South Africa Trade Facilitation and Gender Dimensions in South Africa Survey findings and recommendations ©2021 International Bank for Reconstruction and Development/The World Bank 1818 H Street NW Washington DC 20433 Telephone: 202-473-1000 Internet: www.worldbank.org This work is a product of the staff of The World Bank with external contributions. The findings, interpretations, and conclusions expressed in this work do not necessarily reflect the views of The World Bank, its Board of Executive Directors, or the governments they represent. The World Bank does not guarantee the accuracy, completeness, or currency of the data included in this work and does not assume responsibility for any errors, omissions, or discrepancies in the information, or liability with respect to the use of or failure to use the information, methods, processes, or conclusions set forth. 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COVER PHOTOS: •   Wine maker, Stellenbosch, South Africa © John Hogg/World Bank. Further permission required for reuse. •   Cape Town Harbour, South Africa. © Trevor Samson/World Bank. Further permission required for reuse. •   Cape Town Port Authority, South Africa. © Trevor Samson/World Bank. Further permission required for reuse. Acknowledgements This report summarizes the main challenges that women and men cross-border traders and customs agents (includ- ing customs brokers and freight forwarders) are facing at the firm-level while undertaking import, export, and transit processes and procedures in South Africa. This report also includes recommendations to address the challenges iden- tified, primarily within the scope of the World Trade Organiza- tion’s Trade Facilitation Agreement (WTO TFA). The WBG team would like to recognize the government of South Africa - South African Revenue Service (SARS), for its invaluable contribution to the project with regards to stake- holder sensitization and engagement with the trade sector. The WBG team would also like to acknowledge the support of South African public and private institutions for this study (Annex 1). The study was led by the World Bank Group (WBG).1 Rollout of the survey and preliminary analysis was conducted by Surveya Global.2 1 The WBG team was led by June Ghimire (Private Sector Specialist, WBG) and a team of consultants — Mariyam Raziyeva, Aileen Yang, and Zachary Ochola Ochieng (sampling statistician). The team benefited from review and comments from colleagues across the WBG, specifically Ernani Argolo Checcucci Filho, Charles Kunaka, Bruce Ellison, and William J. Gain. 2 The team from Surveya Global was led by Tandi Kolbe (Director, Surveya Global) and a team of technical experts Lawrence Edwards, Refilwe Lepelle, and Catherine Grant Makokera. 1 South Africa Estimated population of firms trading across borders (2017): 28,1013 Capital (executive): Pretoria Top exports by value (2021): natural or cultured Capital (legislative): Cape Town pearls, precious or semi-precious stones, precious metals, metals clad with precious metal and arti- Capital (judicial): Bloemfontein cles thereof, imitation jewelry, coin; mineral products; Region: Sub-Saharan Africa vehicles, aircraft, vessels and associated transport equipment; base metals and articles of base metal; Income category: Upper-middle income4 products of the chemical or allied industries10 Population (2020): 59,308,6905 Top imports by value (2021): machinery and mechan- GDP (current US$ thousands, 2020): ical appliances, electrical equipment, parts thereof, 301,923,639.276 sound recorders and reproducers, television image and sound recorders and reproducers, and parts Est. GNI per capita female/male & accessories of such articles; mineral products; (2019 based on 2017 PPP$): $9,248/$15,0957 products of the chemical or allied industries; vehicles, Labor force participation rate (% of total pop. aircraft, vessels and associated transport equip- ages 15–64, 2019) female/male: 49.6/62.78 ment; special classification of original equipment Merchandise trade (% of GDP, 2020): 56.39 components/parts for motor vehicles11 WTO Trade Facilitation Agreement ratification date: November 30, 2017 3 Estimates of the universe of trading firms in South Africa distrib- 10 Data for the second quarter of 2021. Department of Trade, uted by firm size category, major product traded, and location were Industry and Competition constructed using anonymized South African Revenue Services administered data for 2017 that covered firms that pay Corporate 11 Ibid. Income Tax (CIT), are registered to export or import, and submit the IRP5 Employee Income Tax Certificates. 4 GNI per capita between $4,096 TO $12,695 (World Bank Data) 5 World Development Indicators database 6 Ibid. 7 Human Development Report, UNDP 8 World Development Indicators database 9 Ibid. 2 The Environment for Working Women in South Africa South Africa scored 88.1 out of 100 — higher than the regional average of 71 — in the 2021 Women, Business and the Law index, which is structured around the lifecycle of a working woman.12 South Africa introduced nearly 20 reforms increas- ing women’s economic inclusion between 1990 and 2020 by removing restrictions on women’s work, increasing paid maternity leave, and protecting women from domestic vio- lence and sexual harassment.13 In 2013, the South African government adopted the Women Empowerment and Gender Equity Bill to accelerate the empowerment of women and 50/50 gender parity. Despite these advances in legal and regulatory framework, labor force participation remains low in South Africa, with only 49.6 percent of women aged 15–64 in the labor force com- pared to 62.7 percent of men in the same age group.14 Accord- ing to the 2018 World Bank research on gender in South Africa, women face numerous constraints, many of which are under- pinned by social norms.15 For instance, unequal responsibility for childcare and the insufficient supply of childcare services remains one of the main challenges to women’s labor force Khayelitsha craft market, South Africa. participation despite introduction of the Child Support Grants © Trevor Samson/World Bank and the standardization of the Old Age Pension in the 1990s. In addition, while there is a small or even reversed gender gap in education, South African women tend to be more concen- trated in low skilled, low-paying, and more vulnerable sectors significantly declining female ownership over the past and jobs. One of the reasons for this might be the gender gap decade (from 48 percent in 2008 to 38 percent in 2017). in STEM16 subjects during the formal education. Additionally, a Female ownership is concentrated in micro and small busi- large number of women are engaged in domestic work, which nesses with 41 percent of micro enterprises being wom- remains a vulnerable sector despite progress in legal protec- en-owned, and among medium-sized enterprises women tions extended in this sector. own only 27 percent while men dominate 73 percent of A 2018 study by the International Finance Corporation also ownership. Black and female ownership of SMMEs is more found that the small, medium, and micro enterprise (SMME) prevalent in the informal sector, where the majority of micro sector in South Africa has been relatively stagnant, with enterprises are concentrated.17 12 The World Bank Group. 2021. Women, Business, and the Law 2021. Report, 17 International Finance Corporation (IFC). 2018. The Unseen Sector: A Report Washington, D.C.: World Bank on the MSME Opportunity in South Africa. 13 Ibid. 14 World Development Indicators database. 15 Kirkwood, Daniel. 2018. Gender in South Africa. World Bank, Washington, DC. World Bank. 16 STEM as Science Technology Engineering Mathematics. 3 Key recommendations based on survey findings Initial findings demonstrate an opportunity to improve the design of trade facilitation interventions to better address traders’ needs (women in particular), e.g., by: Improving access to and Identifying and addressing understanding of official reasons for delayed release border regulations and of goods procedures Introducing and/or Using technology to enhance strengthening formal trade trade facilitation, including consultations between through implementation of a the government and the Single Window private sector Promoting the NTFC and Publicizing official grievance making it more effective, procedures accountable, and inclusive Streamlining and improving consistent application Improving safety and security of border processes and at the borders procedures 4 Table of contents Executive Summary 8 1 Description of Sample and Methodology 12 2 General Trader and Customs Agent Findings 16 Profile of Traders and Customs Agents 17 Trading Activities 20 Frequency of Trade 22 Destination and Origin of Traded Goods 23 Membership in Trade Associations 24 Sources to Finance Business Related to Cross-border Trade 25 3 Trade Facilitation-Specific Findings 26 Moving Goods and Use of Intermediaries 27 Access to and Understanding of Official Border Regulations and Procedures 29 Consultation Mechanisms 32 National Trade Facilitation Committee 33 Application of Border Processes 34 Border Post Operating Hours 36 Time to Release Goods 37 Detention of Goods 38 Penalties, Grievance Procedures, and Payment of Speed Money 40 Electronic Submissions of Declaration and Electronic Payments 41 Safety and Security 42 Main Challenges 44 4 COVID-19-Related Findings 46 5 Recommendations Based on Survey Responses 50 6 Remaining Analytical Gaps 60 5 Annex 1  Acknowledged South African Public and Private Institutions 62 Government Institutions 63 Private Institutions 63 Annex 2 Methodology 64 Sampling and Survey Implementation 65 Profile of Respondents 67 Annex 3 References 70 List of Figures Figure 1. Share of Trading Firms and Customs Agents by Gender 17 Figure 2. Breakdown of Respondents by Gender and Firm Size 17 Figure 3. Breakdown of Respondents by Age and Gender 18 Figure 4. Breakdown of Respondents by Education and Gender 18 Figure 5. Breakdown of Respondents by Years of Experience and Gender 19 Figure 6. Years of Cross-border Trade Experience and Firm Size by Gender 19 Figure 7. Share of Men and Women Traders with Caretaking Responsibilities Affecting Their Ability to Trade Across Borders by Part-time and Full-time Work Status 20 Figure 8. Share of Men and Women Traders and Customs Agents Exporting and Importing by Gender 20 Figure 9. Share of Traders According to Main Products Exported by Gender 21 Figure 10. Share of Traders According to Main Products Imported by Gender 21 Figure 11. Share of Traders Exporting Agriculture Products and Machinery, Transport and Other Equipment Products by Size 22 Figure 12. Frequency of Trading by Firm Size, Traders Only 22 Figure 13. Share of Traders by Destination of Exports and Origin of Imports by Gender 23 Figure 14. Provision of Services by Customs Agents to Traders According to Destination of Exports and Origin of Imports by Gender 23 Figure 15. Reasons for Not Being a Member of an Association by Gender 24 Figure 16. Sources to Finance Business Related to Cross-Border Trade by Gender 25 Figure 17. Sources to Finance Business Related to Cross-Border Trade by Firm Size 25 Figure 18. Reasons for Using Customs Agents by Gender of Trader 28 Figure 19. Reasons for Using Customs Agents by Firm Size and Gender of Trader 28 Figure 20. Main Services Customs Agents are Hired for by Gender 29 Figure 21. Challenges Traders Faced when Looking for Information on Official Border Regulations/Procedures by Gender 30 Figure 22. Challenges Customs Agents Faced when Looking for Information on Official Border Regulations/Procedures by Gender 30 Figure 23. Share of Respondents that Find Regulations Difficult to Understand by Gender 31 Figure 24. Source of Information for Traders on Official Border Regulations/Procedures by Gender 31 Figure 25. Source of Information for Customs Agents on Official Border Regulations/Procedures by Gender 32 Figure 26. Methods of Consultation on Changes to Official Trade Processes and Procedures 33 6 Figure 27. Awareness of Existence of the NTFC in South Africa by Gender 33 Figure 28. Border Processes and Procedures that Traders Find are Not Consistently Implemented by Gender 34 Figure 29. Border Processes and Procedures that Customs Agents Find are Not Consistently Implemented 35 Figure 30. Share of Firms Facing Restrictive Border Post Operating Hours 36 Figure 31. Time for Exports and Imports to be Released from Customs after Submission of Customs Declaration by Gender 37 Figure 32. Share of Firms Having Goods Detained, and Share Promptly Informed 38 Figure 33. Reasons for Detention of Goods by Gender 39 Figure 36. Can Official Fees be Paid Electronically in a Single Payment? 40 Figure 35. Effectiveness of Formal Complaints/Grievance Procedures in Addressing Concerns 40 Figure 36. Can Official Fees be Paid Electronically in a Single Payment? 42 Figure 37. Share of Firms that Visit the Borders Regularly 42 Figure 38. Share of Traders and Customs Agents Reporting to have Felt Unsafe when Visiting the Border 43 Figure 39. Reasons for Feeling Unsafe at the Border 43 Figure 40. Factors Severely Affecting Traders and Customs Agents Ability to Expand Trade in International Markets 44 Figure 41. Share of Traders Facing the Highest Severity of Challenge in Expanding Business to International Markets by Firm Size. 45 Figure 42. Government export/import restrictions affected trade by Gender, Traders 47 Figure 43. Share of Surveyed Traders and Customs Agents by Gender Experiencing Impacts of COVID-19 Pandemic on Trade Flows 48 Figure 44. Share of Traders by Gender that Report Changes in Hours to Undertake Certain Activities. 49 7 South African female entrepreneurs © Shutterstock/Nelson Antoine Executive Summary Access to international markets plays a critical role in an eco­ Some of the key findings on trade facilitation and COVID- nomy’s growth and development. Trade facilitation — the sim- 19-related challenges faced by surveyed traders and cus- plification, modernization, and harmonization of export and toms agents, regardless of gender, include: import processes — has therefore emerged as an important issue for countries, as is reflected in the World Trade Organi­ ◾ Ninety percent of traders and customs agents reported that zation Trade Facilitation Agreement (WTO TFA), which came COVID-19-related challenges affected their ability to under- into effect on 22 February 2017. take cross-border trade, with firms experiencing increases in the number of hours devoted to complying with customs and Increasingly, it is recognized that women traders face particular border agency inspections and document requirements. challenges when undertaking cross-border trade, such as lack of information and knowledge of cross-border regulations and ◾ Most surveyed traders (76  percent) and customs agents procedures, lack of physical security at border crossings, expo- (58 percent) report that they are not, or only irregularly, con- sure to harassment and gender-based violence at borders, sulted on legislative changes to official cross-border trade and corruption. Non-tariff measures such as standards and processes and procedures. Approximately half of consulted regulations and lengthy port-handling or customs procedures raise costs of trading, which are particularly burdensome trading firms do not feel that their feedback is taken into con- for smaller businesses. This has a disproportionate impact sideration (51 percent traders). on women-owned businesses because they are smaller in size. However, there is still a lack of data and research that ◾ Awareness of the South African National Trade Facilitation quantifies the exact nature of the challenges that women Committee among traders is low, with only 11 percent of traders traders face at the firm-level. Even less research is available and 27 percent of customs agents aware of its existence. on the gendered impact of trade facilitation reforms. Generally speaking, trade facilitation measures in WTO TFA are non-dis- ◾ Fifty-one percent of the surveyed traders report that clear- criminatory because they are intended to apply to all traders in ance of export/import declarations, cargo inspection proce- their design; however, these measures are gender blind as the dures, and compliance procedures and documentation (e.g., agreement does not take into consideration gender sensitiv- phytosanitary requirements) are not consistently applied. ities, and hence it may not necessarily impact or benefit all traders in similar ways. ◾ While 53  percent of customs agents have their imports released from Customs within half a day of submitting the This report presents the results of a survey on trade facilita- customs declaration, 40 percent of traders report that it takes tion challenges faced by traders and customs agents (cus- three or more days to clear their goods through Customs. toms brokers and freight forwarders) in South Africa. Between July 5 and September  9, 2021, a survey of 204 trade firms and 78 customs agents was carried out across the country ◾ Of those customs agents that find explanations on penalties/ after a pilot was conducted in June 2021. The objective of the appeals easy to access from government entities, the majority survey was to identify whether women traders and customs (51 percent) do not find the formal complaint or grievance agents experience different challenges to border processes procedures effective. and procedures than their men counterparts. The survey also explored trade facilitation challenges related to COVID-19. ◾ Only eight percent of traders and 32 percent of the inter- viewed customs agents regularly visit the border.18 When visiting borders, about half of the respondents felt unsafe, mainly because the border lacks clear organization and/or is Survey respondents include: over-crowded. ◾ Traders engaged in cross-border import and/or export of goods (at the firm level and disaggregated by The survey finds that women traders and customs agents the gender of the respondent who is either the owner experience greater challenges in several aspects com- or manager) pared to their men counterparts. These include: ◾ Customs agents (includes customs brokers and freight forwarders) providing cross-border services ◾ More women traders have experienced declines in trade to traders (at the firm level and disaggregated by the flows (69  percent for exports and 68  percent for imports) gender of the respondent in some cases) compared to men traders (51  percent for both exports and imports) as a result of COVID-19 pandemic. 18 It is not mandatory for traders and agents to be physically present at the border for their goods to be cleared by customs because documentary inspections are coordinated centrally and electronically. 