There are number categories of Customs Controlled areas identified in Section 15 of the Customs Act and each category by virtue of the Customs Regulations has a different license fee. Customs controlled areas are used as follows:
Section 15 (a) manufacture and storage of excisable products
Section 15 (b) the deposit, keeping or securing of imported or excisable goods without
the payment of duty pending the export of those goods or their entry for
home use.
Section 15 (c) the temporary holding of imported goods for the purpose of examination
by Customs.
Section 15 (d) the disembarkation, embarkation and processing of passengers.
Section 15 (e) processing of vessels and aircraft and loading and unloading cargo
Section 15 (f) any other purpose.
It is important that constraints are in place to ensure that all persons and goods subject to Customs control come to these areas for the purposes of assessment according to risk, and processing by Customs in a controlled environment. Generally all imported goods are subject to Custom’s control from the time of importation until the goods are lawfully removed from a Customs Controlled Area. It is essential that while goods remain within a Customs Controlled Area, the licensee or operator of the Customs Controlled Area is responsible for the physical security of those goods and accounting to customs for their subsequent movement and/or release. This principle is the basis of all Customs compliance and audit activity in regard to Customs Controlled Areas.
The licensing procedures allows Customs to establish standards for the physical security of Customs Controlled Area, as well as providing a means of ensuring that those people responsible for operating Customs Controlled Areas are fit and proper persons for the role. Licensing provides an avenue for establishing operating procedures for the flow of goods and people through the premises.
The licensing of Customs Brokers provides Customs with the means of ensuring only those properly qualified and meeting required ethical standards and other criteria are issued with licenses.
Licensing fees are a means of recouping expenses involved in undertaking audits, inventory controls, and operational activity to ensure compliance by the Customs Controlled Area operator with Customs requirements. The ability for some enterprises to store goods subject to Customs control provides flexibility for their operations which results in a more efficient flow of cargo, or assists an enterprise with cash flow advantages by not having to pay duty at the time of importation. The payment of fees also provides an indication that the operator of a Customs Controlled Area, recognizes the responsibility bestowed upon them.
Despite already licensing Brokers and other Customs Controlled areas identified in Sections 15(a) and 15(b) of the Act, Customs is currently in the process of developing a Standard Operating Procedure (SOP) to guide Customs through the administration and operational processes of licensing Customs Controlled Areas and Brokers.
Customs has been developing SOP’s since the introduction of its new Customs Act No. 7 of 2013 as part of its reform efforts to improve and standardize its services and controls for the many years to come.
