JOHANNESBURG CHAMBER OF COMMERCE & INDUSTRY CUSTOMS CONTROL BILL SUBMISSION TO PARLIAMENT 30 OCTOBER 2013 Patrick Corbin – Director International Chamber of Commerce-SA

Introduction SA Customs Union Legislation I P Benefits to Coastal Ports I P Benefits to Inland Traders WCO Kyoto Perspective Recommendations

INTRODUCTION Universal objectives – promote multi-modal (m/m) transport Inland port – international gateway Benefits not well understood in ‘developing’ world Unctad, etc., etc. supportive

I P Benefits to Coastal Ports Reduce congestion and berthing delays Enhanced preferred gateway status Vessel to rail stack movement limits dwell time and shifting Promotes rail inland movements reducing port- gate vehicle congestion Favourable impact on port-city environs due to reduced road traffic Positive impact on ocean freight rates and avoidance of congestion surcharge

I P Benefits to Traders Creation of international gateway status Extended time for clearance and line release Seamless movement through coastal port on multi-modal transport document Rail inland movement environmentally and financially attractive Opportunity for promoting containerised exports - balance utilisation of containers and rail service

I P Benefits to Traders continued Door-to-door m/m transport document with line tracking Proximity to Customs for release, examinations, groupage containers Encourages local economic activity, investment and employment

Maersk Line European Info: Volume split Split % Total Carrier (line) Haulage rail 60% truck 40% Merchant (trader) 12% 88%

WCO – Kyoto Perspective Customs major facilitator of international trade Balance compliance with facilitation WCO promote I P and recognise benefit of proximity to traders WCO post-importation focus on compliance

South African Customs Union 2013 Update of Duty and Control Bills City Deep will be container terminal per definition No inland movements before Customs declaration Manifest information no longer considered adequate for risk assessment

SA Customs Comments: No provision exists for inland ports Not the intention to terminate manifest or clog up ports Contract of carriage nothing to do with sales contract Legislation no impact on IP exports Contract of carriage & coastal clearance requirements not connected.

Recommendations THANK YOU WCO to strengthen Kyoto recommendations Promote rail Private-Public Partnerships WCO education to include trading cycle International Aid for transport infrastructure to focus on m/m transport THANK YOU