by Ncaba Ntshakala
SARS Commissioner Edward Kieswetter announced a vast increase in trade flows between South Africa and Eswatini, rising by E7.44 billion which is 15.7% in 2023.
This growth was driven by a 16.6% increase in exports (E4.22 billion) and a 14.6% increase in imports (E3.22 billion).
Kieswetter highlighted that South Africa has consistently maintained a trade balance surplus with Eswatini over the past five years.
These remarks were made during the Time Release Study (TRS) on trade flow at the Oshoek/Ngwenya border post, a critical point of trade between the two nations.
The TRS was said to be significant step to facilitate the seamless flow of trade through Southern African Customs Union (SACU) borders.
The study was conducted from 14 November to 17 November 2023, gathering vital data, both physical and system-related data at the shared border post.
The study was a collaborative effort by SARS, the Eswatini Revenue Service (ERS), and the World Customs Organisation (WCO) in partnership with UK Aid.
The South African Border Management Authority (BMA), the South African Police Service (SAPS), and representatives from our cross-border trading community.
The TRS emanates from the World Trade Organisation’s (WTO’s) Trade Facilitation Agreement (TFA), which entered into force on 22 February 2017.
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The TFA aims to expedite the movement, release and clearance of cross-border goods, measures for effective cooperation between Customs authorities and stakeholders, as well as provisions for technical assistance and capacity building.
The agreement includes the “Establishment and Publication of Average Release Times” (Article 6) using tools such as, inter alia, the Time Release Study (TRS) concept of the World Customs Organization (WCO) and encourages members to measure and publish the average release time of goods periodically and in a consistent manner.
The WCO Time Release Study is a strategic and internationally recognized tool to measure the actual time required for the release and/or clearance of goods, from the time of arrival until the physical release of cargo.
The study aims to find bottlenecks in the trade flow and identify measures to improve the effectiveness and efficiency of border procedures.
SARS Commissioner Edward Kieswetter emphasized the TRS as a vital initiative to identify supply chain bottlenecks, quantify trade facilitation results, and ensure predictability in trade-related procedures.
“As we embark on the journey towards Customs modernisation, I am confident that the insights gleaned from this TRS will inform our strategies and initiatives moving forward.
Together, we will continue to strive for excellence in Customs administration, facilitating trade, and contributing to the sustainable development of Southern Africa,” he said.
Kieswetter expressed that the importance of African Continental Free Trade Area (AfCFTA) agreement cannot be over emphasized as it seeks to bring relief to 30 million Africans experiencing extreme poverty and boost the incomes of nearly 68 million others who live on less than E101.36 (US$5.50) a day.
It is noteworthy that E5.3 trillion (US$292 billion of the estimated E8.2 trillion (US$450 billion) in potential income gains from the AfCFTA, would come from stronger trade facilitation measures.
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The Commissioner stated that, in other words, from measures to reduce red tape and simplify cross-border procedures to make it easier for African businesses to integrate into global supply chains.
Kieswetter thanked the valuable co-operation of the ERS under the leadership of the Commissioner-General, Brightwell Nkambule, and the Commissioner for Customs and Excise, Gugu Mahlinza.
The study was conducted with the support of the British Government.
Key findings and recommendations on TRS
The Time Release Study (TRS) revealed crucial insights and proposed recommendations aimed at improving trade efficiency at border posts.
The study highlighted several key findings regarding the average time cargo spends under customs control and identified areas for operational improvement.
The report found that, on average, it takes 34 minutes for imports and 1 hour 24 minutes for exports to move from arrival to exit under customs control.
The time from the submission of a customs declaration to the release of cargo, marked by the Customs Response CURES message on the manifest, averages 42 minutes.
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To address these issues, the report recommends a detailed analysis of port entry processes and the enforcement of a linear process for truck drivers to streamline operations.
Additionally, it suggests evaluating the feasibility of transforming the border into a One-Stop Border Post (OSBP) to further enhance efficiency.
One of the key observations was the presence of non-linear processes in customs halls, which contribute to delays.
The study also noted that personal activities by truck drivers during border crossings negatively impact clearance and release times.
Furthermore, trucks arriving without pre-clearance disrupt the flow of pre-cleared trucks, exacerbating delays.
Another significant issue identified was the time lag between the completion of cargo inspections and the submission of reports by the HUB on the Service Manager system, which causes additional waiting times.
The study recognized that border operations already exhibit characteristics of an OSBP, a model endorsed by the World Customs Organization (WCO) and recommended further exploration of this approach.