9 ◾ Only about a quarter of women traders and 35 percent of Initial findings demonstrate an opportunity to improve the men traders responded that all information on official regu- design of trade facilitation interventions to better address lations and procedures related to cross-border trade is easy traders’ needs (women in particular), by implementing the to find. following key recommendations. These have been discussed and elaborated in section five of the report, however, some ◾ More women traders (45 percent) compared to men traders gender-specific recommendations include the following: (34 percent) find access to information challenging because government information mechanisms are not user-friendly. ◾ Improving access to and understanding of official border reg- ulations and procedures by centralizing all trade-related infor- ◾ Half of the surveyed women customs agents compared mation from all border agencies in a user-friendly manner, such to 31  percent of men customs agents report that access as through the establishment of a Trade Information Portal. It is to information is challenging because not all agencies have critical that information is presented in an easy-to-understand comprehensive information available. style for the common operator, particularly small, medium, and micro enterprises. In addition, it is recommended for SARS to ◾ More women traders (45 percent) find the official regula- implement joint awareness and education programs with local tions and processes difficult to understand than men traders chambers of commerce, industry associations, customs agent (29 percent). associations, and import/export councils on trade facilitation issues, with specific targeting of women traders. ◾ A slightly higher share of women traders (72 percent) use personal networks and customs agents as sources of infor- ◾ Promoting the National Trade Facilitation Committee (NTFC) mation compared to men traders (66 percent). and making it more effective, accountable, and inclusive. Review- ing the membership structure of the NTFC is critical to allow for ◾ Fewer women traders (40  percent) than men traders more direct representation by the private sector through busi- (56 percent) find that border processes and procedures are ness organizations and strategically target a diversity of firms, consistently applied. including those represented by women and those focused on women entrepreneurship, to participate in workshops and con- sultations held by the NTFC. The NTFC should include a gender ◾ Of those traders finding border processes inconsistently component in the NTFC roadmap and specific indicators asso- applied, a quarter of women traders find payment of fees/ ciated with gender participation in its monitoring and evalu- duties processes inconsistently applied in comparison to only ation mechanism to ensure gender mainstreaming is part of two percent of men traders. the trade facilitation agenda. In addition, the NTFC and SARS should invite Departments of Small Business Development and ◾ Of the traders that have had goods detained, fewer women of Women, Youth and Person with Disabilities to participate in traders (35 percent) compared to men traders (60 percent) the NTFC and in the design of trade facilitation reforms, and have had their goods detained because of problems with most importantly, strengthening the capacity of these agen- customs declaration, classification, and valuation. cies is required to participate in trade-related discussions. ◾ Of the customs agents that have had goods detained, more ◾ Streamlining and improving consistent application of bor- women customs agents have had goods detained because der processes and procedures to provide traders and customs of problems with licenses, permits, certificates of origin or agents with more predictability and certainty when engag- authorizations to import (55 percent) and problems with plant ing in their cross-border trade activities. Consistency can be quarantine/animal health (36 percent) than their men counter­ improved in various ways, including through implementation parts (28 percent and 13 percent respectively). of one stop border posts while taking into consideration con- cerns of small traders and women-led businesses, and pro- ◾ Among customs agents that regularly visit the border, all motion of the Authorized Economic Operator (AEO) program the women respondents felt unsafe at some stage compared with an exploration of options for its use as an instrument to to 38 percent of men respondents. promote more equitable gender participation at firm level. ◾ Using technology to enhance trade facilitation, including through implementation of a Single Window. A more simpli- fied, electronic process will also encourage greater participa- tion and reduce the entry barriers, especially for smaller firms, where women engage in larger numbers, according to the survey results. Increase education and training on the usage of the automated customs system, including the electronic payment functionalities on electronic payment platforms, espe- cially for women traders. 10 ◾ Improving safety and security at the borders. Actively ◾ Identifying and addressing reasons for delayed release promoting gender balance within the border workforce and of goods by undertaking Time Release Studies (TRS) on a provide gender-sensitive training for customs and border regular basis with a scope that includes all border agencies. management officials is critical as officials cited as the main It is also recommended that the findings from the TRS are perpetrators of negative behavior at the border. It is also widely publicized among stakeholders (ensuring women-led recommended to improve the design and maintenance of firms are reached through appropriate platforms such as a infrastructure and services at the border by providing appro- more inclusive NTFC and women trade associations). priate sanitation facilities, adequate lodging on either side of the border, and well-lit walkways in the border area. ◾ Publicizing official grievance procedures. The responsive- ness of official grievance procedures should be promoted ◾ SARS to work closely with trade and industry associations, eventually through the NTFC. The government, including through especially those that focus on women entrepreneurs and the NTFC, should publicize more broadly the official channels SMEs, to strengthen formal trade consultations. for appeal to all stakeholders. 11 Meeting of South African female business owners © Pexels/Christina Morillo 1 Description of Sample and Methodology The target population of the survey was privately-owned firms survey amongst their members, ii) SARS emailed firms directly that trade goods across South Africa’s land, air and sea using its mailing directories, iii) Surveya contacted a list of borders. This study was conducted through the assistance firms sourced from private suppliers of databases, websites, of South African Revenue Service (SARS) as the nodal point to and directories, iv) Surveya worked closely with national, pro- engage with trade. A quota sampling approach was adopted vincial, and city departments, and business associations to to ensure that responses were collected across region, firm size, inform firms about the study, and v) a social media campaign and industry for both women and men traders.19 A sample was launched by the WBG, SARS, and Surveya to encourage target of 384 firms was set, with a minimum of 30 firms per firm participation. Others were encouraged to participate quota subgroup.20 through the SARS Customs and Excise National Operations Forum (CENOSF) where a presentation on the Trade Facilita- Estimates of the universe of trading firms in South Africa tion Survey was made to 42 attendees representing 16 trade, distributed by firm size category, major product traded, and business, and industry associations. A list of customs agents location were constructed using anonymized SARS admin- was obtained from various websites of associations as well as istration data for 2017. The share women ownership and top through the assistance from SARS. By adopting this approach management in trading firms according to firm size cate- diverse stakeholders were encouraged to participate in the gory was estimated using data from the South Africa 2020 survey. Enterprise Survey conducted by the World Bank. Using these data sources, the population of firms with positive sales and This process led to a combined list of 4,203 firms with con- employment data that trade across borders was estimated tact details. These firms were contacted telephonically or via at 28,101, with 40  percent of these owned or managed by email to request participation in the survey via comple- women (see Annex 2 for further details). tion of a consent form.21 In total, 78 customs agents and 204 traders were interviewed either telephonically (148) Given that a complete list of cross-border traders and con- or through a self-administered online survey (134) between tact details needed to undertake the survey could not be July 5 and September 9, 2021. For trading firms, all surveys disclosed by official authorities due to the Protection of Per- were administered to either the owner or a top manager, sonal Information Act (POPI), a consultative approach was whereas in the case of customs agents three of the respon- adopted to encourage survey participation (see Annex 2 for dents were employees. Of the trading firms interviewed, 122 are further details). This included i) SARS solicited the assistance led by men and 82 are led by women, while 24 of the 78 cus- of trade, business, and industry associations to market the toms agent respondents are women (Table 1).22 Table 1. Breakdown of Trader and Customs Agent Survey Respondents by Gender and Size of Firms Trader Survey Respondents Customs Agent Survey Respondents Women-led Men-led Total Women-led Men-led Total Micro (fewer than 5 employees) 17 16 33 11 17 28 Small (6–19 employees) 16 27 43 4 21 25 Medium (20–99 employees) 24 26 50 6 9 15 Large (100 employees and above) 25 53 78 3 7 10 Grand total 82 122 204 24 54 78 19 Trading firms were categorized by the firm size (micro — 0–4 employees, 21 All firms were requested to first complete a consent form to establish eligibility small — 5–19 employees, medium — 20–99 employees, and large — 100 or and the quota category applicable to the firm. In total, 421 completed consent more employees), location (Western Cape, Gauteng, Eastern Cape and Kwazu- forms were received. lu-Natal, and rest of South Africa), Harmonized System (HS) Section grouping of main product traded (HS Sections 1–4 (animal, vegetable products, bever- 22 The gender of the respondent, who is either the owner or manager, is used ages, tobacco, etc.), HS Sections 5–10, 13–15 (mineral, chemicals, rubber, leather, to define whether a trading firm is women-led or men-led. The terms trader and wood, paper products, stone, glass, precious stones, metals, etc.), HS sections customs agent are used to denote the firm, while the terms men/women trader 16–19 (machinery, transport equipment, medical instruments, ammunitions), and men/women customs agent refer to the gender of the respondent. HS sections 11–12, 20–21 (textile, footwear, artwork/collectors’ pieces/antiques and miscellaneous manufactured articles)), and gender of owner or manager. 20 The sample population was computed using the Cochran formulae, assuming maximum variability (P=0.5), 95% confidence level, and 5% precision (ME). 13 The survey questionnaire was designed to identify con- To correct any imbalances between the survey sample and straints firm-level traders face in cross-border trade, par- the population, the trader responses were weighted to ensure ticularly as it relates to border processes and procedures. that the distribution of traders across size and gender quota Since the study is primarily focused on trade facilitation categories in the sample mimic their distribution in the popu- within the scope of the WTO TFA, the questionnaire only lation. Given the non-probabilistic quota sampling approach covers trade in goods and not services. The sample also employed, inferences about the population of trading firms based only covers firms that currently engage in international on the survey results are not made. The findings in this report, trade, and the perspective of firms that do not trade inter- therefore, are based on the views of the interviewed respondents. nationally, potentially because of trade facilitation-related challenges, is therefore not captured. 23 These caveats Sections two to four present the survey findings in detail, and should be borne in mind when interpreting the results of section five provides recommendations to address the iden- the survey. tified challenges. 23 The survey does not cover informal cross-border trade, which accounts for a high share of trade between Southern African countries. Women are esti- mated to comprise over 70  percent of informal cross-border traders in the Southern African region. See Rae Blumberg, Joyce Malaba, and Lis Meyers, “Women Cross-Border Traders in Southern Africa. Contributions, Constraints, and Opportunities in Malawi and Botswana,” AECOM International Development & Banyan Global for USAID Southern Africa, 2016. 14 Cape Town harbor © Pexels/Pixabay 15 Central business district © Pexels/Blue Ox Studio 2 General Trader and Customs Agent Findings This section presents an overview of general findings for ◾ Men are more likely to lead large and medium-sized traders and customs agents. All findings are in relation to the trade firms compared to women (Figure  2). For example, interviewed traders and customs agents.24 fifty percent of men traders lead large or medium firms com- pared to 36  percent of women traders. On the other hand, twenty-five percent of women traders lead micro firms com- pared to 19 percent of men traders.26 Among customs agents, a higher share of women customs agents lead micro firms Profile of Traders and (46 percent) compared to men customs agents (31 percent). Customs Agents Figure 2. Breakdown of Respondents by Gender and Firm Size ◾ Most cross-border trading firms in South Africa are 100% led by men. As shown in Figure  1, forty percent of trading 13 15 13 13 firms are led by women. Of all the customs agents surveyed, 90% 31 percent of the respondents are women.25 80% 17 23 25 70% 35 60% Figure 1. Share of Trading Firms and Customs Agents 17 50% 39 by Gender 39 40% 31 Traders Customs Agents 30% 20% 46 31 10% 25 19 0% Women Men Women Men 31% 40% Traders Customs Agents 60% Micro (<5) Small (5–19) 69% Medium (20–99) Large (100+) Note: Due to rounding to the nearest whole number, totals may exceed or be less than 100 percent. Women Men Women Men 24 To identify whether responses differed by gender a two-prong approach was 26 Study in the Sub-Saharan region found similar outcomes (see Mary Hallward- followed. Figures of survey responses were first assessed for noticeable differ- Driemeier, Enterprising women: Expanding economic opportunities in Africa ences by gender of respondent. Pearson Chi-square tests were then used to test (Washington DC: World Bank, 2013). for independence of responses across gender categories. Given the non-random sampling approach and low number of observations, these tests were used as illus- trative guides on potential relationships. Based on these two approaches, a con- clusion was drawn on whether the gender association was large enough to report. 25 The survey results showed that fewer firms have women owners, CEOs, or majority shareholders (25 percent) than women managers (40 percent). 17 ◾ There are no major differences in age profiles across ◾ A higher share of men traders than women traders have men and women traders. The largest cohort of men and attained a university level education or above (70 percent women traders is between 45 and 59 years old, with 43 per- of men compared to 55 percent of women) (Figure 4). Differ- cent of men traders and 40 percent of women traders falling ences in educational attainment can also be seen in terms of the in this age category (Figure  3). Few traders are younger higher share of women traders with only secondary education than 35 years of age (7 percent women traders, 17 percent (28 percent) compared to men traders (11 percent). Educational men traders), with only one male respondent younger than attainment of the respondents varies across the size of trading 25 years of age. Among the men and women customs agents firm with a higher share of traders of micro firms (78 percent) interviewed, women are older with 71 percent of respondents with a university level education or above compared to traders older than 44 years of age, compared to 54 percent of men of small (53 percent), medium (65 percent), or large (66 percent) customs agents. No association is found between age of the firms. Looking at the customs agents, there are no major differ- respondent and firm size. ences in the educational profiles of women and men-led firms. Figure 3. Breakdown of Respondents by Age and Gender Figure 4. Breakdown of Respondents by Education and Gender 100% 90% 15 19 15 100% 3 1 3 21 80% 90% 80% 32 70% 40 39 60% 70% 55 43 50 70 50% 60% 50% 28 40% 30% 28 40% 37 21 14 20% 17 30% 10% 17 20% 17 37 17 13 7 28 0% 0 0 0 2 10% Women Men Women Men 11 0% Traders Customs Agents Women Men Men & women Up to 24 years 25–34 years Traders Customs Agents 35–44 years 45–59 years Secondary Vocational 60+ years University+ Not available Note: Due to rounding to the nearest whole number, totals may exceed or be Note: Due to rounding to the nearest whole number, totals may exceed or be less than 100 percent. less than 100 percent. The legend ‘Not available’ refers to those respondents that selected the response option ‘Prefer not to say’. 18 ◾ Men traders have more years of experience in engaging Figure 5. Breakdown of Respondents by Years of in cross-border trade than women traders. A lower share of Experience and Gender women traders (42 percent) compared to men traders (50 per- 100% cent) have been engaged in cross-border trade for 15 years or more, whereas a higher share of women traders have four 90% or fewer years of experience (30 percent) compared to men 80% 42 traders (22 percent) (Figure 5). Among customs agents, most 50 70% 56 men agents (56  percent) and women agents (75  percent) 75 60% have been engaged in cross-border trade for 15 years or more. Very few of the men and women customs agents have four or 50% 16 11 fewer years of experience in trading across borders (11 per- 40% 12 19 cent for men, zero percent for women). 30% 16 20% 15 ◾ Traders with more experience in cross-border trade 30 17 10% 22 lead larger firms (Figure 6). Thirty-eight percent of men trad- 11 8 ers leading micro firms have four or fewer years of engage- 0% Women Men Women Men ment in cross-border trade, whereas only four percent of men Traders Customs Agents traders leading large firms have similar years of cross-border trade experience. Among women traders, the main difference 0–4 years 5–9 years is found with respect to leading large firms, where no women 10–14 years 15+ years with four or fewer years of cross-border trade experience lead large firms. Note: Due to rounding to the nearest whole number, totals may exceed or be less than 100 percent. Figure 6. Years of Cross-border Trade Experience and Firm Size by Gender Women traders 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Micro (<5) 41 12 6 41 Firm size Small (5–19) 31 6 19 44 Medium (20–99) 33 13 21 33 Large (100+) 0 32 16 52 0–4 years 5–9 years 10–14 years 15+ years Men traders 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Micro (<5) 38 13 6 44 Firm size Small (5–19) 33 11 7 48 Medium (20–99) 12 23 12 54 Large (100+) 4 17 25 55 0–4 years 5–9 years 10–14 years 15+ years Note: Due to rounding to the nearest whole number, totals may exceed or be less than 100 percent. 19 ◾ Women traders, particularly those below 44  years of age, spend fewer hours working in the business than men Trading Activities traders. While most men and women traders work full-time (over 35 hours per week), 10 percent of women traders com- pared to two percent of men traders spend 35 hours or less This section provides a brief overview of the import and per week working in the business. The share of women traders export characteristics of traders and customs agents. A lim- working part-time is higher at 20 percent for women that are itation with regards to the survey sample is that it may not 25 to 34 years old and 17 percent for women that are 35 to be representative of the population of traders across major 44  years old. Only six percent of women traders within the Harmonized System Section traded product, and, conse- 45–59 years old age cohort and none of the interviewed women quently, the survey outcomes by traded product should be traders within the 60 years or older cohort work part-time. used with caution.28,29 Some key results from the survey include: ◾ Caretaking responsibilities affect the ability of women traders to trade across borders, but mostly for part-time ◾ Ninety percent traders are engaged in exports com- workers. The survey results reveal that 29 percent of women pared to imports (66  percent), although most traders traders that work part-time find that caretaking responsibilities (56  percent) both import and export (Figure  8). Of the impact their ability to trade across borders compared to nine interviewed customs agents, 97 percent provide export ser- percent of women traders that that work full-time (Figure  7). vices, 99 percent provide import services, and 96 percent Caretaking responsibilities also affect more women traders in provide both import and export services. There are no major the age cohorts of 25–34 years (20 percent) and 35–59 years differences in these shares across men-led or women-led (12–13 percent) than in the age cohort of 60 or older (zero percent). traders or customs agents. ◾ Overall, the survey results indicate that compared to all other traders, women traders of ages 25–34 years are Figure 8. Share of Men and Women Traders and Customs more likely to work part-time and have caretaking respon- Agents Exporting and Importing by Gender sibilities that affect their ability to trade across borders. This finding broadly corresponds with other empirical evidence 100% 100% 100% 94% 96% 96% 96% 96% on women involved in trade, including in Africa.27 90% 85% 80% Figure 7. Share of Men and Women Traders with Caretaking 69% Responsibilities Affecting Their Ability to Trade Across 70% 64% Borders by Part-time and Full-time Work Status 60% 58% 54% 50% 100% 40% 90% 30% 80% 20% 70% 10% 60% 0% 50% Women Men Women Men 40% Traders Customs Agents 29% 30% Export Import Import & export 20% 9% 10% 4% 0% 0% Part-time Full-time Women Traders Men Traders 27 Josaphat Kweka and Mahjabeen Haji, “Trade and Gender in Tanzania: 28  The Harmonized System is an international nomenclature for the classifica- What Matters—Participation or Outcomes?” Chapter 9 in Women and trade in tion of traded goods. At the international level, goods are classified according Africa: Realizing the potential. Edited by Paul Brenton, Elisa Gamberoni and a six-digit code system, but these product items can also be aggregated into Catherine Sear (Washington DC: World Bank, 2013; Louis Njie Ndumbe, “Unshackling 21 section headings. These section headings are used to define the product Women Traders: Cross-Border Trade of Eru from Cameroon to Nigeria.” Chapter 3 groupings used in the survey. in Women and trade in Africa: Realizing the potential. Edited by Paul Brenton, Elisa Gamberoni and Catherine Sear (Washington DC: World Bank, 2013); Kate 29 For example, the HS sections 1-4 (agriculture and food) is identified by trading Higgins, Gender Dimensions of Trade Facilitation and Logistics: A Guidance Note, firms as the most product grouping in which trade occurs, accounting for 41 percent Washington DC: World Bank. of all surveyed traders, compared to nine percent for the population of trading firms. 