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SARS plans to implement reference price for safety footwear on March 1

Published: 19th Feb 2018

Cape Town (SA) – The SARS footwear task team decided on a minimum reference price for safety footwear imports at its third meeting on February 6, but it is not clear what the price will be.
       Geraldine Fröhling from SARS' communication department responded to questions from S&V:
I know from the previous meeting that the focus of the task team currently is reaching consensus on a reference price for safety footwear imports. What price has been agreed?
• The information on reference pricing is confidential as it is a risk tool used to manage the risk of possible undervaluation on identified high risk goods. Reference pricing is not a minimum price – it is merely, as said, a risk tool used to alert possible under-valuation of imported goods.

If you cannot give me that agreed reference price, please explain why you can't and when importers will be told what the reference price will be.

• Importers will not be informed about risk rules as all types of risk rules are confidential in nature and the risk rules change as and when the risk levels change from high to low risk. Risk rules are part of the internal controls and cannot be shared with traders as this will compromise the required controls.

Why is the reference price in Rands when the importers buy in US Dollars? Surely that prejudices them?

• The reference price is not formulated in South African rands but in US$.

When will the reference price be applied?

• The implementation date is dependent on the section managing the risk engine but it is envisaged to be 1 March 2018 unless otherwise the risk level on such commodity has dropped. How many pairs are currently being imported under the reference price?

• 1 373 856 pairs.

       Please note that the mere fact that goods will be alerted by the risk engine for possible under-valuation, it is not at that stage regarded as an outright fact that the goods are indeed under-valuated. SARS will call for supporting documents and if necessary a valuation audit will be conducted based on the required documents and the risk identified. If the value as declared by the importer is confirmed to be a price paid or payable, the goods may then be released as entered. If any contravention of the Customs and Excise Act is detected, the goods will be dealt with in terms of the provisions for the particular contravention as provided for in the Customs and Excise Act.

Tags: SARS, pricing
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