse licence 11 2.2.19 Reinstatement of a manufacturing warehouse licence 12 2.3 Cancellation of a Manufacturing Warehouse licence initiated by SARS 12 2.4 Cancellation of a Manufacturing Warehouse initiated by a Licensee 13 3 QUALITY RECORDS 14 4 REFERENCES 14 4.1 Legislation 14 4.2 Cross References 14 5 DEFINITIONS AND ACRONYMS 14 6 DOCUMENT MANAGEMENT 15




1 SCOPE a) This document outlines the standardised operating procedure on licensing of the manufacturing

warehouse. b) The document also outlines the processes of client and bank detail authentication and refusal,

suspension, cancellation and reinstatement of manufacturing warehouse licence. 2 PROCEDURE 2.1 Client Authentication Process Flow










2.2 Licensing of a Manufacturing Warehouse








PROCEDURE STEP d) A partnership or a trust consisting of individuals who are citizens or permanent resident of South Africa




2.2.2 Document needed for application purposes a) Any person who wants to apply for a Manufacturing Warehouse licence must complete DA 185 and

DA 185.4B2. (See manual SC-CF-23 on how to complete DA 185 and DA 185.4B2). ). The applications for a licence must be submitted to the relevant Controller / Branch Manager in whose control area their business is situated.


application for a Manufacturing Warehouse licence:



trustees and all directors of company; iv) An originally signed and date stamped site plan; and v) Proof of ownership, lease or address of the proposed site where Customs transactions shall



water, electricity or telephone account. 2.2.3 Licence fee provisions a) Schedule 8 prescribes licence fees for a Manufacturing Warehouse and validity period, and is payable

for the duration of the licence fee or part thereof in full. b) In terms of Schedule 8, the licence for a Manufacturing warehouse needs no renewal. c) The licence fee will not be refunded when the licensee ceases operation prior to the end of the

licensing period. 2.2.4 Additional Information a) The applicant must also disclose on the DA 185 as to whether the following instances have occurred

in the past five (5) years prior to submitting the application:






PROCEDURE STEP fact which was required to be stated in the application for licence or renewal or for any other purpose under the Act.



i) No longer carries on the business for which the licence was issued. ii) Is no longer qualified according to the qualifications prescribed in the Rules.

2.2.5 Manufacturing warehouse requirements a) The following, but not limited, requirements of the warehouse are applicable:


device which is compatible with a Customs seal. v) The building must be equipped with electrical security measures to prevent illegal delivery and

dispatch of goods. vi) The building must comply with health and safety regulations. vii) A separate area for the safekeeping of goods which have not being released due to detention


provided to ensure reliable service for the opening, unpacking and re-packing of goods. ix) The building must be independent from other buildings that serve a different purpose. Entry and

exit into and out of warehouse should not lead to other building apart from the warehouse i.e. if another floor or a portion of the building is a duty free store; there must be means of access to the latter other than through the warehouse.


xi) Building approval issued by the local municipality must be provided. b) An attached plan of the intended facility must be provided to SARS reflecting the above information. 2.2.6 Conditions for licensing of a manufacturing warehouse a) No person may transact business with SARS until all obligations relating to the licence have been met. b) The applicant may be required to pay a prescribed licence fee as prescribed in Schedule 8 before a

licence is issued. c) An agent may not apply for a licence on behalf of the manufacturing warehouse applicant. d) The licence shall be subject to the rights of any other person to whom a similar licence has been or

may be issued. e) An applicant may apply for an additional licence to conduct business at another Customs Office. f) The requirements to apply for and hold an additional licence are the same as for a new licence and all

steps in the application process must be followed. g) The licence is issued subject to the condition that the licensee or at least one (1) of the licensee’s

employees have sufficient knowledge of Customs laws and procedures to ensure that activities relating to licence are conducted efficiently and in compliance with the provisions of such laws and




PROCEDURE STEP procedures.

h) SARS may at any reasonable time inspect the warehouse in order to verify whether it complies with

the requirements as stated in the policy and rules. i) A warehouse licence may cater for more than one (1) approved warehouse within the same

Controller’s / Branch Manager’s area. 2.2.7 Processing of a manufacturing warehouse licence application a) All applications for a licence must be submitted to the enquiry or admin counter. b) When all required information and completed documentation has been submitted, the Customs Officer







a Customs code will be generated and issued. h) Refer to the flowchart (2.2 Licensing for a manufacturing warehouse) for detailed process. i) The applicant is then legible to conduct business with SARS as per approved client type. 2.2.8 Issuing of a manufacturing warehouse licence a) The licence will be issued in the name of the applicant. b) No alterations may be effected on the licence document by the licensee. If mistakes occur during






handed to the applicant upon collection or be sent by registered mail to the applicant.




PROCEDURE STEP 2.2.9 Rejection of a manufacturing warehouse licence application a) If at any point during the application process, the application is found to be incomplete, it shall be

rejected and returned to the applicant. b) The reason(s) for rejection will be communicated to an applicant in writing. c) The application may be resubmitted once all requirements have been met. 2.2.10 Duties of the licence holder a) The Customs client number must be:




c) The licensed premises must be open to authorised Customs officers at all reasonable times for



e) Any directives issued by the Commissioner in connection with procedures applicable to the licence


f) The premise where the transactions take place must be the SARS Customs approved premises. g) A licensee must always present a copy of a licence when demanded by Customs Officer. h) A contract concluded between a licensee and another person to perform any of its functions may not

relieve the licensee of its responsibilities under the Act and this procedure. 2.2.11 Change in particulars of a manufacturing warehouse licence a) Whenever any of the particulars furnished in any application for licence changes, the licensee must



i) Where the legal status or the name of the licensee changes for any reason; ii) Address; iii) Directors of an entity; iv) Individual(s) who has / have sufficient knowledge of Customs laws and procedure.




PROCEDURE STEP 2.2.12 Change of ownership of a manufacturing warehouse a) In case of ownership change, the legal entity holding the licence prior to the change has to continue to





i) A certified copy of revised articles or certificate showing the new legal name; ii) A list of current directors; and iii) If security is needed, endorsement to the bond must be submitted to reflect the change.



bonds. 2.2.13 Change of name of a manufacturing warehouse a) In case of name change, the notification must include the following:



on an identity document reflecting such change. If security is needed, endorsement to the bond must be submitted to reflect such change.

2.2.14 Amalgamation of a manufacturing warehouse a) During amalgamation, the final legal entity which results from the amalgamation has to have existed




2.2.15 Relocation of a manufacturing warehouse a) The relocation of the facility will only be allowed if the proposed site is located in the same Controller’s

/ Branch Manager’s area and subject to meeting the terms and conditions of the licence. b) The existing warehouse number will be retained if relocation occurs in the same Controller’s / Branch


a fresh application lodged for the new address. d) When the change in location is contemplated, the licensee must advice the Controller / Branch

Manager in writing of the intention to relocate. Such notice must be provided at least sixty (60) days




PROCEDURE STEP prior to the effective date of relocation.


DA 185 and its applicable annexure must be completed. f) An inspection will once again be conducted to ascertain that the new business location meets all the




obtaining prior approval. 2.2.16 Alteration of a manufacturing warehouse a) Where alteration to the existing building is contemplated, an originally signed and date stamped site


b) The application for alteration will be treated in the same manner as the new application. c) A plan must be submitted and approved and the building inspected by the SARS Customs Office

before commencement of any Customs operations occurs. d) Where the licence fee is applicable, it will not be charged for the alteration unless the date of issue

coincides with the renewal date of the existing licence. 2.2.17 Refusal of an application for a manufacturing warehouse licence a) When an application for licence / licence renewal is refused, the SARS Customs Office will inform the





d) The applicant may also refer the matter to the High Court. 2.2.18 Suspension of a manufacturing warehouse licence a) Where the licence is to be suspended, the holder will be advised in writing by the relevant SARS




i) Give 21 days’ notice to the licensee of the proposed suspension. ii) Provide reasonable information concerning any allegation and grounds for the proposed

suspension.











i) A client may also refer the matter to the High Court. 2.2.19 Reinstatement of a manufacturing warehouse licence a) If the request for reinstatement is approved and the appropriate steps have been taken to prevent

occurrence(s) of a similar nature in future, the proposed licence may be reinstated. b) The client will be informed of reinstatement by the relevant SARS Customs Office. c) A cancelled licence will not be reinstated. The holder of the licence that has been cancelled has to re-

apply for a new licence to conduct business with SARS. 2.3 Cancellation of a Manufacturing Warehouse licence initiated by SARS


Customs Office.




PROCEDURE STEP b) Before any licence is cancelled, except when any demand for any amount remains unpaid for a












2.4 Cancellation of a Manufacturing Warehouse initiated by a Licensee


will acknowledge receipt and submit the application to Debt Collection if required.




PROCEDURE STEP c) If no debt follow-up is required the client’s bond, licence and client number will be cancelled


3 QUALITY RECORDS Number Title DA 103 Customs and Excise Licence DA 185 Application form: Registration / Licensing of Customs and Excise Clients DA 185.C Security Particulars DA 185.4B2 Manufacturing Warehouse SC-CF-05-A19 Requirements to process DA 185 SC-CF-05-A20 Confirmation of Authentication SC-CF-05-FR01 Request for cancellation / suspension of licence / registration SC-SE-05-A1 Assessment for Security Requirements 4 REFERENCES 4.1 Legislation TYPE OF REFERENCE REFERENCE Legislation and Rules administered by SARS:



Formalities: Standards 3.6 and 3.21; Chapter 5 Security: Standards 5.1; 5.2; 5.4; 5.6 and 5.7; Chapter 7 Information Technology: Standards 7.1 and 7.4; Chapter 8 Relationship between Customs and Third Parties: Standards 8.1; 8.2; 8.3; 8.4, 8.6 and 8.7; Chapter 9 Information, Decisions and Rulings Supplied by Customs: Standards 9.4 and 9.8; Chapter 10 Appeals in Customs Matters: Standards 10.1; 10.2; 10.3; 10.5; 10.6; 10.7; 10.8; 10.9; 10.10; 10.11 and 10.12 Kyoto Convention Specific Annex A Chapter 2 Temporary Storage of Goods: Paragraphs 2 and 6; Annex D Chapter 1 Customs Warehouses: Paragraph 4; Annex E Chapter 1 Customs Transit: Paragraph 5 WCO SAFE Framework of Standards: None

4.2 Cross References DOCUMENT # DOCUMENT TITLE APPLICABILITY SC-CC-24 Administrative Appeal All SC-CC-26 Alternative Dispute Resolution All SC-CF-19 Licensing, Registration and designation Policy All SC-CF-23 Manual for the completion of DA 185 All SC-SE-05 Securities All 5 DEFINITIONS AND ACRONYMS Act Customs and Excise Act No. 91 of 1964 Applicable Officer Officer assigned to perform any of the functions relating to Licensing and

Registration Controller / Branch Manager






Rule Rule to Customs and Excise Act SARS Customs Office Relates to the respective SARS Customs Office, Border Post, Hub that handles

and processes the application forms 6 DOCUMENT MANAGEMENT Business Owner Group Executive: Customs Trade Operations Document Owner Executive: Process Solutions Customs & Support Services Author P Jones Detail of change from previous revision



ECS-TM-15 – Rev 3


Registration of Rebate User (Schedule 3, 4, And 6) – External SOP SC-CF-19-S12



EXTERNAL


REGISTRATION OF REBATE USER

(SCHEDULE 3, 4 AND 6)




TABLE OF CONTENTS 1 SCOPE 3 2 PROCEDURE 3 2.1 Client Authentication Process Flow 3 2.2 Registration of Rebate User 5 2.2.1 Person(s) who may apply for rebate user registration 6 2.2.2 Documents needed for an application for an rebate user registration 6 2.2.3 Additional information 6 2.2.4 Requirements for registered premises 7 2.2.5 Conditions for registration of rebate user 8 2.2.6 Processing of rebate user registration applications 8 2.2.7 Rejection of rebate user registration applications 8 2.2.8 Approval of rebate user registration 8 2.2.9 Duties of the registrant 9 2.2.10 Change in particulars of a rebate user registration 10 2.2.11 Change of ownership of rebate store 10 2.2.12 Change of name of rebate user 10 2.2.13 Amalgamation of rebate user 10 2.2.14 Relocation of a registered premise 11 2.2.15 Alteration of a registered premise 11 2.2.16 Refusal of an application for rebate user registration 12 2.2.17 Suspension of rebate user registration 12 2.2.18 Reinstatement of rebate user registration 12 2.3 Cancellation of rebate user registration initiated by SARS 13 2.4 Cancellation of rebate user registration initiated by a registrant 14 3 QUALITY RECORDS 14 4 REFERENCES 14 4.1 Legislation 14 4.2 Cross references 15 5 DEFINITIONS AND ACRONYMS 15 6 DOCUMENT MANAGEMENT 15




1 SCOPE a) This document outlines the procedures for registration of Customs Rebate Users. b) The document also outlines the process for client and bank detail authentication refusal, cancellation,

suspension and reinstatement thereof of the Rebate User. c) The registration of the Motor Industry Development Program (MIDP) is excluded from this document –

refer to SC-CF-19-S13. 2 PROCEDURE 2.1 Client Authentication Process Flow









2.2 Registration of Rebate User




PROCEDURE STEP 2.2.1 Person(s) who may apply for rebate user registration a) A natural person who is a citizen or permanent resident of South Africa who is at least 21 years old








2.2.2 Documents needed for an application for an rebate user registration a) Any person who wants to apply for a rebate user registration must complete the DA 185 and

DA 185.4A3. (See SC-CF-23 on how to complete the DA 185 and DA 185.4A3). The application forms are available from the SARS website (www.sars.gov.za) or they may be collected from the nearest SARS Customs Office.

b) Registered stockists are, under special agreements with SARS allowed to store and supply from bond

materials under rebate. The DA 185 must clearly indicate that application for licensing as a “stockist warehouse” is being applied for.

c) The applications must be originally completed and signed and submitted to the relevant Controller /

Branch Manager in whose control area their business is situated. d) The following originally certified copies or original documents where applicable must accompany the

application for rebate user registration:



trustees and all directors of company; iv) An originally signed and date stamped site plan; and v) Proof of ownership, lease or address of the proposed site not older than three (3) months where

Customs transactions will take place. Such proof can be: A) An affidavit issued by the Commissioner of Oath; or B) Proof of residence issued by the local chief in case of applicants residing in a village; or C) Utility account issued in the name of the applicant i.e. water, electricity or telephone

account. 2.2.3 Additional information a) The applicant must also disclose on the DA 185 as to whether the following instances had occurred in


i) Contravention or failure to comply with the provisions of the Act;




PROCEDURE STEP ii) Failure to comply with any condition, obligation or other requirements imposed by the






d) Stockists may only be registered in respect of materials admissible under items 307.03, 307.04,

307.05, 308.01, 308.02, 310.07, 310.08, 311.12, 311.23, 311.27, 312.01, 313.02, 315.01, 321.01 (28.00, 32.03, 32.05 and 32.06) of Schedule No. 3. The objective is to allow manufacturers registered under the mentioned items (other than those carrying on business on an indent basis i.e. on definite contracts) to purchase ex-bond (from bond) small quantities of materials for manufacturing purposes as and when required and is subject to compliance with the under-mentioned special rules which constitute the special agreement.

e) Upon registration registered stockists must subscribe to the special rules in writing which must be in

the form of a letter of undertaking. The letter of undertaking must be forwarded in duplicate to the stockist in question who must sign the declaration and return a signed copy to the Controller / Branch Manager concerned together with the application forms. A specimen of this letter of undertaking is annexed as SC-CF-05-A15.

2.2.4 Requirements for registered premises a) The following requirements of the registered premises must apply in cases where the rebate item

explicitly prescribes a registered premise as a requirement:

i) The building must be structurally sound and safeguarded against fire and burglary; ii) The premise must be securely fenced; iii) The walls of the building should be of brick, stone or concrete and the roof of slate, tiles or iron; iv) Windows, doors, gates and other means of access must be fully secured with adequate locking

device which is compatible with Customs seal; v) The building must be equipped with electrical security measures to prevent illegal delivery and

despatch of goods; vi) The building must comply with health and safety regulations; vii) A separate area for the safekeeping of goods which have not being released due to detention

and seizure must be provided; viii) Sufficient space and facilities relevant to conduct examination and necessary staff must be

provided to ensure reliable service for the opening, unpacking and re-packing of goods; ix) The building must be independent from other buildings that serve a different purpose. entry and

exit into and out of registered premise should not lead to other building apart from the registered premise i.e. if another floor or a portion of the building is a duty free store, there must be means of access to the latter other than through the registered premise;

x) Suitable accommodation such as office furniture, parking facilities and toilet facilities must be provided to Customs Officer at any reasonable time free of charge;

xi) Building approval issued by the local municipality; and xii) An attached plan of the intended facility must reflect the above information.




PROCEDURE STEP 2.2.5 Conditions for registration of rebate user a) No person may transact business with SARS until all obligations relating to the registration have been

met. b) An agent may not apply for registration on behalf of a rebate user. c) The registration is issued subject to the condition that the registrant or at least one of the registrant’s

employees have sufficient knowledge of Customs laws and procedures to ensure that activities relating to the registration are conducted efficiently and in compliance with the provisions of such laws and procedures.

d) SARS may at any reasonable time inspect the registered premise in order to verify whether it complies

with the requirements as stated in the procedure and Rules. e) A registration may cater for more than one registered premise within the same Controller’s Branch

Manager(s) area. 2.2.6 Processing of rebate user registration applications a) All applications must be submitted to the enquiry or admin counter. b) When all required information and completed documentation has been submitted, the Customs Officer







a Customs code will be generated and issued. h) Refer to the flowchart (2.2 – Registration of a Rebate user) for detailed process. i) The applicant is then legible to conduct business with SARS as per approved client type. 2.2.7 Rejection of rebate user registration applications a) If at any point during the application process, the application is found to be incomplete, it will be

rejected and returned to the applicant. b) The reason(s) for rejection will be communicated to an applicant. c) The application may be resubmitted once all requirements have been met. 2.2.8 Approval of rebate user registration a) The registration will be issued in the name of the applicant. b) No alterations may be effected on a registration approval document by the Registrant. If mistakes




PROCEDURE STEP occur during completion of the form, the officer must re-issue a new document. No correction fluid (tippex) is allowed on these documents.

c) The registration approval will be handed to the applicant upon collection or be sent via registered mail

to the applicant. d) The following contents must appear on the registration approval document:

i) Name of the registrant. Clients must ensure that the correct legal names are recorded on the registration approval;

ii) Customs client number; iii) The purpose for which the registration is issued; iv) Unique rebate store number (where the rebate item prescribes registered premise); and v) Any special conditions to which the registration is subjected to.

e) An approval letter will be issued by the relevant SARS Customs Office. f) The registration document will be handed to the applicant upon collection or be sent by registered mail

to the applicant. 2.2.9 Duties of the registrant a) The Customs client number must be:


ii) Reflected in the authorisation for any agent to transact the business to which the registration relates.

b) The registrant may not allow any other person to use such registration in any Customs business or


c) The registered premise must be open to authorised Customs Officers at all reasonable times for

inspection, verification of records and operations including supervision of tallying operations. d) The registrant must keep proper records of books, accounts any data created by means of a


e) Any directives issued by the Commissioner in connection with procedures applicable to registration


f) The registered premise where the transaction(s) take place must be the one (1) approved by the

Controller / Branch Manager for that purpose. g) A registrant must always present a copy of a registration when demanded by Customs Officers. h) A contract concluded between a registrant and another person to perform any of its functions may not

relieve the registrant of its responsibilities under the Act and this procedure. i) With regards to losses through burglary or vis major (acts of God) the following must be noted:

i) In the case of burglary of rebate material, duty must be demanded forthwith on the goods stolen.




