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Purpose and application of this Chapter

119. (1) The purpose of this Chapter is to determine general principles governing—

(a) the transport of goods not in free circulation; (b) the sealing of containers, vehicles and packages;

(c) the loading and off-loading of goods destined for export; and (d) the transfer of goods—

(i) between vessels; (ii) between vehicles; and (iii) between containers.

(2) This Chapter applies subject to any other provision of this Act applicable specifically to the transport, sealing, loading, off-loading or transfer of goods under a particular customs procedure, and in the event of any inconsistency between a provision of this Chapter and such other provision of this Act that other provision prevails.

Part 1

Transport of goods not in free circulation

Application of this Part

120. (1) This Part applies to the transport of all goods not in free circulation except the

following categories of goods:

(a) Goods transported on board a foreign-going vessel or aircraft from— (i) the place where the vessel or aircraft entered the Republic to the customs

seaport or airport where the goods are off-loaded;

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(ii) the place where the vessel or aircraft entered the Republic to the place where the vessel or aircraft leaves the Republic, if the goods are not off-loaded in the Republic; or

(iii) the customs seaport or airport where the goods were loaded on board the vessel or aircraft for export from the Republic to the place where the vessel or aircraft leaves the Republic;

(b) goods transported on board a cross-border railway carriage from—

(i) the place of entry where the railway carriage entered the Republic to the rail cargo terminal where the goods are off-loaded;

(ii) the rail cargo terminal where the goods were loaded on board the railway carriage for export from the Republic to the place of exit where the railway carriage leaves the Republic; or

(iii) the place of entry where the railway carriage entered the Republic to the place of exit where the railway carriage leaves the Republic, if the goods were not off-loaded in the Republic;

(c) goods transported between terminals and depots served by the same Customs Office;

(d) goods transported in accordance with a direction issued or permission granted by the customs authority in terms of a provision of this Act or a tax levying Act and the goods are transported in accordance with the requirements and conditions of the direction or permission; or110

(e) goods transported in accordance with an obligatory provision of this Act or a tax levying Act.111

(2) Subsection (1) may not be read as affecting the cargo reporting requirements contained in Chapter 3.

Goods not in free circulation to be transported only under customs procedures 121. Goods not in free circulation may be transported in or through the Republic

only—

(a) under a customs procedure that provides for or allows the transport of goods under that procedure; and

(b) in accordance with the provisions of this Act applicable to such transport.

Persons permitted to transport goods not in free circulation 122. Goods not in free circulation may be transported only by—

(a) a licensed carrier;

(b) a carrier represented in the Republic by a registered agent, if the carrier is not located in the Republic; or

(c) any other person permitted in terms of the customs procedure under which the goods are transported, to transport goods under that procedure.

Measures to ensure integrity of transport of goods not in free circulation

123. (1) The customs authority may, in addition to its other enforcement functions,112

take any steps or issue any directions necessary to guard against any unauthorised interference when goods not in free circulation are transported, including by—

(a) pre-approving the vehicle or container in which the goods are to be transported;

(b) marking or sealing the holding compartment of the vehicle or the container; (c) stipulating the mode of transport;

(d) stipulating the route to be followed;

(e) stipulating the specific place to which the goods must be delivered;

(f) requiring the provision of security in terms of Chapter 31 or any security additional to security already given in terms of that Chapter;

(g) shortening any applicable time limits within which the transport of the goods must commence and be completed; or

(h) requiring that the goods be transported under supervision of a customs escort.

110. For issuing directions and permissions subject to conditions, see section 918. 111. See for instance section 570(1).

112. See Chapter 33. 5 10 15 20 25 30 35 40 45 50

(2) Any steps taken or directions issued by the customs authority in terms of subsection (1) are subject to such conditions or requirements as—

(a) may be prescribed by rule; or

(b) the customs authority may determine in a specific case.

Transport of goods not in free circulation with other goods in same vehicle 124. Goods not in free circulation may be transported on the same vehicle with goods

in free circulation only in accordance with any requirements as may be prescribed by rule or as the customs authority may permit in a specific case.

Accidents and other unforeseen events

125. (1) The carrier or other person transporting goods not in free circulation must

promptly report to the customs authority electronically in accordance with section 913 any breakdown, accident or other unforeseen event occurring in the course of transporting the goods which compromises the integrity of the goods or the transport of the goods.

(2) If the integrity of the goods or the transport of the goods is compromised by an event referred to in subsection (1), the carrier or other person transporting the goods must comply with any directions issued by the customs authority.113

Part 2

Sealing, loading, off-loading and transfer of goods

Seals and sealing of containers, vehicles and packages

126. (1) A container, the holding compartment of a vehicle capable of being closed, a

road tanker and any package as may be specified by rule, which contains goods not in free circulation, must have such security seals affixed thereto or be otherwise secured by such fastenings and in such manner and in compliance with such standards or other specifications, as may be prescribed by rule.

