Bereng Mpaki
LOCAL commercial importers and exporters to South Africa have until the end of November 2017 to find agents registered with the neighbouring country’s revenue service to avoid “complications”.
According to a statement issued this week by the Lesotho Revenue Authority (LRA), the change has been brought about by the automation of South African border systems which started in 2012.
The South African Revenue Service (SARS) will require Lesotho businesses importing and exporting goods to the country to appoint an agent to represent them. The statement also indicates that the requirement applied to Lesotho businesses and other countries South Africa conducts business with.
“All other foreign entities have to appoint/nominate these registered entities to represent them in accessing SARS services including import and export,” reads the statement.
“Any South African individual or registered company may make application to become a ‘registered agent’ to act on behalf of a foreign principal.”
The statement continues: “This therefore, means that all Lesotho businesses operating as importers of goods from South Africa to Lesotho should find registered entities or individuals in South Africa that are willing to enter into a contract in which the Lesotho business is the foreign principal while the South African registered entity is the agent.
“The agents will then request and access SARS services, including registering declarations as the exporter, on behalf of the Lesotho principal.”
The LRA warns businesses that don’t heed the call of various “complications”.
A valid tax invoice would no longer be accepted as a form of payment, with cash payments required at the Lesotho border before goods are released.
“All businesses not registered will face complications in exporting goods from South Africa. This is especially the case where such export will be indirect export (meaning tax will have been paid in South Africa and goods hauled by or on account of a Lesotho business).”
LRA Public Relations Manager, Pheello Mphana, told the Lesotho Times that importers and exporters had the option of using their existing clearing agents, their South African business partners or any independent registered agents from the neighbouring country.
He, however, stressed that a registered SARS agent would not be the same as the current licensed clearing agents. A licensed clearing agent may also be made into a registered agent by SARS.
On why SARS only uses registered agents from South Africa, Mr Mphana said only taxpayers from the country were allowed by law to export goods.
He said the registered agents act as guarantors of Lesotho businesses during the declaration process.
“This means only South African entities, duly registered as taxpayers may directly access the automated customs services,” he said.
On how much importers/exporters have to pay to the agents for the services they provide, Mr Mphana said he did not aware.
He said commercial goods referred to products destined for re-sale.
In order to comply with this new requirement, Lesotho importers and exporters have to:
- Obtain DA 185 and DA 185D forms from either SARS, LRA Website or LRA Offices at any of the major border posts (Maseru Bridge, Maputsoe Bridge, Caledonspoort, Van Rooyen’s Gate and Qacha’s Nek Gate);
- Agree with a South African entity (registered) to act as your Registered Agent (The registered agent must accept the nomination made by the foreign principal and indicating which functions “importer, exporter” are to be fulfilled on behalf of the foreign principal);
- Complete the form DA 185 and DA 185D;
- Submit the completed forms to SARS offices and wait for the response;
- The registration validity period is indefinite and no cost required;
- The turnaround time is approximately 10 working days.