20 ◾ A substantially higher share of men-led trade firms com- women traders export minerals, chemicals, rubber, leather, wood, pared to women-led trade firms export and import minerals, precious stones, and metals (Figure 9). Similarly, for importers, metals, and chemical products. For example, among traders 44 percent of men-led firms import products from this grouping that export, 28  percent of men compared to 13  percent of compared to 18 percent of women-led firms (Figure 10).30 Figure 9. Share of Traders According to Main Products Exported by Gender 100% 90% 80% 70% 60% 50% 49% 50% 40% 28% 30% 20% 18% 18% 20% 16% 13% 10% 0% Animal, vegetable products, Minerals, chemicals, rubber, Machinery, transport Textiles, footwear, other beverages, tobacco leather, wood, precious equipment, medical manufacturing stones, metals instruments, ammunitions (HS Sections 1–4) (HS Sections 5–10, 13–15) (HS Sections 16–19) (HS Sections 11–12, 20–21) Women Traders Men Traders Note: Responses are not weighted. Respondents can identify multiple HS Section categories in which products are traded. Consequently, the shares do not sum to one across HS Section category. Figure 10. Share of Traders According to Main Products Imported by Gender 100% 90% 80% 70% 60% 50% 44% 40% 34% 32% 30% 30% 27% 28% 21% 20% 18% 10% 0% Animal, vegetable products, Minerals, chemicals, rubber, Machinery, transport Textiles, footwear, other beverages, tobacco leather, wood, precious equipment, medical manufacturing stones, metals instruments, ammunitions (HS Sections 1-4) (HS Sections 5–10, 13–15) (HS Sections 16–19) (HS Sections 11–12, 20–21) Women Traders Men Traders Note: Responses are not weighted. Respondents can identify multiple HS Section categories in which products are traded. Consequently, the shares do not sum to one across HS Section category. 30 See HS Nomenclature 2017 edition for details on the types of products that fall into each HS category (Online: http://www.wcoomd.org/en/topics/ nomenclature/instrument-and-tools/hs-nomenclature-2017-edition/hs- nomenclature-2017-edition.aspx). 21 ◾ In relation to firm size, more small and micro firms export agricultural products, beverages, tobacco than larger Frequency of Trade exporting firms (Figure  11). In contrast, 39  percent of large firms reported exporting machinery, transport equipment, medical instruments, ammunitions in comparison to 12 percent ◾ More than half of firms trade 12 or more times per year, for micro traders. with larger firms trading more often than smaller firms (Figure 12). Eighty-one percent of large exporters and 76 per- cent of large importers trade 12 or more times per year. In con- Figure 11. Share of Traders Exporting Agriculture trast, a lower share of micro traders (50 percent of exporters Products and Machinery, Transport and Other and 35 percent of importers) trade that frequently. Micro firms Equipment Products by Size are more likely to trade three or fewer times per year compared to large firms. For example, 26  percent of micro exporters 100% export three or fewer times per year compared to only two 90% percent of large exporters. No significant difference in the 80% frequency of trade was observed between women-led and men-led firms. 70% 63% 60% 48% Figure 12. Frequency of Trading by Firm Size, 50% 43% 40% 39% Traders Only 33% 30% 100% 3 20% 17% 90% 12% 15% 10% 80% 35 50 45 0% 53 70% Micro Small Medium Large 68 72 76 60% 81 (<5) (5–10) (20–99) (100+) 50% 28 Animal, vegetable products, beverages, tobacco 40% 26 (HS Sections 1–4) 24 30% 30 Machinery, transport equipment, medical instruments, 20% 20 17 ammunitions (HS Sections 16–19) 38 26 29 20 10% 16 17 10 11 0% 2 5 Micro Small Medium Large Micro Small Medium Large Exporting Importing 3 or fewer 4–12 per year 12+ times Don't know Note: Due to rounding to the nearest whole number, totals may exceed or be less than 100 percent. 22 Destination and Origin ◾ Looking at import origins, the majority of importers (92 percent) source goods from outside of Africa, with a of Traded Goods lower share of importers sourcing goods from Africa (24 per- cent). Within Africa, only nine percent of importing firms source goods from SACU while 21 percent source goods from the rest of Africa (Figure 13). Among customs agents, 47 percent pro- ◾ Africa is an important export market with 65 percent vide services to traders importing from SACU, and 66 percent of traders that export selling goods to destinations within to traders importing from the rest of Africa (Figure 14). Fewer the continent. Further, 85  percent of surveyed customs of the customs agents provide services for imports from agents provide services to traders exporting goods to African beyond Africa (30 percent). The sample of customs agents sur- countries. There are no notable gendered differences in this veyed are, therefore, more oriented towards providing services participation for the surveyed traders or customs agents. to facilitate trade from Africa than from beyond Africa.32 Looking at regions within Africa, a lower share of exporters sells goods to countries within the Southern African Customs Union (SACU) (30 percent) than to the rest of Africa (57 per- cent) (Figure 13), although most of the traders exporting to Figure 14. Provision of Services by Customs Agents to SACU also export to the rest of Africa.31 The majority of export- Traders According to Destination of Exports and Origin ers also export goods beyond Africa (78 percent). of Imports by Gender 100% 90% 85% 83% Figure 13. Share of Traders by Destination of Exports 80% and Origin of Imports by Gender 70% 70% 67% 67% 100% 94% 91% 60% 57% 54% 54% 90% 48% 50% 80% 77% 79% 43% 40% 70% 31% 61% 30% 26% 60% 52% 20% 50% 10% 40% 33% 0% 30% 25% 25% Beyond Beyond Within Beyond Beyond Within Africa SACU, but SACU Africa SACU, but SACU 20% 17% within Africa within Africa 10% 10% 7% Export Services Import Services 0% Women Customs Agents Men Customs Agents Within Beyond Beyond Within Beyond Beyond SACU SACU, but Africa SACU SACU, but Africa Note: Agents can provide services to trade with multiple regions, so the values within Africa within Africa do not sum to 100%. The apparent differences across gender are not statistically significant. Exports Imports Women Traders Men Traders Note: Values depict share of exporters and importers that trade with the specified region. Firms can trade with multiple regions, so the values do not sum to 100%. 31 SACU is a customs union including South Africa, Botswana, Eswatini, 32 One potential explanation for the high share of customs agents providing Namibia and Lesotho. services to traders importing goods from Africa compared to the low share of traders importing goods from Africa is that many smaller customs agents may work regionally, while the fewer larger customs agents manage trade interna- tionally. There is some support for this in the data: the share of micro customs agents providing services to firms importing from Africa is 52 percent compared to 40 percent for medium and large firms. 23 Membership in Trade For women traders, ability to access information elsewhere (23 percent) and other reasons (17 percent) were also men- Associations tioned. For men traders, access to information elsewhere (16 percent) and other reasons (31 percent) are the primary reasons for non-membership. Other reasons provided by respondents include the lack of an industry association to join, ◾ Almost half of the surveyed customs agents (46 per- no need for an association, and that the firm is too small or in cent) report not being members of trade associations, with the start-up process.33 no substantive difference across gender. However, member- For women customs agents, other reasons (27 percent), not ship of trade associations is higher among traders (63 percent needing networking opportunities (18 percent), and ability to for women traders and 66 percent for men traders), although access information elsewhere (18 percent) were also cited as 10 percent of the respondents do not know the firm’s member- reasons for non-membership. Men customs agents reported ship status. not needing networking opportunities (12 percent) and other ◾ More than half of women customs agents compared to reasons (40 percent) for non-membership.34 almost a quarter of men customs agents cited high mem- bership fees as the reason for not being a member of an association. Similarly, 25  percent of women traders com- pared to only six percent of men traders viewed membership fees as too high (Figure 15). Figure 15. Reasons for Not Being a Member of an Association by Gender 100% 90% 80% 70% 60% 55% 50% 40% 40% 31% 30% 27% 25% 23% 24% 16% 17% 18% 18% 20% 12% 9% 10% 6% 7% 4% 0% 0% 0% 0% 0% Membership Can access Other Voice is heard Don't need Membership Can access Other Voice is heard Don't need fees too information even if not a networking fees too information even if not a networking high elsewhere member opportunities high elsewhere member opportunities Traders Customs Agents Women Men 33 These responses are drawn from the responses to open-ended questions. 34 Thirty-six percent of surveyed agents selected other reasons for not being a member of an association but did not provide details. 24 Sources to Finance from official bank loans (14  percent) and personal savings (13 percent), but more women use other sources options such Business Related to as venture capital and equity financing (26 percent). Forty per- cent of women traders do not use any of the above-mentioned sources to finance their business related to cross-border trade. Cross-Border Trade ◾ Sources of finance differ according to firm size, where more traders of large (33  percent) and medium-sized (36  percent) firms obtain finance from official bank ◾ Traders use a range of options to finance their busi- loans compared to small (25 percent) and micro (13 per- nesses (Figure 16). Men traders source finance through official cent) firms (Figure 17). In comparison, more traders of micro bank loans (35 percent), personal savings (26 percent), other (35 percent) and small (30 percent) firms obtain finance from options such as venture capital and equity financing (20 per- personal savings compared to traders of medium (nine per- cent), other loans/grants (19 percent), and relatives/friends (six cent) and large (three percent) firms. Friends and relatives percent). In comparison, fewer women traders source finance are also a relatively important source of finance for traders of micro firms (15 percent) compared to traders of small (six per- cent), medium (three percent), and large (one percent) firms. Figure 16. Sources to Finance Business Related to Further, very few traders of micro firms (six percent) obtain Cross-Border Trade by Gender finance from sources such as venture capital and equity, 100% whereas this is a source of finance for between 22 and 34 per- 90% cent of traders of firms in the other size categories. Finally, 80% the respondent’s years of experience in cross-border trade 70% is also related to their sources of finance, with only 10 per- 60% cent of women and men traders with four or fewer years of 50% 40% experience accessing official loans compared to 32 percent 40% 35% for those with experience of 15 years or more. 30% 26% 26% 26% 20% 20% 19% 20% 14% 13% 10% 6% 6% 0% None of Other Other Official Personal Relatives/ these (e.g. venture loans/ bank loan savings friends capital, equity grants financing) Women Traders Men Traders Note: Respondents could choose more than one category, so totals add to more than 100 percent. Figure 17. Sources to Finance Business Related to Cross-Border Trade by Firm Size 100% 90% 80% 70% 60% 50% 40% 35% 36% 33% 34% 30% 28% 30% 25% 22% 22% 20% 15% 13% 15% 17% 13% 9% 10% 6% 6% 3% 3% 1% 0% Personal savings Relatives/friends Other loans/grants Official bank loan Other (e.g. venture capital, equity financing) Micro (<5) Small (5–19) Medium (20–99) Large (100+) Note: The option ‘None of these’ has been excluded from the figure as there is no association with the size of the firm. 25 Container ship leaving the port of Cape Town © Shutterstock/Chris Troch 3 Trade Facilitation-Specific Findings The general findings of the survey show that cross-border trade firms vary by firm size, main product-traded, gender of Moving Goods and manager/owner, years of experience in cross-border trade, among others. Findings from the survey confirm international Use of Intermediaries empirical research which shows that the challenges firms face in trading across borders may be associated with these differences in firm characteristics. For example, publication Customs brokers, freight forwarders, and other agents help and availability of information on clearance for exporting and facilitate customs clearance and other import/export pro- importing are ranked highly by small and medium enterprises, cesses and procedures for traders. These service providers while large firms are more concerned with issues relating are known to be knowledgeable of trade regulations and have to transparency of controls and inspections35 The empirical experience with trade supply chains. WTO TFA Article 10.6 stipu- evidence also reveals that while generally all trading firms lates that measures mandating the use of customs brokers gain from improved trade facilitation, the relative effects on shall not be introduced after February 22, 2017 (the date of small and large firms can vary according to the type of trade the agreement’s entry into force). The use of customs agents facilitation measure. For example, information availability in to import goods into, or export goods from, South Africa is destination countries has been shown to benefits both small not mandatory, except for traders physically located outside and large exporters, while other measures like advance ruling, of the country.38 These traders are required to use a registered appeal procedures, and the automation of border formalities in customs agent to conduct cross-border trade into or out of destination countries have been found to favor large exporters.36 the country. Studies also suggest that women-led firms face dispropor- tionately more challenges to cross-border trade compared to Related survey findings include: men-led firms, including lack of knowledge of customs pro- cesses, lack of security at the borders, and corruption such ◾ Almost all traders make use of custom agents for import as payment of bribes.37 or export border processes and procedures, with no differ- ence in usage across men and women traders (92 percent This heterogeneity of how trade facilitation measures impact and 93 percent respectively). Usage of customs agents does firms informs the analysis of the survey data. This section pres- not differ substantially across firm size or major industry in ents trade facilitation-specific findings from the survey, focus- which the firm trades. However, firms that import make greater ing on how these challenges vary by firm size and gender of use of customs agents (97  percent) than firms that do not the respondent. import (87 percent). A key implication of these findings is that the experiences and challenges faced by traders and customs agents in trading across borders differ. Few traders conduct the trade them- selves, or go to the border regularly, whereas customs agents have more direct experience in navigating the customs pro- cesses and procedures required to move goods across borders. 35 Javier López González and Silvia Sorescu, “Helping SMEs Internationalise 38 In accordance with section 59A of the Customs and Excise Act No. 91 of Through Trade Facilitation.” OECD Trade Policy Papers, No. 229. OECD Publishing, 1964 (the Customs & Excise Act), no person may import goods into, or export Paris, 2019. goods from, the Republic of South Africa unless that person, except a traveller, is registered as an importer or exporter; and is represented by a registered 36 Lionel Fontagné, Gianluca Orefice, and Roberta Piermartini, “Making Small agent, in the case of an importer or exporter not located in the Republic. See Firms Happy? The Heterogeneous Effect of Trade Facilitation Measures,” https://www.gov.za/documents/customs-and-excise-act-31-jul-1964-0000 Review of International Economics 28, no. 3 (2020): 565–598. 37 Kate Higgins, Gender Dimensions of Trade Facilitation and Logistics: A Guidance Note, Washington DC: World Bank. 27 ◾ The main benefits of using customs agents as high- Figure 18. Reasons for Using Customs Agents by Gender lighted by traders are organizing and presenting the of Trader paperwork (70  percent), providing technical knowledge 100% to address complex procedures/regulations (68  percent women traders, 71 percent men traders), and speeding up 90% the process (60 percent women traders, 63 percent men 80% 71% traders) (Figure 18). 70% 70% 70% 68% 63% 60% 60% Other key reasons for using customs agents provided in the 50% open-ended responses by the traders include: 40% 38% 30% ◾ Customs agents have contacts and wide networks 30% 24% in international markets enabling firms to use the same 20% 19% 15% customs agent in multiple countries. 10% 6% 0% ◾ Communications and access to shipping lines and Organise Provide Speed Handle Avoid Cheaper containers. paperwork technical process payments safety knowledge of official issues at fees border ◾ Expertise, knowledge of customs laws and processes, and a relationship with customs. Women Traders Men Traders ◾ Required by law, for example, foreign-based importers or exporters are required to be represented by a regis- technical knowledge than traders of small and micro firms tered customs agent. (62 and 61 percent, respectively). Further, more traders of medium-sized firms (83  percent) use customs agents to ◾ There are several associations between trade firm size organize paperwork than traders of large (56 percent), small and their reasons for using customs agents (Figure  19). (70  percent), and micro (61  percent) firms. Traders of micro More traders of medium-sized and large-sized firms (82 and and small firms do not differ from the average trader across all 76  percent, respectively) use customs agents to provide firms in their reasons for using customs agents.39 Figure 19. Reasons for Using Customs Agents by Firm Size and Gender of Trader 100% 90% 82% 83% 80% 76% 69% 70% 70% 62% 60% 61% 62% 61% 60% 56% 56% 49% 50% 40% 31% 30% 30% 27% 27% 22% 20% 17% 13% 13% 13% 12% 8% 10% 0% Speed process Provide technical Organise Cheaper Handle payments Avoid safety issues knowledge paperwork of official fees at border Micro (<5) Small (5–19) Medium (20–99) Large (100+) 39 Associations between reasons for use of customs agents and whether the firm was an exporter or an importer were also assessed, but no statistically sig- nificant relationships were found. 28 ◾ The main services provided by the customs agents are customs documentation services (92 women customs Access to and agents, 94 percent men customs agents), transport ser- vices (71 percent women, 74 percent men), warehousing Understanding of Official services (54 percent women, 50 percent men), payment services (21 percent women, 33 percent men), and insur- Border Regulations ance (17  percent women, 24  percent men) (Figure  20). There are no distinctive differences across size, gender, age, and years of experience with respect to services provided by and Procedures the customs agents, with the exception of warehousing and transport services. Warehousing services are more frequently Challenges in accessing and understanding official informa- offered by large (90 percent) and medium-sized (73 percent) tion on border regulations and procedures raise costs of customs agent firms compared to small (48  percent) and cross-border trade. Improving the availability and publication micro (29 percent) customs agent firms. Transport services are of information on customs processes in an easy-to-under- more frequently provided by the large (100 percent), medium stand language, as well as dissemination of such information, (73  percent), and small (80  percent) customs agent firms including through consultations, are shown to be important than the micro (57 percent) firms. trade facilitation measures to improve participation by women traders and traders of small firms in cross-border trade.40 WTO TFA Article 1 covers publication and availability of informa- Figure 20. Main Services Customs Agents are Hired tion, including the prompt publication of general trade-related for by Gender information in a non-discriminatory and easily accessible 100% manner, as well as publication of practical guides, forms and 94% 92% documents, relevant trade laws, and enquiry contract points 90% on the internet. 