(2) Such seals or fastenings must be supplied and affixed by and at the risk and expense of a person as may be prescribed by rule.

Loading of goods destined for export on foreign-going vessels and aircraft and cross-border railway carriages114

127. (1) No goods destined for export from the Republic may be loaded on board a

foreign-going vessel, foreign-going aircraft or cross-border railway carriage in which the goods are to be exported unless the goods are—

(a) cleared and released for export in terms of the export procedure; or

(b) to be exported under a customs procedure that allows the export of goods under that procedure without any separate export clearance.115

(2) Subsection (1) does not apply to goods falling within a category of goods excluded in terms of section 95 from export clearance requirements.

113. If goods are damaged, destroyed or lost due to an accident or other occurrence, Chapter 25 becomes applicable.

114. Section 39 applies to vehicles and goods on board vehicles passing through land border-posts out of the Republic.

115. The following customs procedures allow the export of goods under that procedure without separate export clearance:

(a) the international transit procedure in terms of Chapter 9; (b) the transhipment procedure in terms of Chapter 11; (c) the tax free shop procedure in terms of Chapter 14; and (d) the stores procedure in terms of Chapter 15.

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Off-loading of goods destined for export from foreign-going vessels and aircraft, cross-border railway carriages and trucks before export

128. (1) Goods cleared and released for export in terms of the export procedure or that

are to be exported under a customs procedure that allows the export of goods under that procedure without any separate export clearance, may, once loaded on board a foreign-going vessel or aircraft, cross-border railway carriage or truck in which the goods are to be exported from the Republic, not be off-loaded or transferred to another mode of transport in the Republic except—

(a) in accordance with the provisions regulating that customs procedure; or (b) with the permission of the customs authority.

(2) Subsection (1) does not apply to—

(a) a class or kind or other category of goods as may be excluded by rule from subsection (1); or

(b) goods as may be exempted by the customs authority from that subsection in a specific case.

Transfer of goods between vessels

129. (1) No goods may be transferred from a foreign-going vessel to another

foreign-going vessel or to a domestic vessel except—

(a) under a customs procedure that allows such transfer,116_{if the goods are not in}

free circulation; or

(b) with the permission of the customs authority, if the goods are in free circulation.

(2) No goods may be transferred from a domestic vessel to a foreign-going vessel except—

(a) under a customs procedure that allows such transfer,117_{if the goods are not in}

free circulation; or

(b) with the permission of the customs authority, if the goods are in free circulation.

(3) Subsections (1) and (2) do not apply to—

(a) any class or kind or other category of goods as may be excluded by rule from subsection (1) or (2); or

(b) any specific goods as may be exempted by the customs authority from subsection (1) or (2) in a specific case.

Transfer of goods between vehicles or containers

130. (1) Once the transport of goods that are not in free circulation has commenced

the goods may only with the permission of the customs authority and only in accordance with any requirements or conditions as may be prescribed by rule be transferred from the vehicle or container in which the goods are transported to another vehicle or container. (2) Permission in terms of subsection (1) may be given only in the case of a breakdown, accident or other circumstances as may be prescribed by rule.

Part 3 Other matters

Rules to facilitate implementation of this Chapter

131. Rules made in terms of section 903 to facilitate the implementation of this

Chapter may include rules— (a) regarding—

(i) the keeping and affixing of security seals to goods, containers, packages, vehicles or any part of a vehicle, or the securing of goods by other fastenings; and

(ii) the recording of seal numbers; and

116. Eg. Transhipment.

117. Eg. Coastwise carriage and delivery of goods under international transit.

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(b) specifying records to be kept of the inspection of seals or fastenings, and the circumstances in which, and the requirements that must be met when seals or fastenings are replaced.

Offences in terms of this Chapter

132. (1) A person is guilty of an offence—

(a) if that person contravenes section 121, 122, 127(1), 128(1) or 129(1) or (2); (b) if section 124 is contravened or not complied with in respect of the transport

of goods not in free circulation; or

(c) if a direction issued or a condition imposed in terms of section 123(1) is contravened or not complied with in respect of the transport of goods not in free circulation.

(2) A person transporting goods not in free circulation is guilty of an offence if the goods are not transported in accordance with any steps taken or directions issued by the customs authority in terms of section 123.

(3) A person referred to in section 126(2) is guilty of an offence if that person fails to comply with subsection (1) of that section.

(4) The offence referred to in subsection (1)(c) or (2) is a Category 1 offence.

CHAPTER 6