A Comparative Analysis of South African Current and Proposed Customs Legislation for Customs Brokers

Abstract

Customs brokers perform an essential service in assisting global traders in dealing with the complexity of global trade as well as the numerous associated compliances. These services are impacted by customs legislation that must be adhered to for an importer or exporter to trade. This article addresses the evolving role, scope of services, compliances, risks and liabilities of clearing agents currently found in the Customs and Excise Act No 91 of 1964 (C&E Act) and those of the newly termed customs brokers as provided for in the New Customs Control Act No 31 of 2014 (CCA) and the New Duty Act no. 30 of 2014. This vital role that customs brokers fulfil is examined and compared within both new and in-force legislative frameworks. An examination of the evolving legislative landscape and the impact on services is also evaluated and discussed to establish their roles in accordance with global instruments. South Africa has been greatly steered by the World Customs Organization (WCO) and by how brokers operate internationally. The findings of this study show that customs brokers’ procedures will be affected given their nominated role in the trade process. A dearth of infrastructure and a lack of training are potential hindrances to the implementation of proposed legislation. Custom brokers, South Africa, Customs Act