80% 74% 71% 70% Related survey findings include: 60% 54% 50% 50% ◾ A high share of surveyed traders report challenges in 40% obtaining information on official regulations and proce­ 33% dures related to cross-border trade. Only 24 percent of 30% 24% 21% women traders and 35 percent of men traders responded that 20% 17% all information is easy to find, with these shares not differing 10% substantially across firm size. Among the surveyed customs 0% agents, 22 percent find all information easy to find, with no Customs Transport Warehousing Payments Insurance major differences across firm size or years of experience in documen- services cross-border trade. tation Women Customs Agents Men Customs Agents 40 International Trade Centre (ITC), Unlocking Markets for Women to Trade (Switzerland: International Trade Centre, 2015). World Bank and World Trade Organization, Women and Trade: The Role of Trade in Promoting Gender Equality (Washington DC: World Bank, 2020); Javier López González and Silvia Sorescu, “Helping SMEs Internationalise Through Trade Facilitation.” OECD Trade Policy Papers, No. 229. OECD Publishing, Paris, 2019. 29 Figure 21. Challenges Traders Faced when Looking for Information on Official Border Regulations/Procedures by Gender 100% 90% 80% 70% 60% 50% 45% 40% 34% 34% 30% 32% 28% 29% 30% 24% 20% 10% 6% 2% 0% Government information Non-centralised Not all agencies have Not all agencies keep Unresponsive mechanisms not cross-border trade comprehensive information up to date government websites user friendly information information available or enquiry points Women Traders Men Traders ◾ More women traders find access to information chal- ◾ Half of the surveyed women customs agents compared lenging because government information mechanisms to 31 percent of men customs agents report that access to are not user-friendly (45 percent women traders, 34 per- information is challenging because not all agencies have cent men traders) (Figure 21). Almost a third of all traders also comprehensive information available (Figure 22). Men cus- noted that cross-border trade information is not centralized toms agents find access to information challenging because (32  percent of traders) and not available from all agencies government information mechanisms are not user-friendly (30  percent). In addition, agencies failing to keep all infor- (43 percent men customs agents, 29 percent women customs mation up to date is mentioned as a challenge to accessing agent) and because cross-border information is not centralized information (26 percent). Very few traders (four percent) find (37 percent men traders, 21 percent women traders). Close to unresponsive government websites or enquiry points a chal- a third of customs agents also note that not all agencies keep lenge to obtaining information. cross-border regulation/procedure information up to date. Figure 22. Challenges Customs Agents Faced when Looking for Information on Official Border Regulations/Procedures by Gender 100% 90% 80% 70% 60% 50% 50% 43% 40% 37% 31% 33% 30% 29% 30% 21% 20% 10% 0% 0% 0% Not all agencies have Not all agencies keep Government information Non-centralised Unresponsive comprehensive information up to date mechanisms not cross-border trade government websites information available user friendly information or enquiry points Women Customs Agents Men Customs Agents 30 Figure 23. Share of Respondents that Find Regulations of women customs agents and 36 percent of men customs Difficult to Understand by Gender agents report that they do not understand the regulations and processes. 100% 90% ◾ Personal networks and customs agents are the main 80% sources of information on border processes and regu- 70% lations for traders, while government websites/official communications are the most common source of infor- 60% mation for surveyed customs agents. A slightly higher share 50% 45% of women traders (72  percent) use personal networks and 40% 36% customs agents as sources of information compared to men 29% 29% 30% traders (66 percent) (Figure 24). Thirty-eight percent of traders source information from government websites/official com- 20% munication, while most customs agents (72 percent) obtain 10% information from this source. A low share of traders (10 percent) 0% and customs agents (29  percent) obtain their information Traders Customs agents from government officials at border points, which corre- Women Men sponds with the low numbers of firms that regularly visit the border (Figure  25). Traders and customs agents also make use of online non-government websites (19 percent traders, 33  percent interviewed customs agents), with more inter- ◾ More women traders (45  percent) find the regula- viewed male customs agents (41 percent) making use of this tions and processes difficult to understand compared to source compared to female customs agents (17  percent). men traders (29 percent) (Figure 23). Traders with four or Other sources of information include radio, TV, and newspa- fewer years of experience are also more affected (43 per- pers (fewer than six percent in each case), and industry asso- cent) compared to traders with 15 or more years of experi- ciations (23 percent for traders and 36 percent of interviewed ence (28 percent). Among the customs agents, 29 percent customs agents). Figure 24. Source of Information for Traders on Official Border Regulations/Procedures by Gender 100% 90% 80% 72% 70% 66% 60% 50% 39% 40% 36% 30% 23% 23% 21% 20% 17% 10% 11% 10% 5% 4% 0% Personal networks/ Government Trade Online from Government Radio/TV/ customs agents/ websites/official community/ non-government officials at newspapers brokers/freight communication industry websites, border forwarders associations social media Women Traders Men Traders 31 Figure 25. Source of Information for Customs Agents on Official Border Regulations/Procedures by Gender 100% 90% 80% 71% 72% 70% 59% 60% 54% 50% 42% 41% 40% 38% 35% 30% 24% 20% 17% 10% 4% 6% 0% Government Personal networks/ Government officials Trade Online from Radio/TV/ websites/official customs agents/ at border community/industry non-government newspapers communication brokers/freight associations websites, forwarders social media Women Customs Agents Men Customs Agents Consultation major differences in the number of firms consulted by gender. Among customs agents, more micro (68 percent) and small Mechanisms (48 percent) customs agents are not consulted compared to medium (15 percent) and large (33 percent) customs agents. In addition, years of experience in cross-border trade matters: more traders (72 percent) and interviewed customs agents Mechanisms whereby stakeholders are consulted on any (100 percent) with zero to four years of experience are not changes to official border processes and procedures can consulted compared to traders (49  percent) and customs alleviate misinformation regarding planned changes related agents (40 percent) with 15 or more years of experience. to their cross-border trade activities and can improve com- pliance. Equally important is a consultation mechanism that ◾ The majority of traders (53 percent) and customs agents takes into consideration the feedback provided by stakeholders (59 percent) that are consulted through trade and industry before any changes are implemented. Article 2.2 of the WTO associations (Figure 26). Government-managed public con- TFA calls regular consultations between border agencies, sultations and notice-and-comment mechanisms are the traders, and other stakeholders. Article 2.1 states that stake- second most common mode of consultation reported by con- holders must be given an opportunity and time to comment sulted traders (49 percent) and customs agents (41 percent). on proposals for new or amendments to trade-related regula- Customs agents are also an important mode of consultation tions and customs law. for traders (34 percent), reflecting the high use by traders of customs agents to conduct cross-border trade. Related survey findings include: ◾ Majority of consulted trading firms do not feel that ◾ Most traders (76 percent) and customs agents (58 per- their feedback is taken into consideration (51  percent cent) reported that they are not, or only irregularly, con- traders). Forty-one percent customs agents share this per- sulted or have been provided opportunities to submit ception. There is also a high level of uncertainty among firms comments on legislative changes to official cross-border on whether their feedback is even considered (38 percent of trade processes and procedures (Figure 26). There are no traders and 33 percent customs agents). 32 Figure 26. Methods of Consultation on Changes to Official Trade Processes and Procedures 100% 90% 80% 70% 59% 60% 53% 49% 50% 41% 40% 34% 30% 22% 19% 20% 10% 10% 0% Through a trade/ Through general government Through agents (customs Other industry association managed public consultation, brokers, freight forwarders, notice-and-comment lawyers, etc.) mechanism Traders Customs Agents Note: Too few observations are available to analyze the responses by gender, size, years of experience or industry of most traded product. National Trade Related survey finding include: Facilitation Committee ◾ Awareness of the South African NTFC among traders is low, with only 15 percent of women and 8 percent of men traders being aware of the existence of the NTFC. This share is higher among the customs agents with 25 per- WTO TFA Article 23 stipulates that each WTO Member should cent of women and 28 percent of men indicating that they establish and/or maintain a national committee on trade were aware of the existence of the NTFC, with no major dif- facilitation or designate an existing mechanism to facili- ference across gender (Figure 27). However, more traders of tate domestic coordination and implementation of the WTO TFA. The South African National Trade Facilitation Commit- tee (NTFC) was established in 2016 and comprises of several Figure 27. Awareness of Existence of the NTFC government departments and agencies.41 Private associa- in South Africa by Gender tions and entities are also represented in the NTFC through 100% the National Economic Development and Labor Council (NED- 90% LAC). NEDLAC acts as a representative for organized labor, 80% business, and community groupings at a national level. The 70% NTFC has a narrow mandate related to supporting the imple- 60% 75 72 85 mentation of two category B provisions of the WTO TFA, i.e., 50% 92 those relating to the National Single Window and Advanced 40% Rulings. The limited mandate does not support collaborative 30% engagement of stakeholders on a broader national trade facil- 20% itation agenda and does not allow the NTFC to position itself 10% 25 28 15 as the coordinating body to drive trade facilitation reforms. 8 0% Women Men Women Men 41 The Department of Trade, Industry and Competition (DTIC); the South African Traders Customs Agents Revenue Services (SARS); the International Trade Administration Commis- sion (ITAC); the Department of Agriculture, Forestry and Fisheries (DAFF); the Yes No National Regulator for Compulsory Specifications (NRCS); the Department of Health (DOH); the Department of Transport (DOT); the Department of Justice and Constitutional Development (DOJ&CD); Home Affairs; the Department of Environmental Affairs (DEA); and the South African Police Services (SAPS). 33 large firms (24 percent) are aware of the NTFC than traders Related survey findings include: of medium (17 percent), small (two percent), and micro firms (eight percent). Awareness is also higher among traders and ◾ Fewer women traders (40 percent) than men traders customs agents with 15 years or more of experience in trading (56 percent) find that border processes are consistently (15 percent for traders, 31 percent of customs agents) com- applied. A further 10 percent of men traders and 13 percent pared to those with four or fewer (seven percent traders, zero of women traders find that border processes are only some- percent agents) and between five and nine years of experi- times consistently applied. The findings vary according to the ence (nine percent traders, 20 percent customs agents). number of times the firm trades with fewer traders that export three or less times per year (21 percent) finding the border pro- cesses consistently applied compared to traders that export 12 or more times per year (67 percent). Many traders (23 per- cent) are also unsure whether the processes are consistently Application of Border applied. Processes42 ◾ Of those traders finding border processes inconsis- tently applied, the majority find compliance procedures and documentation, such as phytosanitary require- ments (46 percent men, 56 percent women), clearance of Consistency in application of border procedures by customs export/import declarations (49 percent men, 54 percent authorities reduces uncertainty for firms trading across bor- women), cargo inspection procedures (53 percent men, ders, thus reducing waiting times and costs associated with 51 percent women) as being problematic (Figure 28). Fewer delays. Further, consistency in application of border procedures traders face problems with the consistency in the application plays an important role in enabling firms to plan stock levels, of cargo handling services (7 percent women, 14 percent men), reducing the need to hold large inventories and structure pro- refunds and drawback processes (5 percent women, 13 per- duction processes around accessing key intermediate inputs, cent men), and transit/inbond-related processes (8 percent as is required of firms integrated into global value chains. women, 1 percent men). Figure 28. Border Processes and Procedures that Traders Find are Not Consistently Implemented by Gender 100% 90% 80% 70% 60% 56% 54% 53% 49% 51% 50% 46% 40% 30% 25% 20% 14% 13% 8% 7% 10% 5% 2% 1% 0% Compliance Clearance of Cargo inspection Process for Transit/ Process of refunds Cargo handling procedures and export or import procedures payment of fees/ inbond-related and drawbacks services documentation declarations duties, etc. processes Women Traders Men Traders Note: The percentage values reflect the number of traders selecting each item as a share of those that declare that border processes and procedures are not or sometimes consistently applied. 42 For information on the customs modernisation programmes implemented by SARS from 1980 see https://www.sars.gov.za/customs-and-excise/about- customs/modernisation/. 34 ◾ Of those traders finding border processes inconsis- ◾ Of those customs agents finding border processes inconsis- tently applied, a quarter of women traders find payment tently applied, the majority identify compliance procedures and of fees/duties the processes inconsistently applied in documentation (64 percent) as not being consistently applied, comparison to only two percent of men traders. followed by cargo inspection procedures (33 percent) and clear- ance of export/import declarations (22 percent) (Figure 29). Figure 29. Border Processes and Procedures that Customs Agents Find are Not Consistently Implemented 100% 90% 80% 70% 64% 60% 50% 40% 33% 30% 22% 20% 17% 11% 11% 10% 6% 0% Compliance Cargo inspection Clearance of Cargo handling Process for Process of Transit/ procedures and procedures export or import services payment of refunds and inbond-related documentation declarations fees/duties, etc. drawbacks processes Note: The percentage values reflect the number of customs agents selecting each item as a share of those that declare that border processes and procedures are not or sometimes consistently applied. There are too few observations to analyze the responses by gender. 35 Border Post ◾ The restrictiveness of border post operating hours differs across land borders, seaports, and airports. Over Operating Hours half of the traders (67 percent) and customs agents (62 percent) use seaports as their main channel for cross-border trade, with 12 percent of traders and 33 percent of customs agents finding that seaport operating hours restrict their ability to Restrictive border post operating hours or mismatches between trade (Figure  30). With respect to land borders, 63  percent foreign and domestic border post opening hours add delays of traders and 25 percent of customs agents regard border and costs to crossing borders. This can have a negative impact post operating hours as restrictive. Looking at airports, very few on participation by firms in global supply chains, affecting firms traders (one percent) find operating hours restrictive in con- that use imported intermediate goods in production as well trast to 40 percent of customs agents. as exporters of both final and intermediate goods. Delays associated with crossing borders have been shown to raise transport costs and reduce trade flows, with the effects Figure 30. Share of Firms Facing Restrictive Border Post stronger on time-sensitive goods, such as perishable agri- Operating Hours cultural products.43 100% 90% Related survey findings include: 80% 70% 63% ◾ The majority traders (77 percent) and customs agents 60% (67 percent) do not find that border post operating hours 50% restrict their ability to trade.44 For those traders and cus- 40% toms agents that find border post operating hours restric- 40% 33% tive, more identified differences in operating hours of border 30% 25% agencies within the country (60 percent agents, 48 percent 20% 12% traders) to be the major source of the problem, rather than 10% different operating hours at neighboring border post (20 per- 1% 0% cent agents, 37 percent traders). There are no distinctive dif- Land Sea port Airport Land Sea port Airport ferences in responses across gender, firm size, and years of border border trading experience. Traders Customs Agents 43 Simeon Djankov, Caroline Freund, and Cong. S. Pham, “Trading on Time”, The Review of Economics and Statistics 92, no.1 (2010): 166–173. For the impact of delays on trade flows in Southern Africa see Anna Ngarachu et al., “Border Economies: Linkages to the Development of Trade Corridors and Regional Value Chains in SADC”, CEG Africa Discussion paper (November 2018). 