PROCEDURE STEP ii) In circumstances of vis major, such as fire destroying the entire rebate store with stocks or

partly destroying certain stocks, the registrant has recourse in that the full duty can be rebated provided the conditions of Rebate Item 412.09 are adhered to.

2.2.10 Change in particulars of a rebate user registration a) Whenever any of the particulars furnished in any application for registration changes, the registrant



i) Where the legal status or the name of the registrant changes for any reason; or ii) Address; or iii) Directors of an entity; or iv) Individual(s) who has / have sufficient knowledge of Customs laws and procedures.

c) Change in legal identity will require a new application supported by all relevant documents and bonds. 2.2.11 Change of ownership of rebate store a) In case of ownership change, the legal entity holding the registration prior to the change has to





i) A certified copy of revised articles or certificate showing the new legal name; ii) A list of current directors; and iii) If security is needed, a bond must be submitted to reflect the new name.


registration is granted to individual or partnership. 2.2.12 Change of name of rebate user a) In case of name change, the notification must include the following:




2.2.13 Amalgamation of rebate user a) During amalgamation, the final legal entity which results from the amalgamation has to have existed



i) A certified copy of amendment to the articles of incorporation;




PROCEDURE STEP ii) The names of any new directors that may have joined as a result of the change; and iii) If security is needed, a bond must be submitted to reflect the change.

2.2.14 Relocation of a registered premise a) The relocation of the registered premise will only be allowed if the proposed site is located in the same

Controller / Branch Manager’s area and subject to meeting the terms and conditions of the registration. b) The existing registered premise number will be retained if relocation occurs in the same Controller /

Branch Manager’s area. c) If the registered premise is to relocate to another area of control the registration must be cancelled and

a fresh application lodged for the new address. d) When the change in location is contemplated, the registrant must advice the Controller / Branch



DA 185 and its applicable annexure must be completed. f) An inspection will once again be conducted to ascertain that the new business location meets the

prescribed requirements. g) The Controller / Branch Manager may cancel the existing registration if the registrant relocates without

obtaining prior approval. 2.2.15 Alteration of a registered premise a) Where alteration to the existing building is contemplated, an originally signed and date stamped site


b) The application for alteration will be treated in the same manner as the new application. c) A plan must be approved and the building inspected by the Controller / Branch Manager before

commencement of any Customs operations. d) For the registered stockist the alterations of Stores and Storage of goods outside following is

applicable:

i) Regarding alterations in the size and locality of rebate stores, the following applications may be dealt with by Controllers / Branch Managers: A) Applications for reduction or increase in the size of rebate stores; B) Applications for the approval of an additional rebate store; and C) Applications to change the locality of rebate stores or to discontinue the use of a

particular area as a rebate store. ii) No goods other than those cleared or acquired under rebate should be kept in rebate stores.

Rebated goods should also not be kept outside rebate stores. Any irregularities in this respect should be included in the PCI Inspectors’ report. The contents of a rebate store must be properly packed and identifiable thus enabling the PCI Inspectors to take stock of the goods.

iii) Permission to store rebate goods outside an approved rebate store may be granted by Controllers / Branch Managers but such permission in respect of any single application should not exceed six (6) months. Applications for further extensions should not be allowed in any circumstances. The duty involved may be secured by provisional payment should the Controller / Branch Manager / risk analyst feel such action is necessary.




PROCEDURE STEP 2.2.16 Refusal of an application for rebate user registration a) When an application for registration is refused, the SARS Customs Office will inform the client. The

client will be notified of the reason for such a refusal. b) In cases where clients are not satisfied with any decision taken in terms of the Customs and Excise




d) The applicant may also refer the matter to the High Court. 2.2.17 Suspension of rebate user registration a) Where the registration is to be suspended, the holder will be advised in writing by the relevant SARS



period exceeding thirty (30) days from the date of the demand, the SARS must:



the registration should not be suspended. d) The registered letter will stipulate:






g) The applicant may also refer the matter to the High Court. 2.2.18 Reinstatement of rebate user registration a) If the reason(s) for the suspension no longer exist(s) and the appropriate steps have been taken to

prevent occurrence(s) of a similar nature in future, the applicable registration may be reinstated. b) The client will be informed of the reinstatement by the relevant SARS Customs Office. c) A cancelled registration will not be reinstated. The holder of the registration that has been cancelled

has to re-apply for a new registration to conduct business with SARS.




2.3 Cancellation of rebate user registration initiated by SARS









registration. f) In cases where clients are not satisfied with any decision taken in terms of the Customs and Excise




h) The applicant may also refer the matter to the High Court.




2.4 Cancellation of rebate user registration initiated by a registrant




3 QUALITY RECORDS Number Title DA 185 Application form: Registration / Licensing / Designation of Customs and Excise Clients. DA 185.C Security Particulars DA 185.4A3 Rebate User (Schedule 3, 4 and 6) SC-CF-05-A15 Registered Stockist Undertaking SC-CF-05-A19 Requirements to process DA 185 SC-CF-05-A20 Confirmation of Authentication SC-CF-05-FR01 Request for cancellation / suspension of licence / registration 4 REFERENCES 4.1 Legislation TYPE OF REFERENCE REFERENCE Legislation and Rules administered by SARS:

Customs and Excise Act No. 91 of 1964: Sections, 59A, 60, 75, 77A-I, 78-96, 101A Customs and Excise Rules: Rules 59A, 75, 77H-I and 120A.04 and Schedule 3, 4 and 6


Kyoto Convention General Annex Chapter 3 Clearance and other Customs Formalities: Standards 3.6 and 3.21; Chapter 5 Security: Standards 5.1; 5.2; 5.4; 5.6 and 5.7; Chapter 7 Information Technology: Standards 7.1 and 7.4; Chapter 8 Relationship between Customs and Third Parties: Standards 8.1; 8.2; 8.3; 8.4, 8.6 and 8.7; Chapter 9 Information, Decisions and Rulings Supplied by Customs:




TYPE OF REFERENCE REFERENCE Standards 9.4 and 9.8; Chapter 10 Appeals in Customs Matters: Standards 10.1; 10.2; 10.3; 10.5; 10.6; 10.7; 10.8; 10.9; 10.10; 10.11 and 10.12; Specific Annex A Chapter 2 Temporary Storage of Goods: Paragraphs 2 and 6; Annex D Chapter 1 Customs Warehouses: Paragraph 4; Annex E Chapter 1 Customs Transit: Paragraph 5 WCO SAFE Framework of Standards: None

4.2 Cross references DOCUMENT # DOCUMENT TITLE APPLICABILITY SC-CC-24 Administrative Appeal All SC-CC-26 Alternative Dispute Resolution All SC-CF-19 Licensing, Registration and Designation Policy All SC-CF-23 Manual for the completion of DA 185 All SC-SE-05 Securities All 5 DEFINITIONS AND ACRONYMS Act Customs and Excise Act No. 91 of 1964 Applicable Officer Officer assigned to perform any of the functions relating to Licensing and

Registration Controller / Branch Manager


Registration Registration is defined as an activity that is permitted by right. There are two categories of registered clients, namely: a) The first category is general importers and exporters. The client pays all

duties/taxes upfront before taking possession of the goods. b) The second category is clients registered for rebate facilities. These

clients are allowed to import goods without paying duties under certain conditions i.e. for processing, manufacturing, packaging with an intention of exporting them.


and processes the application forms VO Verification Officer 6 DOCUMENT MANAGEMENT Business Owner Group Executive: Customs Trade Operations Document Owner Executive: Process Solutions Customs & Support Services Author P Jones Detail of change from previous revision



ECS-TM-15 – Rev 3


Licensing of Remover of Goods In Bond -External SOP SC-CF-19-S07



EXTERNAL


LICENSING OF A REMOVER OF GOODS IN BOND




TABLE OF CONTENTS 1 SCOPE 3 2 PROCEDURE 3 2.1 Client Authentication Process Flow 3 2.2 Licensing of Remover of Goods in Bond 5 2.2.1 Person(s) who may apply for a remover of goods in bond licence 6 2.2.2 Documents needed for an application for a remover of goods in bond licence 6 2.2.3 Licence fee provisions 7 2.2.4 Additional Information 7 2.2.5 Technical specifications for means of transport 7 2.2.6 Conditions for licensing of a remover of goods in bond 8 2.2.7 Processing of application for a remover of goods in bond licence 8 2.2.8 Rejection of application for a remover of goods in bond licence 8 2.2.9 Issuing of a remover of goods in bond licence 9 2.2.10 Duties of the licence holder 9 2.2.11 Change in particulars of a remover of goods in bond licence 10 2.2.12 Change of ownership of a remover of goods in bond licence 10 2.2.13 Amalgamation of a remover of goods in bond 11 2.2.14 Change of name of a remover of goods in bond 11 2.2.15 Renewal of a remover of goods in bond licence 11 2.2.16 Refusal of an application for a remover of goods in bond licence / licence renewal 11 2.2.17 Suspension of a remover of goods in bond licence 11 2.2.18 Reinstatement of a remover of goods in bond licence 12 2.3 Cancellation of a Remover of Goods in Bond licence initiated by SARS 13 2.4 Cancellation of a Remover of Goods in Bond Licence initiated by a Licensee 14 3 QUALITY RECORDS 14 4 REFERENCES 14 4.1 Legislation 14 4.2 Cross References 15 5 DEFINITIONS AND ACRONYMS 15 6 DOCUMENT MANAGEMENT 15




1 SCOPE a) This document outlines the procedure for licensing of a remover of goods in bond by road for either a

local or foreign person / entitiy. b) The document also outlines the processes for client and bank detail authentication, refusal,

suspension, cancellation and reinstatement of a remover of goods in bond licence. 2 PROCEDURE 2.1 Client Authentication Process Flow







iii) One (1) of the following documents not older than three (3) months to prove the account




PROCEDURE STEP holder’s name, bank account number and bank branch code: A) A legible certified copy or original bank statement; B) An original letter from the bank on a letterhead; or C) An original auto bank statement.























2.2 Licensing of Remover of Goods in Bond




PROCEDURE STEP 2.2.1 Person(s) who may apply for a remover of goods in bond licence a) A natural person who is a citizen or permanent resident of South Africa who is at least 21 years old








2.2.2 Documents needed for an application for a remover of goods in bond licence a) Any person who wants to apply for a Remover of Goods in Bond licence must complete the DA 185,

DA 185.4B6, DA 185.D for the foreigner and pro forma agreement as prescribed in the rules. The pro forma agreement is not applicable to the foreigner. The application form must be submitted to the relevant Controller / Branch Manager in whose area their business is situated.

b) The pro forma agreement must be signed and initialled by the applicant and two (2) witnesses on all

pages. c) See manual SC-CF-23 on how to complete DA 185, DA 185.4B6 and DA 185.D. d) The applications must be originally completed and signed. e) The following originally certified copies, or original documents not older than three (3) months where

applicable must accompany the application for a Remover of Goods in Bond licence:

i) Registration certificate of the business as issued by the Registrar of companies or Master of the Supreme Court in the case of a trust.


trustees and all directors of company. iv) Registration particular of the means of transport. The registration certificate must include:

A) The make; B) The type; C) The chassis number; and D) Registration number of the means of transport.

v) Proof of ownership, lease or address where Customs transactions will take place. Such proof can be: A) An affidavit issued by the Commissioner of Oath; B) Proof of residence issued by the local chief in case of applicants residing in a village; or C) Utility account issued in the name of the applicant i.e. water, electricity or telephone

account. vi) Financial statements (if available as a newly established company will not yet have records) for

the last financial year must be signed by the auditors / accounting officer, directors and submitted (i.e. they must submit final copies and not draft copies of the financials):




PROCEDURE STEP A) Private Company (Pty) Ltd – Audited Financial statements B) Public Company Ltd – Audited Financial statements. C) Close Corporation (CC) – financial statements signed by an Accounting Officer.

vii) Latest tax return / tax clearance certificate (if available). f) The documents listed in paragraph 2.1.2(e)(vi) above might not be required where the client has

already registered with SARS and has a party registration number, unless SARS specifically requests the client to submit such.

2.2.3 Licence fee provisions a) Schedule 8 prescribes licence fees for a Remover of Goods in Bond and the validity period, and is

payable for the duration of the licence fee or part thereof in full. b) The licence fee will not be refunded when the licensee ceases operation prior to the end of the

licensing period. c) The Commissioner may require security before a licence is issued. Refer to SC-SE-05 regarding

security. 2.2.4 Additional Information a) The applicant must also disclose on the DA 185 as to whether the following instances had occurred in

the past five (5) years prior to submitting an application (not applicable to the foreigner):





instances mentioned above or any of the following even when the application has been submitted or licence has been issued:


2.2.5 Technical specifications for means of transport a) The means of transport must enable simple and effective attachment of Customs seals. b) It must be in such a manner that the goods may not be removed or loaded into the means of transport

without obvious damage to it or without breaking the seal. c) Spaces, receptacles or other recesses able to hold goods are easily accessible for Customs

inspection. d) The inside surface of the means of transport must be firmly fixed, solid, unbroken, and incapable of

being dismantled without leaving obvious traces. e) Openings made in the floor for technical purposes must be allowed on conditions that they are not

accessible from the outside. These openings may be used for lubrication and maintenance purposes.




PROCEDURE STEP f) The means of transport must be fitted with doors and closing systems device that allow simple and

effective sealing of goods. The device must be secured by at least two bolts that are riveted or welded to the nuts on the inside.

g) The hinges of the doors should make it impossible to lift the doors once closed. The screws, bolts,

hinge-pins and other fasteners must be welded to the nuts on the inside. h) The door must ensure complete and effective closure. i) The means of transport must be constructed in the manner that it protects the Customs seal. 2.2.6 Conditions for licensing of a remover of goods in bond a) No person may transact business with SARS until all obligations relating to the licence have been met. b) A clearing / registered agent may not apply for a licence on behalf of the remover of goods in bond. c) Foreign applicants must have a nominated and approved registered agent with a fixed physical

address in South Africa acting on their behalf and accepting full liability. d) The licence is issued subject to the condition that the licensee or registered agent or at least one (1) of

the licensee’s or registered agent’s employees permanently employed at the premises where or from where the business will be conducted has sufficient knowledge of Customs laws and procedures to ensure that activities relating to licence are conducted efficiently and in compliance with the provisions of such laws and procedures.

e) SARS may at any reasonable time inspect the means of transport in order to verify whether it complies

with the requirements as stated in the policy and Rules. 2.2.7 Processing of application for a remover of goods in bond licence a) All applications for a licence must be submitted to the enquiry / admin counter. b) When all required information and completed documentation has been submitted, the Customs Officer

will issue an acknowledgement of receipt. c) Where security is applicable, the client needs to comply and provide such on the applicable form as

per policy SC-SE-05. d) The client must obtain the necessary surety from his / her financial institution on the surety form

provided by the verification officer and return such to the SARS Customs Office. e) SARS will then further process the application together with the bank stamped security form and if

applicable, the licence fee must be paid. f) If the applicant meets all the requirements as prescribed in the Customs legislation and this procedure

a Customs client number will be generated and issued. g) Refer to the flowchart (2.2 Licensing for Remover of Goods in Bond) for detailed process. h) The applicant is then legible to conduct business with SARS as per approved client type. 2.2.8 Rejection of application for a remover of goods in bond licence a) If at any point during the application process, the application is found to be incomplete, it must be

rejected and returned to the applicant. b) The reason(s) for rejection must be communicated to an applicant.




PROCEDURE STEP c) The application may be resubmitted once all requirements have been met. 2.2.9 Issuing of a remover of goods in bond licence a) The licence must be issued in the name of the applicant. b) No alterations may be effected on a licence document by the remover. If mistakes occur during

completion of the form, the officer must issue a new licence. No correction fluid (tippex) is allowed on these documents.

c) The following contents must appear on the licence:

i) Name of the licensee - clients must ensure that the correct legal names are recorded on the licence;

ii) If applicable the name and Customs client number of the nominated registered agent; iii) Customs client number; iv) The purpose for which the licence is issued; v) Any special conditions to which the licence is subjected to; vi) The address of the premises to which the licence is issued; and vii) The date from which the licence takes effect and where applicable the expiry date.

d) An approval letter will be issued by the relevant SARS Customs Office. e) When the remover requested the Controller / Branch Manager to approve the means of transport

utilised by the remover and the examination has been conducted a DA 188 (Certificate of Approval of Means of Transport) will be issued to the licensee.

f) The licence must be handed to the applicant upon collection or be sent by registered mail to the

applicant. 2.2.10 Duties of the licence holder a) The Customs client number must be:


ii) Reflected in the authorisation for any agent to transact the business to which the licence relates. b) The licence holder must not allow any other person to use such licence in any Customs business or


c) The licensed means of transport may be inspected at any reasonable times to verify compliance to

applicable rules. d) The licensee must keep proper records of books, accounts any data created by means of a computer,

of all transactions relating to the activity in respect of the licence for a period of five (5) years calculated from the end of the calendar year in which any such document was created, lodged or required for any Customs procedure.


subsequent to the date of application or during the validity period of the licence issued on approval of the said application, will be deemed to be part of the afore-mentioned terms and conditions from the date on which such directives are issued and must be observed by the licensee as if they were included therein and duly subscribed to by the licensee.

f) The means of transport must be the one (1) approved by the Controller / Branch Manager for that

purpose.




PROCEDURE STEP g) No passengers may be transported by the means of transport unless SARS is fully satisfied that such

passengers and their baggage are carried in a part of the means of transport which is adequately sealed off from that which carries any goods removed in bond.

h) A licensee must always present a copy of a licence when demanded by Customs Officials. i) The DA 188 certificate must also accompany the means of transport as and if applicable. j) A contract concluded between a licensee and another person to perform any of its functions must not

relieve the licensee of its responsibilities under the Act and this procedure. k) A licensee must ensure that the licence is renewed before its expiry date. 2.2.11 Change in particulars of a remover of goods in bond licence a) Whenever any of the particulars furnished in any application for licence changes, the licensee must

advise the Controller / Branch Manager within seven (7) days of the occurrence of such event by submitting a DA 185 and / or the relevant annexure reflecting the changed particulars.


i) Where the legal status or the name of the licensee changes for any reason; ii) Address; iii) Directors of an entity; or iv) Individual(s) who has / have sufficient knowledge of Customs laws and procedure.

c) A change in legal identity will require a new application supported by all relevant documents and

bonds. 2.2.12 Change of ownership of a remover of goods in bond licence a) In case of ownership change, the legal entity holding the licence prior to the change has to continue to

exist after the change. If the original licence holder ceases to exist as a result of a change of ownership, a new licence application has to be made and new bonds required.






licence is granted to individual or partnership.




