SACUM-UK EPA - New Registration Requirements For UK Exporters

Sometime back I posted a high-level commentary on Free Agreements (FTA) https://www.dhirubhai.net/pulse/you-registered-specific-free-trade-agreement-fta-selana-mcp-sa-/?trackingId=7EnpRjzXTtGlzBsjsFK%2B%2FA%3D%3D?

One of the mentioned FTA on the post was the Economic Partnership Agreement (EPA) between the Southern African Customs Union (SACU) member States and Mozambique, of the one part and the United Kingdom of Great Britain and Northern Ireland, of the other part (SACUM-UK EPA).

The SACUM-UK EPA establishes a free trade area between the SACU Member States and Mozambique (SACUM) and the United Kingdom (UK) (as of 1 January 2021). The SACUM-UK EPA essentially caters to the UK's European Union (EU) exit (#Brexit) and essentially gives effect to the benefits contained in the Economic Partnership Agreement between the European Union and the Southern African Development Community States (EU-SADC EPA).

SARS' System Enhancement For The Administration and Interpretation of the SACUM-UK EPA

With the full implementation of the SACUM-UK EPA, the South African Revenue Service (SARS) has had to action an update of the customs declaration systems. The update is to provide a clear distinction between the EU-SADC EPA and SACUM-UK EPA. The updated system went live the 14 July 2023.

There is now a two-pot system for validations of EUR1 movement certificates of origin for goods destined for the UK and those for the EU. In effect, exporters to the UK and EU can now register and lodge customs declarations under the SACUM-UK EPA as well as under the SADC-EU EPA.

Registration Requirements

In South Africa, the implementation of FTA?is never automatic. As such, exporters are always required to first register and be approved by the South African Revenue Service (SARS), i.e. in order to take advantage of any incentives under a FTA.

With the transition to the full implementation of the SACUM-UK EPA, Approved Exporters who previously used the EUR1 movement certificates of origin acquired under the SADC-EU EPA to export to the UK, are now required to apply and register afresh with SARS to be Approved Exporters under the SACUM-UK EPA.

SARS has however provided some leeway for the EUR1 movement certificates acquired under the SADC-EU EPA to be returned to the customs branches to be reallocated under the SACUM-UK EPA.

Exporters to the UK will therefore have to be careful not to use the initial EUR1 movement certificates that were issued under the SADC-EU EPA. Any mix-up will lead to a rejection by the system. Further, the required registration will have to be implemented in to continue benefiting from the incentives of the SACUM-UK EPA.

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#Export #rulesoforigin #sars #SACU #uk #eulaw #tradecompliance

Yamani Heads the Tax and Commercial division at?Mketsu

& Associates Attorneys Inc.

An Admitted Attorney Practicing the Legal Practice

Council and a Tax Practitioner affiliated with the South African Institute of

Tax Professionals.

060?944 3149 / 012?321 0149

[email protected]

[email protected]