44 The operating hours of the different border posts in South Africa vary with some operating for 24 hours (e.g., BeitBridge) and others fewer hours per day (e.g. 06h00–22h00 for Grobler’s Bridge). For further details on border post operating hours see: https://www.sars.gov.za/customs-and-excise/customs- offices-and-contacts/border-posts/ 36 Time to Release Goods demurrage charges, and charges for the use of storage space on terminal grounds, inside a warehouse or at the container yard. Regular time release studies with publication of average times to release goods, as reference in Article 7.6 of the TFA, Delays in releasing goods from customs after submission of is a useful tool for traders to plan production, stock levels, and customs declarations can further increase the time required transportation services involving cross-border trade activities. for goods to cross borders. The time for goods to be released depends on the efficiency, effectiveness, and synchronization Related survey findings include: of the various steps in the customs process, including com- pliance (electronic processing of documentation, revenue ◾ Twenty-seven percent of men traders and 20 percent collection, manual compliance inspections) and enforcement of women traders report that customs take three or more should compliance requirements not be met. Generally, some days to release their goods for export after submission of of these functions (electronic processing of documents, pay- the customs declaration (Figure 31). Higher shares of inter- ments) can be performed prior to arrival at the border, whereas viewed women (30  percent) and men (47  percent) traders others (manual inspections of cargo, inspections of support- report that it takes three or more days to clear imports (Fig- ing documentation) occur at the border. Delays in releasing ure 31). Only 13 percent of exporting and 11 percent of importing goods from customs can result in additional costs, such as trade firms report having their goods cleared within half a day. Figure 31. Time for Exports and Imports to be Released from Customs after Submission of Customs Declaration by Gender Exports 100% 90% 80% 70% 63% 63% 60% 50% 40% 27% 30% 25% 25% 26% 18% 19% 20% 20% 15% 17% 16% 15% 12% 9% 8% 8% 10% 6% 4% 4% 0% <0.5 day >0.5 day<1 day 2 days 3+ days Not sure Women Traders Men Traders Women Customs Agents Men Customs Agents Imports 100% 90% 80% 70% 60% 56% 48% 47% 50% 40% 30% 30% 27% 22% 21% 22% 20% 19% 20% 16% 15% 12% 12% 11% 8% 9% 10% 4% 2% 0% 0% <0.5 day >0.5 day<1 day 2 days 3+ days Not sure Women Traders Men Traders Women Customs Agents Men Customs Agents 37 ◾ The experiences of surveyed customs agents contrast sharply with those of traders, with high shares of customs Detention of Goods agents having goods cleared within half a day (63 percent for exports and 53 percent for imports (Figure 31). Differ- ences between traders and customs agents are also evident Goods may be detained at the border post if they are prohibited in the number of firms that do not know how long it takes to goods, counterfeit goods, or restricted goods for which the clear goods through customs. Twenty-six percent of traders appropriate permit, certificate, or letter of authority from the do not know how long it takes to clear goods through customs relevant government department is not provided.45 Further, for exports (15 percent for imports), compared to three to four goods may be detained if documentation is missing, there are percent of customs agents. This difference may reflect that queries on the classification and/or valuation of the product, customs agents are more familiar with clearing goods through or additional information is required. Random checks of trans- customs, while the responses of traders may include the entire port vehicles and cargo can also lead to detention of goods process, including for the customs agent services and for the for inspection purposes. The effect of detainment can cause logistic arrangements for receiving the cargo. With respect to delays¸ raise costs, and uncertainty for cross-border traders gender, little differences were found among customs agents and create opportunities for extraction of speed money to clearing exports, while for clearance of imports more women facilitate release of goods. Best practice is to promptly inform customs agents (22 percent) had goods cleared in two days traders that their goods have been detained for inspection as compared to men customs agents (2 percent). covered in Article 5.2 of the TFA, thus reducing uncertainty and accelerating the process whereby firms are able to resolve the problems leading to the detention of the goods. In the open-ended questions, several respondents note that customs clearance times are very quick because of the elec- tronic submission of documents. Other respondents note Related survey findings include: that delays can be long when there is a customs query and if goods are inspected at the border. ◾ Majority of firms that had goods detained were promptly informed of the detention (Figure 32). Ninety-two percent of women and 85 percent of men customs agents have had goods detained, while almost half of the trade firms have Figure 32. Share of Firms Having Goods Detained, and Share Promptly Informed 100% 92% 90% 85% 85% 81% 80% 76% 73% 70% 60% 50% 45% 47% 40% 30% 20% 10% 0% Goods detained Promply informed when goods detained Women Traders Men Traders Women Customs Agents Men Customs Agents 45 For a list of prohibited goods and restricted goods, including the required permits or certificates, see the South African Revenue Services (SARS) web site: https://www.sars.gov.za/customs-and-excise/prohibited-restricted- and-counterfeit-goods/. The SARS list of customs status response codes that provide details on possible reasons for detention of goods can be obtained from https://www.sars.gov.za/wp-content/uploads/Docs/CandE/Status- Code-Chart-October-2019.pdf. 38 had goods detained (47 percent for men traders and 45 per- tine and animal health (36 percent of women compared cent for women traders). In most cases, traders (79 percent) to 13 percent of men). Other common reasons cited by cus- and customs agents (78 percent) were promptly informed that toms agents and traders for detention of their goods include their goods had been detained. Seven percent of traders and inspections of trucks and cargo related to searches for illicit 17  percent of interviewed customs agents have had goods goods/drugs, ghost entries (goods declared but not actually detained without being promptly informed. For the firms not traded), random checks, and reference pricing queries. promptly informed, this occurred less than half of the time for most traders (97 percent) and over the half customs agents ◾ Firms that face challenges in accessing information (62 percent). on official regulations and procedures appear to be asso- ciated with the likelihood of their goods being detained. ◾ Of those traders and customs agents that had goods For example, customs agents that experience problems with detained, more men relate detention to problems with plant quarantine/animal health are more likely than other customs declaration, classification, and valuation, with customs agents to report that they face challenges in obtaining 60 percent of men traders and 63 percent of men customs information as a result of not all agencies having comprehen- agents affected compared to 35 percent of women traders sive information (64 percent vs. 33 percent) and because they and 50 percent women customs agents (Figure 33). do not keep information up to date (64 percent vs. 19 percent). Lack of comprehensive information by all agencies is also asso- ◾ Of the customs agents that had their goods detained, ciated with more customs agents (60  percent) and traders more women cited problems with licenses, permits, cer- (47 percent) experiencing detention of goods because of prob- tificates of origin or authorizations to import (55 percent lems with licenses, permits, and certificates than other cus- women compared to 28 percent men) and plant quaran- toms agents (28 percent) and traders (27 percent). Figure 33. Reasons for Detention of Goods by Gender Reasons for detaining of goods 100% 90% 80% 70% 63% 60% 60% 55% 50% 50% 40% 35% 36% 28% 30% 23% 20% 17% 13% 10% 9% 8% 9% 10% 5% 0% 0% Customs Licenses, Other Plant Customs Licenses, Other Plant declaration/ permits, entities quarantine/ declaration/ permits, entities quarantine/ classification/ certificates of animal health classification/ certificates of animal health valuation origin valuation origin Traders Customs Agents Women Men Note: The percentage values reflect the number of traders customs agents selecting each item as a share of those that have had goods detained. 39 Penalties, Grievance Figure 34. Clear and Easy to Access Guidance and Explanations on Penalties and Making Official Appeals Procedures, and Payment 100% 90% of Speed Money 80% 70% 63% 60% 51% Traders that have their goods detained or disagree with an 50% 46% 43% administrative decision by customs have the right to appeal 38% 40% the decision according to WTO TFA Article 4. To appeal a decision 30% 32% 29% 30% 26% according to the SARS guidelines, the person is first required 23% to consult directly with the customs officer to resolve the 20% 11% uncertainties, but a formal internal administrative appeal is 10% 8% also permitted.46 This must be submitted within 30 days of 0% the decision, and customs is expected to provide reasons for Yes No Don't know a decision within 45 days from the date of acknowledgement Women Traders Men Traders of receipt of the appeal. The trader or customs agents has Women Customs Agents Men Customs Agents further recourse to appeal through the Alternative Dispute Resolution process. The existence of an effective appeal pro- cedure enables a better and fair enforcement of the rule of law at the border and reduces uncertainty on the possibility Figure 35. Effectiveness of Formal Complaints/ of being rejected at the border.47 Grievance Procedures in Addressing Concerns 100% Related survey findings include: 90% 80% ◾ Fewer women traders (23 percent) than men traders (30 percent) find the guidance and explanations on penal- 70% ties and how to make an official appeal easy to access from 60% 51% government entities, although more traders (51 percent of 50% women and 38 percent of men) simply do not know whether 41% 40% 34% the information on penalties and appeal processes is easy to 29% 30% access (Figure 34).48 Among agents, more women (63 percent) 22% compared to men (46  percent) find the relevant information 20% 12% on penalties and making an official appeal easy to access. 10% 7% 2% 0% ◾ Of those customs agents that find explanations on Fair and Have not Nothing Unofficial consistent used changes methods faster penalties/appeals easy to access from government entities, the majority (51 percent) do not find the formal complaint Traders Customs Agents or grievance procedures effective (Figure 35). Of the traders Note: Responses are not presented according to gender given low numbers. that find explanations on penalties/appeals easy to access Sample only includes firms that stated that the guidance and explanations on from government entities, 41 percent find the formal griev- penalties was easy to access from government entities. 46 For further details see Appeals available from SARS (Online: https://www. sars.gov.za/customs-and-excise/offences-penalties-and-disputes/appeals/). 47 Lionel Fontagné, Gianluca Orefice, and Roberta Piermartini, “Making Small Firms Happy? The Heterogeneous Effect of Trade Facilitation Measures,” Review of International Economics 28, no. 3 (2020): 565–598, 2020. 48 Forty-six percent of respondents that have not had goods detained or were promptly informed “did not know” whether the information on penalties and appeal processes is easy to access. These traders are more likely to not to know than other firms, indicating they may not know because they have not had to use the processes. 40 ance processes fair and consistent, 22  percent claim that have been shown to be advantageous for small and medium- nothing changes, while 29 percent have not used the formal sized companies.50 complaint/grievance procedures to address their concerns. SARS introduced electronic customs declarations via the ◾ Few of the interviewed firms appear to use unofficial Electronic Data Interchange (EDI) system in 2000, with elec- methods such as payments of speed money to resolve tronic payments introduced at a similar time. However, it is complaints. For example, only seven percent of traders and not mandatory for firms to submit declarations to customs two percent of agents state that unofficial methods are faster to electronically as hard copy documents are accepted at the resolve complaints, while one percent of traders and 12 per- customs branch. Upon receipt of hard copy documents, customs cent of customs agents claim to have paid speed money to creates the electronic submission into the system. In practice, government officials or private agents to facilitate the release most declarations are submitted electronically. For payments, of goods in the prior year. The number of those who claim to traders and customs agents have several options to pay have paid speed money is very low, so it is not possible to electronically (through the SARS eFiling channel, bank transfer, precisely assess the frequency in which speed money is paid, SARS branches, commercial banks), and they are also able to or the value of these payments as a percentage of the value pay using credit cards or cash at dedicated payment kiosks in of goods traded.49 the customs area.51 Related survey findings include: ◾ More surveyed customs agents compared to traders Electronic Submissions are aware that all land, sea, and airport border entities/ agencies have systems that accept electronic forms and of Declaration and documents. For example, sixty-five percent of customs agents report that it is possible to submit documents electronically Electronic Payments compared to 48 percent of traders. ◾ Uncertainty regarding electronic submission of docu- mentation is high among traders, with 24 percent women Article 10.4 of the WTO TFA stipulates that WTO Members shall and 26 percent men simply not knowing whether paper forms endeavor to establish or maintain a Single Window and to are submitted or whether documents can be submitted elec- the extent possible, use information technology to support tronically (compared to less than one percent of customs the Single Window. The introduction of electronic document agents). A notable share of customs agents (36 percent) and submission systems can benefit traders by simplifying cus- traders (27 percent) still submit some paper forms and docu- toms processes and procedures and reducing the amount ments to customs or non-customs agencies. The incidence of of documentation required. This results in faster clearance submitting paper to non-customs agencies is higher (32 per- times, reduced submission errors and costs related to paper- cent) among traders that trade mainly in agriculture products. work and procedures, transparent and predictable processes, While customs is fully electronic, other cross-border regula- and less bureaucracy for the firms. Electronic payments also tory agencies (CBRAs) may still require or have the option to reduce the need for traders to use cash for payments, and manually submit documentation.52 In other cases, e.g. phy- thus the risk of theft and threats to personal safety. The gains tosanitary certificates for the importation of controlled goods, from implementing electronic submissions and payments the documentation may be required at the border.53 49 The responses by the agents indicate that of those that pay speed money 51 Direct correspondence with SARS. For further details Electronic Data to government officials, 38 percent pay half of the time or more frequently to change available from SARS (Online: https://www.sars.gov.za/customs- Inter­ release goods, with 67 percent noting that payments make up less than five and-excise/registration-licensing-and-accreditation/electronic-data- percent of the value of goods. interchange-edi/). 50 Javier López González and Silvia Sorescu, “Helping SMEs Internationalise 52 For example, permits for freight road transport operators can be applied for Through Trade Facilitation.” OECD Trade Policy Papers, No. 229. OECD Publishing, both electronically or in-person from the Cross-Border Road Transport Agency Paris, 2019. (Online: https://www.cbrta.co.za/permits). 53 See Apply For a Plant Import Permit from the South African Government (Online: https://www.gov.za/services/export-permits-import/phytosanitary- permit#Forms) 41 Figure 36. Can Official Fees be Paid Electronically in a Single Payment? Safety and Security 100% 9 90% 25 In visiting the borders, safety and security issues may arise 80% 40 from various forms of harassment, including verbal harass- 48 70% 40 ment, intimidation, physical violence, and sexual harassment, among others. These behaviours create and foster hostile or 60% 33 offensive environments that may impact a trader’s ability or 50% 19 desire to undertake trade. 16 40% 30% Related survey findings include: 51 20% 41 42 36 10% ◾ The surveyed trading firms and customs agents do not regularly have to visit the border (land border, seaport, 0% Women Men Women Men or airport) to undertake import and/or export pro - cesses and procedures in South Africa. Only ten percent of Traders Customs Agents women traders and six percent of men traders regularly visit Yes No Don't know the border (Figure 37). The share of customs agents that visit the border regularly is higher (32 percent), with more men customs agents (37  percent) visiting regularly than ◾ More customs agents are aware that all official fees can women customs agents (21 percent). By firm size, regard- be paid electronically in a single payment (i.e., not separate less of gender, customs agents of large firms visit the border payments by agency) than traders.54 For example, 48 percent regularly compared to 64 percent for micro and 60 percent of women traders and 40 percent of men traders compared to for small firms.56 nine percent of men customs agents and 25 percent of women customs agents report that that they simply do not know that all official fees can be paid electronically in a single payment Figure 37. Share of Firms that Visit the Borders Regularly (Figure  36). Looking at the other responses, fewer than half 100% of customs agents (42 percent women, 51 percent men) and traders (36 percent women, 41 percent men) report that all 90% official fees can be paid electronically in a single payment.55 80% Thirty-eight percent of customs agents indicated that it was 70% 63 not possible to pay fees electronically in a single payment. 60% 79 90 94 50% 40% 30% 20% 37 10% 21 10 6 0% Women Men Women Men Traders Customs Agents Yes No 54 This survey question asks whether all official fees can be paid electronically 56 Traders and agents typically are not required to be in attendance at the border in a single payment. It cannot be used to infer whether firms actually pay all for their goods to be cleared by customs because documentary inspections are official fees in a single payment, or whether they are aware that some fees coordinated centrally and electronically. Where a physical inspection of a ship- can be paid electronically. ment is required, the customs agent will generally coordinate any necessary follow-up with inspectors on behalf of the trader. 55 While fewer women traders (36 percent) and women agents (42 percent) report that all official fees can be paid electronically in a single payment compared to men (41 and 51  percent, respectively), the difference is not statistically significant. 42 ◾ Although the sample of the customs agents and trad- officials and police (15 percent of customs agents and 12 per- ers that regularly visit the border is small,57 a high pro- cent of traders) being the other common reasons (Figure 39). portion of them have felt unsafe. All the women customs Among those that have experienced harassment, intimidation agents and 38 percent of the men customs agents that visit is the more commonly experienced harassment (23 percent the border regularly have felt unsafe (Figure 38). Among traders, of customs agents and 23 of percent traders), followed by 65 percent of men traders and 38 percent of women traders verbal harassment or threats (15 percent of customs agents). have felt unsafe. ◾ The main perpetrators of this harassment appear to be ◾ The main reason both customs agents (23 percent) and border officials for all women customs agents and 78 per- traders (18  percent) have felt unsafe is that the border cent of men customs agents. Police are also cited as perpe- lacks clear organization, with overcrowding (19 percent of trators by 27 percent of the customs agents and 42 percent customs agents and 11 of percent traders) and harassment by of the traders that experienced harassment at the border. Figure 38. Share of Traders and Customs Agents Figure 39. Reasons for Feeling Unsafe at the Border Reporting to have Felt Unsafe when Visiting the Border 100% 100% 90% 100% 80% 90% 70% 80% 60% 70% 65% 50% 60% 40% 50% 38% 38% 30% 40% 23% 20% 18% 19% 30% 15% 15% 12% 11% 10% 8% 10% 8% 20% 5% 2% 0% 10% No clear Harassment Too Harassment Other Not clear 0% organization by officials crowded by others reason who border Women Men Women Men or police officials are Traders Customs Agents Traders Customs Agents 57 Only 24 agents and 17 traders regularly visited the border. Of these, five women agents, seven men agents, and five men and two women traders have felt unsafe. 