PROCEDURE STEP 2.2.13 Amalgamation of a remover of goods in bond a) During amalgamation, the final legal entity which results from the amalgamation must have existed




2.2.14 Change of name of a remover of goods in bond a) In case of name change, the notification must include the following:



an identity document reflecting such change. If security is needed, a bond must be submitted to reflect such change.

2.2.15 Renewal of a remover of goods in bond licence a) An application for renewal of licence must be made on DA 185 and must reach the office of any

Controller / Branch Manager thirty (30) days prior to the expiry date of the licence. b) An application for renewal may be made at any SARS Customs Office. c) No annex needs to be completed. d) No licensee is permitted to transact business relating to the licence with SARS while the licence has

expired. e) SARS Customs Offices will reject clearances of client who failed to renew their licences. 2.2.16 Refusal of an application for a remover of goods in bond licence / licence renewal a) When an application for licence / licence renewal is refused, the SARS Customs Office will inform the





d) The applicant may also refer the matter to the High Court. 2.2.17 Suspension of a remover of goods in bond licence a) Where the licence is to be suspended, the holder will be advised in writing by the relevant SARS

Customs Office




PROCEDURE STEP b) Before any licence is suspended, except when any demand for any amount remains unpaid for a




the licence should not be suspended. c) When the suspension is finalised the SARS Customs Office will inform the client in writing. d) The registered letter must stipulate:

i) The reasons for such suspension; ii) The effective date of the proposed suspension; and iii) The duration of the proposed suspension. iv) No part of any licence fee is refundable on suspension of a licence.

e) No part of any licence fee is refundable on suspension of a licence. f) In cases where clients are not satisfied with any decision taken in terms of the Customs and Excise




h) A client may also refer the matter to the High Court. 2.2.18 Reinstatement of a remover of goods in bond licence a) If the request for reinstatements is approved and the appropriate steps have been taken to prevent

occurrences(s) of a similar nature in future, the proposed licence may be reinstated. b) The client will be informed of reinstatement by the relevant SARS Customs Office. c) Reinstatements can also occur when the decision of cancellation is overturned by either an Appeal

Committee or the Court. In these circumstances the LRCC will inform the client and the SARS Customs Office accordingly of the reinstatement.




2.3 Cancellation of a Remover of Goods in Bond licence initiated by SARS



exceeding thirty (30) days from the date of the demand, the Commissioner must:




cancellation. d) No part of any licence fee is refundable on cancellation. e) A client whose licence has been cancelled may not perform any Customs activity relating to that

licence. f) A cancelled registration will not be reinstated. The client has to re-apply for a new registration to

conduct business with SARS. g) In cases where clients are not satisfied with any decision taken in terms of the Customs and Excise








2.4 Cancellation of a Remover of Goods in Bond Licence initiated by a Licensee

PROCEDURE STEP a) The client must submit a cancellation request on a DA 185 to the relevant SARS Customs Office.. b) The SARS Customs Office will acknowledge request for voluntary cancellation. c) If no debt follow-up is required the Team Leader within Client Interface will cancel the client

appropriately. d) The client will be informed accordingly of the cancellation. e) A cancelled registration will not be reinstated. The client has to re-apply for a new registration to

conduct business with SARS.

3 QUALITY RECORDS Number Title DA 103 Customs and Excise Licence DA 185 Application form: Registration / Licensing of Customs and Excise Clients DA 185.C Security Particulars DA 185.D Nomination of Registered Agent DA 185.4B6 Remover of Goods In Bond (Local or Foreign) DA 188 Certificate of Approval of Means of Transport SC-CF-05-A19 Requirements to process DA 185 SC-CF-05-A20 Confirmation of Authentication SC-CF-19-FR01 Request for cancellation / suspension of licence / registration SC-SE-05-A1 Assessment for Security Requirements 4 REFERENCES 4.1 Legislation TYPE OF REFERENCE REFERENCE Legislation and Rules administered by SARS:

Customs and Excise Act No. 91 of 1964: Sections 60, 64D, 77A-I, 79-84 and 119A Customs and Excise Rules: 60, 64D and 77H

Other Legislation: Promotion of Administrative Justice Act No. 3 of 2000: Section 3




TYPE OF REFERENCE REFERENCE International Instruments:


4.2 Cross References DOCUMENT # DOCUMENT TITLE APPLICABILITY SC-CC-24 Administrative Appeal – External Policy All SC-CC-26 Alternative Dispute Resolution – External Policy All SC-CF-19 Licensing, Registration and Designation Policy – External Policy All SC-CF-23 Manual for the completion of DA 185 All SC-CF-01 Special and Extra Attendance – External Policy All SC-SE-05 Bonds – External Policy All SC-TR-01-04 Removal of Goods – External Policy All 5 DEFINITIONS AND ACRONYMS Act Customs and Excise Act No. 91 of 1964 Controller / Branch Manager


Foreign Principle The foreign principle is a registered importer, exporter or licensed remover of goods in bond not located in South Africa as prescribed in Rule 59A.01(a)

Licensing Licensing is a formal permission from a government or any constituted authority to perform a specified business or profession that also contains rules and regulations on how such business or profession must be conducted. The purpose of licensing is to restrict unauthorised entry into a specified business or profession and also serves as a regulatory activity that gives guidance on acceptable behaviour and practice. It must be seen as a privilege to conduct these types of functions

Registered Agent An agent of a foreign principle who is located in South Africa and registered as prescribed in Rule 59A.01(a)






ECS-TM-15 – Rev 3


Registration of Approved Exporters – External SOP SC-CF-19-S17

Revision:3 Page 1 of 8


EXTERNAL


REGISTRATION OF APPROVED EXPORTERS




TABLE OF CONTENTS 1 SCOPE 3 2 PROCEDURE 3 2.1 Client Authentication Process Flow 3 2.2 Application and approval process for approved exporter status 5 2.2.1 Application 6 2.2.2 Administrative Arrangements 6 2.2.3 Application for approved exporter status 6 2.2.4 Verification of applications 6 2.2.5 Approval 7 3 QUALITY RECORDS 7 4 REFERENCES 7 4.1 Legislation 7 4.2 Cross References 8 5 DEFINITIONS AND ACRONYMS 8 6 DOCUMENT MANAGEMENT 8




1 SCOPE a) This procedure covers the application, verification and approval process for approved exporters for the

purpose of:

i) Protocol 1 of the Agreement on Trade, Development and Co-operation between the European Community and its Member States and South Africa (TDCA); and

ii) The Free Trade Agreement between the European Free Trade Association (EFTA) and the Southern African Customs Union [(SACU), (SACU/EFTA/FTA)].

b) It further explains the respective procedures for client and bank detail authentication. c) This document does not cover the making of invoice declarations by approved exporters provided for

in SC-RO-01-06. 2 PROCEDURE 2.1 Client Authentication Process Flow







PROCEDURE STEP c) Supporting documents required for an application by an individual:





















be informed.




PROCEDURE STEP k) If the process was successful the applicant / representative will be issued with the SC-CF-05-A20 and


2.2 Application and approval process for approved exporter status




PROCEDURE STEP 2.2.1 Application a) The DA 185.4A2 and DA 49A.02 is used for making the respective application for approved exporter

status are available on the SARS Internet. b) The forms can be completed online and printed. 2.2.2 Administrative Arrangements a) In order to be considered for approved exporter status an exporter must on application satisfy all the

following criteria: i) Make at least twelve (12) shipments per annum of products enjoying preferential status under

the free trade agreements; ii) Must not have contravened the requirements of the free trade agreements; iii) Must not have committed any offence in terms of the Act for the past two (2) years; iv) Must hold satisfactory evidence of origin that the goods comply with the origin criteria specified

by the free trade agreements; and v) Must provide the guarantees necessary to verify the originating status of the goods.

b) Exclusions

i) Exporters of quota products exported in terms of the free trade agreements are excluded from applying for approved exporter status in respect of such products.

ii) The effect of this exclusion is that in respect of such products an application for a movements certificate EUR1 must be submitted. No invoice declarations, whatever the value thereof, may be made out for this purpose.

iii) The reason for this exclusion is to ensure complete control of quota deductions and to enable effective monitoring of trade in such products.

iv) The Manager: ROO & Trade Agreements may, in some cases, grant approved exporter status to exporters of certain quota products after consultations with the relevant department.

2.2.3 Application for approved exporter status a) Frequent exporters who are registered and have been allocated a Customs code number and wishing

to apply for approved exporter status may do so by completing the DA 185, DA 185.4A2 and DA 49A.02.

b) The completed application forms must be handed to the Enquiry / Admin Offcier in the nearest SARS

Customs Office, together with supporting documents substantiating the origin of the products for which approved status are applied for. The application form is published in the Rules to the Customs and Excise Act, as well as on the SARS website as indicated in paragraph 2.1.1(a).

c) A completion manual to assist exporters with the application and registration forms for approved

exporter status has been provided (SC-CF-23). 2.2.4 Verification of applications a) The Enquiry Officer in the SARS Customs Office will do a face scan of the application and ensure that

the required documentation is attached. If the application is not complete the Enquiry Officer will state the reasons for rejection and hand the application back to the registered exporter. If in order, the application is forwarded to the Team Leader for authentication. The authentication process is provided in paragraph 2.1.

a) Should the Team Leader not authenticate the application the application will be returned to the

Enquiry Officer who must reject and return the application to the applicant. If the authentication is in order the Team Leader will complete a proof of authentication and forward the application to the Admin Officer to record it in the register and to issue the applicant with an acknowledgement of receipt. The Admin Officer will also notify the Manager: Origin Administration of the application.




PROCEDURE STEP b) The Admin Officer will then forward the application to the Customs Research and Analysis Division

(CRA) in the SARS Customs Office who will generate a risk report of the applicants profile and forward the application and the report to the Post Clearance Audit Division (PCA) in the SARS Customs Office.

c) The PCA will consider the application to ensure that the applicant complies with the criteria for

approved exporters together with the risk report and forward the application with their findings / recommendations to the Manager: Origin Administration in Head Office. If necessary the PCA will conduct a physical inspection of the manufacturing / processing process to ensure compliance with the rules of origin.

2.2.5 Approval a) The Manager: Origin Administration will consider the application together with the risk report from the

CRA and the findings / recommendations from the PCA. If rejected the Manager: Origin Administration will issue a letter of rejection to the applicant. If approved the Manager: Origin Administration will forward the application to the Customs Officer if the Origin Administration Division to capture on the Customs Sytems.

a) The Customs Officer if the Origin Administration Division must notify the Manager: Origin

Administration or the capture on the systems and of the approved exporter number generated on the ROO system. Upon receipt the Co-ordinator: Trade Administration must verify all details of the application as well as the applicant’s compliance record for the whole country.

b) The approved exporter will also be reminded of the obligation to notify their SARS Customs Office of

any changes that might affect their approved exporter status. c) Any supporting documents submitted with the application will be retained as evidence for auditing

purposes. d) The approved exporter status will apply to all qualifying products specified in the application and

exported by the applicant under a specific trade arrangement. e) An approved exporter is not allowed to issue invoice declarations for some of the products and apply

for certification for others. The approved exporter status must apply to all products exported by the registrant.

3 QUALITY RECORDS Number Title DA 185 Application form: Registration / Licensing of Customs and Excise Clients DA 185.4A2 Registration client type 4A2 – Exporter DA 49A.02 Application for approved exporter status in terms of Article 20 of Protocol 1 (Rule 49A.

18(19) and Article 22 of Annex V (Rule 49D.18(19), (22)) EUR1 Application for a Movement certificate EUR1 and Movement certificate EUR1 SC-CF-05-A19 Requirements to process DA 185 SC-CF-05-A20 Confirmation of Authentication 4 REFERENCES 4.1 Legislation TYPE OF REFERENCE REFERENCE Legislation and Rules administered by SARS:

Customs and Excise Act No. 91 of 1964: Section 49 Customs and Excise Rules: Rules to Sections 49A and 49D

Other Legislation: None

http://myportal/Functions/Operations/OPSDocuments/Forms/Customs/Registration/Documents/Exporter/DA%20185.4A2%20-%20External%20-%20Exporter%20-%20Form.pdf




TYPE OF REFERENCE REFERENCE International Instruments: Kyoto Convention Specific Annex K – Origin: Chapter 2 Documentary

Evidence: Recommended Practice 5, 6, 10 and 11; Standard 9 Agreement on Trade, Development and Co-operation between the European Community and its Member States and the Republic of South Africa: Protocol 1, Articles 14(1)(b), 19 and 20 Free Trade Agreement between the European Free Trade Association (EFTA) and the Southern African Customs Union (SACU): Annex V, Articles 14(1)(b), 19 and 22 WCO SAFE Framework of Standards: None

4.2 Cross References DOCUMENT # DOCUMENT TITLE APPLICABILITY SC-CF-19 Registration, Licensing and Designation – External policy All SC-CF-23 Completion Manual – DA 185 All SC-RO-01-02 External reference guide – Guide to understanding preferential

rules of origin All

SC-RO-01-06 Invoice Declarations – External Policy All SC-RO-01-06-S1 Invoice Declarations – External SOP All 5 DEFINITIONS AND ACRONYMS Community The European Community CRA Customs Research and Analysis EFTA European Free Trade Association FTA Free Trade Agreement PCA Post Clearance Audit ROO Rule of Origin SACU The Southern African Customs Union, consisting of:

The Republic of South Africa; The Republic of Botswana; The Kingdom of Lesotho; The Republic of Namibia; and The Kingdom of Swaziland

SACU-EFTA The Free Trade Agreement between the EFTA States and the SACU States SARS Customs Office

The Branch Office, port of entry / exit or hub that handles and processes the application forms

TDCA Trade, Development and Cooperation Agreement 6 DOCUMENT MANAGEMENT Business Owner Group Executive: Customs Trade Operations Document Owner Executive: Process Solutions Customs & Support Services Author P Jones Detail of change from previous revision

Updating to bring in aspects of RAS authentication process for banking and master details and business owner and alignment to current operational structures.


ECS-TM-15 – Rev 3

http://myportal/Functions/Operations/OPSDocuments/Guides/Customs/Documents/SC-RO-01-02%20-%20External%20-%20Understanding%20Preferential%20Rules%20of%20Origin%20(with%20annexure)%20-%20Guide.pdf


Licensing of Special Storage Warehouse - External SOP SC-CF-19-S04



EXTERNAL


LICENSING OF A SPECIAL STORAGE

WAREHOUSE




TABLE OF CONTENTS 1 SCOPE 3 2 PROCEDURE 3 2.1 Client Authentication Process Flow 3 2.2 Licensing of a Special Storage Warehouse 5 2.2.1 Person(s) who may apply 6 2.2.2 Documents needed for an application for a Special Storage Warehouse Licence 6 2.2.3 Licence fee provisions 6 2.2.4 Additional Information 7 2.2.5 Special Storage Warehouse Requirements 7 2.2.6 Conditions for Licensing of a Special Storage Warehouse 7 2.2.7 Processing of a Special Storage Warehouse Licence Application 8 2.2.8 Rejection of a Special Storage Warehouse Licence Application 8 2.2.9 Issuing of a Special Storage Warehouse Licence 8 2.2.10 Duties of the Licence Holder 9 2.2.11 Change in Particulars of a Special Storage Warehouse Licence 9 2.2.12 Change of Ownership of a Special Storage Warehouse 10 2.2.13 Change of Name of a Special Storage Warehouse 10 2.2.14 Amalgamation of a Special Storage Warehouse 10 2.2.15 Relocation of a Warehouse 10 2.2.16 Alteration of a Warehouse 11 2.2.17 Refusal of an Application for a Special Storage Warehouse Licence 11 2.2.18 Suspension of a Special Storage Warehouse Licence 11 2.2.19 Reinstatement of a Special Storage Warehouse Licence 12 2.3 Cancellation of a Special Storage Warehouse Licence initiated by SARS 13 2.4 Cancellation of a Special Storage Warehouse initiated by a Licensee 14 3 QUALITY RECORDS 14 4 REFERENCES 14 4.1 Legislation 14 4.2 Cross References 15 5 DEFINITIONS AND ACRONYMS 15 6 DOCUMENT MANAGEMENT 15




1 SCOPE a) This document outlines the procedures on licensing of a special storage warehouse. b) The document also outlines the processes of client and bank detail authentication, refusal,

suspension, cancellation and reinstatement of Special Storage Warehouse licence. 2 PROCEDURE 2.1 Client Authentication Process Flow











2.2 Licensing of a Special Storage Warehouse












2.2.2 Documents needed for an application for a Special Storage Warehouse Licence a) Any person who wants to apply for a Special Storage Warehouse licence must complete DA 185 and

DA 185.4B4. (See manual SC-CF-23 on how to complete the DA 185 and DA 185.4B4). The applications for a licence must be submitted to the relevant Controller / Branch Manager in whose control area their business is situated, and then to Head Office for consideration and approval.


application for Special Storage Warehouse licence:

i) Registration certificate of the business as issued by the Registrar of companies or Master of the Supreme Court in the case of a Trust.


trustees and all directors of company. iv) An originally signed and date stamped site plan. v) Proof of ownership, lease or address of the proposed site where Customs transactions must



water, electricity or telephone account. 2.2.3 Licence fee provisions a) Schedule 8 prescribes licence fees for a Special Storage Warehouse and the validity period, the

licence needs no renewal. b) The licence fee will not be refunded when the licensee ceases operation prior to the end of the

licensing period.




PROCEDURE STEP 2.2.4 Additional Information a) The applicant must also disclose on the DA 185 as to whether the following instances had occurred in

the past five (5) years prior to submitting the application:







2.2.5 Special Storage Warehouse Requirements a) The following, but not limited, requirements of the warehouse are applicable:


device which is compatible with Customs seal. v) The building must be equipped with electrical security measures to prevent illegal delivery and

despatch of goods. vi) The building must comply with health and safety regulations. vii) A separate area for the safekeeping of goods which have not being released due to detention


provided to ensure reliable service for the opening, unpacking and re-packing of goods. ix) The building must be independent from other buildings that serve a different purpose. Entry

and exit into and out of warehouse should not lead to other building apart from the warehouse i.e. if another floor or a portion of the building is a duty free store; there must be means of access to the latter other than through the warehouse.


xi) Building approval issued by the local municipality must be provided. b) An attached plan of the intended facility must be provided to SARS reflecting the above information. 2.2.6 Conditions for Licensing of a Special Storage Warehouse a) No person may transact business with SARS until all obligations relating to the licence have been met. b) The applicant may be required to pay a prescribed licence fee as prescribed in Schedule 8 before a

licence is issued. c) An agent may not apply for a licence on behalf of the Special Storage Warehouse applicant.




