By DON ROBERTSON

THE Customs and Excise Department has made huge strides in controlling illegal imports in the past few months following its change to a more autonomous operation.

The SA Revenue Services, which incorporates Customs and Excise as well as revenue collection, now operates as a largely independent statutory body with control over administration, human resources, technology, equipment and premises.

Decisions will in future be taken by a board of management with private-sector participation. Although effectively in operation, the proposals require approval by the Cabinet, expected next year.

Dr Ben van Rensburg, chief economist at the SA Chamber of Business, recognises this increased level of autonomy as a major breakthrough which, he says, has already produced improved levels of recovery of illegal imports.

Customs and Excise, in a state of virtual collapse earlier this year, has in the past been linked to the Departments of Public Service and Finance, and this was frowned on by business leaders.

Representatives from the tyre, clothing, textile, automotive industries and audio-visual sector have slammed the department for the lack of customs control at various ports.

"The department is getting to grips with the situation and some considerable successes have been recorded, especially in Durban. There has also been a vast improvement in training, led by the 12 customs officials from the UK who are now on an extended stay in South Africa," says Van Rensburg.

A senior UK customs official on a visit to South Africa says, however, that it is essential to have a, "well-paid, well-resourced customs service or forget it".

The SA Customs Department has a staff of about 1 600 to control more than 25 ports of entry. The British equivalent has over 26 000 employees with more than 1 800 at Heathrow alone.

"Customs officials must be well paid to avoid corruption, have sufficient technology and be properly trained to operate successfully," he says.

Textile Federation director Brian Brink says there has been a fairly significant impact in the past few months following the secondment of the investigators from the UK to look at systems, administration and training. A number of illegal import avenues have been closed and there is a glimmer of hope. The removal of goods in transit to neighbouring countries is, however, still a major problem.

Hennie van Zyl, executive director of the Clothing Federation says illegal imports are still a major problem, although some progress has been made. It is estimated that 50-million garments worth R350-million were smuggled into South Africa last year, costing between R200-R250-million in lost duties.

Van Zyl also criticises the Department of Customs and Excise for failing to reduce ad valorem duties on clothing and textiles in September as promised two years ago.

"Although the duty reductions are small, anything that helps counter illegal imports should be welcomed. The clothing industry is probably in its worst position in 20 years with total output expect to decline by 6% this year. In an industry which is the most labour intensive of all, this state of affairs is distressing," he says.

Bert Wessels, chief executive of Toyota SA, also has some reservations. Speaking at the recent Auto Africa exhibition, he said the greatest threat to the motor industry was unauthorised imports of used vehicles.

Technically, no used vehicles may be imported or registered in South Africa.

"We are not sure that this situation is being adequately policed at the moment. The introduction of the National Traffic Information System will help, but the government has to display some resolve in eliminating the problem," he says.