News

As per our colleagues in Italy, kindly be informed that due to heavy snow the main highways are closed and the authorities have forbid the use of trucks over  7.5 ton in the North Italy area.

Furthermore, several port terminal are closed namely Leghorn and Genova whilst the following ports are partially closed namely La Spezia and Savona. 

Savino Italy is in contact with the portsto see how sailing dates and roll overs will be effected.

As per Bloomberg this morning, European leaders racing to prevent their week-old debt crisis strategy from unravelling convene emergency talks today to tell Greece there is no alternative to the budget cuts imposed in the bailout plan.

Greek Prime Minister George Papandreou, his hold on power weakening, was summoned to Cannes on the eve of a Group of 20 summit where he will hear from French President Nicolas Sarkozy that the “only way to resolve Greek debt problems” is through a deal hammered out last week in a six-day crisis-management marathon.

For more on the story, click on the following link; http://www.bloomberg.com/news/2011-11-02/eu-leaders-hold-pre-group-of-20-crisis-talks-to-push-greece-on-bailout-aid.html

July 2011

Dear Client

South African Reserve Bank regulatory requirements

The South African Reserve Bank (SARB) has issued a directive that, from 15 August 2011, the following changes will come into effect:

•Updated balance of payments (BoP) categories to be used for reporting of trade-related import and export transactions to SARB; and

•Implementation of an Import Verification System (IVS) by SARB, to be used by banks for verifying the import clearance documentation issued by the Department of Customs and Excise of South African Revenue Services (SARS) to enable SARB to match these electronically to import payments by clients.

Updated Bop categories related to trade-related import and export transactions

The following reporting categories will come into effect:

Merchandise imports/exports

101 Advance payments.
102 FOB.
103 CIF.
104 Repair.
105 Procured in ports.
107 Trade finance (outward payments only).
108 Advance payments in terms of imports undertaking (outward payments only).
109 FOB in terms of imports undertaking (outward payments only).
110 CIF in terms of imports undertaking (outward payments only).
111 Software imports via the internet.
112 Imports/exports less than R500.
113 Imports/exports via the South African Post Office.
114 Diamond payments not in terms of imports undertaking/export proceeds.
115 Diamond payments in terms of imports undertaking (outward payments only).
116 Goods purchased by residents for manufacturing or consumption outside South Africa (outward payments).
116 Proceeds for goods purchased by non-residents for local manufacturing or Consumption (inward payments).

Gold imports/exports

201 Payments/proceeds not in terms of gold imports undertaking.
202 Hedging.
203 Payments in terms of gold imports undertaking (outward payments only).

Imports

IVS

The purpose of the IVS is that banks must verify import clearance data with SARB in order for SARB to control and electronically match import payment information received from banks against import clearance documentation data received from SARS.

The following requirements must be adhered to and the relevant information and/or documents must be provided when submitting applications for all import payments, including payments to Common Monetary Area (CMA) countries, i.e. Namibia, Swaziland and Lesotho:

In respect of goods already cleared in RSA

•Only BoP categories 102,103,104,105,107,114 or 201 may be used.

•The import control number (ICN) has been amended to the movement reference number (MRN) and the format is as follows –
AAACCYYMMDD0000000
- AAA refers to the Customs Office code.
- CC refers to the century.
- YY refers to the year.
- MM refers to the month.
- DD refers to the day.
- 0000000 refers to the seven-digit bill of entry number issued by Customs.

•The invoice, transport document and Customs clearance document, ie SAD 500 Customs Release Notification, which clearly states the correct MRN, must be submitted with the application for payment. The Customs client number (CCN), transport document reference and MRN will be verified by the authorised dealers prior to effecting payments.

•The CCN and MRN must be stated in the application for payment.

NB All application forms provide for only one MRN to be quoted. Should the payment have more than one MRN, kindly submit a schedule separately on your company letterhead indicating the amount per MRN, which will be utilised by the bank when processing.

In respect of payment for goods in advance, in transit or not yet cleared through Customs

•Only BoP category 101 may be used.
•The relevant invoice must be submitted with the application for payment.
•The CCN must be stated in the application for payment.

Import letters of undertaking

•Where SARB has granted dispensation to certain companies in respect of the requirement to submit supporting documentation to their authorised dealers for every foreign exchange transaction related to an import transaction, these clients must submit their payments under one of the following BoP categories: 108, 109, 110, 115 or 203.

•The CCN must be stated on the application for payment.

Categories common to both import and export transactions

Payments/Proceeds in respect of software imports/exports via the internet

•BoP category 111 must be used.
•The CCN must be stated in the application for payment.
 
Payments/Proceeds in respect of imports/exports for shipments less than ZAR500, 00

•BoP category 112 must be used.
•The CCN must be stated in the application for payment.

Payments/Proceeds in respect of imports/exports via the South African Post Office

•BoP category 113 must be used.
•The CCN must be stated in the application for payment.

Diamond payments not in terms of imports undertaking/export proceeds

•BoP category 114 must be used.
•The CCN must be stated in the application for payment.
•The MRN must be stated on the application form for import payments and the unique consignment reference (UCR) must be provided for export payments.

Goods purchased by residents for manufacturing or consumption outside South Africa (outward payments). Proceeds in respect of goods purchased by non-residents for local manufacturing or consumption (inward payments).

•BoP category 116 must be used.
•The CCN must be stated in the application for payment.

Tax and VAT numbers

Tax and VAT numbers are mandatory requirements and must be quoted on all applications submitted for import and export payments.

SARB Exchange Control documentary requirements for imports

In terms of the Exchange Control Rulings Authorised Dealers must insist on the SAD 500/Release Notification as evidence that goods in respect of which transfers have been effected, have been cleared by Customs. The document must be presented when foreign currency payments for imports are made in those cases where the goods have already been cleared by Customs or, where clearance has not taken place, as soon as possible thereafter. The detailed information shown in the documents must be validated against the IVS in order to verify that the payment made relates to the goods that have been cleared.

Kindly note that the electronic submission of invoices, transport documents and SAD 500/Customs Release Notifications may be accepted.

In the case of advance payments we request your cooperation in submitting the relevant invoice, SAD 500/Customs Release Notification, which clearly states the MRN and transport document number. These documents must be reconciled with the relevant bank transaction and submitted to us electronically as soon as the relevant goods have been cleared to avoid unnecessary follow-up and related charges.

SARB Exchange Control documentary requirements for exports

Kindly note that a valid UCR must be provided for all export payments, including CMA countries, ie Namibia, Swaziland and Lesotho.

Nedbank documentation changes

The implementation of these new requirements includes the updating of the BoP information on the various bank application forms below used for import and export transactions. For your convenience the relevant amended forms are embedded in this document and may be accessed via the Nedbank website www.nedbank.co.za ( click on Apply Online-Global Trade) after 15 August 2011.

• Application for Overseas Transfer of Funds/BoP Report.

 

• Outward Payment Flows/BoP Report (used for payment of foreign bills for collections and other ad hoc requests).

 

• Application for Irrevocable Letter of Credit.

 

• Inward Payment Flows/BoP Report.

 

Kindly ensure that the relevant amended forms are used by you for transactions to be effected from 15 August 2011.

NedTreasury users

The system is currently being updated to include the new categories and validations and to amend the format of the ICN field.

Should you require any further assistance in this regard, please call our contact centre, regional office or your relationship manager.