PROCEDURE STEP d) An applicant may apply for an additional licence to conduct business at another Customs office. e) The requirements to apply for and hold an additional licence are the same as for a new licence and all

steps in the application process must be followed. f) The licence is issued subject to the condition that the licensee or at least one (1) of the licensee’s



the requirements as stated in the policy and rules. h) A warehouse licence may cater for more than one (1) approved warehouse within the same

Controller’s / Branch Manager’s area. 2.2.7 Processing of a Special Storage Warehouse Licence Application a) All applications for a licence must be submitted to the enquiry or admin counter. b) When all required information and completed documentation has been submitted, the Customs Officer







a Customs code will be generated and issued. h) Refer to the flowchart (2.2 Licensing for a special manufacturing warehouse) for detailed process. i) The applicant is then legible to conduct business with SARS as per approved client type. 2.2.8 Rejection of a Special Storage Warehouse Licence Application a) If at any point during the application process, the application is found to be incomplete, it shall be

rejected and returned to the applicant. b) The reason(s) for rejection will be communicated to an applicant in writing. c) The application may be resubmitted once all requirements have been met. 2.2.9 Issuing of a Special Storage Warehouse Licence a) The licence will be issued in the name of the applicant. b) No alterations may be effected on the licence document by the licensee. If mistakes occur during

completion of the form, the Customs officer must re-issue a new licence. No correction fluid (tippex) is allowed on these documents.




PROCEDURE STEP c) The following contents will appear on the licence:




handed to the applicant upon collection or be sent by registered mail to the applicant. 2.2.10 Duties of the Licence Holder a) The Customs client number must be:









f) The premise where the transactions take place must be the SARS Customs approved premises. g) A licensee must always present a copy of a licence when demanded by Customs Officers. h) A contract concluded between a licensee and another person to perform any of its functions shall not

relieve the licensee of its responsibilities under the Act and this procedure. 2.2.11 Change in Particulars of a Special Storage Warehouse Licence a) Whenever any of the particulars furnished in any application for licence changes, the licensee must

advise the Controller within seven (7) days of the occurrence of such event by submitting a DA 185 and / or the relevant annexure, reflecting the changed particulars.


i) Where the legal status or the name of the licensee changes for any reason; ii) Address; iii) Directors of an entity; or




PROCEDURE STEP iv) Individual(s) who has / have sufficient knowledge of Customs and Excise laws and procedure.

2.2.12 Change of Ownership of a Special Storage Warehouse a) In case of ownership change, the legal entity holding the licence prior to the change has to continue to








bonds. 2.2.13 Change of Name of a Special Storage Warehouse a) In case name change, the notification must include the following:

i) A certified copy of revised articles showing the legal name; ii) A list of current directors; and iii) If security is needed. An endorsement to the bond must be submitted to reflect the change.


an identity document reflecting such change. If security is needed, endorsement to the bond must be submitted to reflect such change.

2.2.14 Amalgamation of a Special Storage Warehouse a) During amalgamation, the final legal entity which results from the amalgamation has to have existed




2.2.15 Relocation of a Warehouse a) The relocation of the warehouse will only be allowed if the proposed site is located in the same



a fresh application lodged for the new address.




PROCEDURE STEP d) When the change in location is contemplated, the licensee must advice the Controller / Branch



DA 185 and its applicable annexure shall be completed. f) An inspection will once again be conducted to ascertain that the new business location meets all the



h) The Controller / Branch manager will cancel the existing licence if the licensee relocates without

obtaining prior approval. 2.2.16 Alteration of a Warehouse a) Where alteration to the existing building is contemplated, an originally signed and date stamped site


b) The application for alteration shall be treated in the same manner as the new application. c) A plan must be approved and the building inspected by the Controller / Branch Manager before

commencement of any Customs operations. d) Where the licence fee is applicable, it shall not be charged for alteration unless the date of issue

coincides with the renewal date of existing licence. 2.2.17 Refusal of an Application for a Special Storage Warehouse Licence a) When an application for licence / licence renewal is refused, the SARS Customs Office will inform the

client. The client shall be notified of the reason(s) on the form. b) In cases where clients are not satisfied with any decision taken in terms of the Customs and Excise




2.2.18 Suspension of a Special Storage Warehouse Licence a) Where the licence is to be suspended, the holder will be advised in writing by the relevant SARS

Customs Office. b) A licensee whose licence has been suspended shall only perform outward entries until the final




suspension.











i) A client may also refer the matter to the High Court. 2.2.19 Reinstatement of a Special Storage Warehouse Licence a) If the request for reinstatement is approved and the appropriate steps have been taken to prevent

occurrence(s) of a similar nature in future, the proposed licence may be reinstated. b) The client will be informed of reinstatement by the relevant SARS Customs Office. c) A cancelled licence will not be reinstated. The holder of the licence that has been cancelled has to re-

apply for a new licence to conduct business with SARS.




2.3 Cancellation of a Special Storage Warehouse Licence initiated by SARS









licence. a) In cases where clients are not satisfied with any decision taken in terms of the Customs and Excise







PROCEDURE STEP h) A client may also refer the matter to the High Court. 2.4 Cancellation of a Special Storage Warehouse initiated by a Licensee




3 QUALITY RECORDS Number Title DA 103 Customs and Excise Licence DA 185 Application form: Registration / Licensing of Customs and Excise Clients DA 185.C Security Particulars DA 185.4B4 Special Storage Warehouse SC-CF-05-A19 Requirements to process DA 185 SC-CF-05-A20 Confirmation of Authentication SC-CF-19-FR01 Request for cancellation / suspension of licence / registration / designation SC-SE-05-A1 Assessment for Security Requirements 4 REFERENCES 4.1 Legislation TYPE OF REFERENCE REFERENCE Legislation and Rules Customs and Excise Act No. 91 of 1964: Sections 19, 60, 77A-I and 79-84




administered by SARS: Customs and Excise Rules: 19, 60 and 77H Other Legislation: Promotion of Administrative Justice Act No. 3 of 2000: Section 3 International Instruments: Kyoto Convention General Annex Chapter 3 Clearance and other Customs

Formalities: Standards 3.6 and 3.21; Chapter 5 Security: Standards 5.1; 5.2; 5.4; 5.6 and 5.7; Chapter 7 Information Technology: Standards 7.1 and 7.4; Chapter 8 Relationship between Customs and Third Parties: Standards 8.1; 8.2; 8.3; 8.4, 8.6 and 8.7; Chapter 9 Information, Decisions and Rulings Supplied by Customs: Standards 9.4 and 9.8; Chapter 10 Appeals in Customs Matters: Standards 10.1; 10.2; 10.3; 10.5; 10.6; 10.7; 10.8; 10.9; 10.10; 10.11 and 10.12 Specific Annex A Chapter 2 Temporary Storage of Goods: Paragraphs 2 and 6; Annex D Chapter 1 Customs Warehouses: Paragraph 4; Annex E Chapter 1 Customs Transit: Paragraph 5 WCO SAFE Framework of Standards: None





and processes the application forms 6 DOCUMENT MANAGEMENT Business Owner Group Executive: Customs Trade Operations Document Owner Executive: Process Solutions Customs & Support Services Author P Jones Detail of change from previous revision



ECS-TM-15 – Rev 3


Licensing of Clearing Agent - External SOP SC-CF-19-S06



EXTERNAL


LICENSING / REGISTRATION OF AGENTS




TABLE OF CONTENTS 1 SCOPE 3 2 PROCEDURE 3 2.1 Client Authentication Process Flow 3 2.2 Licensing of Clearing Agent and Registration of Registered Agent 5 2.2.1 Person(s) who may apply 6 2.2.2 Documents needed for an application for a clearing agent licence 6 2.2.3 Documents needed for an application for a registered agent 7 2.2.4 Licence fee provisions applicable to clearing agents 7 2.2.5 Additional information 7 2.2.6 Conditions for licensing of a clearing agent 8 2.2.7 Conditions for a registered agent 8 2.2.8 Processing of a clearing agent licence / registered agent application 8 2.2.9 Rejection of a clearing agent licence application 8 2.2.10 Issuing of a clearing agent licence 9 2.2.11 Registration of registered agent 9 2.2.12 Duties of the clearing agent and registered agent 9 2.2.13 Change in particulars 10 2.2.14 Change of ownership 10 2.2.15 Amalgamation 10 2.2.16 Change of name 11 2.2.17 Renewal of a clearing agent licence 11 2.2.18 Refusal of an application or for a clearing agent licence renewal 11 2.2.19 Suspension 11 2.2.20 Reinstatement 12 2.3 Cancellation of clearing agent licence / registered agent registration initiated by SARS 12 2.4 Cancellation of clearing / registered agent licence initiated by a licensee 13 3 QUALITY RECORDS 14 4 REFERENCES 14 4.1 Legislation 14 4.2 Cross References 14 5 DEFINITIONS AND ACRONYMS 15 6 DOCUMENT MANAGEMENT 15




1 SCOPE a) This document outlines the procedure for licensing of clearing agents and registration of registered

agents. b) The document also outlines the processes of client and bank detail authentication, refusal,

suspension, cancellation and reinstatement of clearing agent licences and registered agent registrations.











2.2 Licensing of Clearing Agent and Registration of Registered Agent












2.2.2 Documents needed for an application for a clearing agent licence a) Any person who wants to apply for a clearing agent licence must complete the DA 185, DA 185.4B5

and a pro forma agreement prescribed in the Rules. The applications for a clearing agent licence must be submitted to the relevant Controller / Branch Manager in whose control area their business is situated.

b) See manual SC-CF-23 on how to complete DA 185 and DA 185.4B5. c) The applications must be originally completed and signed. d) The following originally certified copies or original documents not older than three (3) months where

applicable must accompany the application for a clearing agent licence:

i) Registration certificate of the business as issued by the Registrar of companies or Master of the Supreme Court in the case of a trust.


trustees and all directors of company. iv) Pro forma agreement prescribed in the rules. v) Proof of ownership, lease or address of the proposed site where Customs transactions must

take place. Such proof can be: A) An affidavit issued by the Commissioner of Oath; B) Proof of residence issued by the local chief in case of applicants residing in a village; C) Utility account issued in the name of the applicant i.e. water, electricity or telephone

account. vi) Financial statements (if available as a newly established company will not yet have records) for

the last financial year must be signed by the auditors / accounting officer and directors/members and submitted (i.e. they must submit final copies and not draft copies of the financials): A) Private Company (Pty) Ltd – Audited Financial statements. B) Public Company (Ltd – Audited Financial statements. C) Close Corporation (CC) – Financial statements signed by an Accounting Officer.

vii) Latest tax return / tax clearance certificate (if applicable). e) The documents listed in paragraph (d) above might not be required where the client has already been




PROCEDURE STEP registered with SARS and has a party zero registration number, unless SARS specifically requests the client to submit such.

2.2.3 Documents needed for an application for a registered agent a) Any person who wants to apply for a registered agent must complete the DA 185, DA 185.D and the

DA 185.4A13. The applications for a registered agent must be submitted to the relevant Controller / Branch Manager in whose control area their business is situated.

b) See manual SC-CF-23 on how to complete DA 185, DA 185.C, DA 185.D and DA 186.4A13. c) The applications must be originally completed and signed. d) No additional supporting documents are required as the applicant must be registered for Income Tax

and the ITS registration details will be used for the creating of the Legal Entity. The DA 185.D must be used for the Customs specific information.

e) If security is required the DA 185.C must be completed and returned to the Branch Office / Hub. 2.2.4 Licence fee provisions applicable to clearing agents a) Schedule 8 prescribes licence fees for a Clearing Agent and the validity period, and is payable for the

duration of the licence fee or part thereof on full. If the licence fee is not renewed the facility will be cancelled accordingly. Officers may not accept application during office visits and clients must be informed to submit such to the relevant Branch Office.

b) The licence fee will not be refunded when the licensee ceases operation prior to the end of the

licensing period. c) The Commissioner may require security before any licence is issued. d) For specific aspects regarding bonds / security refer to SC-SE-05. 2.2.5 Additional information a) The applicant must also disclose on the DA 185 as to whether the following instances had occurred in











PROCEDURE STEP 2.2.6 Conditions for licensing of a clearing agent a) No person may transact business with SARS until all obligations relating to the licence have been met. b) The applicant is required to pay a prescribed licence fee as prescribed in Schedule 8 before a licence

is issued. c) An applicant may apply for an additional licence to conduct business at another Customs office. d) The requirements to apply for and hold an additional licence are the same as for a new licence and all

steps in the application process have to be followed. e) The licence is issued subject to the condition that the licensee or at least one (1) of the licensee’s


2.2.7 Conditions for a registered agent a) No person may conduct business with SARS until all obligations relating to the registration application

have been met. b) The applicant must be registered for Income Tax and ensure completion of the Nomination of Agent

presented by the foreigner. c) Applicants for registered agents that have multiple Customs codes must submit a letter of undertaking

if not provided with the initial application within five (5) working days to consolidate all codes into one (1) preferred Customs code prior to the application for a registered agent.

d) The Commissioner may require security before any licence is issued. e) For specific aspects regarding bonds / security refer to SC-SE-05. 2.2.8 Processing of a clearing agent licence / registered agent application a) All applications for a licence must be submitted to the enquiry or admin counter. b) When all required information and completed documentation has been submitted, the Admin / Enquiry

Officer must issue an acknowledgement of receipt of application to the client. c) Where security is applicable, the verification officer must prepare surety on the applicable form as per

policy SC-SE-05 and inform the client to collect it. d) The client needs to obtain the necessary surety from his / her financial institution on the surety form

provided by the verification officer and return such to the respective SARS Customs Office. e) Upon receipt from client, the application must be processed together with the bank stamped security

form and if applicable, the licence fee must be paid. f) If the applicant meets all requirements as prescribed in the Customs legislation and this procedure a

Customs code must be generated and issued to the client. g) The applicant is then eligible to conduct business with SARS. 2.2.9 Rejection of a clearing agent licence application a) If at any point during the application process, the application is found to be incomplete, it must be

rejected and returned to the applicant.




PROCEDURE STEP b) The reason(s) for rejection must be communicated to an applicant in writing. c) The application may be resubmitted once all requirements have been met. 2.2.10 Issuing of a clearing agent licence a) The licence will be issued in the name of the applicant. b) No alterations may be effected on the licence document by the licensee. If mistakes occur during



i) Name of the licensee. Care must ensure that the correct legal names are recorded on the licence.

ii) Customs client number. iii) The purpose for which the licence is issued. iv) Any special conditions to which the licence is subjected to. v) The address of the premises to which the licence is issued. vi) The date from which the licence takes effect and where applicable the expiry date.

d) An approval letter will be issued by the respective SARS Customs Office e) The licence must be handed to the applicant upon collection or be sent by registered mail to the

applicant. 2.2.11 Registration of registered agent a) If an agent record has not already been created such will be created and assigned to the “Agent” client

type, i.e. importer, exporter or remover of goods. b) The specific agreement (nomination form) must be entered into the register stating the relationship

and the approved agent functionality. c) Once approved the client will receive a letter of registration from the relevant SARS Customs Office 2.2.12 Duties of the clearing agent and registered agent a) The Customs client number must be:


ii) Reflected in the authorisation for any agent to transact the business to which the licence relates. b) The clearing agent licence holder must not allow any other person to use such licence in any Customs

business or transaction. c) The licensed and/or registered premises must be open to authorised Customs Officers at all

reasonable times for inspection, verification of records and operations. d) The client mustkeep proper records of books, accounts any data created by means of a computer, of

all transactions relating to the activity in respect of the licence for a period of five (5) years calculated from the end of the calendar year in which any such document was created, lodged or required for any Customs procedure.

e) Directives issued by the Commissioner regarding the licence and/or registration subsequent to the

date of application or during the validity period of the licence and/or registration are deemed to be part of the afore-mentioned terms and conditions from the date on which such directives are issued and




PROCEDURE STEP must be observed by the licensee and/or registrant as if they were included therein and duly subscribed to by the licensee and/or registrant.

f) The premises where the transactions take place must be the one (1) approved by the Controller /

Branch Manager for that purpose. g) A clearing agent licensee must always present a copy of the licence when demanded by Customs

Officers. h) The registered agent must always present the letter of approval as a registered agent when

demanded by Customs Officers. i) A contract concluded between the licensed and/or registered entity and another person to perform any

of its functions will not relieve them of their responsibilities under the Act and this procedure. j) A clearing agent licensee must ensure that the licence is renewed before its expiry date. 2.2.13 Change in particulars a) Whenever any of the particulars furnished in any application for licence changes, the client must



i) Where the legal status or the name of the licensee changes for any reason; or ii) Address; or iii) Directors of an entity; or iv) Individual(s) who has / have sufficient knowledge of Customs laws and procedure.

c) A change in legal identity will require a new application supported by all relevant documents and

bonds (if applicable). 2.2.14 Change of ownership a) In case of ownership change, the legal entity holding the licence prior to the change has to continue to

exist after the change. If the original licence holder ceases to exist as a result of a change of ownership, a new licence application has to be made and new bonds if required.

b) For example, if another company purchases the assets of a dissolved licensed / registered entity, the

licence / registration is no longer valid. The purchasing entity must submit a new application and meet the prescribed requirements.




licence / registration is granted to an individual or partnership. 2.2.15 Amalgamation a) During amalgamation, the final legal entity which results from the amalgamation must have existed

and been licensed / registered prior to the amalgamation. If the amalgamation results in a new or a previously unlicensed / unregistered legal entity, a new application must be submitted.




PROCEDURE STEP b) The notification must include the following in respect of the amalgamation:

i) A certified copy of amendment to the articles of incorporation. ii) The names of any new directors that may have joined as a result of the change. iii) If security is needed, a bond must be submitted to reflect the change.

2.2.16 Change of name a) In case of name change, the notification must include the following:




2.2.17 Renewal of a clearing agent licence a) An application for renewal of licence must be made on DA 185 and should reach the office of any

Controller / Branch Manager thirty (30) days prior to the expiry date of the licence. No annex needs to be completed.

b) No licensee must be permitted to transact business relating to the licence with SARS while the licence

has expired. c) The SARS Customs Office will reject clearances of client who failed to renew their licences in terms of

Schedule 8. 2.2.18 Refusal of an application or for a clearing agent licence renewal a) When an application for licence / licence renewal is refused, the SARS Customs Office will inform the

client. The client must be notified of the reason(s) on the form. b) In cases where clients are not satisfied with any decision taken in terms of the Customs and Excise




d) The applicant may also refer the matter to the High Court. 2.2.19 Suspension a) Where the licence / registration is to be suspended, the holder will be advised in writing by the relevant

SARS Customs Office. b) Before any licence / registration is suspended, except when any demand for any amount remains

unpaid for a period exceeding thirty (30) days from the date of the demand, the Commissioner must:

i) Give 21 days’ notice to the licensee / registrant of the proposed suspension. ii) Provide reasonable information concerning any allegation and grounds for the proposed


the licence / registration should not be suspended.




PROCEDURE STEP c) When the suspension is finalised the Branch Office / Hub will inform the client in writing. d) The registered letter will stipulate:






h) A client may also refer the matter to the High Court. 2.2.20 Reinstatement a) If the request for reinstatement is approved and the appropriate steps have been taken to prevent

occurrence(s) of a similar nature in future, the proposed licence / registration may be reinstated. b) The client will be informed of reinstatement by the relevant SARS Customs Office. c) Reinstatements can also occur when the decision of cancellation is overturned by either an Appeal

Committee or the Court. In these circumstances the LRCC will inform the client and SARS Customs Office accordingly of the reinstatement.

