What is a Customs Inspection?

Customs inspections verify that shipments meet the legal and regulatory requirements of the destination country. The main objectives are to prevent illegal activities, ensure proper taxation, and facilitate legitimate trade by confirming that all regulations are adhered to.

Inspections help protect national economies and maintain fair trade practices by ensuring that only compliant goods enter or leave a country. This includes verifying that the shipment adheres to safety standards, trade agreements, and tax laws.

Types of Customs Inspections

The customs clearance process can vary based on the nature of the goods, the destination, and any regulations or risks involved. Here’s a breakdown of the most common types of inspections:

• Documentary Checks – Customs officials review the accompanying paperwork, such as invoices, bills of lading, certificates of origin, and relevant permits, to ensure accuracy and compliance with South African and country of destination laws.
• Physical Inspections – In some cases, Customs officials may physically inspect the goods to verify that they match the documentation provided. This can involve opening containers, examining products, and checking for prohibited items.
• Non-Intrusive Inspection (NII): This involves using scanning technology like X-ray or gamma-ray machines to inspect the contents of containers without opening them. It’s a quicker method to identify discrepancies or contraband.

These inspection types represent the core methods to ensure compliance and security, but additional specialised inspections may also be employed based on specific regulatory requirements or risk factors.

What Happens During a Customs Inspection?

When your goods arrive at a South African port or airport, Customs officials will decide whether an inspection is necessary. This decision can be influenced by various factors, including the type of goods, their origin or destination, and any previous customs history.

Notification

If your shipment is selected for inspection, you will be notified by Customs or your clearing agent. This is often done through a ‘stop’ or ‘detain’ notice, which indicates that the goods will be held until the inspection is completed.

Inspection Process

During the inspection, customs officials will check the documentation, assess the goods, and compare them to the descriptions provided. They may also check for compliance with South African regulations, such as ensuring that the correct import duties, VAT, and any applicable taxes have been declared and paid.

Inspection Results

After the inspection, customs will either clear the goods for release or issue a notice of detention if there are any discrepancies or concerns.

Post-Inspection Procedures

Release of Goods

If everything is in order, customs will release the goods for import or export. This means the goods can be transported to their final destination within the country or shipped out internationally. It’s important to ensure that all duties and taxes are paid promptly to avoid any delays in the release.

Handling Issues

If discrepancies are found, customs may issue a ‘notice of detention’ for further investigation or require payment of additional duties and taxes. Addressing these issues promptly and providing any required documentation can help resolve the situation quickly. In some cases, additional information or corrections may be needed to clear the shipment for entry or exit. Efficient resolution helps avoid extended delays and additional costs.

Potential Audits

In South Africa, SARS (South African Revenue Service) may conduct post-clearance audits to ensure compliance with customs regulations. These audits can occur weeks or even months after the goods have been released, focusing on verifying the accuracy of the declared values, classifications, and compliance with import/export requirements.

Preparing for a Smooth Customs Inspection

Proper preparation is key to ensuring that your goods pass through customs smoothly. Here are some steps you can take to prepare for a customs inspection:

Accurate Documentation

Ensure that all documentation is complete and accurate. This includes providing a detailed description of the goods, their value, and their origin. Errors or omissions in paperwork are common triggers for inspections and delays.

Compliance with Regulations

Familiarise yourself with South African import/export regulations and those of other countries for international shipments. Be aware of any specific requirements for your type of goods. Understanding these rules helps prevent issues during inspection and ensures that all necessary permits and licences are in place.

Work with a Reliable Clearing Agent

Partnering with an experienced clearing agent like Sebenza can streamline the customs clearance process. A good agent will ensure that all paperwork is in order, communicate with customs on your behalf, and help resolve any issues during the inspection.

Wrapping Up

Customs inspections are an integral part of the freight forwarding process, designed to protect the country’s economy and citizens by ensuring that all imports and exports comply with the law. By staying proactive and informed, businesses can confidently navigate the customs clearance process, minimising delays and avoiding potential penalties.

For businesses involved in freight forwarding, ensuring your goods clear customs without a hitch is crucial. At Sebenza, we provide comprehensive services to streamline your customs clearance and ensure compliance. As a registered clearing agent, we’re dedicated to making the process smooth and efficient.

