The South African Revenue Service (SARS) has apologised profusely to the travel industry for confusion about its new Traveller Declaration system – which includes the need for a traveler pass – earmarked for implementation from November 1.
The written apology came from Mark Kingon, Head: Stakeholder Relations Integrity and Anti-Corruption at SARS, after withdrawing from a webinar organised by inbound industry association SATSA today (Tuesday, October 18) to seek clarity on this announcement.
Kingon wrote: “I want to sincerely apologise for confusion caused due to the publication last week on the SARS website and the subsequent media reports and queries this has resulted in, especially from your members.
“In addition, pending certain further engagements, we are not attending today. I want to assure you that the decision was not taken lightly and has been done in the interest of providing absolute clarity on an appropriate time to all involved in the important tourism industry.
“I do recognise that you as an industry have been through significant turmoil in recent years and in no way does SARS want to add to this burden. In fact, we want a seamless process that is professional while assisting the risk aspect we are seeking to address. Lastly, be assured we will be consulting with you in this regard and if you have any queries or suggestions, please route them to us for consideration. Apologies again from myself.”
Industry drawing own conclusions
With still no clarity from SARS, the travel industry has had to draw its own conclusions about the system after SARS announced, via its website last week, that all citizens leaving South Africa would be required to complete an online application and obtain a travel pass before departure.
Now Media publisher, Dave Marsh, believes that the pandemonium surrounding the issue could fizzle out sooner than expected if it turns out to be a process to digitise South Africa’s airport customs procedures and not linked to personal tax affairs.
In referencing an e-mail SATSA received from SARS in September, Marsh notes that this leaves open the possibility that the traveller declaration and pass has links to a South African Travel Management System (SATMS) solution.
According to SATSA CEO, David Frost, SARS was in touch with the association in September seeking input about its plans for a new web-based application. SARS wrote to SATSA, noting: “[It] will enable travellers who are entering or leaving South Africa to register a traveller profile, pre-declare goods purchased, received or otherwise acquired, and to pay any applicable duties and taxes through the online web-based platform.”
The e-mail continued: “The SATMS solution benefits international travellers and government agencies by creating a seamless process value chain as well as a risk-management capability to support risk-based intrusive and non-intrusive enforcement interventions.
“The implementation of the digitised traveller management system serves as one of the major pillars to improve compliance and to encourage travellers to move towards SARS’ strategic attempt of voluntary compliance. The system will be safe, secure and will serve as an efficient record-keeping tool of traveller information.
“SARS is cognisant of the role you play as SATSA and the influence you have in the tourism sector and we would, therefore, appreciate an engagement with you to discuss the aforementioned project and its impact on tourism, if any.”
But Frost said the industry had been blindsided when the need for a traveller declaration and travel pass was announced. SATSA said SARS still needed to confirm outright that the two issues are linked.
Should the two issues be linked, Marsh pointed out that this could potentially be the biggest travel misunderstanding of the year. He explained that an online traveller declaration system could be a boon for travellers who want to declare goods before they clear customs and simplify arrivals.
Others are speculating that the Traveller Declaration system has more to do with South Africa striving to not be greylisted by the International Financial Action Task Force (FATF ) should the country not meet the deadline (February 2023) for compliance with certain financial global financial controls mandated by the Task Force.
In its story this morning, Business Day seems to align with the above, quoting SARS Commissioner Edward Kieswetter as saying the traveller declaration system was more than just a simple travel document and declaration.
The daily business news publication further cited Kieswetter as saying the system was put in place to monitor the flow of money across South Africa’s borders that was not properly disclosed for exchange control purposes and tax.
“The travel pass is a single component in a response by the whole of government to improve the integrity of our financial flows, and to improve our capacity to detect illicit flows and to enforce our laws and regulations,” Kieswetter reportedly said.
SATSA to meet with SARS
In any event, SATSA said it would meet with representatives from SARS within the coming days where it hopes to have the industry’s most pressing questions answered.
SATSA has reiterated its invitation to members of the travel industry to submit any questions about the Traveller Declaration system and travel pass ahead of its meeting with SARS (readers can e-mail hannelie@satsa.co.za).
Some of the key questions SATSA has been asked to get clarity on include:
- Provide a date of implementation.
- What is the aim of the travel pass?
- Why is it necessary?
- Will it apply to South African citizens as well as foreigners?
- How will this pass simplify passenger movement?
- To what extent is it dependent on compliance? Can you travel if you are not tax-compliant?
- To what extent does this have to do with the topic of greylisting? If there is a link, why are other countries in the same position not rolling out similar steps?
- What are the criteria for a travel pass?
- Has the online system been tested on large volumes?
- Does the service provider have a track record?
- What is the response time?
- Will the system target airports and land and sea borders?
- Who will be required to check that the client has a pass?
- How will airlines and passengers be penalised if a traveller who should have a pass arrives without one?
- If airlines are to be involved in checking passengers, when did SARS advise the International Air Transport Association?
- If the system will be introduced at ORTIA in November, there will not be enough time for foreign visitors to be informed.
- How will the system be translated for those who do not speak or write in English?
- What about computer literacy and those passengers without access to the Internet?
Frost said SATSA intended to write to Kieswetter and share all the input and concerns as a matter of urgency. He said SATSA would copy in, if necessary, various other politicians. “The main message we want to try to get through to him with a big bang is that trying to do this at OR Tambo on November 1 is a no,” he maintained.
Frost added: “We need to take a cold shower here, to chill out and take a step back and do this in a way that brings everybody onside. Possibly, rather than a big-bang approach, there may be an organic approach to start this in a small way and grow it organically. The good news is that we are talking directly to them (SARS).”