2.3 Cancellation of clearing agent licence / registered agent registration initiated

by SARS




PROCEDURE STEP a) Where the entity is to be cancelled, the holder will be advised in writing by the relevant SARS Customs

Office. b) Before any entity is cancelled, except when any demand for any amount remains unpaid for a period


i) Give 21 days’ notice to the entity of the proposed cancellation. ii) Provide reasonable information concerning any allegation and grounds for the proposed


the licence / registration should not be cancelled. c) The cancellation letter will be sent via registered mail to the client stipulating the reason(s) for such

cancellation. d) No part of any licence fee is refundable on cancellation. e) Once the office is satisfied that the client has no outstanding debt with SARS, the licence / registration

must be cancelled. f) A client whose licence / registration has been cancelled may not perform any Customs activity relating

to that licence / registration. g) A cancelled licence will not be reinstated. The holder of the licence that has been cancelled must

apply for a new licence to conduct business with SARS. h) In cases where clients are not satisfied with any decision taken in terms of the Customs and Excise




j) A client may also refer the matter to the High Court. 2.4 Cancellation of clearing / registered agent licence initiated by a licensee




PROCEDURE STEP a) The client must submit a cancellation request on a DA 185 to the relevant SARS Customs Office. b) If no debt follow-up is required the Team Leader within Client Interface will cancel the client

appropriately. c) The client will be informed accordingly of the cancellation. d) A cancelled licence will not be reinstated. The holder of the licence that has been cancelled must re-


3 QUALITY RECORDS Number Title DA 103 Customs and Excise Licence DA 185 Application form: Registration / Licensing of Customs and Excise Clients DA 185.C Security Particulars DA 185.D Nomination of Agent DA 185.4A13 Registered Agent DA 185.4B5 Clearing Agent SC-CF-05-A19 Requirements to process DA 185 SC-CF-05-A20 Confirmation of Authentication SC-CF-19-FR01 Request for cancellation / suspension of licence / registration SC-SE-05-A1 Assessment for Security Requirements 4 REFERENCES 4.1 Legislation TYPE OF REFERENCE REFERENCE Legislation and Rulesadministered by SARS:

Customs and Excise Act No. 91 of 1964: Sections 59A, 60, 64B, 77A-I and 79-84 Customs and Excise Rules: 59A, 60, 64B and 77H

Other Legislation: Promotion of Administrative Justice Act No. 3 of 2000: Section 3 International Instruments:

Kyoto Convention General Annex Chapter 3 Clearance and other Customs Formalities, 3.6 and 3.21; Chapter 5 Security, 5.1; 5.2; 5.4; 5.6 and 5.7; Chapter 7 Information Technology, 7.1 and 7.4; Chapter 8 Relationship between Customs and Third Parties, 8.1; 8.2; 8.3; 8.4; 8.6 and 8.7; Chapter 9 Information, Decisions and Rulings Supplied by Customs, 9.4 and 9.8; Chapter 10 Appeals in Customs Matters, 10.1; 10.2; 10.3; 10.5; 10.6; 10.7; 10.8; 10.9; 10.10; 10.11 and 10.12; Specific Annex A Chapter 2 Temporary Storage of Goods, Paragraphs 2 and 6; Annex D Chapter 1 Customs Warehouses, Paragraph 4; Annex E Chapter 1 Customs Transit, Paragraph 5 WCO SAFE Framework of Standards: None


Policy All

SC-CF-23 Manual for the completion of DA 185 All SC-SE-05 Bonds – External Policy All




5 DEFINITIONS AND ACRONYMS Act Customs and Excise Act No. 91 of 1964 Clearing agent Any person who transact Customs business on behalf of others Controller / Branch Manager


Foreign Principle The foreign principle is a registered importer, exporter or licensed remover of goods in bond not located in South Africa as prescribed in Rule 59A.01(a)

Licensing Licensing is a formal permission from a government or any constituted authority to perform a specified business or profession that also containsrules and regulations on how such business or profession must be conducted. The purpose of licensing is to restrict unauthorised entry into a specifiedbusiness or profession and also serves as a regulatory activity that givesguidance on acceptable behaviour and practice. It must be seen as a privilege to conduct these types of functions

Registered Agent An agent of a foreign principle who is located in South Africa and registered as prescribed in Rule 59A.01(a)






ECS-TM-15 – Rev 3


Licensing Of Degrouping Depot - External SOP SC-CF-19-S09



EXTERNAL


LICENSING OF DEGROUPING DEPOT




TABLE OF CONTENTS 1 SCOPE 3 2 PROCEDURE 3 2.1 Client Authentication Process Flow 3 2.2 Licensing of Degrouping depot 5 2.2.1 Person(s) who may apply for a Degrouping Depot licence 6 2.2.2 Places where Degrouping may be established 6 2.2.3 Documents needed for an application for a Degrouping depot 6 2.2.4 Licence fee provisions 7 2.2.5 Additional information 7 2.2.6 Degrouping depot requirements 7 2.2.7 Conditions for licensing of a Degrouping depot 8 2.2.8 Processing of Degrouping depot licence applications 8 2.2.9 Rejection of Degrouping depot licence application 8 2.2.10 Issuing of Degrouping depot licence 8 2.2.11 Duties of the licence holder 9 2.2.12 Change in particulars of a Degrouping depot licence 10 2.2.13 Change of ownership of a Degrouping depot 11 2.2.14 Amalgamation of a Degrouping depot 11 2.2.15 Change of name of a Degrouping depot 11 2.2.16 Relocation of a Degrouping depot 11 2.2.17 Alteration of a Degrouping depot 12 2.2.18 Renewal of a Degrouping depot licence 12 2.2.19 Refusal of an application for a Degrouping depot licence / licence renewal 12 2.2.20 Suspension of a Degrouping depot licence 12 2.2.21 Reinstatement of a Degrouping depot licence 13 2.3 Cancellation of a Degrouping depot licence initiated by SARS 13 2.4 Cancellation of Degrouping Depot licence initiated by a licensee 14 3 QUALITY RECORDS 15 4 REFERENCES 15 4.1 Legislation 15 4.2 CROSS REFERENCES 15 5 DEFINITIONS AND ACRONYMS 15 6 DOCUMENT MANAGEMENT 16




1 SCOPE a) This document outlines the procedures for licensing of a degrouping depot. b) The document also outlines the processes of client and bank detail authentication, of refusal,

suspension, cancellation and reinstatement of degrouping depot licence. 2 PROCEDURE 2.1 Client Authentication Process Flow











2.2 Licensing of Degrouping depot




PROCEDURE STEP 2.2.1 Person(s) who may apply for a Degrouping Depot licence a) A natural person who is a citizen or permanent resident of South Africa who is at least 21 years old








2.2.2 Places where Degrouping may be established a) Cape Town International Airport; b) King Shaka International Airport; and c) OR Tambo International Airport. 2.2.3 Documents needed for an application for a Degrouping depot a) Any person applying for licensing of Degrouping depot must complete DA 64G.01 and an agreement

completed in accordance with the pro forma agreement included in rules to the Act. .The application forms are available from the SARS website (www.sars.gov.za); or they can be collected from the nearest SARS – Customs Office.

b) The applications must be originally completed and signed, and submitted to the relevant Controller /

Branch Manager in whose control area their business is situated. c) The following originally certified copies must accompany the application for Degrouping depot licence:

i) Originally completed and signed application forms as required in this procedure; ii) Registration certificate of the business as issued by the Registrar of companies or Master of the

Supreme Court in the case of a Trust; iii) Resolution / consent or other authority as applicable; iv) Identity or passport documents of individual, partners, all members of close corporation,

trustees and all directors of company; v) Audited financial statement for the last financial year; vi) An originally signed and date stamped site plan; and vii) Proof of ownership, lease or address of the proposed site where Customs transactions shall

take place. Such proof can be: A) An affidavit issued by the Commissioner of Oath; or B) Proof of residence not older than three (3) months issued by the local chief in case of


water, electricity or telephone account.





PROCEDURE STEP 2.2.4 Licence fee provisions a) Schedule 8 prescribes licence fees for a degrouping depot and validity period, and is payable for the

duration of the licence fee or part thereof in full. b) The Commissioner may require security before any licence is issued. Refer to SC-SE-05 regarding

Security. 2.2.5 Additional information a) The applicant must also disclose on the DA 64G.01 as to whether the following instances had

occurred in the past five (5) years prior to submitting an application:




vi) Insolvency or in liquidation. b) Full details must be furnished with the application if any of the above did occur. c) The applicant must inform the Commissioner within seven days of occurrence of any of the instances

mentioned above or any of the following two (2) even when the application has been submitted or licence has been issued;


2.2.6 Degrouping depot requirements a) The following, but not limited, requirements of the degrouping depot are applicable;





provided to ensure reliable service for the opening, unpacking and re-packing of goods; ix) The building must be independent from other buildings that serve a different purpose. Entry and

exit into and out of degrouping depot should not lead to other building apart from the degrouping depot i.e. if another floor or a portion of the building is a duty free store, there must be means of access to the latter other than through the degrouping depot;

x) Suitable accommodation such as office furniture, parking facilities and toilet facilities must be provided to Customs Officer at any reasonable time free of charge;

xi) Building approval issued by the local municipality. b) A plan of the intended facility must reflect the above information and also be submitted to the SARS

Customs Office.




PROCEDURE STEP 2.2.7 Conditions for licensing of a Degrouping depot a) No person may transact business with SARS until all obligations relating to the licence have been met. b) The applicant may be required to pay a prescribed licence fee as prescribed in Schedule 8 before a

licence is issued. c) An agent may not apply for a licence on behalf of a degrouping depot applicant. d) The licence is issued subject to the condition that the licensee or at least one (1) of the licensee’s

employees has sufficient knowledge of Customs laws and procedures to ensure that activities relating to the licence are conducted efficiently and in compliance with the provisions of such laws and procedures.

e) SARS may at any reasonable time inspect the depot in order to verify whether it complies with the

requirements as stated in the policy and rules. f) A depot licence may cater for more than one (1) approved depot within the same Customs Control

Area. 2.2.8 Processing of Degrouping depot licence applications a) All applications for a licence must be submitted to the enquiry or admin counter. b) When all required information and completed documentation has been submitted, the Customs Officer



d) Where security is applicable, the client must comply and provide such on the applicable form as per

policy SC-SE-05. e) Once the surety from the financial institution has been provided the client must return such to the



a Customs client number will be generated and issued. h) Refer to the flowchart (2.2 Licensing of a Degrouping Depot) for detailed process. i) The applicant is then legible to conduct business with SARS as per approved client type. 2.2.9 Rejection of Degrouping depot licence application a) If at any point during the application process, the application is found to be incomplete, it must be

rejected and returned to the applicant. b) The reason(s) for rejection will be communicated to the applicant. c) The application may be resubmitted once all requirements have been met. 2.2.10 Issuing of Degrouping depot licence a) The licence will be issued in the name of the applicant.




PROCEDURE STEP b) No alterations may be effected on the licence document. If mistakes occur during completion of the

form, the Officer must re-issue a new licence. No correction fluid (tippex) is allowed on these documents.



ii) Customs client number; iii) The purpose for which the licence is issued; iv) Unique depot number; v) Any special conditions to which the licence is subjected to; vi) The address of the premises to which the licence is issued; and vii) The date from which the licence takes effect and where applicable the expiry date.

d) An approval letter will be issued by the relevant SARS Customs Office. e) The licence will be handed to the applicant upon collection or be sent by registered mail to the

applicant. 2.2.11 Duties of the licence holder a) The Customs client number must be:




c) The licensed premise must be open to authorised Customs Officers at all reasonable times for


of all transactions relating to the activity in respect of the licence for a period of five (5) years calculated from the end of the calendar year in which any such document was created, lodged or required for any Customs and Excise procedure.


subsequent to the date of application or during the validity period of the licence issued on approval of the said application must be deemed to be part of the afore-mentioned terms and conditions from the date on which such directives are issued and must be observed by the licensee as if they were included therein and duly subscribed to by the licensee.


Manager for that purpose. g) A licensee must always present a copy of a licence when demanded by Customs Officers. h) Containers must be unpacked in order of the date of receipt thereof into the depot. i) All goods unpacked from containers must be verified against the container manifests. j) Any shortages against or surpluses to manifested quantities and any discrepant packages must be

recorded and a surplus / shortage / discrepant package report must be completed in a form approved by the Commissioner. Surplus goods must be placed in the security area of the depot immediately




PROCEDURE STEP after removal from the container.

k) Goods unpacked from containers in the depot must be stacked in such a manner that they are readily

available for identification and checking. l) Damaged, ullaged or pilfered packages must be placed in the security area provided therefore

immediately after removal from the container and airport in a form approved by the Commissioner must be compiled in respect of such goods.

m) Packages detained for customs examination or examination by other departments must be kept

available for inspection and such packages may not be delivered from the depot without prior written authority from customs or such other department.

n) Goods may only be released from a depot on receipt of an official Customs release authorisation and

to this end depot operators must have the capability to receive release instructions in electronic format as required by the Commissioner.

o) All un-cleared goods, including goods unpacked from un-cleared full containerised load (FCL)

containers and goods in excess of manifested quantities must be delivered to the State Warehouse under cover of a form approved by the Commissioner, not later than 28 days after the arrival of the carrying vessel. The importer / consignee must be notified of the removal of such goods to the State Warehouse.

p) Acquitted copies of manifests in respect of each container manifested for the depot must be submitted

to the Controller / Branch Manager within forty (40) days of arrival of the carrying vessel. Manifests may be acquitted only by means of:

i) Valid customs release documents; ii) In the case of goods short received, a copy of the Shortage Report; and iii) In the case of un-cleared goods, a receipted copy of the form under cover of which the goods

were removed to the State Warehouse. q) Containers being packed in depots for export must not be removed from the degrouping depot unless

the operator is in possession of the required customs documentation and authority. Containers pre-packed or loaded prior to being delivered to the depot must not be accepted by the depot unless the operator is in possession of the required Customs documentation and authority.

r) No discrimination must be practised against importers or exporters or any class of such importers or

exporters of containerised goods or their agents with regard to the services and facilities provided by the depot operator.

s) A contract concluded between a licensee and another person to perform any of its functions will not

relieve the licensee of its responsibilities under the Act and this procedure. t) A licensee must ensure that the licence is renewed before its expiry date. 2.2.12 Change in particulars of a Degrouping depot licence a) Whenever any of the particulars furnished in any application for licence changes, the licensee must

advise the Controller within seven (7) days of the occurrence of such event by submitting a DA 64G.01 and / or relevant annexure reflecting the changed particulars.


i) Where the legal status or the name of the licensee changes for any reason; or ii) Address; or iii) Directors of an entity; or iv) Individual(s) who has / have sufficient knowledge of Customs and Excise laws and procedure.




PROCEDURE STEP 2.2.13 Change of ownership of a Degrouping depot a) In case of ownership change, the legal entity holding the licence prior to the change has to continue to







licence is granted to individual or partnership. e) A change in legal identity will require a new application supported by all relevant documents and

bonds. 2.2.14 Change of name of a Degrouping depot a) In case of name change, the notification must include the following:




2.2.15 Amalgamation of a Degrouping depot a) During amalgamation, the final legal entity which results from the amalgamation has to have existed


b) The notification must include the following in respect of the amalgamation;


2.2.16 Relocation of a Degrouping depot a) The relocation of the degrouping depot must only be allowed if the proposed site is located in the

same Controller / Branch Manager’s area of control and subject to meeting the terms and conditions of the licence.

b) The existing degrouping depot number must be retained if relocation occurs in the same Controller /

Brach Manager’s area. If the degrouping depot is to relocate to another area of control, the degrouping depot licence must be cancelled and a fresh application lodged for the new address.

c) When the change in location is contemplated, the licensee must advice the Controller / Branch





PROCEDURE STEP d) An application for relocation must be treated in the same manner as the new application. The same

DA 64G.01 must be completed. e) An inspection will once again be conducted to ascertain that the new business location meets all the

requirements. f) Where the licence fee is applicable, it must not be charged for new location falling within the same


g) The Controller / Branch Manager may cancel the existing licence if the licensee relocates without

obtaining prior approval. 2.2.17 Alteration of a Degrouping depot a) Where alteration to the existing building is contemplated, an originally signed and date stamped site


b) The application for alteration must be treated in the same manner as the new application. c) A plan must be submitted and approved and the buildings inspected by SARS Customs before

commencement of any Customs operations occur. 2.2.18 Renewal of a Degrouping depot licence a) An application for renewal of licence must be made on DA 64G.01 and should reach the office of any

Controller / Branch Manager thirty (30) days prior to the expiry date of the licence. No annexure need to be completed.

b) No licensee must be permitted to transact business relating to the licence with SARS while the licence

has expired. c) SARS Customs Offices will reject clearances of clients who failed to renew their licences in terms of

Schedule 8. 2.2.19 Refusal of an application for a Degrouping depot licence / licence renewal a) When an application for licence / licence renewal is refused, the SARS Customs Office will inform the





d) The applicant may also refer the matter to the High Court. 2.2.20 Suspension of a Degrouping depot licence a) Where the licence is to be suspended, the holder will be advised in writing by the relevant SARS

Customs Office. b) Before any licence is suspended, except when any demand for any amount remains unpaid for a




PROCEDURE STEP period exceeding thirty (30) days from the date of the demand, the Commissioner must:



the licence should not be suspended. c) When the suspension is finalised the SARS Customs Office will inform the client in writing. d) The registered letter will stipulate:






h) A client may also refer the matter to the High Court. 2.2.21 Reinstatement of a Degrouping depot licence a) If the request for reinstatements is approved and the appropriate steps have been taken to prevent

occurrence(s) of a similar nature in future, the proposed licence may be reinstated. b) The client will be informed of the reinstatement by the relevant SARS Customs Office. c) A cancelled licence will not be reinstated. The holder of the licence that has been cancelled has to re-

apply for a new licence to conduct business with SARS. 2.3 Cancellation of a Degrouping depot licence initiated by SARS
















i) A client may also refer the matter to the High Court. 2.4 Cancellation of Degrouping Depot licence initiated by a licensee




PROCEDURE STEP a) The client must submit a cancellation request on a DA 64G.01 to the relevant SARS Customs Office. b) An inspection will be conducted and once the application has been verified the SARS Customs Office



3 QUALITY RECORDS Number Title DA 64G.01 Licensing of a Degrouping depot DA64G.01A Security Particulars DA 103 Customs and Excise Licence SC-CF-19-FR01 Request for cancellation / suspension of licence / registration / designation SC-CF-05-A19 Requirements to process DA 185 SC-CF-05-A20 Confirmation of Authentication SC-SE-05-A1 Assessment for Security Requirements 4 REFERENCES 4.1 Legislation TYPE OF REFERENCE REFERENCE Legislation and Rules administered by SARS:

Customs and Excise Act No. 91 of 1964: Sections 6, 8, 19, 60, 77A-I and 79-84 Customs and Excise Rules:6, 8,19, 60 and 77H


