Traders advance ruling request now done electronically
MBABANE - The Eswatini Revenue Services (ERS) has launched the Web-based Eswatini e-Advance Ruling Tool that will allow traders to electronically submit requests for advance rulings.
An advance ruling is defined as a written decision provided by the authorities (ERS) to traders (upon request) prior to the transaction that sets forth a transparent and formal process, for the treatment of goods with regards to the goods’ tariff classification and rules of origin.
Advance rulings enhance the certainty and predictability of cross-border trade transactions. Disputes at the actual moment of release or clearance with the customs authority on tariff headings, valuation and origin, namely eligibility to preferential treatment, are reduced, and consequently delays are avoided.
Through this tool, ERS customs officials will also be able to review, assess, deliver and publish the advance rulings.
System
The initiative is supported under the World Customs Organisation’s Accelerate Trade Facilitation Programme and the EU-WCO Harmonised System (HS) in Africa.
The system was launched yesterday at the Hilton Garden Inn Hotel, and
ERS Commissioner General Brightwell Nkambule said the system seeked to enhance the ease of doing business and that they were the first country in Africa to introduce it.
He said the system sought to facilitate trade in the region by enhancing efficiency and allowing more products to flow through customs, which was beneficial to both the public and private sectors.
‘‘We are the first to introduce the system, which will be advantageous to businesses as revenues will increase; it will also assist in creating more job opportunities and further contribute to the fiscus,” he said.
The comissioner general added that they had also run and tested if the system was operational, and they discovered that there were no glitches or backlogs, hence it was ready to be used.
Also present at the event was Business Eswatini (BE) Chief Executive Officer (CEO) Nathi Dlamini, who said this system was part of the tools they needed to enhance trade in the region and beyond. The CEO said the private sector collaborated with ERS on a number of initiatives and that their goal was to enhance trade.
“This system seeks to facilitate trade in the region, and we are very excited that the launch will increase efficiency and trade, which is very imperative to us,” he said.
The government is also of the view that the system would be beneficial to the private sector and that its usage would contribute to revenues.
Minister of Finance Neal Rijkenberg said the Organisation for Economic Co-operation and Development (OECD) identified 12 trade facilitation indicators, which, when applied in total, could potentially lead to a total reduction in trade costs of 10 per cent.
Measure
He said the OECD identified the Advance Rulings System as the most impactful single trade facilitation measure. For advance rulings alone, the impact on trade costs was estimated to be a reduction of around 5.4 per cent. “Both the Ministry of Finance through the Eswatini Revenue Service and the Ministry of Trade have a huge responsibility to facilitate trade, hence making a real difference in people’s lives by helping to deliver jobs, growth, and development that trade supports,” mentioned the minister.
Rijkenberg also said this meant that Eswatini should leverage trade facilitation, explore opportunities, and ensure maximum benefits were derived. He added that it further linked with the overall objective of the government’s road map, whose overall objective was to stimulate economic growth and increase employment creation.
“Such tools are meant to create an enabling environment for trade and further attract foreign direct investment (FDI),” concluded the minister.
The British Embassy in Eswatini is also of the view that the system would benefit from the trade relationship Eswatini has with the British.
British High Commissioner Simon Boyden said they had seen the ERS strengthen their risk management procedures, improving selectivity criteria that had significantly increased capacity and improved positive hit rates, while facilitating legitimate trade.
He said it was in this context of a long-term strategic partnership that they were now delighted to collaborate with the European Union (EU), by funding the development of the Electronic Advanced Ruling tool.
“We are excited to see what benefits the Electronic Advanced Ruling Tool will bring and, beyond this, what we can continue to achieve over the coming years of our enduring partnership,” he added.
Launch
The ambassador also mentioned that Eswatini was now setting the direction in Southern Africa by showing how effectively digitalisation could be embraced, and they hoped the launch of this tool would generate momentum that others would look to follow, particularly within SACU.
The EU also supported the system, and they said that it would also facilitate trade for micro, small, and medium enterprises (MSMEs).