Member States: Botswana, Lesotho, Namibia, South Africa, and Swaziland Recording of customs and excise duties in SACU Member States Seminar on Developing.

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    06-Jan-2018

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SACU Institutions Article 7 of 2002 Agreement provides for establishment of six institutions essential for the running of the Custom Union: The Council of Ministers The Customs Union Commission The Secretariat The Technical Liaison Committees Tariff Board Tribunal

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  • IntroductionSACUs VisionAn economic community with equitable and sustainable development, dedicated to the welfare of its people for a common future.The 2002 Agreement sets out a broad framework for enhanced integration with clear mandate, objectives, institutions, decision making and financing procedures.

  • SACU InstitutionsArticle 7 of 2002 Agreement provides for establishment of six institutions essential for the running of the Custom Union:The Council of MinistersThe Customs Union CommissionThe SecretariatThe Technical Liaison CommitteesTariff BoardTribunal

  • The Role of the SecretariatThe Secretariat is responsible for day to day administration of SACU, headed by the Executive Secretary.The Secretariat coordinate and monitors the implementation of all decisions of Council and the Commission.The Secretariat arranges meetings, disseminates information and keeps minutes of meetings of SACU institutions.The Secretariat assists in the harmonization of national policies and strategies of Member States in so far as they relate to SACU.

  • The Role of the SecretariatThe Secretariat is responsible for keeping a record of all transactions into and out of the Common Revenue Pool.

    The Secretariat is the depositary of all records of SACU

    The Secretariat coordinates and assist in the negotiation of trade agreements with third parties

  • Common Revenue PoolPart Six of the 2002 SACU Agreement establishes a Common Revenue Pool consisting of all customs, excise and additional duties collected in the Common Custom AreaAll duties collected in the Common Custom Area is paid into the Common Revenue Pool, within three months of the end of each quarter of a financial year.Part Seven of the Agreement provides a formula for the determination of the respective shares of each Member State out of the Common Revenue Pool.

  • Common Revenue PoolThe Revenue Sharing Formula has three distinct components:The customs component that uses intra-SACU trade dataThe excise component that uses nominal GDP at market priceThe development component that uses GDP per capita

  • GDP CompilationThe use of GDP in the Revenue Sharing Formula calls for the harmonisation of the methodology used in compiling GDP in Member States for fair distribution of revenueIt has been established that there are inconsistencies in the treatment of SACU receipts in the compilation of national accounts

  • GDP CompilationSACU has adopted a program on harmonisation of GDP, that covers the following areas:Consistent compilation of taxes on productsInclusion of small units/informal sector into the national accountsComprehensive business register developed and maintainedDevelopment of supply and use tablesImplementation of SNA 1993 / 2008

  • Customs and excise dutiesCustoms duties are payable when goods first enter the economic territory of any SACU Member State from outside SACU.No customs duties are payable when goods enter the economic territory of one Member State from anotherFor goods in transit duties are collected at destinations thus no Member State collect duties on behalf of another.All duties collected by Member States are transmitted into the CRP

  • Customs and excise dutiesThe excise duties is collected on specified goods that are produced and consumed in SACUNo excise duties are levied on the specified goods that are exported to non-SACU countriesThe excise duties are payable at factory gate and excise duties are not payable when the goods enter the economic territory of one Member State from another

  • Current PracticeCustoms duties collected by a Member State (A) on goods that are later re-exported to another Member States (B) should be attributed to Member State (A) and included in taxes on products in the derivation of the GDP of Member State (A), while other have argued that it should be attributed to Member State (B) and added to taxes on products of Member State (B).Excise duties should be attributable to the country of final consumption, while others link the excise duties to the country of production.

  • Thank You For Your Attention

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