Hon Speaker, hon Ministers, hon members and Deputy Ministers present, the Customs Bills create a clear and transparent customs legal framework that supports a predictable environment aligned to international conventions and best practice.
Multinational companies that trade across the borders are familiar with the customs environment and therefore require a legal framework that underpins predictability and consistency to ensure alignment of our customs regime with the World Customs Organisation and the revised Kyoto Protocol.
The primary aims of the Bills before us are as follows: to provide systems and procedures for customs control of all goods and services entering or leaving the Republic of South Africa; to ensure the effective collection of tax on such goods imposed in terms of the tax levy Acts; to facilitate the implementation of other legislation applicable to such goods and services; and to support the promotion of exports and business competitiveness, whilst stimulating domestically orientated activity and supporting small, medium and micro enterprises.
Regarding the issue of illicit trade, in the Budget Speech the Minister of Finance highlighted the fact that during 2013 the SA Revenue Service detained 400 containers holding suspected counterfeit clothing, footwear and textiles. During February 2014 Sars seized various narcotics as enumerated in the table in the Budget Speech. The Southern African Clothing and Textile Workers' Union, a trade union that operates in the textile industry and an affiliate of Cosatu, and therefore a progressive organisation, stated in its oral presentation during our public hearings that from what they can infer, they can safely say that R7,1 billion's worth of clothing was smuggled, underdeclared or underinvoiced upon arrival in South Africa in order to avoid paying import duties.
Furthermore, to illustrate the seriousness of the topic of customs operations, let me share with you what has been achieved. Amongst others, over the past few years they have been able seriously to detect drugs, endangered species, explosives, and firearms and ammunition entering or leaving the ports of entry as well as illicit CDs, DVDs, tobacco products and counterfeit goods at the ports of entry and mail centres.
The Sars Dog Unit has also enjoyed great success. It detected illicit cigarettes worth R37,8 million; 351 kg of cocaine valued at R90 million; 109 kg of crystal methamphetamine, worth R35,5 million; about 61 000 kg of cannabis goba lebake [marijuana] valued at R2,9 million; counterfeit goods worth R155 million; and counterfeit CDs and DVDs worth R671 million. That explains why in most instances our activists in the cultural sphere, particularly music, happen to die as paupers. This has a very negative impact on our music industry.
Sars opened a Customs Water Wing in Durban during the 2012-13 financial year and has deployed jet skis to patrol the Orange River.
The greatest threat to our manufacturing sector and industrialisation programme remains the illicit trade that undermines our economy, and therefore these control Bills seek to limit places of entry into and exit from the Republic of South Africa. The Bills will regulate places of entry in regard to high-risk goods, which will be limited to specific places of entry and exit, thus allowing Sars officials to focus their enforcement efforts on places where it is most needed. These enforcement provisions are aligned to the provisions of our Constitution, but also give more powers to Sars officials to fulfil their responsibilities and therefore combat the aforementioned illicit trade activities.
The Customs Control Bill includes provisions dealing with the sealing of containers and the prescribing of specific routes of high-risk goods to and from the inland terminals. In regard to the inland terminals, the biggest issue during our public hearings was, and I think will remain, that of terminals like City Deep. Let me set the record straight from the outset. The intention of the Bills before us is not, and never was, to close inland terminals or to disrupt the seamless movement of goods and services. Rather, the intention is to retrieve better information prior to the goods' entering the harbour.
During our public hearings, industry players and trade organisations strongly opposed the proposal regarding the clearance of goods at the first port of entry in respect of goods destined for inland terminals, and made specific proposals to include a definition of inland ports.
Once again, the key question the committee had to confront and give an answer to was to what extent we can contribute to making sure that illicit goods do not find their way from ports of entry to inland terminals. I have already indicated the kinds of goods that sometimes find their way into the country, which include, amongst others, endangered species, explosives, firearms and ammunition. That is very, very dangerous for maintaining peace and stability in our country and making the work of the police easy.
The current customs laws provide for inland terminals and not inland ports, so the new proposed Bills will retain that. The only difference will be that where goods were previously allowed to move inland on the basis of a manifest, the importer will now be required to submit a clearance declaration. This declaration will provide Sars with better information in order to manage the relevant risks that goods crossing our borders pose to the entire country and region.
Extensive time was allowed to parties to consider and submit their proposals and presentations to the Standing Committee on Finance. Several legal interpretations were put before the committee regarding the issue of inland terminals to better clarify our understanding of and the impact of these proposals on international contracts between foreign sellers and local purchasers or importers. This improved our understanding and was very helpful in assisting the committee members to come to a conclusion regarding these issues.
From the Budget Speech it is also clear that global economic recovery will continue to be propelled by emerging economies. Economic growth on the continent is estimated to be around 6%, and therefore it is imperative that we improve our trade environment by improving our infrastructure and efficiency at our ports of entry so that we can be a better place to facilitate trade through our one-stop border facilities with our neighbouring countries.
The Customs Control Bill specifically seeks to provide a legal framework to facilitate the smooth movement of goods at the place of entry or exit in terms of international agreements with adjoining countries. The Bill therefore creates a legal framework for one-stop border posts to facilitate trade between South Africa and the rest of the continent.
As we will recall, Parliament recently ratified the agreement between South Africa and Mozambique for the establishment of a one-stop border post at Lebombo/Ressano Garcia along the Maputo Corridor.
In regard to penalties, various submissions were made regarding the proposed fixed penalty regime, which ultimately culminated in a reduction of the quantum of categories of these penalties and relief for bona fide errors. The Bill distinguishes between two categories of offences, namely more serious and less serious offences. Offences include diversions of goods and other fraudulent practices, such as making false statements and using documents containing false or misleading information. In terms of the Bill, all these will make offenders liable for imprisonment or a fine set out in the Bill.
In conclusion, the Customs Bills lay a solid foundation for the customs administration of goods imported to and exported from South Africa. The Bills support government's strategy to facilitate trade and improve control over goods crossing our borders.
In our current 2014 manifesto we in the ANC have declared that we will work with our partners to ensure increased exports, particularly manufactured and value-added exports. We further say that we will continue to invest in the upgrading and expansion of the country's rail, port and pipeline infrastructure as part of our effort to shift freight transport from road to rail. The ANC supports this move that will take South Africa forward.
The ANC supports the Bills before us. Thank you, hon Speaker. [Applause.]