SOUTH AFRICA: New Rules for Authorised Economic Operators Introduced

The South African Revenue Service (SARS) has amended rules on client accreditation for Authorised Economic Operators (AEOs). The new rules, announced on 12 August 2021, are effective from 23 July 2021, setting out two status levels for accredited AEO clients. An Accreditation Committee will be established to approve applications; cancel or suspend the status; and adjudicate customs and excise matters. 

Importers and exporters who wish to apply for accredited client status in South Africa must choose Level 1 (AEO Compliance) or Level 2 (AEO Security). Level 1 traders will enjoy fewer documentary and physical inspections for compliance risks; reduced security deposits; priority tariff and valuation-determination requests; priority non-intrusive inspection where goods are stopped for inspection; expedited inspections; and goods inspection at their premises for free. Level 2 operators are eligible for all Level 1 benefits, plus priority applications; certain fee exemptions; and customs supervision exemption on meeting certain conditions. 

Applicants must undergo assessment to check customs laws and procedures competency. Those that pass the assessment will be issued a Certificate, valid for five years. The accredited-client status must be renewed one month before expiry. All regular trading partners with South Africa are urged to apply for such status.