Discover how we can assist with your customs needs and enhance the handling of your shipments by contacting us today!

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What is Freight Forwarding?

Freight forwarding involves organising and overseeing the international transportation of goods. This includes:

• arranging the mode of transport – air, sea, or road, 
• handling the necessary paperwork, and 
• meeting legal and regulatory requirements. 

Freight forwarders act as intermediaries, ensuring the safe and timely delivery of cargo by managing all aspects of the shipment process.

Types of Freight Insurance

Freight insurance comes in various forms, each designed to address specific needs based on the mode of transport and type of cargo. Here’s a rundown of the main types:

Air Freight Insurance

This insurance is meant for high-value items shipped by air. It covers risks such as loss, damage, or theft during air transit. Since air freight often involves valuable or time-sensitive shipments, comprehensive coverage is essential to protect against potential losses.

Sea Freight Insurance

Sea Freight Insurance covers both containerised cargo and break bulk. Containerised cargo is packed in standard containers, while break bulk (also known as general cargo) is packed in bags, boxes, crates, drums, barrels, or other handling equipment. Sea freight insurance handles risks like rough seas, cargo shifting, and maritime accidents, ensuring that sea shipments are protected.

Road Freight Insurance

This insurance provides coverage for goods transported overland by trucks or other vehicles. This insurance addresses risks specific to road transport, including accidents, road hazards, and theft, ensuring that land-based shipments are safeguarded.

Marine Insurance

Marine insurance offers broad protection for maritime risks, covering cargo, vessels, and ports. It’s especially important for international shipments, providing comprehensive coverage against a wide range of potential maritime issues.

Why Freight Insurance Matters

Freight forwarding involves several risks that can impact the safety and delivery of goods. These risks are inherent to the logistics process and can significantly affect the efficiency and cost-effectiveness of transporting cargo.

These include:

• Damage to Cargo: Goods can be damaged during handling or transit due to accidents, poor handling, or inadequate packaging.
• Theft: Cargo might be at risk of theft, especially during long journeys or at multiple checkpoints. High-value items are particularly susceptible to this risk.
• Loss During Transit: Items may be lost due to misrouting or logistical errors, causing delays and extra costs.
• Delays: Factors like adverse weather, political instability, or strikes can disrupt schedules and affect delivery times.
• Piracy: In some regions, piracy remains a real threat. Pirates may deploy sea drones with explosives or seize control of the vessel and its crew. Such attacks pose significant risks to shipments.
• General Average: If a ship faces an emergency, such as damage at sea or the need to offload cargo to protect the crew, a General Average may be declared. This requires all cargo owners to help cover the costs, even if their own goods are not damaged or lost.

Insurance helps manage the above-stated risks in several ways:

• Financial Protection: Insurance covers potential losses from damage, theft, piracy, or other risks, preventing significant financial setbacks and aiding recovery from unexpected problems.
• Loss and Damage Coverage: With insurance, businesses can recover the value of lost or damaged goods, ensuring stability and continuity even when challenges arise.
• Compliance: Many shipping contracts and regulations require specific insurance coverage. Having the right policy ensures compliance, avoiding legal issues and maintaining industry standards.
• Peace of Mind: Insurance provides reassurance, allowing businesses to operate confidently, knowing they are protected against unforeseen challenges.
  
  
  

Choosing the Right Freight Insurance Policy

When selecting a freight insurance policy, consider the following factors:

Coverage Limits and Exclusions

Ensure the policy offers adequate coverage for your needs. Be clear about the limits of coverage, any exclusions, and the deductibles you might face. This helps you choose a policy that fits your requirements.

Insurance Providers

Choose providers based on their reputation, financial stability, and customer service. A reliable provider with a strong track record offers dependable coverage and support.

Customisation

Tailor insurance policies to your specific needs. Customising your policy ensures it addresses the unique risks associated with your shipments, providing relevant and effective coverage.

Wrapping Up

Freight insurance is a critical component of freight forwarding, offering protection against various risks, financial losses, and legal issues. Regularly reviewing and updating your insurance policies ensures that you are always prepared for transportation challenges.

