The South African Revenue Service (SARS) is moving from a partially paper-based environment to an automated and more cost-efficient programme. The organisation will begin using the new modernised programme in its customs operations in October this year.
SARS commissioner Oupa Magashula says it looked at harnessing technology and process automation that would make operations faster and more convenient. He says it's important for the country to be a secure and reliable trading partner, considering it had so far imported R670 billion and exported R650 billion worth of goods this year.
The programme will be phased in over a number of years, and is aimed at improving both service and security. “The intention is to enhance the ability to identify illicit goods,” SARS says.
According to SARS, modernisation of customs was announced at the end of 2009, with the release of new draft customs legislation, which will facilitate the improvements. This comes in the wake of its tax modernisation initiatives over the past three years, which changed the income tax process and ways in which income tax returns are submitted and processed, it says.
“As with the transformation of our PAYE and income tax systems and processes, customs will be moving from a complex, partially paper-based and labour-intensive environment to a simplified, automated and more cost-efficient one,” SARS states.
Going electronic
The organisation says in a statement it will extend the facility for traders to electronically submit any supporting document required by customs for the finalisation of a transaction or case.
“Various third-party software providers will be offering tailored facilities within their applications to facilitate this requirement as an integral part of their solutions.” This will contribute towards reducing paper overload and the burden on the trader or broker to physically deliver them to SARS.
Customs now receives in excess of 90% of clearance declarations electronically.
In October 2009 and April 2010, SARS introduced the mandatory submission of clearance transactions electronically to all traders in the country and in Botswana, Lesotho, Namibia and Swazilandrespectively.
“Coupled with electronic receipt of declarations, customs has also introduced electronic release messages to obviate the need for paper-based customs release notifications,” SARS points out.
Making contact
Additionally, SARS promises the integration of its contact centre. “The scope of the contact centres will be increased to accommodate customs queries through both the SARS-trained call centre agents,” the organisation says.
According to SARS, a pilot was held in Pretoria during April this year, with reasonable success with clients. “Following the pilot, all customs queries to branch offices will be routed through the SARS call centre.
SARS says it also realised customs has been operating 37 diverse systems, so a new integrated customs solution is being introduced to standardise the processing and validation of customs declarations across all modes.
The first phase will include the processing of all goods declarations based on new Customs Procedure Codes as provided for in the draft Customs Control Bill.
“The customs bills are expected to be approved by parliament towards the end of 2010. Customs will further leverage its internal systems and user capabilities on technologies currently in use by SARS's tax division,” SARS points out.
SARS says customs is trying to re-skill people to operate in a modernised way and has spent the past year working in partnership with selected stakeholders - including major technology players in the customs arena - in developing and designing the solution.
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