Transit Policy, Risk Management and Procedures - MCLI

SADC TransitManagement SystemLegal ProvisionsFernando AnselmoMLCI, Nelspruit, 4-54February 2010

TRANSIT LEGALINSTRUMENTS• Annex IV of the SADC Protocol on Trade;• SADC Transit regulations• SADC Regional Customs Chain TransitBond Guarantee Agreement• SADC Model Customs Act

KEY LEGAL PROVISIONS OF THE SADCTRANSIT MANAGEMENT SYSTEMGeneral Provisions• Member States undertake to grant alltransit traffic freedom to traverse theirrespective territories by means of transportsuitable for that purpose unless otherwiserestricted or prohibited.(SPT Annex IV Article 2 arw Reg. 4 )

KEY LEGAL PROVISIONS OF THE SADCTRANSIT MANAGEMENT SYSTEMExtra Territorial Recognition• There shall be mutual recognition andacceptance of surety and transitdeclaration lodged in the country ofdeparture such shall be deemed to havebeen lodged in the transiting country( Reg. 6 )

KEY LEGAL PROVISIONS OF THE SADCTRANSIT MANAGEMENT SYSTEMLicensing of Transitors and Carriers• Any person intending to be engaged in theoperation of transit traffic shall beregistered by the competent authority inthe territory of residents or establishment.The competent authority shall inform allother Member states of all such persons.(SPT Annex IV Article 4 (1-3) arw Reg. 10

KEY LEGAL PROVISIONS OF THE SADCTRANSIT MANAGEMENT SYSTEMIdentification of Transit Removers• All licensed carriers shall affix platesbearing the letters “SADC-TRANSIT” onthe front and rear of the means oftransport.SPT Annex IV Article 11(3) arw Reg. 9(3)

KEY LEGAL PROVISIONS OF THE SADCTRANSIT MANAGEMENT SYSTEMApproval of Means of Transport• Means of transport used in transit tradeshall be licensed by the competentauthority of the Member State inaccordance with its laws.(SPT Annex IV Article 5 arw reg 9(1)

KEY LEGAL PROVISIONS OF THE SADCTRANSIT MANAGEMENT SYSTEMBonds and Sureties• All transit traffic operations shall be covered by acustoms bond. The principal bond holder shallprovide a guarantee to cover duty and any othercharges payable before goods can be releasedunder transit procedure.(SPT Annex IV Article 6 arw Reg. 8)

KEY LEGAL PROVISIONS OF THE SADCTRANSIT MANAGEMENT SYSTEMTransit Documentation• All transit traffic shall be covered by specifieddocumentation and shall be presented tocustoms offices of commencement, transit anddestination. For the purpose of transitdeclaration the SADC-CD, transit control form,transit manifest shall be the prescribeddocuments.(SPT Annex IV Article 7 arw Reg. 7)

KEY LEGAL PROVISIONS OF THE SADCTRANSIT MANAGEMENT SYSTEMTransit Procedures• Means of transport, together with their cargo,shall be presented at customs offices ofcommencement, transit offices and destinationoffices for examination.• During transit there shall be no loading oroffloading or substitution of cargo.• Transit shipments shall only have one customsoffice of destination(SPT Annex IV Article 9)

KEY LEGAL PROVISIONS OF THE SADCTRANSIT MANAGEMENT SYSTEMObligations of Member States• Transfer of funds: Member States financialsystems shall facilitate transfer of funds toreimburse claims by designated representativeupon approval by the customs authority wherethe representative is established• Liability to cover goods enumerated in theSADC-transit control document(SPT Annex IV Article 10 arw Reg. 5)

KEY LEGAL PROVISIONS OF THE SADCTRANSIT MANAGEMENT SYSTEMRecord keeping• Any person registered and licensed to operatetransit traffic shall keep records anddocumentation relating to goods placed undertransit procedure for at least five years from thedate of conclusion of such transit(Reg. 11)

