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The Customs Act and EDI Release: SARS Explained

This blog contains the Customs Act, Section 101A, Electronic communication for the purposes of customs and excise procedures as well as the Rules to Section 101A, for reference purposes. The first part – in the previous blog post.

The Commissioner may set out in such agreement:

  • (a) any terms and conditions for regulating computer communication with and by a registered user, including conditions that
    • (i) the user will use computer equipment and facilities of a class or kind specified in the agreement;
    • (ii) the user, when assigned a digital signature by the Commissioner, will ensure the security of the signature in the manner agreed to in the agreement;
    • (iii) where electronic data is received by the Commissioner from the registered user authenticated by electronic signature
  • (aa) without the authority of the user to whom such signature was allocated; and
  • (bb) before notification to the Commissioner by the user of a breach of security, such data shall be taken by the Commissioner to have been communicated by the registered user of such digital signature, as the case may be;
  • (b) whether the applicant has complied with the provisions of subsection
  • (c) any other requirement, including reasonable access to the computer system of the registered user by the Commissioner for such verification and audit purposes as may be required in terms of any provision of this Act;
  • (d) the method and period for which electronic records shall be kept.

Any applicant for registration shall produce proof in support of the application that

  • (i) adequate measures have been introduced to exercise reasonable care to
    • (aa) retain control of the digital signature allocated by the Commissioner and for the prevention of its disclosure to any person not authorised to affix such signature;
    • (bb) ensure that information remains complete and unaltered apart from the addition of any change which may occur in the normal course of communication storage and display;
      • (ii) the standard of reliability is in accordance with the standard required in the user agreement and the provisions of this section and the rules.
    • (b) If the digital signature has been compromised in any manner the applicant shall inform the Commissioner without delay in the manner prescribed by rule.

The Commissioner may, after due consideration of the application and the practice statement and after making such enquiries as he may deem necessary, approve the application subject to any reasonable conditions as he may impose in each case.

The Commissioner may, subject to review by the High Court:

  • (i) refuse any application for registration if
    • (aa) the applicant:
      • (A) does not comply in respect of such application with the requirements contemplated in subsection
      • (B) has made a false or misleading statement with respect to any material fact or omits to state any material fact which was required to be stated in the application for registration;
    • (bb) the applicant or any employee of such applicant
      • (A) has contravened or failed to comply with the provisions of this Act;
      • (B) has been convicted of an offence under this Act;
      • (C) has been convicted of an offence involving dishonesty; or
      • (D) has failed to comply with any condition or obligation imposed by the Commissioner in respect of such registration: Provided that subparagraphs (A) to (C) shall not apply in respect of an employee if the applicant proves that he was not a party to or could not prevent any such act or omission by such employee; or
  • (ii) cancel or suspend for a specified period any registration
    • (aa) if the registered user:
      • (A) is sequestrated or liquidated;
      • (B) no longer carries on the business for which the registration was issued;
      • (C) is no longer qualified according to the qualifications prescribed in the rules; or
      • (D) fails to meet in respect of the computer system used all the compliance requirements and the operational standards required in terms of the user agreement and prescribed by the Commissioner as contemplated in this section;
    • (bb) if the registered user or the employee of such user has:
      • (A) contravened or failed to comply with the provisions of this Act;
      • (B) been convicted of an offence under this Act;
      • (C) been convicted of an offence involving dishonesty; or
      • (D) failed to comply with any condition or obligation imposed by this Act or by the Commissioner in respect of such registration: Provided that subparagraphs (A) to (C) shall not apply in respect of an employee except an employee to whom a digital signature was allocated, if the holder proves that he was not a party to or could not prevent any such act or omission by such employee: Provided further that before a registration is cancelled or suspended, the Commissioner shall:
        • (a) give 21 days notice to the registered user of the proposed cancellation or suspension;
        • (b) provide reasonable information concerning any allegation and grounds for the proposed cancellation or suspension;
        • (c) provide a reasonable opportunity to respond and make representations as to why the registration should not be cancelled or suspended.

Find more explanations at EDI webinars and group training. To become a certified EDI Professional, please visit our course schedule page.

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