Few things disrupt an importer’s business as quickly as a detention notice. Containers sit in the port, storage and demurrage charges start running, and customers further down the supply chain begin asking questions. Understanding what a detention is, and how to respond, can make the difference between a short delay and a prolonged dispute.
Detention is not the same as seizure
SARS Customs has the power under the Customs and Excise Act, 1964 to detain goods while it investigates a suspected irregularity, for example a question over value, tariff classification, origin, or the permits needed to import the goods. Detention is generally a holding step. Seizure is more serious: it follows where SARS believes goods are liable to forfeiture, and it triggers a different set of procedures and consequences. Knowing which of the two you are dealing with determines your next move.
Practical steps to take immediately
Obtain the detention notice in writing and record exactly what SARS says the concern is and which provision it relies on. Without that, you cannot respond properly.
Assemble your supporting documents without delay: commercial invoices, the bill of lading or airway bill, proof of payment, packing lists, import permits or licences, and any technical specifications that support your declared tariff classification and value.
Respond to SARS’s requests in writing and within the time it sets. Informal telephone conversations are no substitute for a documented submission, and missed deadlines tend to count against the importer.
Keep a close eye on the costs. Storage and demurrage can escalate quickly, so it is worth deciding early whether to seek release of the goods against security, while the underlying question is resolved.
Mind the procedural requirements
The Act contains notice requirements and time limits that apply before certain legal proceedings against SARS may be started. These are strictly applied, and missing them can close off remedies that would otherwise have been available. This is the main reason importers should seek advice early rather than only once the dispute has hardened.
A note on prevention
Many detentions can be avoided. Keep classification and valuation files up to date, make sure permits are valid before goods are shipped, and make sure your clearing agent’s declarations match your own documents. Where classification is genuinely uncertain, consider seeking a tariff determination before you import rather than after.
This article is general information only and does not constitute legal advice. The law may have changed since publication, and reading this article does not create an attorney-client relationship. Please consult an attorney about your specific circumstances.
← Back to Insights