KEY LEGAL PROVISIONS OF THE SADCTRANSIT MANAGEMENT SYSTEMForm of Surety• Surety shall be in the form of Cash or a bondby guarantor• The principal bond holder shall give in writingon a prescribed form an undertaking that hewill pay the duties and any other charges inthe event such a situation arises in the courseof the transit procedure.(Reg. 12)

KEY LEGAL PROVISIONS OF THE SADCTRANSIT MANAGEMENT SYSTEMValidity of Guarantee• Guarantee provided by the Principal bondholder shall be valid in all transiting MemberStatesTypes of Guarantee• Single transaction guarantee• Single user guarantee• Multiple/comprehensive guarantee

KEY LEGAL PROVISIONS OF THE SADCTRANSIT MANAGEMENT SYSTEMComprehensive Guarantee• A Multiple/comprehensive guarantee shall coverseveral transactions up to the reference amount• No Principal bond holder shall be allowed tolodge a comprehensive guarantee unless hemeets stipulated criteria(Reg. 15)

KEY LEGAL PROVISIONS OF THE SADCTRANSIT MANAGEMENT SYSTEMCalculation of reference amount• Reference amount shall be sufficient tocover duty at stake at any given timeduring transit procedure and shall take intoaccount transit transactions envisaged bythe principal bond holder over a threemonths period(Reg. 16)

KEY LEGAL PROVISIONS OF THESADC TRANSIT MANAGEMENTSYSTEMDomicile of the Principal bond holder andGuarantor• Principal bond holder and guarantor must beestablished in the Member State where theguarantee is furnished approved by thecompetent authority in that member state.• The principal bond holder and the guarantorshall not be the same person(Reg.17)

KEY LEGAL PROVISIONS OF THESADC TRANSIT MANAGEMENTSYSTEMCancellation of Guarantee• The guarantee shall be revoked orcancelled by the office of guarantee or bythe principal bond holder or the guarantor• Office of guarantee shall retain theguarantee document for at least one yearfrom the date of notification to cancel afterrevocation or cancellation before effective(Reg. 20)

KEY LEGAL PROVISIONS OF THE SADCTRANSIT MANAGEMENT SYSTEMCarriage of goods under transit• Goods placed under transit procedureshall be placed on a single means oftransport, dispatched from one port ofdeparture to one port of destination undera transit documentation and a singletransit manifest.(Reg. 23)

KEY LEGAL PROVISIONS OF THE SADCTRANSIT MANAGEMENT SYSTEMDesignation of transit routes• The port of departure or transit office mayprescribe a transit route and carrier shallbe obliged to use that routeWhere the transit route is not prescribedthe carrier shall transit along the mosteconomically justifiable route(Reg. 27)

KEY LEGAL PROVISIONS OF THE SADCTRANSIT MANAGEMENT SYSTEMPrescription of time limits• The port of departure or transit office mayset time within which the goods shall bepresented at the port of destination or exit(Reg. 28)

KEY LEGAL PROVISIONS OF THE SADCTRANSIT MANAGEMENT SYSTEMIncidents Affecting Transit Procedure• Where incidents occur during transitprocedure the carrier shall informimmediately the nearest customs office(Reg. 30)

KEY LEGAL PROVISIONS OF THE SADCTRANSIT MANAGEMENT SYSTEMSealing of Goods and Means of Transport• To ensure identification of goodstransported under transit the goods andthe means of transport shall be customssealed where feasible.(Reg. 33)

KEY LEGAL PROVISIONS OF THE SADCTRANSIT MANAGEMENT SYSTEMComputerized Transit System• Use of computerised system shall notchange the transit procedure requirements• Electronic lodgement of customsdocuments shall be allowed(Reg. 34-40).

KEY LEGAL PROVISIONS OF THE SADCTRANSIT MANAGEMENT SYSTEMOffences• Offences: breaking of seals, diversion,failure to keep records, false declarations,obstruction of duty, bribery(Reg. 41 – 49)

KEY LEGAL PROVISIONS OF THE SADCTRANSIT MANAGEMENT SYSTEMPenalties• As prescribed for in national legisation.• Forfeiture(Reg 50 – 51)

THANK YOUE-mail:fanselmo@at.gov.mz+258 82 85 25 660