EFFECTIVE DATE
INTERNAL
STANDARD OPERATING PROCEDURE:
RELEASE OF GOODS UNDER EMBARGO
Internal SOP – RELEASE OF GOODS UNDER
EMBARGO
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1
SCOPE
●
This standard operating procedure applies to certain instances where release of goods which have
been detained / stopped for examination is allowed under Customs control or release of goods under
a “letter of undertaking”.
2
DIAGRAM / FLOWCHARTS
Client request for
Embargo Release
Team Leader
approves request
Team Leader
declines request
QA issues a report
requesting client
to lodge a pp with
Customs
TL gives reason in
writing for
declining the
request
Payment of pp by
importer
Importer/Agent
acknowledges
receipt of the letter
Proof of payment
provided to QA
(receipt)
A standard letter
of undertaking is
completed by
controller of
Customs
QA grants release
to client
3rd copy placed
on file by district
office concerned
2nd copy attached
to the Stop Note
DA 310
Cargo is then
removed to
importers
premises
Inspection is
conducted by a
Customs Inspector
(under Customs
supervision)
Internal SOP – RELEASE OF GOODS UNDER
EMBARGO
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3
PROCEDURE
#
3.1
PROCEDURE STEP
Granting Embargo release
●
3.2
●
Release under embargo is usually allowed in the following
circumstances:
▫ Large consignments which are too bulky to handle, for example
large machinery.
▫ Consignments considered fragile or dangerous, which require
special handling by experts in the field, for example poisonous
chemicals and radioactive materials.
Note: An example of “fragile goods requiring special handling by
experts” would be sheets of plate glass, and not commercial
merchandise packed in cartons, such as drinking glasses,
ornaments, television sets, etc.
▫ Household effects (also no security necessary).
▫ Books, periodicals and other printed matter packed in FCL
containers and palletised, using the plastic shrink wrap process
▫ Goods requiring immediate refrigeration and / or other
perishable goods.
The general rules, which should always be applied to
examinations at the importers premises are as follows:
▫
▫
▫
▫
▫
▫
▫
SC-CC-28
/
Branch
Controller
/
Branch
Manager, Team Leader,
Assessment Officer
Authorised in exceptional circumstances only. It is a condition of
depot operator’s licenses that such licensees must provide the
infrastructure, trained personnel and equipment necessary to
facilitate Customs inspections of detained cargo.
Requests for release under embargo to importers premises on
the basis that a depot is allegedly “unable” to facilitate a
Customs inspection should therefore not be entertained unless
the cargo in question is of the nature specified in 3.1 above.
However, certain depots have “limited” licenses that do not
allow packing/unpacking of containers; in the event that
detained goods are in containers located at such depots,
arrangements can be made for the removal of the detained
container(s) to an alternative depot that is licensed to unpack
containers.
The premises of the importer must be within a reasonable
distance from the Customs Office concerned.
Security in the form of provisional payment (not less than
R5000, with the exclusion of household effects) must be lodged.
If the goods stopped are queried for a higher rate of duty, i.e.
tariff heading query, the difference in the duty possibly payable
must be secured on a provisional payment.
Packages stopped for examination and packed in FCL
Groupage Containers may not be released under embargo, but
must be removed to a licensed Container Depot for
examination.
Consignments stopped / detained where the Assessment
Officer specifically mentions that possible undeclared or
smuggled goods must be looked for, may not be released under
embargo. In such cases where it is genuinely physically
impossible to unpack the goods at the container depot,
Internal SOP – RELEASE OF GOODS UNDER
EMBARGO
ROLE
Controller
Manager,
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3.3
arrangements must be made and a condition placed on the
letter of undertaking that Customs will escort the consignment
from the Customs controlled area to the importer’s premises
and the unpacking will be done under Customs supervision.
▫ If, after examination at the importer’s premises, it is realised that
a contravention in respect of such consignment has been
committed and duties are outstanding, goods to the value of the
amount outstanding must be placed under lien in terms of
Section 114 of the Act (i.e. where the provisional payment
amounts are not sufficient to cover the difference in duty). If illicit
/ prohibited goods or uncleared (smuggled) goods are detected,
such goods must be seized in terms of Section 88(1) of the Act
and immediately be removed to the States Warehouse.
▫ Special attendance at the prescribed rate must be paid.
▫ Goods in containers must be sealed and the seal numbers
declared on the bill of entry and / or on the letter of undertaking.
