About SARS

The landscape of South African customs legislation has undergone a significant, albeit protracted, transformation, moving from the unitary Customs and Excise Act 91 of 1964 to a bifurcated framework comprising the Customs Control Act 31 of 2014 and the Customs Duty Act 30 of 2014. While promulgated in 2014, the full commencement of these new Acts has been phased, with ongoing regulatory developments and modernisation efforts by the South African Revenue Service (SARS). This article explores the evolution of this legislative framework, its objectives of trade facilitation and enhanced compliance, and the practical implications for legal professionals and traders. Recent judicial pronouncements, such as the Supreme Court of Appeal's decision on the Commissioner's discretion to condone non-compliance, underscore the dynamic nature of customs law and the critical importance of adherence to procedural requirements.

The South African Revenue Service (SARS) plays a pivotal role in regulating the movement of goods and persons across the Republic's borders, a function underpinned by a complex and evolving body of customs legislation. This legislative framework is not merely a mechanism for revenue collection but also a critical instrument for trade facilitation, economic protection, and national security. For decades, the Customs and Excise Act 91 of 1964 served as the cornerstone of South Africa's customs regime, governing both customs and excise matters in a single statute.

However, in response to global best practices, the demands of modern international trade, and the need for greater clarity and efficiency, South Africa embarked on a comprehensive legislative reform. This reform culminated in the promulgation of two distinct pieces of legislation in 2014: the Customs Control Act 31 of 2014 and the Customs Duty Act 30 of 2014. While these Acts were assented to in 2014, their full implementation has been a gradual process, marked by ongoing regulatory updates and technological advancements by SARS. This article delves into the historical context, the key provisions of the new legislative framework, and the practical challenges and opportunities it presents for legal practitioners navigating South Africa's customs environment.

Prior to the recent reforms, the Customs and Excise Act 91 of 1964, which came into effect on 1 January 1965, provided a unified legal basis for the levying of customs and excise duties, as well as the control of imports, exports, and manufacturing of certain goods. This Act, administered by the Commissioner for SARS, was comprehensive, covering aspects from administration and general powers to clearance, origin of goods, anti-dumping duties, licensing, valuation, and penalties.

The decision to restructure this foundational legislation was driven by a recognition that a single, omnibus Act struggled to adequately address the complexities of contemporary international trade and align with international standards such as those promoted by the World Customs Organisation (WCO) and the Revised Kyoto Convention (RKC). The extensive research and drafting process, which began as early as 2003, aimed to dissect the 1964 Act and create a more streamlined and specialised legislative framework. This led to the promulgation of the Customs Control Act 31 of 2014 and the Customs Duty Act 30 of 2014. The Customs Control Act focuses on the control aspects of customs, including the movement of vessels, aircraft, trains, vehicles, goods, and persons entering or leaving the Republic, and facilitating the implementation of other relevant legislation. Concurrently, the Customs Duty Act specifically addresses the imposition, assessment, payment, and recovery of customs duties on imported or exported goods. It is important to note that while these Acts were signed into law in 2014, their full commencement is contingent on a date determined by the President by proclamation in the Gazette, with the Customs Duty Act's commencement linked to that of the Customs Control Act.

The transition from the Customs and Excise Act of 1964 to the new dual legislative framework represents a significant paradigm shift, aiming for enhanced trade facilitation and more robust customs control. The Customs Control Act 31 of 2014 is designed to align South Africa's customs administration with international best practices, incorporating principles such as simplified formalities, standardised documents, risk management, and audit-based controls. However, the phased implementation of these Acts means that practitioners must remain vigilant regarding the specific provisions that have come into force and the accompanying rules and public notices issued by SARS. For instance, recent developments include the requirement for all foreign-registered vehicles to be declared on the SARS Traveller Management System (TMS) from June 1, 2026, a measure intended to modernise customs operations and strengthen compliance at ports of entry.

Compliance challenges remain a significant concern. The Pretoria High Court, in a case involving detained imported blankets, underscored the critical importance of strict adherence to procedural requirements when engaging with Customs, particularly concerning notices of action. This highlights that even under the existing framework, procedural missteps can have severe repercussions for importers and exporters. Furthermore, the Supreme Court of Appeal, in the landmark case of *JT International Manufacturing South Africa (Pty) Ltd versus CSARS* (4 April 2025), provided crucial clarity on the Commissioner's discretion to condone non-compliance. The SCA ruled that the Commissioner does possess such discretion, particularly where there is no prejudice to the fiscus and where it is in the interest of justice to do so, moving away from a rigid interpretation of compliance. This judgment offers a potential avenue for relief for traders facing technical non-compliance issues, provided a compelling case can be made.

SARS is also actively combating illicit trade and corruption, as evidenced by recent search and seizure operations against current and former employees and related traders involved in customs under-declaration schemes. These enforcement actions demonstrate SARS's commitment to securing borders and protecting the fiscus, aligning with the National Illicit Economy Disruption Programme. Other notable updates include the implementation of a R150,000 annual cumulative value limit for e-commerce import declarations by private individuals using Customs Code 70707070, effective from November 20, 2025, and the finalisation of the legal framework for the China Zero-Tariff Trade Scheme, which commenced on May 1, 2026. These ongoing changes necessitate continuous monitoring by legal professionals to ensure their clients remain compliant and can leverage new trade opportunities.

The evolution of South Africa's customs legislation reflects a concerted effort to modernise its trade environment, enhance revenue collection, and combat illicit activities. The shift to the Customs Control Act 31 of 2014 and the Customs Duty Act 30 of 2014, while still undergoing full implementation, signifies a move towards a more specialised and internationally aligned customs regime. Practitioners must not only understand the substantive provisions of these new Acts but also remain acutely aware of the dynamic regulatory landscape, including new rules, public notices, and SARS's intensified enforcement efforts.

For legal professionals, the implications are clear: a proactive approach to compliance, meticulous attention to procedural requirements, and a thorough understanding of SARS's discretionary powers, as clarified by recent case law, are paramount. The ongoing modernisation of SARS's systems, coupled with its focus on integrity and disruption of illicit economies, means that businesses and their legal advisors must prioritise robust internal controls and transparent dealings to navigate the complexities of South African customs law effectively. Staying abreast of legislative amendments, judicial interpretations, and SARS's operational directives will be crucial for ensuring seamless trade and mitigating compliance risks.