1. Provisional Payment (DA70) Conceptual Design August 2015

2. What we need to achieve 2 Automate Provisional Payments as part of the Declaration Process Develop Provisional Payments as part of goods declaration Manage the conditions pertaining to the type of provisional payment lodged. Finalise the liquidation of provisional payments.

3. Platform 3 Phase 1: Link to Declaration EDI Channel  Processing on iCBS  Develop as part of declaration and VOC  Signature (trader’s declaration) dealt with through EDI PKI digital signature?  Signature (Sec. 91 decl.) solution - attach supporting document to include Sec.91 declaration  Development will be required by the trader systems as well as internally i.t.o. interfaces

4. Provisional Payment Categories - Type 1 4 Type 1 – Provisional payments lodged at time of original clearance a)Pending implementation of Anti-Dumping/Countervailing duty (PPA,PPC,PPG) b)Pending re-exportation of temporary imported goods (PPT) c)To cover duties/VAT conditional release. (PPR) d)To cover duties/VAT pending VOC – “on consignment goods” (PPR) Part of Declaration / VOC

5. Provisional Payment Categories – Type 2 5 Type 2 - Provisional payments lodged for conditional release of goods detained (PPR) a)Pending production of import documents (excl. permits/certificates) b)Pending production of any document for of any other Act (excl. permits/certificates) c)To obtain release under embargo (Sec. 107) d)Pending production of literature to establish/confirm tariff heading e)Pending tariff determination by HQ (no testing or product analysis involved) f) Pending value determination (VDN) Part of VOC

6. Provisional Payment Categories – Type 3 6 Type 3 – Provisional payments lodged for penalty or forfeiture (PEN, FOR) Pending a decision on the imposition/amount of a suitable penalty (Sec.91) Forfeiture Part of VOC

7. Provisional Payment Categories – Type 4 7 Part of CEB 01 Type 4 - Provisional payments unrelated to goods declaration Pending allocation of proceeds of State Warehouse auction/sale Payment of instalment amounts (Audit schedule) Issued for customs border control contraventions Other

8. Provisional Payment Data fields 8 Information fields for the application for Provisional Payment Applicant Details Name ----------------- Client Code Customs Code Client File Reference Local Reference Number (LRN) Importer Importer Code Exporter Exporter Code Other Customs Code Payment Details Purpose Procedure Category Code + Requested and Previous Procedure Codes Possible penalty Duty Tax Type Forfeiture Duty Tax Type Other Duty Tax Type Amount Duty Tax Amount Branch office: Office of Entry Reason for Application Description New code list of provisional Payment type/description Declaration Party details, Designation, Place, Date If EDI – consider digital signature as declaration Clearance Details Movement Reference No.Suggestion - use Local Reference Number (LRN) DateDate already part of the LRN Supplier----------------------- Supplier Country----------------------- Marks & NumbersMarks, Numbers and Description of Packages Country of OriginCountry of origin Tariff HeadingCommodity Code Description----------------------- ValueTotal Customs Value (auto-calculated by iCBS) DutyTotal Customs Duty (auto-calculated by iCBS) VATTotal VAT (auto-calculated by iCBS) Application in terms of Section 91 Party details, Designation, Place, Date Admission of guilt be administered on a DA70 as a supporting doc linked to a provisional payment. (DA 70 not processed) Future development-Tick box yes/no PP Reference details PP dateNew - Unique SARS reference date PP reference numberNew - Unique SARS reference number Disposal Instructions Amount refunded to depositorNew Amount remaining in accountNew Amount estreated to revenueNew Party details, Designation, Place, Date New Type of payment transactionNew Transaction reference no.New Transaction reference sateNew Fields in GREEN = already available in CUSDEC (SCDM) Penalty - rules to be built to determine the penalty value (SC-CO-01-01-S1

9. Data Fields available in the SCDM* 9 *SCDM = South African Customs Data Model The status of data fields relating to ‘provisional payments’ in the current SCDM are as follows – Provision was made to accommodate the following ‘duty/tax’ types which have not been activated: The data fields as such only provide for the ‘duty/tax type’ and the ‘duty/tax amount’. Data FieldTypeLenClass1WCO3WCO3 Field WCO Core Component RemarksField presentationSADCD1 Amount for Surety N12 Paymen t 120 TaxAssessedAmount/Value (113=SUR) (User Codes) Y Includes 2 decimals. Duty/Tax Type Duty/Tax Amount Box 47 Calculation of Duties & Taxes > Duty/Tax Type: Duty/Tax Type Amount Amount for Penalty N12 Paymen t 120 TaxAssessedAmount/Value (113=PEN) (User Codes) Y Includes 2 decimals. Duty/Tax Type Duty/Tax Amount Box 47 Calculation of Duties & Taxes > Duty/Tax Type: Duty/Tax Type Amount Amount for Forfeiture N12Paymen t 120TaxAssessedAmount/Value (113=FOR) (User Codes) YIncludes 2 decimals. Duty/Tax Type Duty/Tax Amount Box 47Calculation of Duties & Taxes > Duty/Tax Type: Duty/Tax Type Amount

10. High Level provisional Payment Conceptual Design 10 DPR EDI 1 1 3 3 SAP 2 2 4 4 Service Manager Steps: Lodgement of PP 1.Trader submits via EDI as part of the declaration for type 1 and part of VOC for Type 2 and 3 2.Validation takes place on DPR 3.Routing of declarations to: financial systems for billing and account maintenance. 4.Once payment is made routing of declaration to the case management system for inspection workflow and management (Depending on the reason for lodging the PP.) Liquidation of PP Depending on the reason for lodging the PP business rules and triggers will have to be have been built on the DPR and SM for the management and finalization of the PP

11. Provisional Payment – Q & A 11 Should PP details appear at line or header level? PP details, appears on line level as CUSRES message including:  PP case number  PP amount  Conditions  Expiry date Will PPs assume the LRN ref – i.e. no longer require their own? All PP relating to a declaration will be referenced to the LRN, each PP will also have individual PP case numbers. Confirm that trader’s declaration on PP can be indemnified through the digital signature. Yes Confirm LAPD’s stance on how ‘Admission of Guilt’ be dealt with Propose solution tick box (yes/no). Tick box solution considered for future development Submit signed DA70 as supporting document o interim measure, o DA 70 form not processed. Will PP disposal (liquidation) data fields need to be included in CUSDEC? Liquidation requests will be made by submitting a declaration amending the PP amount and attaching supporting documents to a PP case, liquidation details will be communicated via CUSRES message. Define the ‘triggers’ for each PP type. Selected CPC and procedure code combination Payment codes for PP’s Identify all ‘business-to-customs’ and ‘customs-to-business’ exchanges. New CUSRES messages developed PP value to be system determined based on penalty guideline.