08 September 2010

Trade Facilitation

Overview

Trade Facilitation in SACU relates to a comprehensive and integrated approach aimed at developing a consistent, transparent and predictable environment in which international trade transactions take place and covers all the steps necessary to facilitate the movement of goods across borders. Trade facilitation is based on internationally accepted norms and practices resulting from the simplification of formalities and procedures; the standardization and improvement of physical infrastructure and facilities and the harmonization of applicable laws and regulations. The primary goal of trade facilitation is to reduce the transaction cost and complexity of international trade for business and improve the trading environment in a region, while at the same time optimizing efficient and effective levels of government control and revenue collection.

One of the key objectives of SACU, as enshrined in Article 2 of the Agreement, is to facilitate the cross border movement of goods between the territories of the Member States. In support of this trade facilitation objective, Article 24 provides for freedom of transit across Member States while Article 27 provides for non-discrimination with respect to transport operators from within the Common Customs Area.

The key trade facilitation instruments in SACU include the application of similar legislation with regard to customs and excise duties, customs cooperation, use of common customs documentation and common procedures and practices.