Clearing Instruction

Transcription

1 Clearing Instruction The importance there of. What does the law say. How to complete it. Clearing Instruction Exceptions

2 In detail this means When trading cross border, we have now established that communication is of vital importance. When conducting business with Blackie s Consultants it is compulsory to start with a Clearing Instruction. This is the very first form of communication between us and you, our client. Why a clearing instruction? As per the Customs Act, 39(c) The said person shall further produce the transport document or such other document in lieu thereof as may be approved by the Commissioner, invoices as prescribed, shipper s statement of expenses incurred by him, copy of the confirmation of sale or other contract of purchase and sale, importer s written clearing instructions, unless exempted by rule, and such other documents relating to such goods as the Controller may require in each case and answer all such questions relating to such goods as may be put to him by the Controller, and furnish in such manner as the Commissioner may determine such information regarding the tariff classification of such goods as the Commissioner may require. What does this mean? This entitles the clearing agent to use the clearing instruction as a lawful legal document and declare it as compulsory. What is the functionality of the clearing instruction? The client completes the clearing instruction. This will act as a written instruction given to the clearing agent to: 1. Act on behalf of the client as the clearing medium 2. Utilize the recorded details on the clearing instruction to proceed with the clearing of the load. The client or any nominated member of the client s company may complete the clearing instruction, at no point is a member of Blackie s Consultants allowed to complete this form on behalf of the client. Blackie s Consultants will not continue with any paper work until they have received a proper completed clearing instruction. 2

3 CLEARING INSTRUCTIONS 17 Voortrekker Str Website: PO Box Company Reg. No:2012/1349 P.O. Box 853, New Europa TIN No: Ladybrand, 9745 CK No: 2008/041720/23 Maseru Tel: VAT No: Fax: I presenting hereby instruct Blackies Consultants to clear the following goods with Customs: TOTAL INV. NO. OF TOTAL WEIGHT DETAILED DESCRIPTION LINE OF GOODS OR TARRIF CODE INV. NO CONSIGNEE LINE VALUE VALUE PARCELS TOTALS: 10 GOODS TO CROSS BORDER AS FOLLOWS: Select CPC: H61 A12 I76 I78 (SOUTH AFRICA) Estimated Date of Crossing: 11 Select Purpose Code: IM4 EX1 IM6 EX2 Other Driver 12 Direct Export 29 Manifest Number: 18 Assistant Driver: 13 Indirect Export 29 Customer Exporter Code: 19 Assistant Driver: 14 Cash 28 Border Post to Cross: 20 Vehicle Registration: 15 Deferment Trailer 1 Registration: 22 Trailer 2 Registration: 21 Fax Line: 27 Driver Contact No.: 16 Company Contact No.: 23 I hereby declare that the above information is correct and take responsibility for our goods as per our clearing agreement signed with Blackie's Consultants/Lesotho. I here by also agree to submit the entry attached to only Blackie s and not duplicate it by submitting the same entry to a second clearing agent. I understand that duplications of an entry at multiple agents could result in a severe penalty from SARS: Customs / LRA and that I, the client will be held responsible for the payment of such penalty. Signed by 24 on this day 24 at (Place) Signature: Incomplete Documents will not be processed. by not completing this document in full and not signing, 30 you are delaying your own paper work. By Order Management.

4 Completing of a Clearing Instruction 1. The person s name completing the document. 2. The name of the company who is the consignor/transporter, requesting the clearing. 3. The invoice number of the invoice that was issued with the purchase of the goods. 4. Consignee is the company the goods are being taken too. 5. The total amount of the invoice VAT exclusive. 6. No. of Parcels is the quantity that reflects on the invoice. 7. The total weight of the specific line. 8. Record a short detailed description of the goods on that line or the tariff code, should you have it. In case you record the tariff code, ensure 100% it is correct. 9. The value of the line being recorded, VAT exclusive. 10. The total of the whole invoice will need to balance with the whole total on the clearing instruction, VAT exclusive. 11. An estimate needs to be given, to give SARS Customs any idea of when they can expect your load s arrival. 12. Driver s name just in case we need to contact them. 13. Certain transport companies places an assistant driver on a truck. 14. Certain transport companies places an assistant driver on a truck. 15. The registration of the vehicle is required to generate the EDI documents. This must be the vehicle the goods are being transported on. Should this change for any unforeseen reason, you, the client, must notify the clearing agent of such change in writing immediately. 16. The clearing agent needs the driver s contact number in case they need to contact them regarding their paperwork. 4

