Illicit trafficking in smuggled goods like medicines and tobacco continued to plague cross-border trade between South Africa and Swaziland, Thomas Moyane, Commissioner of the South African Revenue Service (Sars), said at a meeting with Swazi customs authorities last week.

Moyane also discussed measures to counter money laundering with his Swazi counterpart, Dumisani Masilela, Commissioner General of the Swaziland Revenue Authority.

“The matter of dealing with the vexing questions of an illicit economy with attendant negative consequences deserves our two countries’ urgent attention.

“Let alone that these goods pose serious health challenges, they also rob the fiscus of its due. Accordingly, it is very important that we work together to deprive life to this illicit economy,” said Moyane at a press conference.

No figures were given on the size of cross-border smuggling operations or projected revenue losses to the countries’ customs services from illegal trade, but the problem was of sufficient concern to warrant a summit between the two heads of their revenue services, the customs directors said.

Moyane admitted that the public needs to better understand customs procedures, and said as one example of better public relations: “We can pronounce as custodians of tax and customs what it is that we are doing to facilitate trade between our countries.

“We recently signed a Memorandum of Understanding between our countries based on the Value Added Tax (VAT) agreement. This agreement is intended to operationalise how we handle VAT incurred on the purchases in South Africa,” said Moyane.

The VAT agreement recently went into effect at South African and Swazi border posts, streamlining goods declaration and tax collection procedures so Swazis purchasing goods in South Africa need not be taxed twice on their purchases.

However, the system depends on Swazis shopping or buying business inputs in South Africa to honestly declare goods when returning to Swaziland.

Masilela admitted that full declaration of goods remains a problem.

Citing co-operation between South Africa and Swaziland on border procedures, Moyane spoke passionately of the need for regional integration of customs operations.

He offered as one example of regional co-operation a region-wide extension of border post operating hours.

Masilela and Moyane expressed a desire to see South Africa’s border post with Swaziland operating on a 24/7 basis, and said work toward extended border post hours is underway.