IMPORT CONTROL & ENFORCEMENT

Chief Commissioner: Meluleki Nzimande

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LEGISLATIVE MANDATE

International Trade Administration Act, 71 of 2002.

Minister’s power to regulate imports, Section 6.

Appointment of investigating officers, Part E, Section 38.

Import and export control inspections, Section 41.

Enforcement and offences, Sections 49 to 54.

Penalties, Section 55.

Import Control Regulations: Notice no. R 91 published in Government Gazette no. 35007 dated 10 February 2012, as amended.

Bound by World Trade Organisation (WTO) and WTO Agreement, 1994.

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GOODS SUBJECT TO ITAC IMPORT CONTROL

New goods subject to ITAC import permit control

The number of tariff headings subject to ITAC import control as listed in the Regulations arearound 122 tariff lines out of a total number of around 7500 tariff lines.

Issuing of certain import permits subject to recommendations/approvals from regulators such asNRCS (e.g. homologation certificates for tyres), DME (recommendation for fossil fuels) and DEA(recommendation for gases/chemicals).

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GOODS SUBJECT TO ITAC IMPORT PERMIT CONTROL

New goods subject to ITAC import permit control (summary of main heading chapters).

Description Tariff heading chapter

Description Tariff heading chapter

Fish, prawns and the like Chapter 03 Asbestos Chapter 25.24

Fossil fuels (oils, petroleum, gases)

Chapter 27 Radioactive elements and isotopes

Chapter 28

Rubber (reclaimed rubber and tyres)

Chapter 40 New (or used) rags Chapter 63.10

Metals Chapter 81 Arms and ammunition Chapter 93

Gambling machines Chapter 9504.30 Montreal Protocol gases and chemicals

Chapter 29 and38

1988 UN Convention chemicals Chapter 28 and 29

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IMPORT CONTROL

Used or second-hand goods subject to ITAC import permit control

All used or second-hand goods including waste and scrap of whatever nature, e.g. plastic, paper,glass, used tyre casings, worn clothing, used rags, ferrous and non-ferrous scrap metals.(exclusions - certain goods specifically excluded in the regulations e.g. imported in terms ofcertain rebate items such as 470.06 and the like)

The general principle that applies when import applications for used goods are considered, interms of the approved import control policy, is that the importation of used goods is not allowedif similar or substitute goods are available from local sources.

Certain conditional exemptions exist, such as used passenger vehicles imported by immigrants,returning residents or disabled people or used tyre casings for retreading locally.

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ENFORCEMENT TYPES

Three enforcement categories namely:

• Verifications

Verify information contained in documentation and or imported goods.

• Inspections

Physically inspect shipping containers and contents of containers/imported goods subject to import control. Match documentation information with imported goods.

• Investigations

Verifications and inspections result in investigations when non-compliance is detected. Preliminary investigation file opened and chain of evidence collected.

NOTE: Contraventions in terms of the ITA Act constitute criminal contraventions.

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ENFORCEMENT MANDATE

ITAC inspectors mandated to conduct verifications, inspections and investigations.

Only goods subject to ITAC import or export permit control may be inspected by ITAC enforcement officers.

Enforcement of compliance with ITA Act, regulations, ITAC permit conditions, and limited compliance checking of ITAC rebate permit conditions e.g. worn clothing and worn overcoats.

Mandate excludes certain imported cargo such as cargo under Customs control, false Customs declarations, un-cleared cargo or goods such as stolen goods.

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ENFORCEMENT MANDATE (CONTINUED)

Used clothing/overcoat containers inspected during off-loading or after off-loading at Customs bonded warehouses or importer premises, also in joint operations with SARS - Customs.

ITAC not empowered to inspect quarantined goods under Port Health/Customs control at ports of entry – this is the domain of SARS – Customs.

Other imported goods such as medicines, agricultural goods and precious metals are regulated by relevant authorities, Departments of Health, Agriculture, Forestry and Fisheries and the Diamond and Precious Metals Regulator respectively.

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ENFORCEMENT APPROACH

Two way approach

1. Compliance with ITA Act and regulations.

Conduct inspections and verifications to establish whether provisions contained in legislationand regulations have been met, e.g. ITA Act, Section 6 and 27.

Verify permit application information declared to ITAC, verify shipping and clearancedocumentation to ensure compliance e.g. permits are not transferrable.

2. Compliance with import permit conditions.

Permit conditions generally prescribe the way in which goods must be dealt with afterimportation e.g. may not be sold or disposed of locally, for retreading only, for the manufactureof wiping rags only, etc.

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ENFORCEMENT ACTION

Compliant Goods

No further action, importer sign attendance register and enforcement officer file report.

Non-compliant Goods

Enforcement officer determines contravention/s.

May attach imported goods and/or evidence including documentation in terms of Section 41.

Seized goods stored in Customs or SAPS warehouses, ITAC may hire storage on an ad-hoc basis, subject to budget.

Obtain supporting affidavits from witnesses.

Obtain statements from complainant, normally ITAC administrative officer responsible for the issuing of the relevant import permit or if no permit issued, the officer responsible for the import administration of the imported goods/industry sector.

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ENFORCEMENT ACTION CONTINUE

Contravention confirmed, register criminal case with SAPS, dockets normally transferred to SAPS Commercial crime (HAWKS) for SAPS investigation.

Obtain SAPS CASE number.

Docket presented to NPA for decision, ITAC enforcement officer brief prosecutor.

Testify in court.

Forfeited goods dealt with, normally by SARS, Customs or on exception by ITAC.

ITAC mandate ends when matter is handed over to SAPS for further investigation and prosecution.

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SCRAPPING OF FORFEITED VEHICLE

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UNSCHEDULED IMPORT AND EXPORT CONTROL INSPECTIONS

570 560 487

2191

3449

0

500

1000

1500

2000

2500

3000

3500

4000

2013 2014 2015 2016 2017

Unscheduled inspections Number of inspections

Unscheduled inspectionsNumber of inspections

* Increase during 2016-2017 due to increase in enforcement capacity

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SCHEDULED IMPORT AND EXPORT CONTROL INSPECTIONS

0

100

200

300

400

500

600

700

800

900

2013 2014 2015 2016 2017

Scheduled inspections Number of inspections

Scheduled inspectionsNumber of inspections

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CO-OPERATION WITH OTHER AGENCIES

Enforcement in co-operation with other regulatory agencies.

SARS, Customs, operational inspection of containers, share information, detention of goods, storage, etc.

SAPS, inspection of imported goods, share information, etc.

Other agencies on ad-hoc basis depending on circumstances

NPA, align efforts to obtain evidence for successful prosecution.

Joint prosecution matters with agencies such as SARS, Customs.

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Distinct from Trade Regulation Based on Tariffs and Quotas

World Trade Organisation (WTO) and WTO Agreement

Tariffs (Ordinary Customs Duty), Rebates and Tariff Policy

Trade Remedies Anti-Dumping Duties – response to unfair trade

Countervailing Duties – response to unfair trade

Safeguard Duties – response to fair trade

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