5 17. CPC Customs Procedure Codes. These 4 codes represent the 4 transactions you can action. 18. Manifest number not in use at the moment. 19. Remember the permit you applied for? Your Exporters/Importers code goes here. 20. SARS Customs requires you to nominate the border you are going to cross at. This is compulsory. 21. Certain vehicles hook trailers of which the registration numbers need to be recorded as well. 22. Certain vehicles hook trailers of which the registration numbers need to be recorded as well. 23. In case we can not get hold of the driver, the clearing agent needs the company s contact number for assistance. 24. The person completing the document needs to print their name, the day and the place it was signed at. 25. The person completing the document needs to sign the document Address of the person to whom the completed documents are to be ed to. 27. Fax Line the number to which the completed documents need to be faxed to. 28. Cash or Deferment - Please choose the correct nomination in which your VAT will be payable. Only select deferment when you do have a confirmed active deferment account. 29. Direct or Indirect Export - The person in charge of the delivery determines the nomination. See page Indicator that the document must be signed at all times before submitting it. Now you can attach your invoice and submit them to the clearing agent. Always write in a neat clear handwriting. Request the Ms Excel format if you wish to complete your clearing instruction on a computer. Please see block 30! You must sign the document. Always make sure that your invoices are in a clear readable print. When your documents have been processed and have proceed to border status, the clearing agent will notify you and you can collect your paperwork from the nominated point or it will be ed back to you for your perusal. 5

6 Direct or Indirect Export Discussed Number 29 on the Clearing Instruction The person in charge of the delivery determines the nomination. Direct Export - when a Lesotho client buys goods from a South African supplier and the South African supplier transports the goods, either with his own transport or makes use of transporter, deliver the Lesotho client s goods to them in Lesotho. An Indirect Export is when a Lesotho client buys goods from a South African supplier and the Lesotho client comes to South Africa, picks up his/her goods themselves or by means of arranged transport and takes it to their place of business in Lesotho.

7 The details requested on the clearing instruction is of vital importance and is required by SARS Customs. Why? First and foremost as previously stated the clearing instruction protects both the client and the clearing agent. The clearing instruction is used as a direct instruction with details that are used when capturing and generating the entry with SARS Customs. How Blackie s Consultants interpret a clearing instruction and why certain information is necessary and for who? 1. Firstly, does the client have a valid Importers/Exporters code. If not, they will be instructed to apply. Failure to comply will result in no future assistance. For SARS auditing purposes, it is important that each company has their own valid code. 2. the clearing instruction must have been completed by a representative of the client s company, should Blackie s Consultants feel its incomplete it will be sent back to the client with a query. 3. Blackie s Consultants will then check if the invoices attached to the clearing instruction is in good clear readable print and relevant to the clearing instruction. This is time consuming as they need to check that all invoice numbers, descriptions and values as recorded on the clearing instruction corresponds. If not, they will be unable to continue, as the direct instruction differs from the actual invoices being presented. If a client wishes to make any changes, you the client must supply Blackie s Consultants with a new clearing instruction. Never give another company your Importers/Exporters code to clear goods. The company that the code is registered for will have to take full responsibility for any penalties and audits that might occur. 7

8 Customs Procedure Codes Explained This is for BLNS Countries. What kind of Import/Export do I choose? CPC CUSTOMS PURPOSE CODE TYPE OF DECLARATION H61 A12 I76 I78 IM4 EX1 IM6 EX2 Permanent Export Permanent Import Temporary Export Re Importation of Temporary Export Choosing your prupose codes for your declaration is a 2 phase selection: Selection 1: In which country are the good currently? And what is the main purpose of the declaration? Selection 2: To which country is the nominated goods going to? And what will be the main purpose of these goods? 8

9 In case of 2 and more consignees on the same load It is required by law that each consignee have its own clearing instruction even though it is physically going on the same truck. Unless it is for the same company yet different address. AB Store Maseru AB Store Maputsoe AB Store Leribe One Load JJ Shop Maseru JJ Shop Leribe One Load = 2 Clearing Instructions But if all the goods go to the same consignee, only one clearing instruction is needed. 9

10 VOC Voucher of Correction Weights and quantities Being declared wrongfully, guessed or just not recorded at all by the client will have certain time consuming delays. Below is a snip of the clearing instruction, please see the red arrows pointing to the areas where the information recording is currently being captured incorrectly. CLEARING INSTRUCTIONS 17 Voortrekker Str Website: PO Box Company Reg. No:2012/1349 P.O. Box 853, admin@blackiesblns.com New Europa TIN No: Ladybrand, 9745 CK No: 2008/041720/23 Maseru Tel: VAT No: Fax: I presenting hereby instruct Blackies Consultants to clear the following goods with Customs: INV. NO CONSIGNEE TOTAL INV. VALUE NO. OF PARCELS TOTAL WEIGHT DETAILED DESCRIPTION LINE OF GOODS OR TARRIF CODE LINE VALUE What does this mean? It basically leaves the data capturer to guess the detail of your goods which they are not familiar with. SARS/LRA will question information that seems not to be accurate and demand a VOC and/or issue a penalty to the relevant party for being negligent. This will in addition raise the concern for what may seem as smuggling, under declaring of goods and/or values. As this is a serious error to make, VOC s become more and more difficult to explain to SARS/LRA hence the recent cost increase. Should you need any other information and/or assistance with your clearing instructions, please let us know.

11 In case there is an inspection on the load Should an invoice on the load be selected for inspection, it is the responsibility of the consignor to complete an individual clearing instruction for the nominated invoice that is being inspected. 11