AEO Accreditation and disclosure
Dear Valued Client
We have previously published Newsflashes regarding the AEO accreditation process and its value. With the current supply chain constraints and added logistics costs, we must collectively ensure we do whatever we can to reduce further delays and costs. In this respect, AEO accreditation will significantly assist in reducing SARS stops. In addition, we note that some customers have not linked SCT as a related party in RLA e-filing. You may recall the drive to re-register for RLA two years ago to upgrade your licence registration, but it seems many have not linked to SCT in the disclosure section. New clients to SCT may not have known about this link. We have been advised that the link is essential in reducing SARS scrutiny of clearances, as it declares a trusted and known connection between the importer/exporter and SCT.
Attached is a detailed explanation covering both processes, the benefits, and how to apply through your e-filing platform. We strongly encourage all importers to obtain a minimum of AEO Level 1 accreditation, and we trust the simple process to initiate this is clearly laid out in the attached. The only point that may be of concern is the exam that two staff members need to pass to show sufficient customs knowledge. We will certainly help and guide you through this process, and we assure you it is not a stumbling block to accreditation.
The primary point and benefit of AEO is that, whilst Level 1 accreditation does not guarantee no SARS customs stops, it does guarantee a radical reduction. If for some reason SARS deems it necessary to stop a consignment, an AEO-accredited client can get a free embargo release to have the inspection done at their site, which means no delays and no additional costs. As you may be aware, a customs stop can entail, at the very minimum, a 4 to 5 day delay and additional costs often in excess of R15k. The important point to note is that many of the larger importers in South Africa have now been accredited, and the result is greater focus and SARS attention on non-accredited importers. The net result is an increased number of stops for non-accredited importers, as SARS still maintains target stop ratios. Currently, SAPS is not subject to the AEO benefits and rules, but under the global AEO agreement signed, it must ultimately be drawn into the process, and we hope this will add further benefit in due course.
Please review the attached. Should you decide to go through the AEO process, we ask that you notify us of your intention so that we can discuss it further with you, provide assistance through the process, and provide coordination and assistance in preparing for the exam.
Should you have any queries, please feel free to reach out to our customs department.