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Freight Management is a SARS accredited Customs Broker and as such has operated within the SARS Deferment Scheme secured by bank guarantee since 1980. Over the past year there have been discussions and forums related to modifications that SARS would like implemented to the scheme. The effect of these changes are far reaching and as a Freight Management customer we would you like you to be fore warned as there might be implications for your business.

Deferments under this scheme cover a 30 day window after which the account must be settled. Traditionally the period ran from the 9th of the month to the 8th of the consecutive month.

The proposed changes by SARS, which are tabled for mid-year, will change the structure of this agreement in such a manner that the deferment will now run a calendar month (from the first to the last day of the month).  In essence this mean two things for customs brokers. Firstly, the payment date for SARS would now coincide with all other vendor payments, increasing the cash flow requirements of our business at month end. Secondly our ability to allow customer a couple of extra days to settle accounts in greatly diminished. Both these consequences point towards the fact that we will have to implement much more proactive measures to manage our cash flow in the year to come.

The penalty for not being able to make these payment for the Customs Brokers are high, a 10% fine as well as a possible 1 month suspension, which would effectively render most customer brokers unable to trade.

As far of our plan to address this upcoming challenges, Freight Management has already put measures in place, and began negotiating bridging facilities, what we would request from you, our customer, is promptness and forewarning regards payment of  account while we adjust to this new era of Customs Broking in South Africa.

Please find further reading from the FTW below