Kyoto Convention General Annex Chapter 3, Standards 3.6 and 3.21 –Kyoto Convention General Annex Chapter 3 Clearance and other Customs Formalities: Standards 3.6 and 3.21; Chapter 5 Security: Standards 5.1; 5.2; 5.4; 5.6 and 5.7; Chapter 7 Information Technology: Standards 7.1 and 7.4; Chapter 8 Relationship between Customs and Third Parties: Standards 8.1; 8.2; 8.3; 8.4, 8.6 and 8.7; Chapter 9 Information, Decisions and Rulings Supplied by Customs: Standards 9.4 and 9.8; Chapter 10 Appeals in Customs Matters: Standards 10.1; 10.2; 10.3; 10.5; 10.6; 10.7; 10.8; 10.9; 10.10; 10.11 and 10.12; Specific Annex A Chapter 2 Temporary Storage of Goods: Paragraphs 2 and 6; Annex D Chapter 1 Customs Warehouses: Paragraph 4; Annex E Chapter 1 Customs Transit: Paragraph 5 WCO SAFE Framework of Standards: None

4.2 CROSS REFERENCES DOCUMENT # DOCUMENT TITLE APPLICABILITY SC-CC-24 Administrative Appeal All SC-CC-26 Alternative Dispute Resolution All SC-CF-19 Licensing, Registration and Designation Policy All SC-CF-23 Manual for the completion of DA 185 All SC-SE-05 Securities All 5 DEFINITIONS AND ACRONYMS Act Customs and Excise Act No. 91 of 1964 Applicable Officer Officer assigned to perform any of the functions relating to Licensing and

Registration






Licensing Licensing is a formal permission from a government or any constituted authority to perform a specified business or profession that also contains rules and regulations on how such business or profession must be conducted. The purpose of licensing is to restrict unauthorised entry into a specified business or profession and also serves as a regulatory activity that gives guidance on acceptable behaviour and practice. It must be seen as a privilege to conduct these types of functions




Updating to bring in aspects of authentication process for banking and master details and business owner Port Elizabeth deleted from places where degrouping depots are allowed


ECS-TM-15 – Rev 3


Licensing of a Container Depot - External SOP SC-CF-19-S10



EXTERNAL


LICENSING OF CONTAINER DEPOT




TABLE OF CONTENTS 1 SCOPE 3 2 PROCEDURE 3 2.1 Client Authentication Process Flow 3 2.2 Licensing of a Container Depot 5 2.2.1 Person(s) who may apply for a Container depot licence 6 2.2.2 Places where a Container depot may be established 6 2.2.3 Documents needed for an application for a Container depot 6 2.2.4 Licence fee provisions 7 2.2.5 Additional Information 7 2.2.6 Container Depot requirements 7 2.2.7 Conditions for licensing of a Container Depot 8 2.2.8 Processing of Container Depot licence applications 8 2.2.9 Rejection of Container Depot licence application 9 2.2.10 Issuing of Container Depot licence 9 2.2.11 Duties of the licence holder for a Container Depot 9 2.2.12 Change in particulars of a Container Depot licence 11 2.2.13 Change of ownership of a Container Depot 11 2.2.14 Change of name of a Container Depot 11 2.2.15 Amalgamation of a Container Depot 11 2.2.16 Relocation of a Container Depot 12 2.2.17 Alteration of a Container Depot 12 2.2.18 Renewal of a Container Depot licence 12 2.2.19 Refusal of an application for a Container Depot licence 12 2.2.20 Suspension of a Container Depot licence 13 2.2.21 Reinstatement of a Container Depot licence 13 2.3 Cancellation of a container depot licence initiated by SARS 14 2.4 Cancellation of container depot licence initiated by a licensee 15 3 QUALITY RECORDS 15 4 REFERENCES 15 4.1 Legislation 15 4.2 Cross references 16 5 DEFINITIONS AND ACRONYMS 16 6 DOCUMENT MANAGEMENT 16




1 SCOPE a) This document outlines the procedures for licensing of a container depot. b) It covers the respective procedures for client and bank authentication and the refusal, suspension,

cancellation, and reinstatement of a container depot licence. 2 PROCEDURE 2.1 Client Authentication Process Flow





























be informed. k) If the process was successful, the applicant / representative will be issued with the SC-CF-05-A20 and





2.2 Licensing of a Container Depot




PROCEDURE STEP 2.2.1 Person(s) who may apply for a Container depot licence a) The following person(s) may apply for an container depot licence:

i) A natural person who is a citizen or permanent resident of South Africa who is at least 21 years old and has an established place of business (fixed physical address) in South Africa.

ii) A juristic person incorporated in South Africa or if not incorporated in South Africa must have an established place of business (fixed physical address) in South Africa.

iii) In case of a juristic person incorporated in South Africa the majority of the directors or members must be citizens or permanent residents of South Africa. The amount of shares that each director holds is not necessary.

iv) A partnership or a trust consisting of individuals who are citizens or permanent resident of South Africa and are at least 21 years old.

v) A person having the effective management of an association of persons whether or not formed in South Africa that has an established place of business (fixed physical address) in South Africa.

vi) In case of the following: A) A deceased’s estate, the executor of the estate; and B) An insolvent estate, the trustee.

b) The container operator must register for cargo reports in terms of Section 8 and electronic

communication with SARS in terms of section 101A and enter into a user agreement prescribed. 2.2.2 Places where a Container depot may be established a) Cape Town. b) Durban. c) East London. d) Pretoria. e) Germiston. f) Johannesburg. g) Port Elizabeth. 2.2.3 Documents needed for an application for a Container depot a) Any person applying for licensing of container depot must complete the SC-CF-05-FR02. The forms

are available from the SARS website (www.sars.gov.za), or they can be collected from the nearest SARS – Customs Office.

b) The applications must be originally completed and signed, and submitted to the relevant Controller /

Branch Manager in whose control area the business is situated. c) The following originally certified copies must accompany the application for container depot licence:

i) Originally completed and signed application forms as required in this procedure; ii) Registration certificate of the business as issued by the Registrar of companies or Master of the

Supreme Court in the case of a Trust; iii) Resolution / consent or other authority as applicable; iv) Identity or passport documents of individual, partners, all members of close corporation,

trustees and all directors of company; v) Audited financial statement for the last financial year; vi) An originally signed and date stamped site plan; and





PROCEDURE STEP vii) Proof of ownership, lease, or address of the proposed site where Customs transactions must

take place. Such proof not be older than three (3) months can be: A) An affidavit issued by the Commissioner of Oath; or B) Proof of residence issued by the local chief in case of applicants residing in a village; or C) Utility account issued in the name of the applicant i.e. water, electricity or telephone

account. 2.2.4 Licence fee provisions a) Schedule 8 prescribes license fees for a container depot and the validity period, and is payable for the

duration of the licence fee or part thereof. b) The licence fee will not be refunded when the licensee ceases operation prior to the end of the

licensing period. c) The Commissioner may require security before any license is issued. Refer to policy SC-SE-05

regarding security. 2.2.5 Additional Information a) The applicant must also disclose on the SC-CF-05-FR02 as to whether the following instances had

occurred in the past five (5) years prior to submitting an application:







2.2.6 Container Depot requirements a) The building must be structurally sound and safeguarded against fire and burglary. b) The premise must be securely fenced. c) The walls of the building should be as a general rule of brick, stone or concrete and the roof of slate,

tiles or iron. d) Windows, doors, gates and other means of access must be fully secured with adequate locking device

which is compatible with Customs seal. e) The building must be equipped with electrical security measures to prevent illegal delivery and

despatch of goods. f) The building must comply with health and safety regulations.




PROCEDURE STEP g) A separate area for the safekeeping of goods which have not being released due to detention and

seizure must be provided. h) Sufficient space and facilities relevant to conduct examination and necessary staff must be provided to

ensure reliable service for the opening, unpacking and re-packing of goods. i) The building must be independent from other buildings that serve a different purpose. j) Entry and exit into and out of depot should not lead to other building apart from the depot i.e. if another

floor or a portion of the building is a duty free store; there must be means of access to the latter other than through the depot.

k) Suitable accommodation such as office furniture, parking facilities and toilet facilities must be provided

to Customs official at any reasonable time free of charge. l) Building approval issued by the local municipality. m) An attached plan of the intended facility must reflect the above information. 2.2.7 Conditions for licensing of a Container Depot a) No person may transact business with SARS until all obligations relating to the licence have been met. b) The applicant may be required to pay a prescribed licence fee as prescribed in Schedule 8 before a

licence is issued. c) An agent may not apply for licence on behalf of a container depot applicant. d) The licence is issued subject to the condition that the licensee or at least one of the licensee’s

employees have sufficient knowledge of Customs laws and procedures to ensure that activities relating to licence are conducted efficiently and in compliance with the provisions of such laws and procedures.

e) SARS may at any reasonable time inspect the depot in order to verify whether it complies with the

requirements as stated in the policy and Rules. f) A depot licence may cater for more than one approved depot within the same Customs Control Area. 2.2.8 Processing of Container Depot licence applications a) All applications for a licence must be submitted to the enquiry or admin counter. b) When all required information and completed documentation has been submitted, the Customs Officer




per SC-SE-05. e) Once the surety from the financial institution has been provided the client must return such to the






PROCEDURE STEP a Customs client number will be generated and issued.

h) Refer to the flowchart (2.2 Licensing of Container Depot) for detailed process. i) The applicant is then legible to conduct business with SARS as per approved client type. 2.2.9 Rejection of Container Depot licence application a) If at any point during the application process, the application is found to be incomplete, it will be

rejected and returned to the applicant. b) The reason(s) for rejection will be communicated to an applicant. c) The application may be resubmitted once all requirements have been met. 2.2.10 Issuing of Container Depot licence a) The licence will be issued in the name of the applicant. b) No alterations may be effected on a licence document by a Licensee. If mistakes occur during




ii) Customs client number; iii) The purpose for which the licence is issued; iv) Unique depot number; v) Any special conditions to which the licence is subjected to; vi) The address of the premises to which the licence is issued; and vii) The date from which the licence takes effect and where applicable the expiry date.

d) The respective SARS Customs Office will issue an approval letter. e) The licence will be handed to the applicant upon collection or be sent by registered mail to the

applicant 2.2.11 Duties of the licence holder for a Container Depot a) The Customs client number must be:



transaction. c) The licensed premise must be open to authorised Customs Officers at all reasonable times for



e) Any directives issued by the Commissioner in connection with the procedures that are applicable to




PROCEDURE STEP the licence; subsequent to the date of application, or during the validity period of the licence; issued on approval of the said application; must be deemed to be part of the afore-mentioned terms and conditions, from the date on which such directives are issued, and must be observed by the licensee as if they were included therein and duly subscribed to by the licensee.


Manager for that purpose. g) A licensee must always present a copy of a licence when demanded by Customs Officer. h) Containers must be unpacked in order of the date of receipt thereof into the depot. i) All goods unpacked from containers must be verified against the container manifests. j) Any shortages against or surpluses to manifested quantities and any discrepant packages must be

recorded and a surplus / shortage / discrepant package report must be completed in a form approved by the Commissioner. Surplus goods must be placed in the security area of the depot immediately after removal from the container.

k) Goods unpacked from containers in the depot must be stacked in such a manner that they are readily

available for identification and checking. l) Damaged, ullaged, or pilfered packages must be placed in the security area provided therefore

immediately after removal from the container and a report in a form approved by the Commissioner must be compiled in respect of such goods.

m) Packages detained for customs examination or examination by other departments must be kept

available for inspection and such packages must not be delivered from the depot without prior written authority from customs or such other department.

n) Goods may only be released from a depot on receipt of official Customs release authorisation and to

this end depot operators must have the capability to receive release instructions in electronic format as required by the Commissioner.

o) All uncleared goods, including goods unpacked from uncleared full-containerised load (FCL)

containers and goods in excess of manifested quantities, must be delivered to the State Warehouse under cover of a form approved by the Commissioner, not later than 28 days after the arrival of the carrying vessel. The importer / consignee must be notified of the removal of such goods to the State Warehouse.

p) Acquitted copies of manifests in respect of each container manifested for the depot must be submitted

to the Controller / Branch Manager within forty (40) days of arrival of the carrying vessel. q) Manifests may be acquitted only by means of:

i) Valid customs release documents; ii) In the case of goods short received, a copy of the Shortage Report; and iii) In the case of uncleared goods, a receipted copy of the form under cover of which the goods

were removed to the State Warehouse. r) Containers being packed in depots for export must not be removed from the depot unless the operator

is in possession of the required customs documentation and authority. The depot must not accept containers pre-packed or loaded prior to being delivered to the depot unless the operator is in possession of the required customs documentation and authority.

s) No discrimination must be practised against importers, exporters, or any class of such importers or

exporters of containerised goods or their agents with regard to the services and facilities provided by the depot operator.




PROCEDURE STEP t) A contract concluded between a licensee and another person to perform any of its functions must not

relieve the licensee of its responsibilities under the Act and this procedure. u) A licensee must ensure that the licence is renewed before its expiry date. 2.2.12 Change in particulars of a Container Depot licence a) Whenever any of the particulars furnished in any application for licence changes, the licensee must

advise the Controller / Branch Manager within seven (7) days of the occurrence of such event by submitting a SC-CF-05-FR02 and / or relevant annexure reflecting the changed particulars.


i) Where the legal status or the name of the licensee changes for any reason; or ii) Address; or iii) Directors of an entity; or iv) Individual(s) who has / have sufficient knowledge of Customs laws and procedure.

2.2.13 Change of ownership of a Container Depot a) In case of ownership change, the legal entity holding the licence prior to the change has to continue to







licence is granted to individual or partnership. e) Change in legal identity will require a new application supported by all relevant documents and bonds. 2.2.14 Change of name of a Container Depot a) In case of name change, the notification must include the following:



an identity document reflecting such change. If security is needed, endorsement to the bond must be submitted to reflect such change.

2.2.15 Amalgamation of a Container Depot a) During amalgamation, the final legal entity which results from the amalgamation has to have existed






PROCEDURE STEP i) A certified copy of amendment to the articles of incorporation; ii) The names of any new directors that may have joined as a result of the change; and iii) If security is needed, a bond must be submitted to reflect the change.

2.2.16 Relocation of a Container Depot a) Rule 200.08 prescribes the places where a container depot may be established. b) The relocation of the Container Depot must only be allowed if the proposed site is located in the same

Controller / Branch Manager’s area of control and subject to meeting the terms and conditions of the licence.

c) If the depot is to relocate to another area of control, the Container Depot licence must be cancelled

and a fresh application lodged for the new address. d) When the change in location is contemplated, the licensee must advice the Controller / Branch


e) The application for relocation must be treated in the same manner as the new application. The same

SC-CF-05-FR02 must be completed. f) Applicants may not commence with operations at the new location until final approval has been

granted by SARS Customs. 2.2.17 Alteration of a Container Depot a) Where alteration to the existing building is contemplated, an originally signed and date stamped site


b) The application for alteration will be treated in the same manner as the new application. c) A new plan must be submitted and approved and the building inspected by SARS Customs before

commencement of any Customs operations occurs. 2.2.18 Renewal of a Container Depot licence a) An application for renewal of licence must reach the office of any Controller / Branch Manager 30

(thirty) days prior to the expiry date of the licence. b) No licensee is permitted to transact business relating to the licence with SARS while the licence has

expired. c) SARS Customs Offices will reject clearances of client who failed to renew their licences in terms of

Schedule 8. 2.2.19 Refusal of an application for a Container Depot licence a) When an application for licence / licence renewal is refused, the SARS Customs Office will inform the

client. The client must be notified of the reason(s) on the form. b) In cases where clients are not satisfied with any decision taken in terms of the Customs and Excise



application for ADR (Alternative Dispute Resolution) with the relevant appeal committee. The committee will add its comments thereto and forward the application to the ADR Unit for attention.




PROCEDURE STEP The policy in this regard, as well as the process to be followed is contained in SC-CC-26.

d) The applicant may also refer the matter to the High Court. 2.2.20 Suspension of a Container Depot licence a) Where the licence is to be suspended, the relevant SARS Customs Office will advise the holder

thereof in writing. b) Before any licence is suspended, except when any demand for any amount remains unpaid for a




the licence should not be suspended. c) The registered letter will stipulate:


d) No part of any licence fee is refundable on suspension of a licence. e) In cases where clients are not, satisfied with any decision taken in terms of the Customs and Excise




g) A client may also refer the matter to the High Court. 2.2.21 Reinstatement of a Container Depot licence a) If the request for reinstatements is approved and the appropriate steps have been taken to prevent

occurrence(s) of a similar nature in future, the proposed licence may be reinstated. b) The relevant SARS Customs Office will inform the client of the reinstatement. c) A cancelled licence will not be reinstated. The holder of the licence that has been cancelled has to re-





2.3 Cancellation of a container depot licence initiated by SARS

PROCEDURE STEP a) Where the licence is to be cancelled, the relevant SARS Customs Office will advise the holder in

writing. b) Before any licence is cancelled, except when any demand for any amount remains unpaid for a period




the licence should not be cancelled. c) The cancellation letter must be sent via registered mail to the client stipulating the reason(s) for such

cancellation. d) No part of any licence fee is refundable on cancellation. e) The SARS Customs Office will acknowledge the request for voluntary cancellation. f) Once the office is satisfied that the client has no outstanding debt with SARS, the licence must be

cancelled. g) A client whose licence has been cancelled may not perform any Customs activity relating to that

licence. h) In cases where clients are not, satisfied with any decision taken in terms of the Customs and Excise




j) A client may also refer the matter to the High Court.




