ARTICLE
17 November 2023

Cancellation Of SARS Customs Codes: Customs Registration, Licensing And Accreditation (RLA) System

Ai
Andersen in South Africa

Contributor

Andersen in South Africa is a Legal, Tax and Advisory firm offering a full range of value-added and cost-effective services to their corporate and commercial clients. They are a member firm of Andersen Global, an international entity surrounding the development of a seamless professional services model providing best in class tax and legal services around the world.
In 2020 the South African Revenue Service (SARS) took a significant leap towards modernising its operations and enhancing the efficiency of its customs procedures.
South Africa International Law

In 2020 the South African Revenue Service (SARS) took a significant leap towards modernising its operations and enhancing the efficiency of its customs procedures. This transformative step came in the form of the Customs Registration, Licensing, and Accreditation (RLA) system. The RLA system marked a pivotal shift in the way businesses and individuals interacted with SARS for customs-related matters.

One of the most noteworthy aspects of the RLA system was the introduction of the 'customs' e-filing channel. This innovation revolutionised the process of submitting new registration and licensing applications. It streamlined the cumbersome paperwork that was once associated with customs registration, licensing, and accreditation, making it more convenient and user-friendly.

The transition to the RLA system was not merely a suggestion but a mandatory action for customs clients. This directive aimed to bring all importers and exporters into compliance with the new system's requirements. By March 31, 2023, all relevant parties were expected to have updated their registration and licensing details, effectively completing the RLA onboarding process. SARS, however, recognised that some clients might face challenges in meeting this deadline and, therefore, provided a window period for those who had not yet been able to comply.

However, as the window period seems to have ended on September 20, 2023, as SARS took decisive action to ensure finality for those who remained non-compliant. To accomplish this, SARS issued notices of intent to suspend customs registrations for those who had failed to adhere to the RLA system's requirements. This proactive approach is aimed to enforce compliance and underline the seriousness of adhering to the new regulations. Further The deadline and subsequent actions taken by SARS demonstrated the government's commitment to enforcing these changes and ensuring a level playing field for all customs clients.

As businesses and individuals adapted to the new era of customs compliance, the transition to the RLA system became emblematic of the broader digital transformation occurring within governmental organisations worldwide. Embracing technology and streamlining bureaucratic procedures not only benefits the government but also fosters a more conducive environment for trade and commerce, ultimately contributing to economic growth and development.

In conclusion, the South African Revenue Service's introduction of the Customs Registration, Licensing, and Accreditation system marked a significant shift in the way customs-related matters were handled in the country. The mandatory transition and subsequent enforcement actions underscored the importance of compliance with the new regulations. This transformative change not only enhanced efficiency but also reflected the broader trend of digitalisation in government operations. As importers and exporters adapted to these changes, they contributed to a more streamlined and transparent customs landscape in South Africa.

For those still navigating the complexities of the onboarding process or struggling to update their existing registration or licensing information, you are welcome to reach out to our Customs and International trade experts who are ready to advise and assist to meet the new compliance standards.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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