On 30 October 2009, the draft Customs Control and Customs Duty bills were released for public comment. The two bills comprise the first phase of a two-phase project to effect an entire re-write of the Customs & Excise Act No 91 of 1964.

The bills are said to have the objects of implementing a modernised system of customs control in accordance with current international trends and best practices. To this end, the South African Revenue Services (SARS) has undertaken to create a new legislative framework that is easier to understand, more predictable and transparent and which supports a fast-paced international trade environment, aligned with international customs conventions.

The second phase of the project - being the release of a separate Excise bill - will only take place after the two Customs bills have become effective, and accordingly, the existing 1964 Act will remain in force, only in respect of its excise provisions, until then.

There are a number of provisions in the draft bills which suggest a future improvement in the approach of customs authorities to the public. For example, there is an emphasis on electronic reporting to speed up processing; a special fast-tracking clearance and release procedure available on application; greater flexibility of customs authorities with regard to extension of time periods and the granting of certain authorisations; as well as provision for advance rulings by Customs on interpretation of the law in order to create legal certainty.

However, other provisions are not comforting to the public and may require industry's comments. For example, there is a proposed increase in the period of liability for underpayments of duty from two to three years; and there is the insertion of a new anti-avoidance provision.

The public has until 26 February 2010 to provide comment on the draft bills, and clients are encouraged to consider the impact of the proposed amendments within their industry.

Written by: Alison Wood of Werksmans incorporating Jan S de Villiers