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CEFA Update: Advance Payment Notification (APN) – Navigating new SARS import regulations

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We bring to your attention the updated SARS policy regarding advance payments when importing into South Africa. As an accredited agent, B & D supports SARS in their drive to limit
fraud and irregular business practices relating to illicit financial flows when making foreign payments. It is therefore important that you are familiar with the new requirements to ensure that consignments are not unduly delayed on arrival. The new requirements
have been implemented by SARS in collaboration with the SA Reserve Bank and the financial service providers and will be effective 1 December 2023. We therefore include the below and attached which we trust will be of assistance.     

 

What is an Advance Payment Notice (APN)?
An APN is an application made by an importer to give notice of the intention to make an Advance Import Payment, in excess of R50 000, to a supplier in respect of imported goods. This is submitted via SARS E-filling. An Advance Import Payment is any foreign
exchange payment made, for the import of goods, before the goods are shipped by the supplier. This relates to Balance of Payment (BOP) category 101 (Advance Payments).

On application of an APN by an importer, SARS immediately issues an APN reference number. This reference number needs to be supplied to the facilitating bank in order to finalise an Advance Import Payment.

Why are the new regulations being enforced? 
These new regulations are being introduced by SARS in order to combat illicit financial flows and customs valuation fraud associated with the misuse of advance payments with imported goods.

This new process will allow SARS to track Advanced Import Payments and tie this in with their Customs Clearance process. SARS will require the importer to provide the relevant APN reference on the bill of entry for the imported goods where there was an advance
payment made.

For further reading on this topic, please see the following links to useful resources.

 

Our expert compliance team is committed to helping you navigate any regulatory changes, so that
you have more time to manage and grow your business.