For businesses involved in freight forwarding, staying proactive with insurance coverage helps keep operations running smoothly and securely. By keeping your insurance up-to-date, you can handle unexpected issues with confidence and maintain a reliable logistics process.

At Sebenza, we offer a variety of Marine Insurance packages for coverage tailored to your specific needs. Our expert team is dedicated to ensuring your cargo is protected throughout its journey.

Contact us today to find out how we can streamline your shipping process!

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Don’t worry, we’ve got you covered.

This guide will walk you through the essential documents required for an export operation, helping you avoid common pitfalls and ensuring compliance with all relevant regulations.

1. Commercial Invoice

The commercial invoice is a bill for goods from the exporter (you) to your international buyer. It contains key data such as the description of goods, quantity, and selling price in terms of delivery and payment, among other details. 

This document is fundamental as it forms part of customs declarations in South Africa and your destination country.

2. Transport Document

The transport document provides evidence regarding the contract between you, an exporter, and your freight forwarder or carrier. This documentation includes details on 

• what’s being transported, i.e. the nature of goods
• and where it’s headed, i.e. destination port or final destination.

There are different types: Bill of Lading (B/L), Air Waybill (AWB) etc., depending on how your cargo will travel – by sea or air respectively.

3. Packing List 

A packing list may seem like a minor detail, but it plays a crucial role during shipping procedures. It complements your commercial invoice by providing detailed information on how your commodities are packed for transportation purposes, e.g., weight, dimensions, etc; thereby helping customs authorities verify cargo contents upon arrival at their intended locations.

4. Certificate Of Origin 

The Certificate of Origin (COO) confirms that specific goods were wholly obtained, produced, or manufactured within a particular country—in this case, South Africa. This certification establishes eligibility for preferential trade agreements, tariff quotas, and other benefits when entering foreign markets. For exporters, it can lead to reduced costs due to lower import duties based on the origin criteria outlined in these agreements.

5. Export Declaration

An export declaration, also known as a Customs Declaration, is submitted to the South African Revenue Service. This document contains essential information about the nature of exported goods and their destination. It’s a legal requirement in South Africa that helps prevent illegal exports and ensures compliance with trade regulations.

6. Insurance Certificate 

The insurance certificate provides proof of cargo insurance coverage during transportation, reassuring buyers that they’ll be compensated if unforeseen events cause loss or damage in transit. This not only protects the goods but also fosters trust and confidence between trading partners in international commerce.

7. Health And Safety Certificates

Health and safety certificates may be required depending on the type of products you’re exporting. These documents confirm your goods meet your target market’s necessary health and safety standards. For example, food products might require a phytosanitary certificate or similar documentation.

Understanding Export Documentation

Awareness of these crucial documents will make your exporting journey from South Africa less daunting. To ensure a hassle-free export, remember to verify which specific documents are needed for your product type and target market before embarking on any international trade venture – this will save you significant time and resources down the line!

At Sebenza, we understand the challenges of navigating export procedures, especially in unfamiliar territories. We provide expert freight forwarding and export solutions and assist with all necessary documentation to ensure smooth operations. In short, we’re here to help! Get in touch with us today.

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Two of the crew members tested positive for Covid-19, and as a safety precaution, the vessel was ordered to remain at anchor for two weeks.

The MV Montpellier operates on Hapag-Lloyd’s Middle East India Africa Express (MIAX) service providing weekly direct service between Arabian Gulf, India, Colombo, La Reunion, South Africa and West Africa.

According to Hapag-Lloyd, the port rotation of the MV Montpellier will be adjusted. The port rotation is Jebel Ali, Mundra, Nhava Sheva, Colombo, La Reunion, Durban, Cape Town, Tema, Lagos (Tincan and Apapa), Cape Town, Durban, and Jebel Ali.

The shipping line stated that this incident is now under the control of the authorities. They wished the affected crew onboard a speedy recovery.

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We looked into the matter and found the following:

“As an indirect exporter, you are not obliged to pay VAT on exports.”

SARS VAT guide

An indirect export refers to a situation where goods are exported by the recipient (being a “qualifying purchaser” as defined) and that person removes or arranges for the removal and transport of movable goods to an address in an export country.

