The South African Revenue Service (SARS) implemented a major component of an ambitious customs management system on Friday 17 August 2013, which converted 26 older legacy and paper-based systems into a fully automated and centralised processing system for all commercial trade across our borders.

The new customs management system centralises the clearing of all import and exports declarations using a single processing engine. By managing customs declarations and supporting documents in electronic format, the processing of cargo movements by land, sea and air will now be much quicker and more accurate.

It was successfully implemented and became fully operational 24 hours ahead of SARS’s own scheduled deadline. Despite the many complexities of the conversion process, the switch-over caused no disruption to the flow of commercial trade at border posts.

The new customs management system will have significant benefits for importers, exporters, clearing agents and trade facilitators and will make our economy and commercial trade more competitive globally.

During the 2012/13 fiscal year more than 4.3 million containers moved across South Africa’s borders, representing R2.5 trillion worth of trade. Previously SARS Customs would have utilised around 16 million pieces of paper to process the 5.5 million declarations it would have received from commercial operators over this period.The administrative processes are now replaced by a single processing engine and a new automated management system for all commercial cargo.

Since implementation the new Customs management system goods with a total trade of R40 billion moved through South Africa’s borders since implementation from which SARS collected R2.5 billion in VAT and duties.