DISPUTE RESOLUTION: CUSTOMS AND EXCISE ACT – (STAKEHOLDERS) Stakeholders page1

I. BACKGROUND Current review / appeal function informal with no time lines or guidelines Need to rectify, align with international best practice and local legislation; provide guidelines for officers and stakeholders Implementation: 4 June 2007 Legislation: Kyoto Convention. Constitution. Promotion of Administrative Justice Act Sections 77A to H. Rules 77H.01 to.16. ADR-Section 77 I. Settlement - Sections 77J to P. Stakeholders page 2

II. OPERATIONAL PRINCIPLES Normal consultation concerning decisions with Officer, Team Leader, Group Manager Thereafter one appeal to appropriate Appeal Committee - then ADR Legal proceedings may be initiated immediately or at any time during the process. Stakeholders page 3

III. APPEAL COMMITTEES Branch Office Appeal Committees at all offices with 12 or more staff. Appeals up to R5 million. Regional Office Appeal Committees. Appeals up to R8 million. Customs Operations Appeal Committee, Head Office. Appeals up to R10 million. Enforcement and Risk Appeal Committee. No limit to value of appeals. Customs National Appeal Committee. Appeals over R10 million. Tariff and Valuation appeals dealt with by the Tariff and Valuation Divisions. Stakeholders page 4

IV. APPEAL PROCESS Request for reasons for a decision - to officer who made the decision within 30 days (can be extended by a further 60 days) What are adequate reasons? Stakeholders page 5

IV. APPEAL PROCESS CONTINUED Lodging of appeals under cover of Form DA51 at office where decision was made - within 30 days of the decision or within 30 days of being advised that sufficient reasons have already been provided or within 30 days of being given reasons. Full background to appeal to be provided. Stakeholders page 6

IV.APPEAL PROCESS CONTINUED Acknowledgement of Receipt / Dealing with Appeals. Receipt acknowledged within 10 days, appeal to be finalized within 90 days. If additional information is required, it must be called for within 60 days and be provided within 60 days (can be extended by 30 days) Stakeholders page 7

IV. APPEAL PROCESS CONTINUED Operation of Appeal Committees No officer involved in making the decision may serve on an Appeal Committee. Decisions giving full reasons in writing, signed by Chairperson. Stakeholders page 8

V. TARIFF AND VALUATION Basically stays the same, but DA51 also to be used and time lines apply. Tariff and Valuation Divisions – equate to Appeal Committees. Initial Tariff / Valuation Decisions in Head Office. Stakeholders page 9

VI. ADR Alternative to litigation. If unhappy with decision of Appeal Committee/Tariff or Valuation Division application can be made for ADR on form DA52 within 30 days of the decision (can be extended) Client to be advised case is suitable for ADR within 20 days (10 days in the case of Section 96 (1) applications). ADR to commence within 20 days and be concluded within 90 days. Implementation of IAA and ADR: 4 June 2007 Stakeholders page 10