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The South African Minister of Finance and the Ministers of Finance of Botswana, Lesotho and Namibia and the High Commissioner of Swaziland met in Pretoria today to discuss new measures in respect of both imports and exports between South Africa and the BLNS countries in relation to Value-Added Tax (VAT).

Various issues were deliberated on:

* The number of designated border posts at which the new measures will apply
* The operating hours at such border posts
* The treatment of goods in transit
* Voucher acquittal system
* Refunds of VAT
* The periods within which refunds will be made
* The registration of transporters
* The issue of deferred payment of VAT on imports
* The definition of certain concepts such as for example "commercial goods"
* The valuation of goods subject to VAT on imports
* The liability for payment of a fee to VAT refund administrators
* Traffic congestion at border posts
* Currency issues

Although consensus could be reached on some of the matters some will require further attention. The particular and unique circumstances of the different countries require different solutions in solving the outstanding issues. For this purpose it is the intention to address such issues by way of Memorandums of Understanding and further bilateral discussions with the relevant countries.

Following these discussions South Africa will implement its revised VAT Export Incentive Scheme with effect from 16 November 1998. The measures relating to imports will however become effective from 4 January 1999.

Botswana expressed its reservations to the proposed implementation of the export and import measures. It tabled a proposal on an acquittal voucher system in respect of the export measures. It was the view of Botswana that the alternate system will meet the requirements of South Africa. This will be the subject of further investigations and discussions between Botswana and South Africa.

These import and export measures will apply from the relevant dates at the following border posts.

Botswana Namibia

Groblersbrug Narogas
Kopfontein Vioolsdrift
Ramatlabama
Skilpadshek

Lesotho Swaziland

Caledonspoort Golela
Ficksburg Bridge Jeppes Reef
Maseru Bridge Mahamba
Qachasnek Mananga
Van Rooyens Hek Nerston
Oshoek

The Ministers have furthermore agreed to also keep in close contact to enhance cross border trade with a view to efficient systems being introduced at the border posts and joint efforts to reduce import and export fraud.

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