The Cost Of Detention

Quintus van der Merwe and Taryn Hunkin

The Act includes a provision which states that SARS cannot be held liable for any claim arising out of the detention or examination of any goods, nor can SARS be held liable for the costs of the detention or examination.

Given that the contract of carriage results in storage costs and container demurrage costs/detention costs which escalate very quickly, the real cost of SARS’ examinations and detentions can escalate alarmingly.

Clearing agents are all too familiar with the costs associated with a SARS detention and understand the frustration experienced by the importer, exporter, owner, manufacturer etc. These costs can be crippling if not provided for and if not contained and mitigated through suitable steps taken timeously. It is therefore important for entities in the value chain to protect themselves against these often overlooked costs by including certain provisions into their contracts, and where possible, making financial provision for these additional costs.

Act swiftly and ensure you get advice early on to avoid costs where possible.