Non-Tariff Barriers

Complaint

Complaint number

NTB-001-117  

NTB Type

2.10. Inadequate or unreasonable customs procedures and charges  

Complaint

We have done trade with Eswatini for 33 years and tried to be fully compliant with SARS, but they keep changing the rules and moving the goal posts. We have paid R709,000-00 in provisional VAT taxes that have not been returned to my Company via our clearing agent, Kayhil Freight. Kayhil Freight says that SARS is not processing the acquittal documents and paying them. I do not know who is telling the truth, but we remain short on cash flow by R709,000-00 despite submitting each acquittal on time and without fault. SARS officials are now insisting on Removal in Bond licenses for us to use our own vehicles to deliver to customers in Eswatini, and as such we are not allowed to cross the border. We have been charged Penalties, despite trying to follow the rules imposed by SARS. Please help us we are desperate.  

Status note

Lesotho Focal Point reported that the NTB had been resolved successfully  

Progress update note

1. SADC Business Council made follow up with affected company Tripharma which reported that the first aspect of reimbursement for provisional taxes paid is being addressed through their agent Kayhil Transport. However, the issue of how the company could access bond security has not been resolved. On the issue of not being able to transport goods through South Africa, the company provided clarity that the problem is in the delay of issuing of licences for their vehicles. A request for a meeting with SARS was submitted to address both concerns.
2. On 2nd August 2023, South Africa Focal Point reported that all the refunds for Kayhil were paid to them directly in 2021, as Kayhil was a clearing agent for Mr Craig Smith's company. SARS has provided Kayhil with proof of these payments to ensure transparency and accountability.
Concerning the penalty issued to Tripharm/Kayhil, the penalty was issued after a documentary inspection that was conducted at the port entry, Maseru Bridge, on the goods that were in transit from Lesotho to Eswatini. Upon inspection, it was found that Tripharm/Kayhil contravened Section 64D(1) read with 60(1) of the Customs and Excise Act No. 91 of 1964 as amended, as Tripharm did not have a licensed remover of goods.  

Policy or regulatory NTB

No 

Location

South Africa: Maseru Bridge (Border post)  

Reporting Country or Region

Lesotho  

Country specific trade issue

No  

Date of incident

2023-05-02  

Status

Resolved  

Date of resolution

2024-05-31  

Product Description

all types of medications, pharmaceuticals, surgicals, pharmacy products, cosmetics and similar products

Computer-assisted translation

• English
• Arabic
• French
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Total value

0  

Date reported

2023-05-18 12:45  

Modified

2024-05-31 13:38