Commissioner for Customs and Excise v Container Logistics (Pty) Ltd, Commissioner for Customs and Excise v Rennies Group Limited t/a Renfreight (196/96, 198/96) [1999] ZASCA 35 (28 May 1999)

Commissioner for Customs and Excise v Container Logistics (Pty) Ltd, Commissioner for Customs and Excise v Rennies Group Limited t/a Renfreight (196/96, 198/96) [1999] ZASCA 35 (28 May 1999)

The Supreme Court of Appeal held that the Commissioner for Customs and Excise did not properly apply his mind to the question of whether the respondents, as clearing agents, had taken all reasonable steps to prevent the diversion of goods contrary to customs regulations. The Commissioner incorrectly focused on the respondents' undertakings in their license applications rather than objectively assessing the reasonableness of their conduct in light of industry customs and practices. The evidence showed that neither the Commissioner nor the clearing agents foresaw the possibility of fraud in the system, and the industry standard did not require verification beyond documentation. The Court...

Citation
[1999] ZASCA 35
Parties
Appellant: Commissioner for Customs and Excise; Respondent: Container Logistics (Pty) Limited; Respondent: Rennies Group Limited t/a Renfreight
Court
Supreme Court of Appeal
Jurisdiction
South Africa
Judgment Date
28 May 1999
Case Number
196/96, 198/96
Procedural Posture
Civil Appeal / Appeal From Review Proceedings in the Transvaal Provincial Division
Outcome
Appeals dismissed with costs, including costs of two counsel.
Judges
Hefer, Vivier, Nienaber, Plewman, Farlam
Legal Topics
Judicial Review, Application of Interim Constitution, Reasonableness of Administrative Action, Customs and Excise Liability
Administrative Law Civil Procedure Judicial Review Application of Interim Constitution Reasonableness of Administrative Action Customs and Excise Liability

Case Brief

Summary, issues, holding and outcome

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Parties

Commissioner for Customs and Excise

Appellant

Container Logistics (Pty) Limited

Respondent

Rennies Group Limited t/a Renfreight

Respondent

Procedural Posture

Civil Appeal / Appeal From Review Proceedings in the Transvaal Provincial Division

Legal Issues

  1. 1 Whether the Supreme Court of Appeal had jurisdiction to decide constitutional issues arising under the interim Constitution.
  2. 2 Whether common law grounds for judicial review of administrative actions survived the interim Constitution.
  3. 3 Whether the Commissioner for Customs and Excise properly applied his mind to the question of agents' liability under s 99(2)(a) of the Customs and Excise Act.

Ratio Decidendi

The Supreme Court of Appeal held that the Commissioner for Customs and Excise did not properly apply his mind to the question of whether the respondents, as clearing agents, had taken all reasonable steps to prevent the diversion of goods contrary to customs regulations. The Commissioner incorrectly focused on the respondents' undertakings in their license applications rather than objectively assessing the reasonableness of their conduct in light of industry customs and practices. The evidence showed that neither the Commissioner nor the clearing agents foresaw the possibility of fraud in the system, and the industry standard did not require verification beyond documentation. The Court...

Court Disposition

Appeals dismissed with costs, including costs of two counsel.

Orders

  • The appeals are dismissed with costs, including the costs of two counsel.
  • The Commissioner's failure to file the record in terms of the Rule at the hearing of the appeal is condoned.