2.4 Cancellation of container depot licence initiated by a licensee

PROCEDURE STEP a) The client must submit a cancellation request on the SC-CF-05-FR02 to the relevant SARS Customs

Office. b) Once the application has been verified by the Enquiry Officer the documents will be submitted to the

Verification Officer who will acknowledge receipt and submit the application to Debt collection if required.

c) If no debt follow-up is required, the Team Leader within Client Interface will cancel the client


3 QUALITY RECORDS Number Title DA 103 Customs and Excise Licence SC-CF-05-A19 Requirements to process DA 185 SC-CF-05-A20 Confirmation of Authentication SC-CF-05-FR01 Request for cancellation / suspension of licence / registration / designation SC-CF-05-FR02 Application for Container Depot Licence SC-SE-05-A1 Assessment for Security Requirements 4 REFERENCES 4.1 Legislation TYPE OF REFERENCE REFERENCE Legislation and Rules administered by SARS:

Customs and Excise Act No. 91 of 1964: Sections 6, 8, 19, 60, 64A, 77A-I, 79-84 and 101A Customs and Excise Rules:6, 8,19, 60, 64A.01, 77H and 101A

Other Legislation: Promotion of Administrative Justice Act No. 3 of 2000: Sections 3, 4 and 5 International Instruments:

Kyoto Convention General Annex Chapter 3 Clearance and other Customs Formalities: Standards 3.6 and 3.21; Chapter 5 Security: Standards 5.1; 5.2; 5.4; 5.6 and 5.7; Chapter 7 Information Technology: Standards 7.1 and 7.4; Chapter 8 Relationship between Customs and Third Parties: Standards 8.1; 8.2; 8.3; 8.4,




TYPE OF REFERENCE REFERENCE 8.6 and 8.7; Chapter 9 Information, Decisions and Rulings Supplied by Customs: Standards 9.4 and 9.8; Chapter 10 Appeals in Customs Matters: Standards 10.1; 10.2; 10.3; 10.5; 10.6; 10.7; 10.8; 10.9; 10.10; 10.11 and 10.12; Specific Annex A Chapter2 Temporary Storage of Goods: Paragraphs 2 and 6; Annex D Chapter 1 Customs Warehouses: Paragraph 4; Annex E Chapter 1 Customs Transit: Paragraph 5 WCO SAFE Framework of Standards: None

4.2 Cross references DOCUMENT # DOCUMENT TITLE APPLICABILITY SC-CC-24 Administrative Appeal All SC-CC-26 Alternative Dispute Resolution All SC-CF-19 Licensing, Registration and designation Policy All SC-CF-23 Manual for the completion of DA 185 All SC-SE-05 Securities All 5 DEFINITIONS AND ACRONYMS Act Customs and Excise Act No. 91 of 1964, as amended Controller / Branch Manager



Container Depot A place that manufactures dutiable goods Rule Rule to Customs and Excise Act SARS Customs Office The Branch Office, port of entry / exit or hub that handles and processes the

application forms 6 DOCUMENT MANAGEMENT Business Owner Group Executive: Customs Trade Operations Document Owner Executive: Process Solutions Customs & Support Services Author P Jones Detail of change from previous revision

Updating to bring in aspects of the authentication process for banking and master details and business owner


ECS-TM-15 – Rev 3


Registration as a Manufacturer i.t.o Drawback Items 501.00 To 521.00 – External SOP SC-CF-19-S15



EXTERNAL


REGISTRATION AS A MANUFACTURER IN TERMS

OF DRAWBACK ITEMS 501.00 TO 521.00




TABLE OF CONTENTS 1 SCOPE 3 2 PROCEDURE 3 2.1 Client Authentication Process Flow 3 2.2 Registration of manufacturer in terms of Drawback Items 501.00 to 521.00 5 2.2.1 Person(s) who may apply for registration as a Manufacturer in terms of Drawback 501.00 to 521.00 6 2.2.2 Documents needed for an application for registration as a Manufacturer in terms of Drawback

501.00 to 521.00 6 2.2.3 Additional information 6 2.2.4 Requirements of registered premise of Manufacturer in terms of Drawback items 501.00 to 521.00 7 2.2.5 Conditions for registration as a Manufacturer in terms of Drawback items 501.00 to 521.00 7 2.2.6 Processing of applications for registration as a Manufacturer in terms of Drawback items 501.00 to

521.00 8 2.2.7 Rejection of application for registration as a Manufacturer in terms of Drawback items 501.00 to

521.00 8 2.2.8 Approval of a registration as a Manufacturer in terms of Drawback items 501.00 to 521.00 8 2.2.9 Duties of the registration holder 9 2.2.10 Change in particulars of a Manufacturer in terms of Drawback items 501.00 to 521.00 9 2.2.11 Change of ownership of a Manufacturer in terms of Drawback items 501.00 to 521.00 10 2.2.12 Change of name of a Manufacturer in terms of Drawback items 501.00 to 521.00 10 2.2.13 Amalgamation of a Manufacturer in terms of Drawback items 501.00 to 521.00 10 2.2.14 Relocation of a registered premises 10 2.2.15 Alteration of a registered premises 11 2.2.16 Refusal of registration as a Manufacturer in terms of Drawback items 501.00 to 521.00 11 2.2.17 Suspension of registration as a Manufacturer in terms of Drawback items 501.00 to 521.00 11 2.2.18 Reinstatement of a registration as a Manufacturer in terms of Drawback items 501.00 to 521.00 12 2.3 Cancellation of registration as a manufacturer in terms of Drawback Items 501.00 to 521.00

initiated by SARS 12 2.4 Cancellation of registration as a Manufacturer in Terms of Drawback items 501.00 To 521.00

initiated by a registrant 13 3 QUALITY RECORDS 13 4 REFERENCES 14 4.1 Legislation 14 4.2 Cross References 14 5 DEFINITIONS AND ACRONYMS 14 6 DOCUMENT MANAGEMENT 14




1 SCOPE a) This document outlines the standardised operating procedure forregistration as a manufacturer in

terms of drawback items 501.00 to 521.00. b) The document also outlines the processes for client and bank detail authentication, refusal,

suspension, cancellation and reinstatement of manufacturer in terms of drawback items 501.00 to 521.00 registration.







ii) Original identity document/passport or a temporary identity document/passport of the person




PROCEDURE STEP signing the application and where required for the authorised representative.
























2.2 Registration of manufacturer in terms of Drawback Items 501.00 to 521.00




PROCEDURE STEP 2.2.1 Person(s) who may apply for registration as a Manufacturer in terms of Drawback 501.00 to

521.00 a) A natural person who is a citizen or permanent resident of South Africa who is at least 21 years old








2.2.2 Documents needed for an application for registration as a Manufacturer in terms of Drawback

501.00 to 521.00 a) Any person who wants to apply for Manufacturer in terms of drawback items 501.00 to 521.00

registration must complete DA 185 and DA 185.4A10. The application forms are available from the SARS website (www.sars.gov.za), or they may be collected from the nearest SARS Customs Office.

b) See manual SC-CF-23 on how to complete DA 185 and DA 185.4A10. c) The applications must be originally completed and signed and submitted to the relevant Controller /

Branch Manager in whose control areas their business is situated. d) The following originally certified copies must accompany the application for Special Manufacturing

Warehouse registration:



trustees and all directors of company; iv) An originally signed and date stamped site plan; and v) Proof of ownership, lease or address not older than three (3) months of the proposed site where

Customs transactions must take place. Such proof can be: A) An affidavit issued by the Commissioner of Oath; or B) Proof of residence issued by the local chief in case of applicants residing in a village; or C) Utility account issued in the name of the applicant i.e. water, electricity or telephone

account. 2.2.3 Additional information a) The applicant must also disclose on the DA 185 as to whether the following instances had occurred in






PROCEDURE STEP i) Contravention or failure to comply with the provisions of the Act; ii) Failure to comply with any condition, obligation or other requirements imposed by the




instances mentioned above or any of the following two (2) even when the application has been submitted or registration has been approved:


2.2.4 Requirements of registered premise of Manufacturer in terms of Drawback items 501.00 to

521.00 a) The following, but not limited, requirements of the registered premise are applicable:





provided to ensure reliable service for the opening, unpacking and re-packing of goods; ix) The building must be independent from other buildings that serve a different purpose. Entry and

exit into and out of warehouse should not lead to other building apart from the warehouse i.e. if another floor or a portion of the building is a duty free store, there must be means of access to the latter other than through the warehouse;

x) Suitable accommodation such as office furniture, parking facilities and toilet facilities must be provided to Customs Officers at any reasonable time free of charge;

xi) Building approval issued by the local municipality. b) An attached plan of the intended facility must also be submitted reflecting the above information. 2.2.5 Conditions for registration as a Manufacturer in terms of Drawback items 501.00 to 521.00 a) Registration is not dependent upon furnishing of a bond as the duty has been brought to account at

the time of entry for home consumption. a) The Commissioner may, exempt any person from the provisions of registering to whom a permit has

been issued to allow for participation in this scheme. b) No person may transact with SARS until all obligations relating to registration have been met. c) An agent may not apply for registration on behalf of the manufacturer in terms of drawback 501.00 to

521.00.




PROCEDURE STEP d) The registration is issued subject to the condition that the registrant or at least one of the registrant’s

employees have sufficient knowledge of Customs laws and procedures to ensure that activities relating to registration are conducted efficiently and in compliance with the provisions of such laws and procedures.

e) SARS may at any reasonable time inspect the registered premise in order to verify whether it complies

with the requirements as stated in the policy and rules. f) A registration may cater for more than one (1) registered premise within the same Controller’s / Branch

Manager’s area. 2.2.6 Processing of applications for registration as a Manufacturer in terms of Drawback items

501.00 to 521.00 a) All applications for a registration must be submitted to the enquiry or admin counter. b) When all required information and completed documentation has been submitted, the Customs Officer

will issue an acknowledgement of receipt. c) Where security is applicable, the client needs to comply and provide such on the applicable form as

per policy SC-SE-05. d) Once the surety from the financial institution has been provided the client must return such to the

respective SARS Customs Office. e) SARS will then further process the application together with the bank stamped security form and if

applicable, the registration fee must be paid. f) If the applicant meets all the requirements as prescribed in the Customs legislation and this procedure

a Customs client number will be generated and issued. g) Refer to the flowchart (2.2 Registration for Manufacturing i.t.o Drawback 501-521) for detailed process. h) The applicant is then legible to conduct business with SARS as per approved client type. 2.2.7 Rejection of application for registration as a Manufacturer in terms of Drawback items 501.00 to

521.00 a) If at any point during the application process, the application is found to be incomplete, it will be

rejected and returned to the applicant. b) The reason(s) for rejection will be communicated to an applicant. c) The application may be resubmitted once all requirements have been met. 2.2.8 Approval of a registration as a Manufacturer in terms of Drawback items 501.00 to 521.00 a) The Customs client number must be:


ii) Reflected in the authorisation for any clearing agent to transact the business to which the registration relates.

b) The registration will be issued in the name of the applicant. c) No alterations may be effected on a registration approval document by the Registrant. If mistakes




PROCEDURE STEP occur during completion of the form, the officer must re-issue a new document. No correction fluid (tippex) is allowed on these documents.

d) The registration approval must be handed to the applicant upon collection or be sent by mail to the

applicant. e) The following contents must appear on the registration approval document:


ii) Customs client number; iii) The purpose for which the registration is issued; iv) Registered premise number; and v) Any special conditions to which the registration is subjected to.

f) An approval letter will be issued by the respective SARS Customs Office. g) The registration document will be handed to the applicant upon collection or be sent by registered mail

to the applicant. 2.2.9 Duties of the registration holder a) The registration holder may not allow any other person to use such registration in any Customs

business or transaction. b) The registered premise must be open to authorised Customs Officers at all reasonable times for

inspection, verification of records and operations including supervision of tallying operations. c) Any directives issued by the Commissioner in connection with procedures applicable to registration

subsequent to the date of application or during the validity period of the registration issued on approval of the said application, must be deemed to be part of the afore-mentioned terms and conditions from the date on which such directives are issued and must be observed by the registrant as if they were included therein and duly subscribed to by the registrant.

d) The premise where the transactions take place must be the one approved by the Controller / Branch

Manager for that purpose. e) A registrant must always present a copy of a registration when demanded by Customs Officers. f) Every registered person must keep proper books, accounts, documents, any computer data and all

transactions relating to the registration for a period of five (5) years calculated from the end of the year in which that document was created, lodged or required for the purpose of Customs procedure and produce them on demand by SARS on any reasonable time.

2.2.10 Change in particulars of a Manufacturer in terms of Drawback items 501.00 to 521.00 a) Whenever any of the particulars furnished in any application for registration changes, the registrant



i) Where the legal status or the name of the registration changes for any reason; or ii) Address; or iii) Directors of an entity; or iv) Individual(s) who has / have sufficient knowledge of Customs laws and procedure.

c) Change in legal identity will require a new application supported by all relevant documents and bonds.




PROCEDURE STEP 2.2.11 Change of ownership of a Manufacturer in terms of Drawback items 501.00 to 521.00 a) In case of ownership change, the legal entity holding the registration prior to the change has to




c) The notification will include the following in respect of the new name:

i) A certified copy of amendment to the articles of incorporation; and ii) A list of current directors. iii) Change of ownership is not allowed in case of sole proprietorships or individual partnerships as

the registration is granted to individual or partnership. 2.2.12 Change of name of a Manufacturer in terms of Drawback items 501.00 to 521.00 a) In case of name change the notification will include the following:



an identity document reflecting such change 2.2.13 Amalgamation of a Manufacturer in terms of Drawback items 501.00 to 521.00 a) During amalgamation, the final legal entity which results from the amalgamation has to have existed


b) The notification will include the following in respect of the amalgamation:


2.2.14 Relocation of a registered premises a) The relocation of the registered premises must only be allowed if the proposed site is located in the

same Controller / Branch Manager’s area of control and subject to meeting the terms and conditions of the registration.

b) The existing registered premise number must be retained if relocation occurs in the same Controller /

Branch Manager’s area. If the registered premise is to relocate to another area of control, the registration must be cancelled and a fresh application lodged for the new address.

c) When the change in location is contemplated, the registrant must advice the Controller / Branch


d) An application for relocation must be treated in the same manner as the new application. The same

DA 185 and applicable annex must be completed. e) Applicants must not commence with operations at the new location until final approval has been

granted.




PROCEDURE STEP 2.2.15 Alteration of a registered premises a) Where alteration to the existing building is contemplated, an originally signed and date stamped site


b) The application for alteration must be treated in the same manner as the new application. c) A plan must be approved and the building inspected by the Controller / Branch Manager before

commencement of any Customs operations. 2.2.16 Refusal of registration as a Manufacturer in terms of Drawback items 501.00 to 521.00 a) When an application for registration is refused, the SARS Customs Office will inform the client. The

client must be notified of the reason for such a refusal. b) In cases where clients are not satisfied with any decision taken in terms of the Customs and Excise




d) The applicant may also refer the matter to the High Court. 2.2.17 Suspension of registration as a Manufacturer in terms of Drawback items 501.00 to 521.00 a) Where the registration is to be suspended, the holder will be advised in writing by the relevant SARS






the registration should not be suspended. d) The registered letter must stipulate:









PROCEDURE STEP g) The applicant may also refer the matter to the High Court. 2.2.18 Reinstatement of a registration as a Manufacturer in terms of Drawback items 501.00 to 521.00 a) If the request for reinstatement is approved and the reason(s) for the suspension no longer exist(s)

and the appropriate steps have been taken to prevent occurrence(s) of a similar nature in future, the proposed registration may be reinstated.

b) The client will be informed of reinstatement by the relevant SARS Customs Office. c) A cancelled registration will not be reinstated. The holder of the registration that has been cancelled

has to re-apply for a new registration to conduct business with SARS. 2.3 Cancellation of registration as a manufacturer in terms of Drawback Items

501.00 to 521.00 initiated by SARS








cancelled.




PROCEDURE STEP a) In cases where clients are not satisfied with any decision taken in terms of the Customs and Excise


e) Should clients be unhappy with a decision of any appeal committee their recourse will be to lodge an


f) A client may also refer the matter to the High Court. 2.4 Cancellation of registration as a Manufacturer in Terms of Drawback items

501.00 To 521.00 initiated by a registrant


will acknowledge receipt and submit the application to Debt Collection if required. c) If no debt follow-up is required the client’s bond, registration and client number will be cancelled


3 QUALITY RECORDS Number Title DA 185 Application form: Registration / Licensing of Customs and Excise Clients DA 185.4A10 Manufacturer in terms of drawback items 501.00 to 521.00 SC-CF-05-FR01 Request for cancellation / suspension of registration / registration / designation





Customs and Excise Act No. 91 of 1964: Sections , 19, 60, 77A-I and 79-84 Customs and Excise Rules:19, 60 and 77H




Policy All

SC-CF-23 Manual for the completion of DA 185 All 5 DEFINITIONS AND ACRONYMS Act Customs and Excise Act No. 91 of 1964 Controller / Branch Manager


Registration Registration is defined as an activity that is permitted by right. There are two (2) categories of registered clients, namely: a) The first category is general importers and exporters. The client pays all

duties/taxes upfront before taking possession of the goods. b) The second category is clients registered for rebate facilities. These clients are

allowed to import goods without paying duties under certain conditions i.e. for processing, manufacturing, packaging with an intention of exporting them.






ECS-TM-15 – Rev 3


IDZs - Registration, Designation and Licensing - External SOP SC-CF-19-S18



EXTERNAL


INDUSTRIAL DEVELOPMENT ZONES –

REGISTRATION, DESIGNATION AND LICENSING




TABLE OF CONTENTS 1 SCOPE 3 2 PROCEDURE 3 2.1 Submission of application forms 5 2.2 Verification of applications 5 2.3 Capturing of applications 6 2.4 Notification 7 2.5 Registration of IDZ Operators and Designation of Customs Control Areas 8 2.5.1 Considering the application 8 2.5.2 Inspection of the infrastructure of Customs Controlled Area 9 2.6 Registration of Rebate Users in terms of Rebate Item 498 - Inspection of premises 11 2.7 Cancellation of registration / designation 13 2.7.1 Cancellation of designation 13 2.7.2 Verification of application 14 2.7.3 Verification of outstanding obligations 14 2.7.4 Cancellation and notification of registration / designation 14 3 REFERENCES 15 3.1 Legislation 15 3.2 Cross References 15 4 DEFINITIONS AND ACRONYMS 16 5 DOCUMENT MANAGEMENT 16




1 SCOPE a) This document provides the requirements of the Customs and Excise Act for the consideration of

applications for the –

i) Registration of Industrial Development Zone (IDZ) Operators; ii) Designation of Customs Controlled Areas (CCAs); and iii) Registration of rebate users in terms of Rebate Item 498.00.

b) It further explains the respective procedures for client and bank detail authentication. c) This standard operating procedure (SOP) does not cover the registration of importers and exporters

and the licensing of manufacturing and storage warehouses. These processes are covered in the internal standard operating procedure documents SC-CF-05-S11 – Registration of Exporter and Importer, SC-CF-05-S02 – Licensing manufacturing warehouse and SC-CF-05-S03 – Licensing storage warehouse.



(company name, registration number and physical address) and bank details validated.




PROCEDURE STEP b) Existing clients amending any details must, in addition to the details being amended, complete the

























PROCEDURE STEP i) The letter of authority must be submitted with the DA 185 and supporting documents required. j) If any of the required details do not match or any details are missing the applicant / representative will



2.2 Submission of application forms PROCEDURE STEP a) For the purpose of registration as an IDZ Operator the applicant must complete the following forms –

i) DA 185 - Application form: Registration / licensing of Customs and Excise clients; and ii) DA 185.4A11 – Registration: Industrial Development Zone Operator and / or designation of a

Customs Controlled Area; or iii) DA 185.4A3 – Registration as Rebate User (Schedules 3, 4 and 6).

b) Copies of all relevant application forms are available on the SARS website www.sars.gov.za on the

path – All Forms, Customs. c) SC-CF-23 – Completion of DA 185 provides a guide for the completion of the relevant application form

and annexure for registration as an IDZ Operator. Particular care must be taken that mandatory information is provided to avoid any delay in the registration process as a result of applications being rejected.

d) Applications must be submitted or delivered to the Controller / Branch Manager in whose area of

control the IDZ is situated. e) Acknowledgement of receipt will be issued by the Controller / Branch Manager for all applications

received. Applicants are encouraged to follow up on acknowledgements of receipt should this not be forthcoming within ten (10) working days of submission.

