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PAPERLESS EXPORT MONITORING SYSTEM

PAPERLESS EXPORT MONITORING SYSTEM. by Exchange Control Department. Introduction. Legal framework. Export documentation – Customs and SARB. Current export process. Process improvement initiatives. Unique Consignment Reference (UCR) characteristics, generation and compilation.

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PAPERLESS EXPORT MONITORING SYSTEM

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  1. PAPERLESSEXPORT MONITORING SYSTEM by Exchange Control Department Updated 2010-05-25

  2. Introduction • Legal framework. • Export documentation – Customs and SARB. • Current export process. • Process improvement initiatives. • Unique Consignment Reference (UCR) characteristics, generation and compilation. Updated 2010-05-25

  3. Introduction… • SAD 500: Box 28 - UCR. • Paperless data reporting. • Authorised Dealer reporting. • Data matching. • Way forward. • Paperless Export Monitoring System. • Questions. Updated 2010-05-25

  4. Legal framework • Customs and Excise Act (Act No. 91 of 1964), regulate: • Physical movement of goods; • Single Administration Document (SAD) 500 usage. • Exchange Control Regulations, 1961 (i.t.o Section 9 of Currency and Exchanges Act, 1933 (Act No. 9 of 1933)) • Sub-regulation (10) (a) of Regulation 6 prescribes the completion of declaration. • Form F178 declaration, is a format prescribed by Section 5 of Orders and Rules, to monitor exports. Updated 2010-05-25

  5. Export documentation - Customs Single Administrative Document (SAD) 500 • Replaced DA550 in Oct 2006 • Completed by exporter or exporter’s clearing agent • To be completed irrespective of the value of the export Updated 2010-05-25

  6. Export documentation - SARB • Form F178 • For exports to countries outside the Common Monetary Area, exceeding R50,000 • Completed by exporter or exporter’s clearing agent • Attested, followed up and acquitted by bank. Updated 2010-05-25

  7. 4 • SAD 500 data and original Form F178 • RESIDENT EXPORTER • 2 • 3 • Goods • SARB Current export monitoring system AUTHORISED DEALER • NON-RESIDENT IMPORTER • 5 • Acquits F178 & reports export proceeds • Attested Form F178 • Receive proceeds • CUSTOMS • SAD 500 and Original attested Form F178 • 1 Updated 2010-05-25

  8. Process improvement initiatives • SARB –initiated Export Pilot Project (EPP) to monitor exports electronically. From 2007 to current EPP on Phase 2. • Customs – initiated paperless reforms, introduced SAD 500 in 2006 and Electronic Data Interface (EDI) accreditation. Updated 2010-05-25

  9. Process improvement initiatives… Customs SAD500 (complete irrespective of value of export) SARB F178 (only when value export exceed R50 000) Box 28 Updated 2010-05-25

  10. Process Improvement Initiatives… • SARB – added 4 features on SAD 500: Box 28 to complete info on Form F178, viz : • Unique Consignment Reference (UCR), • Transaction Value & Swift Currency Code, • Receiving Bank & Bank Code, • Credit Terms. Updated 2010-05-25

  11. Process Improvement Initiatives… SAD 500 : BOX 28 BOX 28 FINANCIAL DATA UCR 0ZA00011111454 TRANS VALUE CURRENCY 12000000 USD AD/BANK CODE RECEIVING BANK STANDARD 016 CREDIT TERMS VAT CLAIM 30 (001 – 180) ACTUAL CREDIT TERMS Updated 2010-05-25

  12. Process Improvement Initiatives… SAD 500 : BOX 28 BOX 28. FINANCIAL DATA UCR 0ZA00011111454 TRANS VALUE 12,000,000 USD 000 RECEIVING BANK AD CODE STANDARD 016 CREDIT TERMS VAT CLAIM ADV NEP 030 ( 001 – 180) Updated 2010-05-25

  13. Process Improvement Initiatives…Unique numbers • Match by using unique numbers as a link. • Unique numbers used - exporting at Customs. • Same unique numbers supplied to the bank when payment is received. • SARB uses unique numbers to tie up exports with receipts. Updated 2010-05-25

  14. Process Improvement Initiatives…Unique numbers • Customs Client Number (CCN): • The CCN is issued by SARS and must be reported in a eight digit format. Should the CCN be less than 8 characters, zero’s must be added in front of the number. • Unique Consignment Reference (UCR) – generated by the exporter or exporter’s freight agent. Updated 2010-05-25

  15. Characteristics of an UCR • Is created by the exporter / his agent. • Is created for every export consignment. • Its minimum length is 12 & maximum is 35 characters. • Is alpha-numeric and must not contain any special characters (i.e., “/, \, -, *,”). Updated 2010-05-25

