One-stop border posts,inparticular the Lebombo-Ressano Garcia border crossing, were the topic in the keynote address by Beyers Theron, SARS executive: Customs Modernisation Strategy and Design,at the Maputo Corridor Logistics Initiative’s AGM.

Theron outlined how SARS is playing a positive role in assisting in creating one-stop border posts.“Unlocking the logistics corridor that makes use of the Lebombo-Ressano Garcia border crossing has been a matter of critical interest for both South Africa and Mozambique,” said Theron.

Over the years, there have been many studies driving home the point that delays at border posts not only increase the cost for stakeholders, but also stifle opportunities for growth and development. The World Bank’s Doing Business Report 2012 estimates that reducing the days needed to clear exports by half could enable a small to medium enterprise to increase profitability from 1.6% to 4.5%, a three-fold improvement.

According to Theron, the reduction of export costs by 10% through efficiencies in trade processes could increase exports by 4.7%. It is in this context that SARS, through the adaptation of sound risk management principles, is reinventing itself as part of an efficient supply chain, as opposed to its perceived previous role of essentially being gatekeepers stifling the flow of legitimate trade.

Customs modernisation journey

SARS has embarked on a modernisation programme that involves many facets. Theron stated that this programme also aims at creating the freest possible flow of legitimate trade, while forcing effective risk-based intervention on illegitimate or perceived less compliant trade.

He added:“In benchmarking one-stop border arrangements there seems to be a tendency to focus more on infrastructural change to accommodate co-location, but very little on efficiencies in re-engineering of processes and capitalising on the opportunities that modern technologies offer. It is SARS’s view that in order to achieve the ultimate one-stop border environment, a holistic reform methodology is required that integrates policy, workflow processes and technology in order to create the much-needed facilitation benefits regional trade so desperately need.

“SARS is actively involved in establishing regional IT connectivity and data exchange to the extent that formal real time exchange of data may become a reality in the very near future, especially between Mozambique and South Africa.”

There are currently at least four one-stop border posts in operation in Africa with as many as 55 others in various stages of planning as African countries seek to unlock trade.

Theron said the expected benefits of the one stop-border post are clear: It will reduce border crossing time,allow for shared logistics costs between officials of the countries where it is sensible to do so and create a closer working relationship coupled with integrated workflow and data sharing.

Critical considerations

According to SARS, there are four areas that are of fundamental importance for the establishment of any one-stop border post.

First is the need to ensure an enabling legal framework – aligned to international standards – withthe relevant provisions and instruments isin place to enable and manage jurisdictions and coordinated operations.

Second is the need to develop the appropriate infrastructure to support the implementation, ensuring efficient and seamless processing does not get bogged down by infrastructural models.

Third is to establish connected, seamless, end-to-end work processes and operating procedures in order to maximise efficiency, reduce duplicate and redundant processes, and establish joint standard operating procedures and policies.

Fourth is ensuring interconnectivity of the ICT systems in order to support a coordinated risk management and realise seamless procession of data to improve border throughput and intervention management.

Challenges

“Why, you may ask, is it taking so long at the Lebombo-Ressano Garcia border crossing?” asked Theron

“The primary reason for this is the complexity of establishing the international legal framework or basis that will allow for the sovereign laws of each state to be implemented within the other state’s territory. In terms of our legal context, this all needs to be incorporated into applicable domestic legislation so that officers deployed on foreign territory may lawfully act.”

He addsthat it is not simply a matter of placing customs officials together in a building near the border and then processing the movement of goods, persons and conveyances.Each officer deployed by each administration needs to be able to perform all functions fully and without hindrance, regardless of whether they happen to be on “home” territory or on foreign soil.Each decision that is made on foreign soil to release, detain, search, inspect, arrest and/or intervene in some other manner needs to be made as lawfully as if it were made on own soil.The courts need to be able to adjudicate on all matters related to a border crossing to which domestic legislation has been applied, again without there being any hindrance because the processing took place on foreign soil.

There are at least nine primary agencies involved in aspects of border control management at ports on South Africa’s side of the border alone – each with their own mandate and legislative framework.

Said Theron:“At each port of entry, immigration procedures are required for human traffic, and customs procedures are carried out for goods traffic. Each of these procedures requires a careful balancing of the needs of security and the facilitation of the movement of goods and people. The prevention of the illicit movement of goods and people is carried out jointly by the Department of Home Affairs, the South African Revenue Service and the South African Police Service – with critical input from the State Security Agency.

“At the same time, the movement of both people and goods needs to ensure that our agricultural sector and our people are protected from harmful diseases that may be carried over the borders. These border control functions are conducted by officials from the Department of Agriculture and the Department of Health.

“Coordinating this in one country between members of the same administration is challenging enough.Consider another country with a different domestic legal system, international law and different languages, and you will have some idea of the long road we have been travelling.

“It should also be taken into consideration that this is completely new ground for both countries, involving a key transport and logistics environment critical to trade.Everyone wants to make extra sure that we are getting this right.”

Where are we today?

Theron concludes: “As stated before, the potential benefits to a key shared trade route have been the subject of much discussion for a very long time.

“In this endeavour, SARS will do what it can. We are, after all, both an interested party – given our customs mandate – as well as a facilitator that has to satisfy others given our current role as custodian of operational coordination through the Border Control Operation Coordinating Committee. One-stop border posts are, after all, multidisciplinary environments and it is through our partnership with our counterparts in Mozambique and stakeholders such as the Maputo Corridor Logistics Initiative that work can continue to ensure we fully realise this potential.”