Organisation : South African Revenue Service [SARS]
Facility Name : Advance Import Payment Notification
Country : South Africa
Website : https://www.sars.gov.za/customs-and-excise/advance-import-payments/
What is the Advance Import Payment Notification?
The Advance Import Payment (AIP) Notification as part of the Advance Payment Notification (APN) project is one of SARS’ Customs Modernisation Programmes which involves a collaboration between SARS, the South African Reserve Bank (SARB) and authorised dealers in foreign exchange and aimed at combatting illicit financial flows and customs valuation fraud associated with the misuse of advance foreign exchange payments in respect of goods that are to be imported.
Purpose of Advance Import Payment Notification
Advance payment notifications make it easy for taxpayers and traders to comply with their tax obligations whilst assisting SARS to detect and make non-compliance hard and costly for those traders and taxpayers who do not comply.
The APN process ensures that traders notify SARS of their intention to apply to an authorised dealer for an advance foreign exchange payment for imported goods. This further prevents underpayment of customs duties and taxes, valuation fraud and illicit financial flows related to the importation or non-importation of goods following advance foreign exchange payments.
Obligations of Importers in Respect of APN
With effect from 01 December 2023, authorised dealers (banks) are obligated to record, validate and report the APN provided by a trader/importer to the South African Reserve Bank (SARB) when such payment is concluded. This means that authorised dealers will only make Advance Import Payments on confirmation of a valid SARS APN.
Anticipated Benefits From The AIP Implementation
** Addressing money laundering and profit shifting through the alignment of payments with declarations.
** Supporting various business areas within SARS by providing for the cross-verifying of payments against declarations.
** Empowering Authorised Dealers to authenticate clients import credentials prior to facilitating advanced import payments.
** Identifying Illicit Financial Flows (IFFs): Recognising import payments lacking a corresponding customs declaration.
** Detection of under valuation risk and Initiating cases for audit and investigation purposes.
FAQ On SARS Advance Import Payment Notification
Frequently Asked Questions FAQ On SARS Advance Import Payment Notification
To whom must an Advance Payment Notification be made?
An APN must be applied for and obtained from SARS via the SARS eFiling service.
How must an Advance Payment Notification be made?
An APN must be made electronically using the SARS eFiling service, which serves as the administration centre for processing and recording Advanced Payment Notifications. Please refer to the user guide published on the Advance Import Payment webpage of the SARS website for more detailed information.
When must an Advance Payment Notification be made?
An APN must be made before an application is submitted to an authorised dealer to affect an advance foreign exchange payment, or before such a payment is made by the Authorised Dealer (AD) in terms of a financial instrument (e.g., Letter of Credit).
Will the APN requirement delay my payments and shipments?
APN reference numbers are provided immediately on submission of an advance payment notification, so there should be no delays to payment or shipment. Furthermore, APNs can be made at any time, and from anywhere, using eFiling.
With effect from 1 December 2023, authorised dealers will also be permitted to issue Bank Generated APN Numbers (BGAs) in certain exceptional circumstances to limit any delays. The use of a Bank Generated APN (BGA) to manage specific exceptions as agreed with SARS has also been legislated and conditions therefore have been specified. Enquiries should be made to your Authorised Dealer for their consideration of circumstances.
Contact:
For queries and more information, kindly email the Balance of Audit Payment team on BOP@sars.gov.za.