▫ The letter of undertaking (SC-CF-03-A1) must be correctly
completed.
Standard letter of undertaking
●
Controllers / Branch managers must ensure that the standard letter
of undertaking (SC-CF-03-A1) is correctly completed prior to release
under embargo being granted.
●
This letter must be completed by Customs and the importer /agent
must acknowledge receipt and give an undertaking to abide by the
terms specified therein in each instance.
●
Paragraph (b) of the letter of undertaking has been included for any
further conditions Controllers may wish to add, for any particular
release under embargo. In the case of containerised cargo, this will
include the clause that the container(s) must remain unopened with
seal(s) intact until the Customs inspectors arrive to conduct the
examination and authorises the seal(s) to be broken and the
container(s) opened.
●
The letter of undertaking must be completed in quadruplicate and
dealt with as follows:
▫ Original to the importer.
▫ 1st copy to the agent.
▫ 2nd copy to be attached to the stop note, form DA 310.
▫ 3rd copy to be placed on file by the district office concerned.
(File 1/5/4).
●
Should the person making the declaration (agent/importer) fail to
comply with the conditions stipulated on the provisional payment or
the letter of undertaking, these irregularities must be considered a
contravention of the Act.
●
The relevant Sections of the Act are Section 107(2) (a), as read with
penal provisions Section 80(1) (p) and Section 83(a).
Internal SOP – RELEASE OF GOODS UNDER
EMBARGO
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Controllers
Managers
/
Branch
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3.4
Irregularities
●
●
●
Controller
Manager
/
Branch
Where the importer opens the container packages prior to the arrival
of the examining officer, this is considered highly irregular and
should be viewed in a serious light.
In such instances disciplinary penalties based on the Offences and
Penalty Guidelines should be imposed.
If any importer commits such an offence on more than one
occasion, permission for any future releases under embargo must
be refused for such importers.
4
MEASURES
●
Controllers must ensure that prior to release under embargo being granted, a letter of undertaking is
correctly completed by Customs and the importer acknowledges receipt thereof in each instance.
5
QUALITY RECORDS
●
The following Quality Records shall be generated and managed in accordance with QMS-15 – Record
Control Procedures.
Number
DA 310
DA 70
DA 73
6
Title
Stop Note
Provisional Payment Form
Application for Special Attendance
REFERENCES
6.1 LEGISLATION
TYPE OF REFERENCE
Legislation
and
Rules
administered by SARS:
Other Legislation:
International Instruments:
REFERENCE
Customs and Excise Act No. 91 of 1964: Sections 80(1)(p), 83(a),
88(1),107, 107(2)(a), 114
Customs and Excise Rules: Rule 120.2
Kyoto Convention General Annex Chapter 3, Paragraph 8.2 – Clearance
and other Customs formalities.
Framework of Standards: Customs Control - Par 1.2.3; 2.1.1
6.2 CROSS REFERENCES
DOCUMENT #
DA 310
QMS-01
SC-CF-01
SC-CF-03
SC-CF-03-0
SC-CF-03-A1
7
DOCUMENT TITLE
Stop Note
Quality Management System Manual
Special and Extra Attendance
Internal Policy Customs Code of Instruction
The Revised Customs Code of Instruction
Specimen-Letter of Undertaking
APPLICABILITY
All
ISO 9001:2000
All
Par. 5.7.8
P 180
P182
DEFINITIONS AND ACRONYMS
Internal SOP – RELEASE OF GOODS UNDER
EMBARGO
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Client
FCL
PP
QMS
SARS
The Act
TL
ROLE (RACI)
● Responsible
Any person or enterprise conducting business with SARS
Full Container Load
Provisional Payment
Quality Management System
South African Revenue ServiceThe Customs and Excise Act No. 91 of 1964
Team Leader
●
Accountable
This role approves the completed work and is held fully accountable for it.
●
Consulted
This role may be consulted during the process.
●
Informed
This role is to be informed of the progress and or results.
8
This role conducts the actual work or owns the problem.
DOCUMENT MANAGEMENT
Designation
Business Owner:
Process Owner:
Author:
Detail of change from previous
revision:
Template number and revision
Name / Division
GM Policy and Standards
GM Policy and Standards
N Mpateni
Initial Release
POL-TM-15 – Rev 2
Internal SOP – RELEASE OF GOODS UNDER
EMBARGO
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