"It would have been impossible to implement... and practically could not be enforced."

A Q&A with Customs Specialist Clifford Evans on the DTIC’s Suspended Import Scheme

Following fierce industry pushback and World Trade Organization (WTO) pressure, the South African Bureau of Standards (SABS) and the DTIC have officially placed the controversial Pre-Export Verification of Conformity (PVoC) programme on ice. We speak to SAFLA's Clifford Evans about the major trade disaster South African importers just averted.

Cape Chamber: Am I correct that DTIC has put this new system regarding Certificates of Conformity on hold? Or has it been scrapped altogether?

Clifford Evans: It has been placed on hold pending further consultation. 

Cape Chamber: This must be a relief? It sounds like it wasn't feasible to implement the system given the short timeframe (i.e., before September)?

Clifford Evans: It was the only decision that could have been made. It would have been impossible to implement, not just due to the time but because it could not be practically enforced.

Cape Chamber: Was the decision to suspend or scrap the system based on industry input? Are you pleased that common sense has prevailed?

Clifford Evans: Industry played a huge role in having it delayed, but it is also due to the World Trade Organization intervening. Extremely pleased to receive the announcement; if common sense had not prevailed, the consequences would have been disastrous for trade.

Cape Chamber: Do the changes they propose make sense? Is it just an issue of timing, or are there other challenges, such as the tariff codes?

Clifford Evans: Possible changes have not been disclosed, but the timing was an obvious issue. Also, China has issues with the PVoC Programme, such as granting permission to the CCIC (China Certification & Inspection Group) to issue Certificates of Conformity and associated costs. For South Africa, regulating goods by HS Codes and the Country of Origin are hugely problematic. 

Cape Chamber: If all challenges are adequately addressed, would you say there is logic in having some kind of regulatory system in place? How does one actually achieve this (in your opinion) given the realities of eCommerce?

Clifford Evans: Trade has no issue at all with imported goods being regulated, as long as it can be done efficiently and as cost-effectively as possible. In my opinion, this programme (in its current format) cannot cover eCommerce goods for various reasons and defeats the object completely. Until eCommerce is regulated by SARS and other government agencies in the same way that registered importers are regulated, unregulated goods will continue to enter South Africa.