43 Main Challenges logistics and transport services a severe challenge.58 Twen- ty-four percent of traders find bureaucratic and burdensome import/export processes a severe challenge. Lack of capac- ity to increase production, time management, lack of knowl- The survey asked respondents to rank the severity to which edge of international markets, and access to finance pose certain factors pose a challenge to the firm’s ability to expand less of a challenge to expansion for traders, with fewer than their business in international markets. The respondents 17 percent of traders rating these as the highest challenge. were requested to rate each potential challenge on a scale Among customs agents, access to finance (28  percent of of zero (not a challenge) to five (‘highest’ and ‘severe’ chal- firms), high tariffs (27  percent), and burdensome import/ lenge). Figure  40 presents the proportion of firms that export processes (18 percent) are also identified by the firms selected the option ‘five’ according to each of the potential as severe challenges. challenges affecting the firm’s ability to expand trade in inter- national markets. ◾ Traders of micro and small firms are more severely chal- lenged in further expanding their business in international ◾ The major challenges to expansion of traders into markets than traders of large or medium firms (Figure 41). international markets are (i) expensive and complex For example, over 34 percent of traders that lead micro and transport and logistics services, (ii) high tariffs, and (iii) small firms find bureaucratic and burdensome import/export bureaucratic and burdensome import/export processes processes a challenge, compared to fewer than 13 percent of (Figure  40). Forty percent of women traders and 33  per- medium and large firms. Bureaucratic and burdensome import/ cent of men traders find that high tariffs severely affect their export processes are shown to be the second most challeng- ability to expand trade, while 43 percent of women traders ing issue (after high tariffs) for micro and small firms. This is and 22 percent of men traders find expensive and complex specifically important from a gender perspective, given that a Figure 40. Factors Severely Affecting Traders and Customs Agents Ability to Expand Trade in International Markets 100% 90% 80% 70% 60% 50% 43% 40% 40% 33% 30% 22% 24% 24% 19% 20% 14% 14% 13% 13% 10% 10% 10% 7% 0% Expensive/complex High tariffs Bureaucratic/ Lack of Access to finance Time Lack of production transport & logistics burdensome import/ knowledge of management capacity exportprocesses international markets Women Traders Men Traders 58 The relatively high share of women traders identifying tariffs as a high chal- lenge to expanding their business is consistent with the implicit bias or “pink tariff” that puts women at an economic disadvantage as both producers and consumers as shown by World Bank and World Trade Organization, Women and Trade: The Role of Trade in Promoting Gender Equality (Washington DC: World Bank, 2020) 44 higher share of women respondents lead micro and small firms Traders and customs agents also identified several other (64  percent) compared to men respondents (50  percent). issues posing severe challenges to expanding their business, A higher share of micro and small firms are also more severely including: (i) congestion at border, (ii) inefficient and expen- challenged than large firms with respect to paying high tariffs, sive port services, (iii) availability of air and sea cargo options, lack of access to finance, high transport and logistics costs, lack and (iv) non-tariff barriers covering standards and labeling of productive capacity, and time management. requirements. Figure 41. Share of Traders Facing the Highest Severity of Challenge in Expanding Business to International Markets by Firm Size. 100% 90% 80% 70% 60% 50% 46% 43% 40% 34% 36% 34% 30% 27% 26% 26% 24% 19% 20% 20% 15% 13% 12% 12% 12% 12% 8% 9% 9% 10% 6% 5% 4% 5% 4% 6% 4% 4% 0% High tariffs Bureaucratic/ Access to Expensive/complex Time Lack of production Lack of burdensome import/ finance transport & logistics management capacity knowledge of export processes international markets Micro (<5 employees) Small (5–19 employees) Medium (20–99 employees) Large (100+ employees) Note: Survey respondents were requested to rate their responses to each item according to the scale zero for no challenge to 5 for highest challenge. The figure presents the share of firms selecting 5 for each challenge. 45 Businesswoman in mask walking in Johannesburg’s business district © Pexels/Ono Kosuki 4 COVID-19-Related Findings 46 Maintaining trade flows as much as possible during the (three percent) have less time for work obligations because COVID-19 pandemic and recovery is crucial to limit the nega­tive of increased family care and household obligations, with this impacts of the pandemic on human health and the economy. effect concentrated among women traders that lead small and Trade facilitation measures can contribute to responding to the micro firms at 13 percent and 18 percent, respectively. A higher crisis by expediting the movement, release, and clearance of share (36  percent) of traders in micro and small firms have goods, including goods in transit. During this crisis, imple- experienced less demand for products than traders in medium menting measures contained in the WTO TFA can contribute (30 percent) and large firms (18 percent). Finally, not all firms are to ensuring that trade of critical supplies and essential goods adversely affected by the COVID-19 pandemic. Some surveyed proceeds smoothly and safely, thereby contributing to food traders, more men (14 percent) compared to women (three per- security and the health of citizens. cent), have experienced increases in demand for their product. The survey was conducted during the COVID-19 pandemic The response by customs agents to the impact of the COVID-19 period and therefore, included several questions on impact of pandemic on their ability to provide services is broadly similar the pandemic on cross-border trading firms. to that of traders, with most firms affected by longer clearance times (65 percent), followed by impacts on productive capacity Related survey findings include: (53 percent), less demand for services (40 percent), particu- larly among micro agents (57 percent), and then government ◾ The COVID-19 pandemic has affected the ability of restrictions on exporting/importing (27 percent). almost all surveyed firms to undertake cross-border trade, with only 10  percent of both women and men traders not ◾ The COVID-19 pandemic has had a dramatic negative affected (Figure 42). Traders are affected in several ways, with impact on trade flows, with surveyed women traders and, few differentials across gender and firm size. Fifty-one percent in some cases, smaller trade firms more adversely affected. of traders have experienced longer clearance times for reasons Both men and women traders have experienced declines in such as additional health controls at the South African border. exports and imports, but more women traders (69 percent for Cross-border trade has also been affected by COVID-19-related exports and 68 percent for imports) have experienced these restrictions that impacted production capacity (40  percent), outcomes compared to men traders (51 percent for both exports government-imposed export/import restrictions (36 percent), and imports) (Figure 43). A few traders have seen increases in and less demand for products (32  percent). Very few firms exports and imports during the COVID-19 pandemic, with fewer (three percent) have experienced reduced clearance times due women traders (10  percent for exports and four percent for to simplified processing that were not available prior to the pan- imports) experiencing increases than men traders (20 percent demic. More women traders (nine percent) than men traders for exports and 22 percent for imports). Figure 42. Government export/import restrictions affected trade by Gender, Traders 100% 90% 80% 70% 60% 52% 50% 50% 46% 40% 36% 36% 36% 34% 34% 30% 30% 30% 20% 10% 10% 9% 10% 3% 3% 3% 0% Longer COVID restrictions Government Less demand for No impact Less time More demand Clearance times clearance time affected export/import product/service for work for product/ decreased production restrictions obligations service capacity affected trade Women Traders Men Traders Note: The values presented reflect the percentage of the respondents selecting the option. Multiple options were allowed, as such the sums may exceed 100%. 47 Figure 43. Share of Surveyed Traders and Customs Agents by Gender Experiencing Impacts of COVID-19 Pandemic on Trade Flows 100% 90% 83% 77% 80% 74% 69% 71% 68% 70% 60% 51% 51% 50% 40% 30% 20% 22% 20% 10% 13% 10% 7% 8% 4% 0% 0% Decreased Decreased Increased Increased Decreased Decreased Increased Increased exports imports exports imports exports imports exports imports Traders Customs Agents Women Men ◾ The COVID-19 pandemic has had different impacts and small (80  percent) customs agents are affected than across firm size categories and major product traded. medium (67 percent) and large (60 percent) firms. Looking at More traders of large and medium firms (25  percent) have increases in trade flows, as with traders, few of the customs experienced no impact on exports compared to traders of agents surveyed have experienced increased exports (nine small (18  percent) and micro firms (all firms were affected), percent) and increased imports (five percent). with no difference by gender. The overall decline in imports by women traders is attributable to the high number of women ◾ In response to the COVID-19 pandemic, surveyed traders led micro (60  percent) and small (90  percent) trade firms have increased the number of hours devoted to complying experiencing declining imports. By product categories, fewer with customs inspections and documentary requirements firms (53 percent) whose major traded products is agriculture at South African and foreign borders (Figure 44). More male experienced declines in imports compared to HS Sections 11–12, traders (45  percent) have increased hours devoted in this 20–21 (textiles, clothing, other) (74 percent). This may be regard compared to women traders (30  percent for South because food products were declared an essential good and African borders and 25 percent for foreign borders). Time were therefore less subject to restrictions on trade during the devoted to complying with standards documentary require- pandemic.59 ment have also increased for many traders (37 percent for men traders and 26 percent for women traders) as has time devoted ◾ A high proportion of surveyed customs agents have to payment of official fees (25 percent for men and 18 percent for also experienced decreased imports (77  percent) and women). Some traders, particularly women traders, have expe- decreased exports (71 percent) with no major difference rienced decreased number of hours devoted to these activities, by gender. For the decline in imports, more micro (85 percent) but the number of observations in each case is very low. 59 South African Government, Government Gazette, No. 43148 (25 March 2020) (Pretoria: Government Printers, 2020) (Online: https://www.gov.za/sites/default/ files/gcis_document/202003/4314825-3cogta.pdf) 48 Figure 44. Share of Traders by Gender that Report Changes in Hours to Undertake Certain Activities. 100% 90% 80% 70% 60% 50% 45% 45% 40% 37% 30% 30% 26% 25% 25% 18% 20% 9% 8% 8% 10% 7% 2% 4% 1% 1% 0% Increased Decreased Increased Decreased Increased Decreased Increased Decreased Complying with customs Complying with standards Complying with inspections/ Payment of official fees inspections/documents – SA document requirements documents-Foreign related to trade Women Traders Men Traders For customs agents, the patterns are similar to those of traders, ◾ While some firms find the dissemination of informa- with a high share of firms indicating that they have increased tion by the government on changes to import and export hours devoted to complying with customs inspections at South processes and procedures due to the pandemic, clear African borders (52 percent) and foreign borders (57 percent), and easy to understand (37 percent of surveyed customs as well as with standards documentary requirements (45 per- agents, and 41  percent of traders),61 many also find the cent), and payments (26 percent). Sixteen percent of customs information confusing and contradictory between reg- agents report having experienced reduced hours dedicated to ulatory agencies (55 percent of surveyed customs agents payments, and 10  percent have experienced reduced hours and 40 percent of traders). There are no clear differences in complying with South African customs processes. responses across men and women traders/customs agents. However, fewer traders of micro firms (28  percent) find the ◾ Additional COVID-19 related challenges identified by traders information clear and easy to understand compared to traders and customs agents that affect their ability to trade include of small (42 percent), medium (43 percent), and large (54 per- testing requirements, mismatches between border times and cent) firms. Access to information, therefore, appears to be a curfew times, challenges with working and conducting trade greater challenge for smaller firms. activities remotely, lack of border personnel together with clo- sure of borders raising wait times, and difficulties in securing containers and berths on ships.60 60 These responses are based on the open-ended survey questions regarding 61 This includes respondents that indicated the information was clear, but late COVID-19 related challenges. (six percent for agents, 9.5 percent for traders). 49 Gauteng, South Africa © Shutterstock/Roxane134 5 Recommendations Based on Survey Responses This section of the report presents several recommendations procedures. With the implementation of a TIP, traders based on the survey responses. The recommendations are could access information at one digital location, thereby organized around common themes addressed in the WTO TFA — reducing the time spent by traders engaging with multiple including transparency, technology solutions, simplification of government office on the rules and regulations related processes and procedures, and institutional arrangements and to importing and exporting. It would also assist in over- beyond the WTO TFA, such as safety and security. coming the information asymmetries that smaller firms face, including by those led by women. Recommendation 1: Improve access to and under- standing of official border regulations and procedures. 1.2  While a TIP is yet to be established, urgently cen- (WTO TFA measures 1.1 on Publication, 1.2 on Information tralize all information regarding customs processes Available Through Internet, 1.3 on Enquiry Points) and requirements related to the COVID-pandemic. Over half the surveyed customs agents and 40 percent SARS publishes all customs regulations and extensive infor- of traders found the information from the government mation on trade processes online.62 They also offer call cen- on changes to import and export processes and pro- ters and walk-in helpdesks. There is, however, still a need for cedures caused by the pandemic to be confusing and additional guidance and material that are clear to follow for contradictory between regulatory agencies, with small traders and customs agents. A high share of the respondents firms particularly affected. SARS publishes information to the survey indicated that they find it challenging to obtain online on port closures and changes to customs pro- information on customs processes, with women traders more cesses,63 but a dedicated site centralizing all relevant affected. Further, many women traders (45 percent) find the information, including from other cross-border regula- official regulations and processes difficult to understand, and tory agencies, can help reduce uncertainty for traders an equivalent percent find government information mecha- and customs agents, and may assist in reducing the nisms not to be user-friendly. Many customs agents (34 per- increased number of hours firms are currently devoting cent) also report that they do not understand the regulations to complying with customs inspections and documen- and processes, despite them managing cross-border trade for tary requirements at South African borders during the most traders. The survey results also show that challenges pandemic. in finding information are associated with higher likelihood of having goods detained. 1.3 SARS to reinforce existing communication channels, such as call centers and helpdesks. SARS Specific recommendations include: already has a number of these strategies in place, but there could be a targeted communication strategy for 1.1  Implement a Trade Information Portal to allow women to increase awareness. more user-friendly and streamlined access to informa- tion for and direct communication with traders. More 1.4  SARS to expand education programs for traders women traders (45 percent) than men (34 percent) are and customs agents, such as the Small, Medium and challenged by access to information because govern- Micro Enterprises (SMMEs) Traders and Travelers Webinar ment information mechanisms are not user friendly. aimed to increase compliance in accordance with cus- South Africa does not have a dedicated site, such as toms clearance procedures.64 This could include offering a Trade Information Portal (TIP), in place to centralize focused tutorials on official government websites and all the official information on trade processes and pro- social media platforms as well as disseminating simpli- cedures, including required documentation, and present fied brochures (physical and virtual) with instructions on the information in an easy-to-understand style for the how to access information available on border processes common operator, particularly small, medium, and micro and procedures. Finally, providing targeted information enterprises (SMMEs). While SARS operates extensive sessions for women traders and customs agents on communication channels on customs issues, there is how to access online resources can assist in overcoming no integration with the electronic or manual systems of the gender divide in the use of online websites as a source other government departments involved in trade and of information on customs processes and procedures. border control. The information from SARS can also be In-person workshops on customs processes and proce- complicated to navigate for those with limited trade dures can be offered at the local SARS branch offices to experience or understanding of the processes and ensure broad geographical coverage. 62 The Customs & Excise website, for example, provides links to pages dealing 63 See Customs and Excise from SARS (Online: https://www.sars.gov.za/ with Clearance Declaration. Customs Query Resolutions process, Inspection, customs-and-excise/) Legislative Framework, New Customs Legislation update, and Offences, Penalties and Disputes, amongst others. See Customs and Excise from SARS (Online: 64 This webinar was offered by SARS in August 2021 (Online: https://www.sars. https://www.sars.gov.za/customs-and-excise/) gov.za/latest-news/webinar-customs-smme-traders-and-travellers/). 51 1.5  SARS to implement joint awareness and educa- processes and procedures. Further, when consulted, most tion programs with local chambers of commerce, do not feel that their feedback is taken into consideration. industry associations, customs agent associations, Additionally, among customs agents, more micro and small and import/export councils on trade facilitation customs agents reported not to be consulted compared to issues, with specific targeting of women traders. medium and large customs agents. Currently, SARS uses a Activities that could be rolled out with associations publication and comment process for changes to customs include those outlined in recommendation 1.3 as well regulations and legislation, but the survey results suggest as the provision of material to the associations that that there is room to improve trade facilitation consultation gives accurate and accessible information on official mechanisms, especially for micro and small traders. This could legislation. include a feedback loop that provides feedback on the results of the consultation processes to both traders and customs agents. SARS can work closely with trade and industry asso- ciations, especially those that focus on women entrepreneurs Gender-specific recommendations: and SMMEs, to strengthen formal trade consultation as the ◾ Improve access to and understanding of official survey results show that the majority of traders and customs border regulations and procedures by centralizing all agents are consulted through these associations. trade-related information from all border agencies in a user-friendly manner, such as through the establish- ment of a Trade Information Portal. ◾ Present information in an easy-to-understand style Gender-specific recommendation: for the common operator, particularly small, medium, SARS to work closely with trade and industry asso­ and micro enterprises, of whom women tend to con- ciations, especially those that focus on women entre­ stitute the larger proportion. preneurs and SMEs, to strengthen formal trade ◾ SARS to expand education programs and targeted consultations. The trade facilitation agreement requires information sessions for women traders and customs that the private sector is informed and given the opportu- agents on how to access online resources which may nity to comment on any legislative/procedural changes assist in overcoming the gender divide in the use of before they are entered into force. online websites as a source of information on customs processes and procedures. In-person workshops on customs processes and procedures can be offered at the local SARS branch offices to ensure broad geo- Recommendation 3: Promote the NTFC65 and make it graphical coverage more effective, accountable, and inclusive (WTO TFA ◾ SARS to implement joint awareness and education Article 23 on Institutional Arrangements) programs with local chambers of commerce, industry associations, customs agent associations, and import/ Awareness of the South African National Trade Facilitation export councils on trade facilitation issues, with specific Committee (NTFC) established in 2016 is very low among targeting of women traders. the surveyed traders and customs agents, suggesting that the NTFC is not fully realizing its goal to be a national focal point and platform to facilitated domestic coordination and Recommendation 2. Introduce and/or strengthen formal implementation of the WTO TFA. In addition, it has a narrow trade consultations between the government and mandate limited to supporting the implementation of the the private sector (WTO TFA measures 2.1 Opportunity to TFA measures, particularly the two category B provisions, i.e. Comment and Information Before Entry into Force, 2.2 on those relating to the National Single Window and Advanced Consultations) Rulings. The limited mandate does not support collaborative engagement of stakeholders on a broader national trade facil- The survey found that the majority of traders and customs itation agenda and does not allow the NTFC to position itself agents consider that they are not, or only irregularly, con- as the coordinating body to drive trade facilitation reforms. sulted on legislative changes to official cross-border trade A well-functioning NTFC can serve many functions, including 65 For details on the South African NTFC see UN Repository on National Trade Facilitation Committees: South Africa, 2017 (Online: https://unctad.org/system/ files/non-official-document/TFC_ZA_EN.pdf). 