A supplier may elect to apply the zero rate on the supply of movable goods to a qualifying purchaser or registered vendor if such goods were delivered to either the port authority, master of the ship, a container operator, the pilot of an aircraft, or were brought within the control area of the airport authority, are situated at the designated harbour or airport and are destined to be exported from the RSA.

VAT at standard or zero rate?

Indirect exports are regulated by the export regulations published as Government Notice R316 on 2 May 2014 (in Government Gazette 37580) (the Export Regulations).123

• If an indirect export is subject to VAT at the standard rate the qualifying purchaser may claim a refund from the VAT Refund Administrator (Pty) Ltd (the VRA)124 as set out in the Export Regulations.
• Alternatively, the vendor may elect to zero-rate the supply of the movable goods, subject to certain requirements set out in the Export Regulations. See 12.1.2 of the SARS VAT Guide for more details.

12.1.1 of SARS VAT guide stipulates that:

Indirect exports The Export Regulations set out the specific procedures applicable to goods exported indirectly. In the case of indirect exports, the supplier will charge VAT at the standard rate, unless the supplier has elected to apply the zero rate under Part Two of the Export Regulations.

Part Two – Section A: 

This Part of the Export Regulations provides for a supplier to elect to supply movable goods to a qualifying purchaser at the zero-rate where the goods are initially delivered to a harbour, an airport, or are supplied by means of a pipeline or electrical transmission line in the RSA before being exported. A supplier who elects to apply the zero-rate as provided for in Part Two – Section A of the Export Regulations must obtain the relevant documentary proof as contemplated in the said Part to substantiate the application of the zero rate.

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Then experience from the Sebenza/RedNav team kicked in! There was another option.

After a few calls we found a vessel which offered a direct sailing that only needed 16 days transit time. We looked at the estimated days of departure and arrival and knew that this was our solution! The manufacturer worked until the last possible moment before the trucking company pulled through his gates. The driver collected the goods at close of business and drove through the night to ensure that our cargo was handed in before the stacks were closed. The vessel departed as planned, and we enjoyed a mini celebration, but then … disaster struck! Inclement weather at sea caused the arrival date to be pushed out! The original arrival date was 2^nd August, which became the 3^rd, and then the 4^th! As we kept a watchful eye on the weather report, a mini tornado hit the coastal city of Perth on the afternoon of the 4^th August! Luckily it hit a few kilometres north of the port of Fremantle and it did delay the arrival time too much. The vessel eventually docked at 3am on the morning of the 6^th August, giving us one day for the vessel to unpack. The cargo became available on the morning of 7^th August, and we delivered one day earlier than the cut-off date. A relieved client waited at the delivery address of the buyer to welcome the first of what he (and we) hope to be many more shipments. We feel confident in the knowledge that we went over and above our duty to deliver the best possible sea freight service to our client at an affordable rate. This is what shipping is about.

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E-mails of welcome from countries like China, Pakistan, Scandinavia, Canada and the United States immediately poured in after the announcement was made. Agents from more than a hundred countries belong to this prestigious network of independent professional project forwarders and related logistic and shipping service providers.

The conference will be held at the Sofitel Bahrain Zallaz Thalassa Sea & Spa, which overlooks the pristine beaches of Zallaq and the Arabian Gulf on Bahrains’ west coast. One on one meetings are held over three days with fellow freight forwarders to exchange enquiries and build relationships.

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They managed to find an old age care facility in South Africa where they knew that their mother would receive excellent care, but they were worried about how she would react to such a big change at this late stage of her life. They knew that dementia was beginning to set in and they were advised by medical professionals that their mother would cope better in her new environment if she could take some of her own belongings with her.

Costs were of course a concern, but also timing.

We planned the move to the n ^th degree. Her goods were packed into boxes by the client and was sent as an air freight shipment to be customs cleared and delivered to one of the major cities in South Africa.

Our clients were ecstatic with the quality of service they had received from the combined team of Red Nav/Sebenza Freight Services. They were kept informed every step of the way and could arrange for extra hands to assist with the receipt and unpacking of the shipment on the day of delivery.

The elderly mother settled in with ease. She is now surrounded with her familiar belongings and is receiving outstanding care. Our client installed a large TV screen in her new house and taught her how to use Skype, so that they can regularly talk to her on video call.

Note: a stock image was used

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