Trade Facilitation and Revenue Management | SACU

Share this:

Trade Facilitation and Revenue Management

The role of the Trade Facilitation and Revenue Management Directorate is to facilitate and coordinate trade facilitation related initiatives/programmes aimed to enhance operational efficiencies for the cross-border movement of goods; secure borders and eliminate entry of substandard and illicit goods; ensure seamless movement and facilitation of trade; as well as to promote traders’ compliance with the national laws and policies regarding importation and exportation of goods. The Directorate is also responsible for the coordination and support of the implementation of the SACU Revenue Sharing Arrangement by ensuring that the calculation and payment of the Member States’ revenue shares is determined according to the Revenue Sharing Formula.

Trade Facilitation Sub-Directorate

The Trade Facilitation Sub-Directorate supports the Member States in the promotion of free movement of goods; freedom of transit and transport facilitation; customs cooperation; collaboration on monitoring the import and export of prohibited and restricted goods; collaboration on Sanitary and Phyto-sanitary) Measures; implementation of the Common External Tariff; harmonisation of product standards and technical regulations within the Common Customs Area; and support to trade negotiations and implementation of trade agreements concluded with third parties. This is in accordance with Part Five of the SACU Agreement, 2002.

SACU adopted the Trade Facilitation and Logistics Programme that is realigned and geared to support industrialisation and the trade agenda in SACU. The focus of the SACU Trade Facilitation and Logistics Programme is on:

    1. Customs Cooperation to simplify and harmonise trade procedures, policies, processes, and systems; 
    2. border coordination to strengthen collaboration and cooperation between border agencies and enhance efficiencies; 
    3. behind the border measures to address all administrative challenges related to formalities, documentary requirements, procedures, fees, and charges related to Agriculture, Standards, and Sanitary and Phyto-sanitary; 
    4. support to negotiations and the implementation of trade agreements to simplify administrative regime for Rules of Origin within trade agreements concluded with third parties; 
    5. transport and logistics activities to harmonise and standardise the cross-border transport regulatory framework and logistical processes; and 
    6. Cross-cutting policy imperatives.

    In addition, the Trade Facilitation and Logistics Programme will be supported by a Capacity Building and Gender Mainstreaming Plan to up-skill government officials as well as to address specific issues affecting women when engaging in cross-border trade in SACU.  

    SACU is also implementing a Customs Modernisation Programme which aims to reform and modernise Systems, Processes and Procedures in the Common Customs Area. Some of the successes achieved under the SACU Customs Modernisation Programme include the development and implementation of the Regional Customs Frameworks and Tools to support collaboration on IT Connectivity; Authorised Economic Operator Programme; Risk Management, Compliance and Enforcement; Customs Legislative Framework; Capacity Building and Gender Mainstreaming; and Monitoring and Evaluation. 

    Revenue Management Sub-Directorate

    The Revenue Management Sub-Directorate coordinates and supports the implementation of the SACU Revenue Sharing Arrangement. Part Six of the SACU Agreement, 2002, establishes a Common Revenue Pool consisting of all customs, excise and additional duties collected in the Common Customs Area. Part Seven of the Agreement provides a Revenue Sharing Formula for the determination of the respective shares of each Member State. 

    The Revenue Sharing Formula has three components that are outlined below:

    1. the Customs Component: consist of all customs duties. Each Member State’s share of the customs component is calculated from the Cost Insurance Freight (CIF) value at border posts of goods imported from all other Member States into the area of each as a percentage of the total CIF value of intra–SACU imports;
    2. the Excise Component: constitute 85 % of the total excise duties. Each Member State’s share of the excise component is calculated from the value of its GDP in a specific calendar year as a percentage of total SACU GDP in that year; and
    3. the Development Component: the development component is currently set at 15% of the Excise Component but can be reviewed from time to time and adjusted if agreed to by all the Member States.

    Annex A to the SACU Agreement, 2002, details the Revenue Sharing Formula that is used for determining each Member State’s share out of the Common Revenue Pool. The Annex also specifies the data that is required to apply the Formula for determining the revenue shares. In practice, duties are collected by all the Member States and transferred to the Common Revenue Pool on a quarterly basis. Each year, revenue shares are approved by the Council of Ministers and payments to all Member States are made on a quarterly basis. 

    Link to Annex A
    SACU © 2024, All rights reserved
    Another website by Asylum Design and DevelopmentAsylum Design and DevelopmentAsylum Design & Development