The Southern African Customs Union (SACU) says it is undertaking a review of the revenue-sharing formula of monies collected as customs duties and injected into the common revenue pool before being shared among the five member states.Swaziland, South Africa, Lesotho, Namibia and Botswana are the five members of SACU, an organization created in 1910 .to put in place a Common External Tariff (CET) on all goods imported into the union from the rest of the world.
It was also tasked with ensuring the free movement of manufactured products among member states without any duties or quantitative restrictions, and facilitate a Revenue-Sharing Formula (RSF) for the distribution of customs and excise revenues collected by the union.
SACU Council of Ministers Chairman Martin Dlamini, speaking during a media briefing convened at the end of the fifth SACU leaders summit in Swaziland on Friday, explained that member states had once again decided to undertake a study that would inform a fresh review of the revenue-sharing formula.
“It is true that processes to review the SACU revenue-sharing formula have taken a while. It has been agreed by member states that a new study be undertaken after it was unearthed that the previous study, which was to inform the sharing formula would make some states worse off” said Dlamini.
He said this created the need for another study which is expected to be complete in a period of 24 months.
The one-day summit was attended by South African President Jacob, Botswana Vice-President Mokgweetsi Masisi, Namibian Finance Minister Carl-Hermann Schlettwein and a female representative from Lesotho.