  16. How to generate an UCR • 1st character = last digit of the year of export – i.e., ‘0’ for 2010. • Next 2 characters = the Society for World Interbank Financial Telecommunication (SWIFT) country code of the country of export , i.e. ‘ZA’ for South Africa. • Next 8 characters = CCN, ‘00011111’ • Note! If the customs client code is less than 8 digits, then zeroes (0’s) must be added in front to make up 8 digits. Updated 2010-05-25

  17. How to generate an UCR … • Last 24 characters = the unique number of the document that the exporter will use to link export proceeds with a specific export shipment, can be: invoice, quotation, order, shipment no., foreign customer code, etc. - e.g., ‘454’ if the invoice number is the link. • The four parts combined make up the UCR - 0ZA00011111454. • It must be on the SAD 500. 0ZA00011111454 Updated 2010-05-25

  18. UCR compilation • Last digit of the year of export (1) • Last 24 digits: Unique number exporter will use to link export proceeds with a specific export. Can be invoice: quotation, order, shipment no etc. (1 -24) • Custom Client • Number (8) • SWIFT Country Code (2) • No change up to character 11 • 35 Characters Updated 2010-05-25

  19. SAD 500: Box 28 - UCR Pre-payments • The UCR “Year of export” is the date of actual export or anticipated export in the case of the receipt of an advance payment. • 2010 – Year of Export • 2009 – Year of Payment • BOX 28 • FINANCIAL DATA • UCR 0ZA00011111454 Updated 2010-05-25

  20. Bulk prepayment...multiple exports SAD 500: Box 28 – UCR … • Allocate one single UCR and use on all related export entries • $ • $ • $ • $ • BOX 28 • FINANCIAL DATA • UCR 0ZA00011111454 0ZA00011111454 Updated 2010-05-25

  21. Instalment payments...multiple exports SAD 500: Box 28 – UCR… • Allocate one UCR on first payment and use on all related export entries and later payments. • 30% • SOB+10 • 30% • Up-front • 40% • 30-days • $ • $ • $ • $ • $ • $ • $ • $ • $ • $ • $ • $ • BOX 28 • FINANCIAL DATA • UCR 0ZA00011111454 0ZA00011111454 Updated 2010-05-25

  22. short supply...prepaid exports • SAD 500: Box 28 – UCR… • One UCR for first payment • One UCR for 2nd payment 0ZA00011111454 0ZA00011111456 • Two items ordered • Two further items ordered • $ • $ • $ • $ • $ • $ • $ • $ • Only one item shipped • plus...outstanding order now available... • Two separate entries required Updated 2010-05-25

  23. Export proceeds with CCN & UCR Export data post-clearance with CCN & UCR AUTHORISED DEALERS CUSTOMS SARB Paperless data reporting • SARB receives two streams of data. • Customs provide SARB with export data. • Banks report to SARB the cross-border transactions via the Cross Border Foreign Exchange Transaction Reporting System (CBFETRS). CCN & UCR Updated 2010-05-25

  24. Advice of payment Instructions to Cr CFC or convert to ZAR and CR Current a/c etc. Must provide UCR & CCN CBFETRS Reporting with UCR and CCN 1st Query Directed to Bank per SAD 500 info 2nd Query directed to exporter Authorised Dealer Reporting • Authorised Dealer EXPORTER • SARB Match payment against original SAD 500 details and UCR & CCN Updated 2010-05-25

  25. Data matching SAD 500 DATA BANK CBFETRS DATA A to Z Ltd Exporter Resident A to Z Ltd CCN 00011111 CCN 00011111 UCR 0ZA00011111454 UCR 0ZA00011111454 Trans. Value Amount USD100,000.00 100,000.00 - USD Trans. Bank Standard - 016 Bank Code 016 Credit Terms 060 Value Date 2010 – 03 – 15 FOB Value R80,000.00 Category 101 - 105, 201 Updated 2010-05-25

  26. Way forward • The Minister of Finance announced in the 2009 Medium Term Budget Policy Statement that the current paper-based system of monitoring exports (Form F178) will be replaced with a more efficient electronic (paperless) system. • Important component of an efficient paperless system: Communication!!! • Complete & correct data reporting to: • Customs - SAD 500 data by exporters, • SARB - CBFETRS data by exporters. Updated 2010-05-25

  27. Paperless export monitoring system RESIDENT EXPORTER RESIDENT EXPORTER Payment advice SARB 1st leg: Physical Export 2nd leg: Payment for goods 1 3 R1,000,000.00 R1,000,000.00 0ZA00011111454 Micro 0ZA00011111454 00011111 00011111 Macro 2 4 CUSTOMS AUTHORISED DEALER Non SA NON-RESIDENT IMPORTER Updated 2010-05-25 27

  28. Questions Updated 2010-05-25

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