SA, Canada sign customs agreement
30 October 2009
Finance Minister Pravin Gordhan and the Canadian High Commissioner to South Africa Adèle Dion have signed an agreement on assistance between the two countries' customs administrations.
The Mutual Administration Assistance Agreement, signed in Pretoria this week, covers various forms of cooperation, including assistance in applying customs law and the appearance of customs officers as witnesses in court cases.
Ensuring compliance
The agreement also enables for the advance electronic transmission of customs data between South Africa and Canada. This presents the two countries with two significant advantages: it allows for comparing of data at a transactional level, and identifies non-compliance, but also helps in identifying and rewarding compliant traders.
According to the agreement, customs administrations have had to keep pace with the tremendous increase in international trade and transport, the growing role of trans-frontier organised crime and the threat of terrorism.
National and international cooperation has therefore become essential, hence the need for cooperation with other customs administrations and other key role players in the international supply chain.
Bilateral trade growth
Trade and investment between South Africa and Canada has steadily grown since 1994, with South Africa seen as an important destination for exports on the African continent.
In 2006, South Africa was the top export destination in Africa of Canadian goods, accountiing for 33.5% of total exports of Canadian goods to Africa. The country also ranked second, at 10%, after Algeria's 60.8%, as the origin of African goods imported into Canada.
Trade between South Africa and Canada totalled approximately R10.5-billion in 2008, with South African exports amounting to R3.1-billion and Canada's exports to R7.3-billion.
South Africa has to date signed 17 customs administration agreements with various countries.
Source: BuaNews