2.3 Verification of applications PROCEDURE STEP a) All applications received by the Controller / Branch Manager will be vetted to ensure that the following

has been submitted:

i) The correct application and applicable annexure forms, duly completed; ii) The required information pertaining to the site from where the applicant will operate; i) The documents stated in the annex(es) to the DA 185. iii) A certified copy of the registration certificate of business, as issued by the Companies and

Intellectual Property Commission (CIPC) or Master of the Supreme Court in case of a trust - the name as it appears on this certificate must be reflected as the registered name on the DA 185;

iv) The original resolution / consent or other authority as applicable, completed and signed; v) A copy of the plan of the IDZ showing

A) In the case of the IDZ Operator - the land to be utilised by the IDZ; B) In the case of the CCA - a demarcated area as a location for establishing the CCA; and C) In the case of a Rebate User - the exact location of the rebate store.

vi) Certified copies of the identity documents / passport documents of:- A) The individual; or B) In the case of a partnership, close corporation or trust – All primary members / partners /

trustees; or C) In the case of a company, all primary directors, including managing director and financial





PROCEDURE STEP director.

vii) The IDZ Operator’s permit as issued by DTI; viii) Proof of business physical address, e.g., a copy of municipality account, a copy of any SARS

documentation reflecting the companies’ tax / VAT number, etc.; b) The business plan must also be submitted as follows:

i) In the case of the IDZ Operator - for the IDZ with specific reference to the planned development of the designated CCAs in the IDZ; and

ii) In the case of the CCA – demonstrating: A) Timeframes for constructing the CCA infrastructure; B) Date on which the construction of the CCA infrastructure will be completed; C) Envisaged dates on which the CCA Enterprises may locate in the CCA; D) All security arrangements for the CCA; and E) Any other information as the Commissioner for SARS may require.

c) In the case of the CCA or Rebate User - a letter on the letter-headed paper from the IDZ Operator

indicating written approval from the IDZ Operator to the applicant for locating in the CCA and the address of the proposed location of the CCA or rebate store.

d) Any documents / information stated under paragraph 2.6 (Specific IDZ Requirements) in SC-CF-23 –

Completion of DA 185. e) In the case of a Rebate User: Compliance to the general and specific requirements for registration in

accordance with Section 59A. f) Any other information as the Commissioner for SARS may require, e.g. the amount of duty and VAT

that would be rebated for the next twelve (12) month period in the case of a Rebate User. 2.4 Capturing of applications PROCEDURE STEP a) If the applicant is an existing client registered or licensed with SARS Customs:

i) The current client profile on the Customs System will be updated with the information reflected in the DA 185, DA 185.4A3 and / or DA 185.4A11.

ii) The existing Customs client number will remain effective as no new number will be allocated by the Customs System, but a CCA number will still be allocated to each CCA approved in the IDZ.

b) If the client is not registered or licensed with SARS Customs:

i) A client profile will be created on the Customs System. ii) The information reflected in the DA 185, DA 185.4A3 and / or DA 185.4A11 will be captured in

the Customs System for which a Customs client number will be generated. iii) This number will be communicated to the client.

c) The Customs client number must be -

i) Quoted in all communications to the South African Revenue Service or any other organ of state and reflected on all prescribed documents for transacting Customs business; and

ii) Reflected in the authorisation for any agent to transact the business to which the licence, registration or designation relates for production to the Commissioner or the Controller / Branch Manager, as the case may be.

d) In addition to the Customs client number a CCA number [one (1) per CCA] will be allocated by the

Customs System. The number will be of paramount importance when goods are moved between warehouses / rebate users in the same or other CCAs.




2.5 Notification PROCEDURE STEP a) Notification of application rejection

i) Applicants will be furnished with clear and fully sustainable reasons for the rejection in writing. ii) Where the reason for rejection is of an administrative nature assistance will be afforded to the

applicant to become compliant. a) Applicants will only be informed of the approval of the application for designation after-

i) The general / specific requirements were met; and ii) The application was captured on Customs System.

b) Whenever an application for registration is approved, the client will be informed in writing. c) Clients participating in the IDZ Programme cannot use the general Customs client number, 70707070,

even while waiting for their applications to be processed.




2.6 Registration of IDZ Operators and Designation of Customs Control Areas

Verification SARS Customs Officer

acknowledges receipt

SARS Customs Office receives

application

SARS Customs Office verifies application against check lists

Does the application comply with the check

lists?

SARS Customs Office captures the information from the application onto

the Customs System

SARS Customs Office returns application to the

client giving clear reasons for the rejection

SARS Customs Office sends notification and client number to the

applicant

Yes

No

Applicant obtains application form and annexure from the SARS website or from the

SARS Customs Office

Applicant completes the application and

annexure

Applicant obtains and attaches all required

supporting documents to the application and annexure

Applicant submits application and

supporting documents to the SARS Customs

Office

Start

End

DA 185 andDA 185.4A11

SARS Customs Office notifies the DTI of the

approval

2.6.1 Considering the application PROCEDURE STEP a) In terms of Rule 21A.04(c) an application for designation of a CCA will only be approved if the

premises, security and equipment of the proposed CCA conform to requirements determined by the Commissioner and the Director General: Department of Trade and Industry.

b) In order to give effect to this Rule the applicant will be allowed to lodge an application for designation

which SARS would considered without conducting an inspection of the premises but based on the evidence provided in and documents in support of the application form.

c) Applications will only be approved if it can be demonstrated that the applicant qualifies in all respects. d) Similarly care must be taken not to reject applications where the applicants do comply with all

requirements.




2.6.2 Inspection of the infrastructure of Customs Controlled Area

Start

IDZ Operator constructs

infrastructure of the CCA

IDZ Operator notify Branch Office of the

completion of the CCA infrastructure

Branch Office receives notification of the

completion of the CCA infrastructure

Branch Office makes arrangement with the IDZ Operator for the

inspection of the CCA

Have all the requirements for the

designation of the CCA been met?

Branch Office documents all

deviations / shortcomings

Branch Office notifies IDZ Operator in writing

of deviations / shortcomings

NoGive final approval for the designation

of the CCA

End

Yes

PROCEDURE STEP a) Notification of the completion of infrastructure

i) The IDZ Operator must advise the Controller / Branch Manager of the envisaged date on which the infrastructure is planned to be completed.

ii) The applicant for designation must inform the Commissioner in writing when the infrastructure for the CCA has been completed.

iii) The Customs Officer concerned will arrange with the contact person of the applicant to conduct an inspection of the CCA infrastructure using the application form, annexure and supporting documents / information as the basis for the approval of the infrastructure.

b) Conducting the inspection of the CCA

i) The Controller’s / Branch Manager’s office will conduct the inspection of the CCA infrastructure and if any deviations or non compliance to the application form, annexure and supporting documents / information is detected these will be reported to the IDZ Operator in writing.

ii) Once the deviations / non compliance are addressed the applicant will inform the Controller’s / Branch Manager’s office in writing where after a follow-up inspection will be conducted.

c) Notification of the approval of infrastructure - If the inspection proves that the infrastructure is in

compliance with the application form, annexure and supporting documents / information lodged for designation of the CCA the Controller / Branch Manager will approve the designation and inform the applicant in writing.

d) Refusal for designation

i) Section 21A(14)(a) read with Sections 59A(2) and 60(2)(a) empowers the Commissioner to refuse any application, subject to review, for a new licence / registration or refuse any application for renewal if the applicant commits the following;




PROCEDURE STEP A) Does not comply with the requirements of application as specified by Rule or by any

condition imposed by the Commissioner; or B) Has made a false or misleading statement with respect to any material fact or omits to

state any material fact which was required to be stated in the application for a licence in the application for a licence; or

C) If an applicant or an employee of the applicant has; I) Contravened or failed to comply with the provisions of the Act; or II) Been convicted of an offence under the Act; or III) Been convicted of an offence involving dishonesty; or IV) Fails to comply with the requirements of Section 21A; or V) Failed to comply with any condition or obligation imposed by the Commissioner in

respect of licensing and / or registration. D) The above-mentioned subparagraphs must not apply in respect of an employee if the

applicant proves that he / she was not a party or could not prevent any such act or omission by the employee.

ii) The IDZ Operator will be informed of the rejection and the reasons therefor will be clearly stated. The IDZ Operator will also be advised that should they be able to provide the necessary information / documentation which will enable them to comply with the stated requirements to resubmit the application together with the information / documentation for reconsideration.




2.7 Registration of Rebate Users in terms of Rebate Item 498 - Inspection of premises

Start

Applicant obtains the application form and

relevant annexure from the SARS web page or

from the SARS Customs Office

Applicant completes the application and annexure and attach all required supporting

documents

Applicant submits application and supporting documents to the

SARS Customs Office

SARS Customs Office acknowledges receipt

of application

SARS Customs Office returns application to the client giving clear

reasons for the rejection

DA185 and DA185.4A3

SARS Customs Office verifies the application and ensures that everything is

in order

Does the application comply with the check

lists?

SARS Customs Office refers application to the Inspectorate to

conduct the necessary inspection of the

premises

No Yes

Inspectorate schedules a

meeting for the inspection of the

premises with applicant

Does the premises comply with the floor /

building plans?

Inspectorate notes all deviations and notify applicant

Applicant rectifies all deviations

No

SARS Customs Office determines bond amount

and informs applicant

Applicant arranges surety on form DA107 with approved financial

institution

Applicant provides security to the SARS Customs

Office

SARS Customs Office receives DA107 from

applicant

SARS Customs Office Officer

captures information on the Customs System

SARS Customs Office informs the applicant in

writing that the registration is approved

End

Yes

PROCEDURE STEP a) The application forms with annexure and supporting documents will be forwarded to Inspectorate in

the SARS Customs Office for physical verification and inspection of the facility. b) The Inspectorate will arrange with the contact person of the applicant to conduct a verification and

inspection of the facility.




PROCEDURE STEP c) Any deviations detected between the business plan / floor plan and the actual facility will be

documented and conveyed to the applicant in writing for rectification within a period as determined by the Inspectorate.

d) On receiving notification from the applicant that the deviations were rectified the Inspectorate will

conduct a second verification and inspection of the facility. e) The under-mentioned deviations will apply when evaluating the premise, building, fencing, roofs, etc.

of a rebate stores to be located in a CCA:

i) The land mass of the CCA is fully occupied by only one (1) enterprise. ii) In cases where the applicant is one (1) of many enterprises in a CCA it would be the

responsibility of the applicant to secure the building / perimeter to ensure that the goods obtained under rebate are utilised in accordance with the requirements of the rebate conditions. Although no maximum or minimum requirements are specified the following points must be taken into consideration by the applicant - A) Suitable steps have been taken to prevent access to the rebate materials; B) No thoroughfare will be allowed through a rebate store; and C) The rebate store complies with fire and health department regulations.




2.8 Cancellation of registration / designation

Registrant submits application to The SARS Customs

Office

SARS Customs Office

acknowledges receipt

SARS Customs Office

does verification of application against

check list

Every thing in order?

SARS Customs Office

notifies client of the outstanding

obligations and rejection of the

application

SARS Customs Office

cancels the registration /

designation in the Customs System and

cancel the surety

SARS Customs Office

sends notification to the client of the

approval and cancellation of the

registration / designation

Start

End

No

Yes

Application in order?

SARS Customs Office

forwards application for

internal verification

SARS Customs Office

returns application to the client giving clear reasons for

rejection

No Yes

PROCEDURE STEP 2.8.1 Cancellation of designation a) Section 21A(14)(a) read with Sections 59A(2) and 60(2)(b) empowers the Commissioner to cancel or

suspend any designation for a specified period if the holder -

i) Is sequestrated or liquidated; or ii) No longer carries on the business for which the designation was issued; or iii) Is no longer qualified according to the qualifications prescribed in the Rules; or iv) Failed to pay any amount demanded under the Act within thirty (30) working days from the date

of the demand; or v) If the applicant or an employee has -

A) Contravened or failed to comply with the provisions of the Act; B) Been convicted of an offence under the Act; C) Been convicted of an offence involving dishonesty; D) Fails to comply with the requirements of Section 21A; or E) Failed to comply with any condition or obligation imposed by the Commissioner in respect

of licensing and / or registration. vi) The above-mentioned subparagraphs must not apply in respect of an employee if the applicant

proves that he / she was not a party or could not prevent any such act or omission by the employee.




PROCEDURE STEP b) Before any designation will be cancelled or suspended, except when any demand for any amount

remains unpaid for a period exceeding thirty (30) working days from the date of the demand, the Commissioner will -

i) Give 21 working days notice to the IDZ Operator / registrant of the proposed cancellation or

suspension; ii) Provide reasonable information concerning any allegation and grounds for the proposed

cancellation / suspension; and iii) Provide a reasonable opportunity to respond and make representation as to why the licence

should not be cancelled. c) The final decision on cancellation of the registration / designation will be made in writing by the

relevant SARS Customs Office. d) The letter must be sent via registered mail to the client stipulating the reason(s) for such cancellation. 2.8.2 Verification of application a) All applications received by the SARS Customs Office will be vetted in accordance with the following

check list –

i) The correct application and the registration / designation has been received; ii) The original registration / designation has been verified against the information on the Customs

Customs System; iii) The applicant has provided the required information pertaining to the site from where it

operates; iv) The original resolution / consent or other authority as applicable has been submitted; v) Certified copies of the following identity document(s) / passport document(s) have been

received A) Individual; B) Partners of a partnership, members of a close corporation and trustees if a trust (all

primary members / partners / trustees); and C) In the case of a company, all primary directors, including managing director and financial

director; vi) The IDZ Operator’s permit, if applicable, as issued by DTI has been submitted; and vii) Any other information as may be required has by the Commissioner or Controller / Branch

Manager has been submitted. 2.8.3 Verification of outstanding obligations a) The application form and supporting documents will be forwarded for internal verification to verify if

there is any outstanding obligation against the registration / licence in accordance with SC-SE-05. b) The SARS Customs Office will inform the applicant in writing of any problems or outstanding

obligations that have been detected. 2.8.4 Cancellation and notification of registration / designation a) If in order the SARS Customs Office will cancel the registration / designation in the Customs Customs

System and cancel the surety provided in accordance with the Surety Policy. b) The SARS Customs Office will inform the applicant in writing of the cancellation of the registration /

designation on SC-CF-05-A12 and file the documents in the appropriate file. 3 QUALITY RECORDS Number Title DA 185 Application form: Registration / Licensing of Customs and Excise Clients




Number Title DA 185.C Security Particulars SC-CF-05-A19 Requirements to process DA 185 SC-CF-05-A20 Confirmation of Authentication 4 REFERENCES 4.1 Legislation TYPE OF REFERENCE REFERENCE Legislation and Rules administered by SARS:

Customs and Excise Act No. 91 of 1964: Sections 1(1), 4, 19, 19A, 21, 21A, 22, 23, 25, 27, 38, 41, 43, 44, 44A, 47, 47A, 48, 59, 59A, 60, 61, 64D, 65, 73, 75, 77, 78 to 86A, 91, 101, 105, 107A, 113(1), 113(2) and 114. Customs and Excise Rules: Rules 00.03, 21A.01 to 21A.13, 38.01 to 38.16, 39.04 to 39.08, 39.14, 41.01 to 41.05, 45.01 to 45.02, 59A.01 to 59A.11, 60.01(1) to 60.10(2), 65.01 to 65.03, 75.01 to 75.24, 101.01 to 101.03, 101A.01 to 101A.12, 120.03 to 120.04, 120A.03, and 120.08 to 120.09. Rebate Items 412.07 of Part 1 and 498.00 of Part 6 of Schedule No. 4. Items 860.05 and 860.10 of Schedule 8. Value-Added Tax Act No. 89 of 1991: Sections 1, 7 to 11, 13, 18 and Schedule 1. VAT Interpretation Note 40 dated 4 December 2007

Other Legislation: Manufacturing Development Act No. 187 of 1993: Section 10 IDZ Regulations published in Government Notice R 1224 of December 2000 Industrial Development Zone (IDZ) programme operational guidelines


Kyoto Convention General Annex Chapter 3 Clearance and other Customs Formalities: Standards 3.6 and 3.21; Chapter 5 Security: Standards 5.1; 5.2; 5.4; 5.6 and 5.7; Chapter 7 Information Technology: Standards 7.1 and 7.4; Chapter 8 Relationship between Customs and Third Parties: Standards 8.1; 8.2; 8.3; 8.4; 8.6 and 8.7; Chapter 9 Information, Decisions and Rulings Supplied by Customs: Standards 9.4 and 9.8; Chapter 10 Appeals in Customs Matters: Standards 10.1, 10.2, 10.3 and 10.5 to 10.12; Specific Annex A Chapter 2 Temporary Storage of Goods: Paragraphs 2 and 6; Annex B Chapter 3 Relief from import duties and taxes: Paragraph 7 (b); Annex D Chapter 1 Customs Warehouses: Paragraph 4; Annex E Chapter 1 Customs Transit: Paragraph 5. WCO SAFE Framework of Standards: None

4.2 Cross References DOCUMENT # DOCUMENT TITLE APPLICABILITY SC-CC-24 Administrative Appeal – External Policy All SC-CC-26 Alternative Dispute Resolution– External Policy All SC-CF-19 Licensing, registration and designation - External Policy All SC-CF-19-S02 Registration of importer and exporter – External SOP All SC-CF-19-S03 Licensing of manufacturing warehouse – External SOP All SC-CF-19-S11 Licensing of storage warehouse– External SOP All SC-CF-23 Completion of DA 185 All SC-CW-02-01 Industrial Development Zones – Reference Guide All SC-CW-02-01-A1 Customs duty and VAT implications of transactions for enterprises

located in the CCA of an IDZ All

SC-CW-02-03 Customs Controlled Area Gate Controls - External Policy All SC-CW-02-03-S1 Customs Controlled Area Gate Controls - External SOP All SC-CW-02-01 Industrial Development Zones – Reference Guide All SC-CW-02-01-A1 Customs duty and VAT implications of transactions for enterprises

located in the CCA of an IDZ All

SC-CF-23 Completion of DA 185 All SC-SE-05 Bonds - External Policy All




5 DEFINITIONS AND ACRONYMS CCA Customs Control Area - an area within an industrial development zone, designated

by the Commissioner in concurrence with the Director-General: Department of Trade and Industry, which area is controlled by the Commissioner

CCA enterprise Any person permanently located in a CCA and who is registered or licensed as contemplated in the Rules



DTI Department of Trade and Industry IDZ Industrial Development Zone IDZ operator The holder of a valid IDZ operator permit granted by the Minister of Trade and

Industry IDZ SARS Office A South African Revenue Service Customs office located in the IDZ operating under

the Controller / Branch Manager for the area within which the IDZ is designated which has been established by SARS on premises provided by an IDZ operator for the purpose of performing its functions in relation to any activity carried on in that CCA

Registered Or any cognate expression means registration in terms of Section 59 and its Rules or any other provision of the Act



The Act The Customs and Excise Act No. 91 of 1964 VAT Value-added tax leviable in terms of the Value-Added Tax Act No. 89 of 1991 VAT Act Value-Added Tax Act No. 89 of 1991 6 DOCUMENT MANAGEMENT Business Owner Group Executive: Customs Trade Operations Document Owner Executive: Process Solutions Customs & Support Services Author P Jones Detail of change from previous revision



ECS-TM-15 – Rev 3