52 planning and implementing trade facilitation reforms, com- on future changes to customs processes and proce- municating trade-related information to stakeholders, and dures, and help make government accountable for the providing a mechanism for consultations with the private implementation of the TFA. sector.66 3.4.  Establish an efficient monitoring and evalua- Specific recommendations include: tion mechanism for the NTFC (along with a results framework) that is aligned with the sequenced 3.1.  Review the membership structure of the NTFC to trade facilitation activities identified in the road- allow for more direct representation by the private map. This can assist in the continuous assessment sector through business organizations, including of and accountability for the trade facilitation perfor- those focused on women and women entrepreneur- mance of the country (e.g., alignment of processes and ship. This will assist in improving communication chan- procedures with international standards, publication nels between firms and the public sector in South Africa of release times and other relevant indicators, traders’ on trade facilitation issues, as well as providing for more satisfaction reports68). The results framework should effective and regular consultations. also include specific indicators associated with gender participation in international trade. 3.2. Legally expand the scope of the NTFC’s man- date so that it has power to convene other agencies. 3.5.  Strategically target a diversity of firms, including Additional appropriate governance structures should those represented by women and those focused on also be established to drive trade facilitation reforms. women entrepreneurship, to participate in workshops The structures could include a ministerial forum, with and consultations held by the NTFC. This may require vertical reporting structures to a collaborative committee developing new communication channels to reach a that includes public and private sector stakeholders broader audience. (including a decent proportion of women-led firms) and coordinates with technical working groups that can 3.6.  Invite the Departments of Small Business Devel- develop co-creative trade facilitation solutions and sup- opment and of Women, Youth and Person with Dis- port interactive customer/stakeholder facing strategies abilities to participate in the NTFC and in the design to support trade and economic growth. of trade facilitation reforms and strengthen the capacity of these agencies to participate in trade- 3.3.  The NTFC can establish and publicize a national related discussions roadmap with clear timelines for the implementa- tion of TFA provisions67 and other related activities. 3.7.  Ensure that there is a transparency mechanism The national roadmap should contain a breakdown of in place for the NTFC so that decisions and action the individual government authorities’ responsibilities points are recorded, shared, and monitored, includ- involved in TFA implementation. The roadmap can assist ing efforts towards gender mainstreaming. If the in coordinating activities across government agencies NTFC clearly demonstrated its ability to progress trade and members of the NTFC. The roadmap should also facilitation reforms in South Africa, there is likely to be a include a gender component to ensure gender main- greater buy-in from private sector traders and customs streaming is part of the trade facilitation agenda. Further, agents to support the trade facilitation reforms. Such publicizing the roadmap can help create greater aware- efforts towards transparency could also include creat- ness of the NTFC, assist in communicating trade-related ing a dedicated website or webpage that captures the information to stakeholders, provide guidance to firms objectives and activities of the NTFC. 66 See WCO, National Committees on Trade Facilitation: A WCO Guidance 68 At SARS offices and borders there are electronic points where customers Article 23.2 of the WTO Trade Facilitation Agreement, 2016 (Online: http://www. say if they are satisfied with the service. wcoomd.org/-/media/wco/public/global/pdf/topics/wto-atf/national- committees-on-trade-facilitation/guidance/nctf.PDF?db=web) . 67 For details on a three-phased approach (diagnostic, strategic planning and implementation, and monitoring and evaluation) associated with the estab- lishment and implementation of a roadmap see the Introduction to the WCO Implementation Guidance for the TFA (Online: www.wcoomd.org/en/topics/ wco-implementing-the-wto-atf/atf.aspx). 53 one of the top challenges to expansion into international Gender-specific recommendations: markets is bureaucratic and burdensome import/export pro- ◾ Review the membership structure of the NTFC to cesses. This was also cited to be a more severe challenge for allow for more direct representation by the private of micro and small firms (34 percent) compared to medium sector through business organizations and strategically and large firms (13 percent each). target a diversity of firms, including those represented by women and those focused on women entrepreneur- Specific recommendations include: ship, to participate in workshops and consultations held by the NTFC. 4.1  Improve coordinated border management and ◾ Include a gender component in the NTFC roadmap integrated risk management by expediting implemen- to ensure gender mainstreaming is part of the trade tation of the Border Management Authority (BMA). facilitation agenda. BMA was set up a single implementing entity under one ◾ Ensure that monitoring and evaluation mechanisms executive authority69 to improve the levels of collabo- of the NTFC (for example, result frameworks) include ration between regulatory agencies, between the BMA specific indicators associated with gender participation and customs, and between South African borders and in international trade. their neighboring country regulatory agencies. Currently, ◾ Invite Departments of Small Business Development the regulatory agencies are generally working separately, and of Women, Youth and Person with Disabilities to and this is adding to delays and the cost and complexity of participate in the NTFC and in the design of trade trade.70 The survey shows that among those traders and facilitation reforms, and most importantly, strengthen customs agents that find border post operating hours the capacity of these agencies to participate in trade- restrictive, most identified differences in operating hours related discussions. of border agencies within the country to be the major ◾ Ensure that there is a transparency mechanism in source of the problem, rather than different operating place for the NTFC so that decisions and action points hours at neighboring border post. are recorded, shared, and monitored, including efforts towards gender mainstreaming. Coordinated border management involving better coor- dination of activities and collaboration on information exchanges for purposes of verifying export/import dec- larations, between different national border agencies Recommendation 4: Streamline and improve consis­ together with ICT platforms to ensure connectivity, can tent application of border processes and procedures unlock synergies between the agencies pre-border, at (WTO TFA measures 7.7 on Trade Facilitation Measures the border, and post-border. There are opportunities to for Authorized Operators, Article 8 on Border Agency share risk management approaches pre-clearance and Coope­ration, measures 10.3 on Use of International align on the targeting of high-risk entries, thus reducing Standards, 10.7 on Common Border Procedures and Uni- time to trade by having low risk goods cleared through form Documentation Requirements, Article 12 on Customs green lanes. Border agencies can improve their coor- Cooperation). dination of inspections and control of goods convey- ances and passengers, and there are also opportunities While half of the surveyed traders agreed that border processes to leverage on collective post-clearance audit controls. in South Africa are consistently applied, there was a difference between the experience of men and women. Only 40 percent 4.2  Speed up implementation of One Stop Border of women traders find that there was consistent application of Posts (OSBPs) to increase coordination at border border processes by border officials compared to 56 percent posts, both between South African agencies and with of men traders. Additionally, surveyed traders reported that authorities in neighboring countries, and streamline 69 Border Management Authority (BMA) was established through the BMA Act which signed into law in July 2020. The law requires coordination with govern- ment bodies and border communities under the leadership of the Department of Home Affairs (DHA). 70 SARS have since started working with other government stakeholders through BMA on collaboration in developing a Single Government AEO (SGAEO) Programme wherein a National SGAEO workshop was successfully conducted in March 2021. 54 procedures.71 Also important when implementing the but also the supply chain as a whole. A specific inter- OSBPs is the harmonization of operating hours among vention to support SMME participation in the AEO pro- the neighboring countries. According to the survey, gram is being considered by SARS, and this should be amongst those firms that find border operating hours fast-tracked. Promoting and implementing this program restrict their ability to trade, 20 percent of agents and will allow for easier automation of customs procedures, 37 percent of traders attributed this constraint to differ- such as declaring cargo and identifying high-risk con- ing operating hours at neighboring border posts. Har- signments, leading to a simplified process for certified monization of trade hours can reduce the time needed traders. It will also allow for more targeted and effective to trade for the private sector. cargo inspections that can gain increased benefits by deployment of initiatives to develop a Single Government The draft policy on OSBPs is currently being finalized AEO certification and recognition. It is important to com- and there are plans to roll it out at six priority borders.72 municate the benefits of the AEO program widely going In implementing the OSBPs, the concerns of small forward in order to actively incentivize firms to apply to be traders and women-led businesses need to be factored certified AEOs. This promotional effort should be done in in, both in terms of the procedural reforms as well as any partnership with relevant business associations. changes to the physical infrastructure (see recommen- dation 8.3 below).73 4.4  SARS to increase engagement and consultation with the private sector on changes to customs pro- 4.3  Fast track expansion of the AEO program and cesses and procedures to reduce the impact of the explore options for its use as an instrument to pro- COVID-19 pandemic on cross-border trade. The survey mote more equitable gender participation at firm results show that many traders have experienced level. The AEO was established by SARS to expedite the longer clearance times and increased hours devoted movement of goods through more efficiently coordi- to complying with customs inspections/documentary nated inspections at ports of entry, while also establish- requirements at South African and foreign borders. Time ing a more secure trade process.74 Actively encouraging devoted to payment of official fees has also increased greater participation by women traders in the AEO pro- for many firms. To obtain a clear view of the challenges gram can be done though awareness programs and tar- that both sides face, increased engagement with the geted in-person engagements. Promoting the new AEO private sector is needed, thereby enabling customs and program in South Africa can be beneficial to support not other border agencies to develop policies and processes only the improvement of cargo flows through borders, that are fit for purpose.75 71 This complements improvements in the customs systems interconnectivity, 74 The AEO program is a voluntary program for the private sector adminis- through the WCO SACU Connect project, for example. At present the SACU tered by SARS. There are two levels of accredited client status provided for: countries use different computerized customs management systems: Lesotho, Level 1 — Authorized Economic Operator (Compliance) and Level 2 — Authorized Namibia and Eswatini use UNCTAD’s Automated System for Customs Data Economic Operator (Security). The benefits differ according to level of certifica- (ASYCUDA World), South Africa uses Interfront Customs and Border Manage- tion, but include, for example, fewer documentary and physical inspections for ment Solution (ICBS), and Botswana uses Crimson Logic. See Nxumalo Dalton, compliance risks, prioritizing of requests for tariff and valuation determinations, pri- Customs Systems Interconnectivity: The Challenges and Opportunities for oritizing and expediting of inspections, expedited processing of refund and draw- Customs Administrations in the SACU Region, WCO News 85 (February 2018) back applications (Level 2 only), exemption from security payments (Level 2), and (Online: https://mag.wcoomd.org/magazine/wco-news-85/interconnectivity- exemption from customs supervision in relation to specified activities (Level 2), sacu-region/.) amongst others. For further details, see South African Government, Customs and Excise Act of 1964, Amendment of Rules, Government Gazette No.44884 of 72 These ports of entry include Beit Bridge (Zimbabwe); Lebombo (Mozambique); 2021-07-23 (Pretoria: Government Printers). See also https://www.sars.gov.za/ Oshoek (Eswatini); Kopfontein (Botswana); Maseru Bridge (Lesotho); and Ficksburg customs-and-excise/registration-licensing-and-accreditation/accreditation/ (Lesotho). authorised-economic-operator-programme/ 73 While the survey does not cover external border agency cooperation, the 75 See Pope, Steven, COVID-19 and its Impact on Customs and Trade, 2020 OECD Trade Facilitation Indicators identify this as an area of relative weakness (Online: https://mag.wcoomd.org/magazine/wco-news-92-june-2020/covid-19- in South Africa’s trade facilitation performance (https://www.oecd.org/trade/ and-its-impact-on-customs-and-trade/). topics/trade-facilitation/). The establishment of OSBPs will assist in improving border agency co-operation between SA and its neighboring countries. 55 out to other ports of entry with lessons learnt. A TRS can be used Gender-specific recommendations: to measure and publish, on a periodic basis, the average time Streamlining and improving consistency of border pro- it takes to release goods and can help to better pinpoint spe- cedures can provide traders and customs agents with cific bottlenecks and inefficiencies in border processes by more predictability and certainty when engaging in measuring actual time from arrival to the physical release of goods. Further, TRS will assist the NTFC in identifying and their cross-border trade activities. Inconsistent appli- understanding constraints to cross-border trade at national cation of processes and procedures by border officials borders, thereby enabling the committee to monitor TFA can incur additional costs of complying with regulations implementation progress. Border agencies should regularly for traders; thereby, contributing to an increase in the conduct and publish TRS results, as well as implement the time and costs of international trade. Transparent and associated recommendations to address bottlenecks in the predictable border crossing procedures are expected border processes. to reduce vulnerabilities faced by small traders and women traders who typically face asymmetry in power between officials and traders.76 Consistency can be improved in various ways, including through improved Gender-specific recommendation: coordinated border management, implementation of As discussed above, transparent and predictable border one stop border posts, and promotion of the Authorized crossing procedures reduce vulnerabilities faced by Economic Operator (AEO) program: small traders and women traders. It is recommended that regular TRS is undertaken to pin-point inefficien- ◾ Ensure that in the implementation of OSBPs the cies in the border processes and make improvements concerns of small traders and women-led businesses while also widely publicizing the findings among stake- are factored in, both in terms of the procedural reforms holders (ensuring women-led firms are reached through as well as any changes to the physical infrastructure. appropriate platforms such as a more inclusive NTFC ◾ Fast-track expansion of the AEO program with an and women trade associations). It is also recommended exploration of options for its use as an instrument that findings of this survey and other gender studies in to promote more equitable gender participation at firm the country are taken into consideration while identifying level. bottlenecks that will be captured in the future TRSs. ◾ SARS to increase engagement and consultations with the women traders and SMEs on changes to cus- toms processes and procedures to reduce the impact of the COVID-19 pandemic on cross-border trade. Recommendation 6: Use technology to enhance trade facilitation, including through implementation of a Single Window (WTO TFA measure 6.2 on Specific Disci- plines on Fees and Charges and 7.2 on Electronic Payment, Recommendation 5. Identify and address reasons for 10.4 on Single Window). delayed release of goods (WTO TFA measure 7.6 on Estab- lishment and Publication of Average Release Times) SARS has implemented a fully automated customs process, including a payment mechanism with multiple channels. Undertake Time Release Studies (TRS) on a regular basis with a However, the survey reveals that 52  percent of traders are scope that includes all border agencies. This includes expedit- not aware that all border entities/agencies have systems that ing the current TRS conducted in Durban Harbor and rolling this accept electronic forms and documents, or whether docu- 76 WBG, WTO. 2015. The Role of Trade in Ending Poverty 56 ments can be submitted electronically. Furthermore, 43 per- cent of traders do not know whether all official fees can be Gender-specific recommendations: paid electronically in a single payment. Research suggests that facilitating trade using digital solutions particularly benefit SMMEs — many of them Specific recommendations include: women-led businesses — which tend to be overly impacted by cumbersome and lengthy import, export, 6.1.  Increase awareness of the pre-arrival processing or transit procedures.77 Therefore, it is recommended system as greater use of pre-declarations will ensure that an electronic single window system is imple- traders and customs agents are able to take full advan- mented in South Africa. A more simplified, electronic tage of customs automation and its benefits of expedited process will also encourage greater participation and release. This could be complemented by advancement reduce the entry barriers, especially for smaller firms, of pre-clearance of shipments through separation of where women engage in larger numbers, according to clearance and final determination. the survey results. In addition, it is recommended to increase education and training on the usage of the 6.2.  Increase education and training on the usage of automated customs system, including the electronic the automated customs system, including the elec- payment functionalities on electronic payment plat- tronic payment functionalities on electronic pay- forms, especially for women traders. Increasing aware- ness of the pre-arrival processing system as greater ment platforms, especially for women traders. This use of pre-declarations will ensure traders and customs may assist in reducing the payments of unofficial fees agents are able to take full advantage of customs to speed up processes at borders, as seven percent of automation and its benefits of expedited release. traders report that they had paid speed money. 6.3.  