Pursuant to the raids conducted by South African Revenue Services (SARS) Customs Compliance Unit since late last year, 3 individuals suspected of fraud and violating various Custom and Excise regulations were arrested today.
The suspects were arrested by the South African Police Service who acted on investigations done by SARS Customs officials into the practices employed by importers and clearing agents. The arrest of four suspects being investigated by SARS is imminent. SARS had found a number of serious contraventions by the seven individuals and their companies of Customs Laws. These include:
Today's arrests are part of the SARS Customs Compliance Campaign which was launched on 28 November 2003. On this day SARS Commissioner Pravin Gordhan met air freight associations, road freight associations, trade representatives, business chambers and other industry stakeholders to discuss the worrying levels of non-compliance within the Import and Export Sector. Stakeholder groups were also invited to join SARS in a co-operative venture aimed at attacking these problems, leveling the playing fields and establishing a precedence of good corporate governance for the future.
During the meeting 24 businesses committed themselves in a memorandum of understanding to eradicate criminality and non-compliance with the law in the Customs environment. However, SARS is aware that many illegal practices among some Importers, Exporters and Clearing Agents still persist. This is evident in the fact that one Importer is being investigated on 2 147 counts involving more than R3.2 million. Other illegal transactions SARS is aware of amount to losses of several millions of Rands to the fiscus each month.
The details of the companies raided and the charges against them, arising from contraventions of the Customs and Excise Act (Act 91 of 1964), are:
OUTSTANDING
Type of business: Clearing Agent
Customs office in which they are registered: Germiston/ Alberton
First charge: Wrongfully making entries without being licensed with Customs. Contravention of Section 64B read with Section 60.
Second charge: Wrongfully delivering of entries without being licensed with Customs. Contravention of Section 64B read with Section 60.
Third Charge: Possession of blank stamped and signed Customs documents. Contravention of Section 82(1)
Number of counts: 216
OUTSTANDING
Type of business: Clearing Agent
Customs office in which they are registered: Germiston/ Alberton
First charge: Wrongfully making of entries without being licensed with Customs. Contravention of Section 64B read with Section 60.
Second charge: Wrongfully delivering of entries without being licensed with Customs. Contravention of Section 64B read with Section 60.
Number of counts: 657
SD TRANSWORLD EXPRESS
Type of business: Clearing Agent
Accused: Shu-Yuan Hsiao, Shih-Rong Hsiao
Customs office in which they are registered: Johannesburg
First charge: Possession of foreign supplier's blank invoices. Section 80(1)(h)
Number of counts: 09
OUTSTANDING
Type of business: Importer
Customs office in which they are registered: Johannesburg International Airport
Revenue Involved: R 3 261 000.00
First charge: Possession of foreign supplier's blank invoices. Contravention of Section 80(1)(h)
Number of counts: 2174 - Outstanding - Accused believed to be outside South Africa
XU WEIQAN
Type of business: Importer
Accused: Xu Weiqhuam
Customs office in which they are registered: Johannesburg International Airport
First charge: Possession of foreign supplier's blank invoices. Contravention of Section 80(1)(h)
Number of counts: 43
SARS must reiterate its stance that any form of non-compliance or criminality, particularly where SARS staff may be involved, will not be tolerated. In effect such methods, apart from being illegal, defraud the fiscus and allow individual companies to enjoy an unfair competitive advantage.
* Please note SARS cannot release the names of businesses or individuals whose arrests remain outstanding. SARS and the South African police are aware of their movements and business interests. The apprehension of these individuals is an urgent priority.
ISSUED BY THE COMMISSIONER FOR THE SOUTH AFRICAN REVENUE SERVICE
PRETORIA