Speculation is rife the new Customs Act will result in the City Deep Inland Terminal running dry and that Transnet’s Market Demand Strategy will fail to grow container traffic.

“The proposed legislation does not allow for inland container terminals such as City Deep to be a designated “place of entry or exit” for the purpose of clearance of goods before they may be released by the customs authority for their intended purpose,” said Johannesburg Chamber of Commerce and Industry’s Pat Corbin during the 3rd Logistics Business Breakfast, held in Johannesburg last week.

“City Deep has not been an Inland Port since 1977 – as per the legislation in 1964. The proposed drafted legislation does not mention inland ports and thereby excludes the possibility of future inland ports.

“The new Bill is deemed to be regressive, as it will restrict the freedom of transit and bring about a lot of uncertainty with regards to the issuing of documentation required by transporters. With ambiguity surrounding the new Act, the removal of City Deep would have a significant impact on the region,” he said.

Corbin’s argument was refuted by SARS’ Penny Bologo. Involved in customs operations, Bologo emphasised that SARS understood and recognised the importance of Gauteng’s container terminal.

“The new Customs Act is going to require a mindset change,” she said. “The industry needs to collaborate with an innovative approach, in line with global customs modernisation. The City Deep container terminal will not close down or be negatively affected, as it is the biggest inland port and gateway to the region. This has been extensively discussed and agreed to by Customs, Transnet, SAAFF and various industry stakeholders.

“Only a very, very limited percentage of high-risk containers may be withheld for inspection at the port of entry – hence the need for three-day advance clearance. This will ensure that the proper, system-driven risk assessments can be done, which will create seamless movement of containers by rail to and from City Deep,” she explained.

SASTALC proposed that a joint case study – involving SARS and relevant industry stakeholders – commence in order to demonstrate the impact of the new Act on City Deep’s operations. The Act is an endeavour to protect South Africa and its citizens from unwanted and illicit goods.