Implement a Single Window (SW) system to inte- grate the electronic or manual systems of SARS and other government departments involved in trade Recommendation 7. Publicize official grievance proce- facilitation. This could be combined with the trader dures (WTO TFA measure 4 on Procedures for Appeal and focused information portal in Recommendation 1. With Review). the implementation of a Single Window, traders could access information at one location and also submit all Around a quarter of traders and just over half of the customs import, export, and transit documentation and support- agents find the guidance and explanations on penalties and ing information required by regulatory agencies through how to make an official appeal easy to access from government one digital platform rather than submitting the same entities, although more traders (43 percent) simply do not know information multiple times to the different regulatory whether the information on penalties and appeal processes is agencies. Making the process of submitting documen- easy to access. Of those customs agents that find explanations tation intuitive and easy to comply with will raise the on penalties/appeals easy to access from government entities, option for traders to conduct trade themselves without the majority (51 percent) do not find the formal complaint or needing to make use of customs agents. A more sim- grievance procedures effective. plified, electronic process will also encourage greater participation and reduce the entry barriers, especially The right to appeal decisions made by customs officials or offi- for smaller firms, where women engage in larger num- cials of other border agencies in administrative decisions or bers, according to the survey results. Existing actors will judicial proceedings should be provided in a non-discriminatory benefit from the time and costs saved but there will also manner, and customs, other border agencies. The government be the space for greater competition. should review the appeal and review procedures to ensure 77 Sijia Sun and Alexandre Larouche-Maltais, “Digital Trade Facilitation for Women Cross-border Traders”. Article No. 66. UNCTAD Transport and Trade Facilitation Newsletter N°88 — Fourth Quarter 2020. 57 that they are effective in addressing the litigation emerged while visiting the borders due to the lack of clear organization with the private sector. The responsiveness of official grievance (23 percent) and overcrowding (19 percent). procedures should be promoted eventually through the NTFC. The government, including through the NTFC, should publi- Specific recommendations include: cize more broadly the official channels for appeal to private stakeholders. 8.1.  Actively promote gender balance within the border workforce by recruiting and retaining more women within border agencies workforce.80 Gender-specific recommendation: 8.2. Provide gender-sensitive training for customs Research suggests that a transparent border crossing and border management officials, ensuring gender procedure are expected to reduce vulnerabilities faced issues and issues in relation to what constitutes dis- by small traders and women traders including where crimination, harassment and sexual exploitation, abuse there is a lack of functioning complaint and dispute are covered in training and operation manuals and mechanisms.78 Accordingly, it is recommended that codes of conduct for border officials is critical. In addi- the official channels for appeal is publicized widely to tion, border points should have a focal point to respond all stakeholders. to concerns raised by women engaging in cross-border trade and in addition, actively police and prosecute harassment at border crossings. Recommendation 8: Improve safety and security at 8.3.  Improve the design and maintenance of infra- borders structure and services at the border by providing appropriate sanitation facilities, adequate lodging on Of the customs agents surveyed that regularly visit the bor- either side of the border, and well-lit walkways in the der,79 100 percent of the women have felt unsafe, with border border area. There is an opportunity to build in these officials cited as the main perpetrators of negative behavior improvements from the outset of the design of the pro- at the border. Customs agents have also cited feeling unsafe posed One Stop Border Posts. 78 WBG, WTO. 2015. The Role of Trade in Ending Poverty. 80 The World Customs Organization (WCO) has several tools focused on gen- der, including a e-learning module on “advancing gender equality in Customs”. 79 Eight percent of traders and 32 percent of the interviewed customs agents See Johanna Törnström, WCO Releases New Customs Tools to Advance Gender regularly visit the border Equality and Diversity, WCO News 89 (June 2019) (Online: https://mag.wcoomd. org/magazine/wco-news-89/wco-releases-new-customs-tools-to-advance- gender-equality-and-diversity/). 58 Female business owner © Pexels/Picha Stock 59 Port of Durban © Pexels/Magda Ehlers 6 Remaining Analytical Gaps The survey was limited to identifying constraints that exist- While the survey provided a wealth of new data on the gaps ing traders face. Exploring the reasons of non-engagement between men and women traders and customs agents in in cross-border trade would require a deeper assessment South Africa, it did not offer explanations to most of the of why non-trading women firms do not trade, which goes gendered differences. Any explanation to the gaps that beyond the scope of this survey and likely also the WTO Trade were identified would be based on assumptions, and in most Facilitation Agreement. cases, deeper analysis would be needed to confirm exactly why there are gaps between men and women in certain The survey only focused on firm-level traders, leaving out a areas. This information could likely best be obtained through group of traders often referred to as small-scale and informal more in-depth surveys and research. traders that undertake trade that is unrecorded in official statistics and is carried out by small businesses. In many This survey is a companion piece to other research being countries, many small-scale and informal traders are women. conducted by the World Bank and South African govern- Due to the limited scope of this survey, the gaps between ment. The SARS is in the process of undertaking a Time men and women firm-level traders may or may not be rep- Release Study at the Durban Harbor to measure the resentative of small-scale and informal traders. In addition, actual clearance times of containers being imported and while the survey collected data in areas not directly related exported from the port. This survey will provide the trad- to trade facilitation, such as access to finance and partic- ing community’s viewpoint on the bottlenecks that will be ipation in certain commodities, the main focus of the study captured in the TRS and offer greater insights on the find- was related to cross-border and trade facilitation challenges. ings alongside other studies undertaken with SARS by the As such, a deeper assessment will be needed to research World Bank, World Customs Organization, and other partner gendered gaps in the above-mentioned areas. organizations. 61 Business meeting © Pexels/Christina Morillo Annex 1 Acknowledged South African Public and Private Institutions 62 Government Institutions Private Institutions ◾ South African Revenue Services (SARS) ◾ Global Trade Solutions (GTS) ◾ South African National Treasury ◾ Women in Trade a Business Unity South Africa (BUSA) ◾ The Department of Trade, Industry and Competition (DTIC) Initiative ◾ WESGRO — Cape Town & Western Cape Tourism, Trade, and ◾ South African Association of Freight Forwarders (SAAFF) Investment ◾ Business Unity South Africa (BUSA) ◾ Nelson Mandela Bay Business Chamber ◾ South African Fruit & Vegetable Canners’ Export Council ◾ North West Development Corporation (SOC) Ltd (SAFVCEC) ◾ Western Cape Department of Agriculture ◾ Fresh Produce Exporters’ Forum South Africa (FPEF) ◾ Trade and Investment KwaZulu-Natal ◾ South African Aerospace, Maritime and Defence Export ◾ East London Industrial Development Zone (SOC) Ltd Council (SAAMDEC) (ELIDZ) ◾ Transport Forum ◾ Gauteng Industrial Development Zone (GIDZ) ◾ South African Chamber of Commerce and Industry (SACCI) ◾ Gauteng Growth and Development Agency (GGDA) ◾ Road Freight Association (RFA) ◾ Johannesburg Chamber of Commerce and Industry ◾ South African Express Parcel Association (SAEPA) ◾ South African Broadcast Commission (SABC) ◾ Consumer Goods Council of South Africa (CGCSA) ◾ Trade Bulletin — International Trade Administration ◾ Johannesburg Chamber of Commerce and Industry (JCCI) Commission of South Africa ◾ South African Liquor Brand Owners Association (SALBA) ◾ South African Boat Builders Export Council (SABBEX) ◾ Automotive Business Council (NAAMSA) ◾ Aluminium Federation South Africa (AFSA) ◾ International Steel Fabricators of South Africa (ISF) ◾ South African Iron and Steel Institute (SAISI) ◾ South Africa Stainless Steel Development Association (SASSDA) ◾ South African Wire Association (SAWA) ◾ Steel Tube Export Association of South Africa (STEASA) ◾ South African Electrotechnical Export Council ◾ Plastics South Africa ◾ Publishers Association of South Africa ◾ South African Furniture Initiative (SAFI) ◾ Cosmetic Export Council of South Africa (CECOSA) ◾ The Jewellery Council of South Africa ◾ South Africa Footwear & Leather Export Council ◾ Wines of South Africa ◾ South Africa Equine Trade Council ◾ Abalone Export Council (AEC) ◾ South African Antique, Art and Design Association (SAADA) ◾ Cova-Advisory ◾ Growth Diagnostics ◾ NEPAD Business Foundation ◾ Consumer Goods and Services OMBUD ◾ Policy Lab 63 Meeting with South African business owners © Shutterstock/Aya Images Annex 2 Methodology A major challenge in conducting this survey was obtain- were required to complete a consent form to verify eligibility ing reliable and comprehensive universe estimates of and provide contact details to schedule an interview.84 firms engaged in cross-border trade.81 Given restrictions in accordance with the Protection of Personal Information Act Estimates of the universe of trading firms in South Africa distrib- (POPIA), it was not possible to obtain from official sources, uted by firm size category were constructed using anonymized such as Statistics South Africa, South African Revenue South African Revenue Services (SARS) administrative data for Services, and the Department of Trade, Industry and Com- 2017 that covered firms that pay Corporate Income Tax (CIT), petition, a list of firms that trade, together with their con- are engage in cross-border trade in goods, and submit the IRP5 tact details and quota category information on industry, Employee Income Tax Certificates.85 Using this data, the pop- size, location, and gender of owner. Consequently, a multi- ulation of firms with positive sales and employment data that pronged approached was pursued in constructing the sam- trade across borders was estimated at 28,101. ple frame, and reliable universe estimates. The data used to construct population estimates did not contain information on the gender of the firm owner or top manager. Consequently, the South Africa 2020 Enterprise Sampling and Survey Survey conducted by the World Bank was used to estimate the share traders with female top managers according to four Implementation firm size categories: micro firms (0–4 employees), small firms (5–19 employees), medium firms (20–99 employees) and large firms (100 or more employees). These shares were then then applied to the universe data to obtain estimates of the distri- The survey target population comprised of privately owned bution of the population of traders by gender of top manager (non-state-owned) firms (traders and agents) that engage in and firm size. cross-border trade and transit of goods (not services) across any international land, air, or sea border of South Africa. For The population estimates, nevertheless, suffer potential this purpose, a sample frame containing a complete and biases. Not all customs and excise registered entities that updated list of firms plus information on the quota catego- exported or imported, or employee can be matched to the ries (size, major industry, gender of ownership/management, CIT data. Employment data is also missing for 19 percent of and province) was needed to draw the sample. The inability the CIT firms engaged in international trade in 2017. Further, to obtain an official comprehensive database containing this the 2020 South Africa Enterprise Survey excludes firms in information, required a multi-pronged approach to be imple- the agricultural and mining sector (plus some business ser- mented to establish the sample frame and secure firm partic- vices), firms located outside of the Eastern Cape, Gauteng, ipation in the survey. KwaZulu-Natal, and Western Cape, and firms with five or fewer employees. The one implication is that smaller firms may be First, SARS and Surveya worked closely with government under-represented in the population estimates. Finally, it was departments, provincial/city departments, and Business Asso- not possible to exclude government-owned firms from the ciations (see Annex 1) to request the distribution of invitations population estimates. to firms to participate in the survey.82 Second, firm contact details were sourced from external databases, websites and Table 2 presents a breakdown of the population estimates directories.83 Thirdly, an online/social media marketing pro- of South African firms that traded in 2017 according to sev- gram was initiated to encourage firm participation. All firms eral quota categories. Small firms make up 34  percent of 81 Similar challenges were experienced in the conducting of the South Africa 84 The screening process was used to establish: (i) that the business is not-state 2020 Enterprise Survey (https://www.enterprisesurveys.org/content/dam/ owned, (ii) that the business is involved in cross-border trade (import/export/ enterprisesurveys/documents/country/South-Africa-2020.pdf). transit) (iii) where the business is located, its size, and the category of products the business trades in, (iv) whether the business is owned or managed by a 82 In total, 34 Trade Associations, 21 Export Councils, 15 Provincial Agencies, male or female, (v) willingness of the owner/manager to participate in the 22 Trade Agencies, 3 Government Departments, and 9 other organizations survey, and (vii) contact details used to interview the respondent. were contacted. These key stakeholders were provided with survey pamphlets to email to members and firms within their networks. 85 Full details on the database and its construction are provided by Duncan Pieterse, Friedrich C. Kreuser, and Elizabeth Gavin, “Introduction to The South 83 This includes, a firm database obtained from “Who Owns Whom”, lists of firms African Revenue Service and National Treasury Firm-Level Panel”, WIDER Working from the online directory https://www.listofcompaniesin.com/south-africa/ Paper 2016/42 (Helsinki: UNU-WIDER, 2016.) import-export/, and details for agents obtained from https://saaff.org.za/ member-directory/. 65 Table 2. Breakdown of Trader Population Estimates by Gender and Size of Firms, HS Section Category and Province Share Female-led Men-led Total Share total female-led (Number) (Number) (Number) (percent) Total 0.35 9,926 18,175 28,101 100 By size <5 0.47 2,814 3,223 6,037 21 5–19 0.47 4,470 5,121 9,591 34 20–99 0.31 2,635 5,826 8,461 30 100+ 0.36 1,426 2,586 4,012 14 By province W Cape 0.44 2,751 3,472 6,223 22 Gauteng 0.38 5,760 9,401 15,161 54 E Cape & KZN 0.33 1,559 3,110 4,669 17 Rest of SA 0.33 684 1,364 2,048 7 HS Section grouping HS 1-4 (Agriculture, food) 0.27 665 1,757 2,422 9 HS 5-10, 13-15 (Minerals, chemicals, 0.31 2,935 6,490 9,425 34 metals) HS 16-19 (machinery, transport, 0.40 5,035 7,591 12,626 45 medical instruments, etc.) HS 20-21, 11-12 (Other) 0.38 1,379 2,249 3,628 13 Notes: Population estimates based on Customs Transaction data, Corporate Income Tax data, IRP5 Employment Tax data, and the 2020 South Africa Enterprise Survey. The total column of each quota category sums to the total number of firms. However, given that the CIT and Enterprise Survey data have different population distributions across the quota categories, the sum of firms by gender of manager differ for each quota category. the population of trader firms, followed by medium sized Interviews with the owners or managers of the firm were con- firms (30 percent), micro firms (21 percent) and large firms ducted either telephonically with enumerators or using a (14 percent). Micro and small firms have the highest share self-administered online survey. Table 3 presents further details of female ownership or management at 47  percent, fol- on the number of firms contacted and the surveys completed. A lowed by large firms (36  percent) and medium sized firms total of 2,698 firms were contacted telephonically to encourage (31 percent). Across provinces, 54 percent of trader firms are their participation and obtain their consent. An additional 1,505 located in Gauteng, 22 percent in Western Cape, 17 percent firms were emailed the survey pamphlet directly. Of the firms in Eastern Cape & Kwazulu-Natal (17 percent) and 7 percent contacted telephonically, the contact details were incorrect for in the rest of South Africa. The major HS Section category in 1,008; 874 were unobtainable, 192 refused to participate, and which traders fall is HS 16-19 (Machinery, transport, medical 205 consented to the interviews.86 A total of 421 consent forms instruments) (45percent), followed by HS 5-10, 13-15 (Min- were received. However, not all these firms were eligible or, when erals, chemicals, metals, etc.) (34 percent), HS 20-21, 11-12 contacted, agreed to participate in the survey. In total, 78 agents (Other) (13 percent), and HS 1-4 (Agriculture and food prod- and 204 traders were surveyed. The firms surveyed comprised of ucts) (9 percent). 148 telephonic interviews and 134 online interviews. 86 Firms were declared unobtainable if the firm could still not be contacted telephonically after three attempts. 66 Table 3. Summary Details of Firms Contacted and Surveys Completed Profile of Respondents Category Count Table 4 presents a breakdown of surveyed firms by gender, Firms contacted telephonically 2,698 firm size, major commodity traded, and province of location. Of Ineligible firms 419 the 204 traders interviewed, 82 of the respondents, who were Incorrect listed numbers 1,008 either owners or managers of the firms, identified themselves as women. Looking across province, the Western Cape, with Unobtainable firms 874 38 percent of all interviews, was over-represented relative to Refusals 192 its population share (22 percent). The next largest number of Total firms consented via phone 205 traders interviewed were in Gauteng (41 percent), followed by Eastern Cape & Kwazulu-Natal (KZN) (12 percent) and then the Additional firms emailed 1,505 rest of South Africa (8 percent). Total firms contacted telephonically and/or via email 4,203 Total firms submitting consent forms 421 Large firms with 100 or more employees were also over- represented accounting for 38 percent of total interviews of Of which were not eligible or refused to participate 139 traders (compared to 14 percent of the population), followed Total firms surveyed 282 by medium firms (26 percent vs. 30 percent population share), Firms interviewed telephonically 148 micro firms (21 percent vs. 35 percent population share), and small firms (16 percent vs. 21 percent population share). Firms completing online survey 134 Customs agents surveyed 78 Looking over the commodity categories, 41  percent of the Traders surveyed 204 traders interviewed mainly trade in agricultural and food Note: Firms are declared unobtainable only after at least three attempts were products (HS Section 1-4: animal, vegetable products, bev- made to contact the firm telephonically. erages, tobacco, etc.), compared to a nine percent population share. This high share arises from the relatively high number of interviews of firms in the Western Cape that trade in agri- cultural products.87 87 60  percent of traders interviewed in the Western Cape trade mainly in agricultural products. 67 Table 4. Breakdown of Trader and Customs Agent Survey Respondents by Gender and Size of Firms, Major Commodity Traded, and Province of Firms Trader Survey Respondents Customs Agent Survey Respondents Women-led Men-led Total Women-led Men-led Total Total 82 122 204 24 54 78 By size (number of full-time employees) <5 17 16 33 11 17 28 5–19 16 27 43 4 21 25 20–99 24 26 50 6 9 15 100+ 25 53 78 3 7 10 By province Western Cape 32 51 83 3 5 8 Gauteng 14 31 45 14 31 45 Eastern Cape & KZN 22 26 48 2 10 12 Rest of South Africa 14 14 28 5 8 13 Main commodity traded HS 1-4 (agriculture, food) 32 51 83 4 8 12 HS 5-10, 13-15 (minerals, resource- 14 31 45 5 16 21 products, metals) HS 16-19 (machinery, etc.) 22 26 48 10 22 32 HS 20-21, 11-12 (other) 14 14 28 5 8 13 68 Containers at the port of Durban © Shutterstock/Everyone Photo Studio 69 Female business owner © Pexels/Cottonbro Annex 3 References Blumberg, Rae L., Joyce Malaba, and Lis Meyers. 2016. “Women Cross-Border Traders in Southern Africa. 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