Commissioner of Customs and Excise v Container Logistics (Pty) Ltd; Commissioner of Customs and Excise v Rennies Group Ltd trading as Renfreight

The Commissioner of Customs and Excise held the respondents, both licensed clearing agents, liable under s 99(2)(a) of the Customs and Excise Act 91 of 1964 for unpaid customs duties and charges relating to goods cleared in Durban for export to Mozambique. An investigation revealed large-scale fraud involving counterfeit customs stamps and signatures on returned bills of entry, with the result that certain goods never left the common customs area. Conlog was involved in 41 such transactions and Renfreight in two. Although the respondents acted as agents for principals who diverted the goods, the Commissioner concluded that they had not taken all reasonable steps to prevent the non-fulfilment of their principals’ obligations and therefore remained liable. The respondents successfully reviewed these decisions in the Transvaal Provincial Division, and the Commissioner appealed to the Supreme Court of Appeal.

The appeals were dismissed and the orders of the court a quo setting aside the Commissioner’s decisions were upheld.

The case is significant for clarifying that common-law judicial review of administrative action survived the interim Constitution and continued to coexist with constitutional review. It also authoritatively explains the proper interpretation and application of s 99(2)(a)(iii) of the Customs and Excise Act, emphasising that the Commissioner must objectively assess whether a clearing agent took all reasonable steps, having regard to industry practice and relevant circumstances, and must properly apply his mind to the statutory enquiry.