Question
EXECUTIVE SUMMARY
The following is a summary of the post registration/licensing visit (details provided further in this report):
1. New Registration: The team received a DA 185 application registration of a Secondary
Manufacturing Warehouse – VMS.
2. Inspection Coordination: The Inspection appointment was scheduled at the client’s
address at 7 union Street, Alberton North, 1449 on the 20 th of May 2025.
Follow up inspection was arranged for the 17 th of June 2025.
3. Walk through was done to assess risk and revenue implications, to secure any risk and to
conduct a site inspection to facilitate licensing and assist the client in complying and
improving administration in support of a formal application for licensing registration /
licencing visit performed.
POST REGISTRATION / LICENSING VISIT PROCEDURES
Inspection conducted at Contract Packing Solutions CC was conducted as follows:
1. We visited the client’s address at 7 union Street, Alberton North, 1449 on the 20 th of May
2025 and met with Lourens Venter, the Factory Manager, he took us to the warehouse
and the warehouse did not meet the requirements.
Follow up inspection was arranged for the 17 th of June 2025 at the client’s address above.
We met with Lourens Venter, the Factory Manager, he took us to the warehouse and gave
us a brief explanation of the company.
We also met with the Criminal Investigator from SARS Pretoria, which has detained the
warehouse as they were manufacturing without an excise license. The warehouse was
locked and the case officers from Pretoria opened the warehouse for us to conduct our
inspection.
The case officer from Pretoria is Andile Hlela (012 0037494 – S1026250)
Company Background:
o The company started in 2004. Contract Packing Solutions (CPS) is Halaal and
ISO18000/FSA/HACCP Food Safety compliant and certified. Contract Packing
Solutions CC is a contract packer company, does packing for clients. Contract
packer for premium, carbonated beverages, mostly energy drinks and alcoholic
RTD’s.
Manufacturing Process:
o Contract Packing Solutions CC will receive all pre-blended raw ingredients, i.e.
Sugar, preservatives and flavours from the customer’s suppliers. These are ready
for mixing and stabilising of their product.
o All raw ingredients will then be placed into storage, awaiting production.
o Municipal water is then transferred for processing. Municipal water will be directed
to the filtration plant where a process will take place to ensure the water is at the
correct filtration stage. This will then be utilised for mixing and stabilisation of the
customer’s product. UV enhances the quality of the filtration water ensuring the
water is in its purest form. This processed water is sent through the system to
commence the mixing and stabilisation process.
o At this stage, all pre-blended ingredients are mixed in a tank to enable stabilising
of the product, ensuring all ingredients are combined as per the product
specifications.
o A final filtration step in place ensuring all impurities is removed from the final
product. The mixing and stabilisation process, including dilution with filtered water,
making the product a ready-to-drink beverage. This is achieved with stirring tank
and in-line mixing machines. The in-line mixing machines will then send the final
product for bottling / canning.
o Cans / Bottles are depalletized and packed onto the conveyor line. These run
through the Rinser for cleaning leading to the Filler. Here, the bottle / can is filled
and sealed (cap / can end). The finished product is sent down the line on
conveyors to the packer where they are shrink wrapped into 4-pack / 6-packs.
o Once shrink wrapped, the packs are transferred onto trays i.e. A case of finished
goods (24s). The final trays of finished goods are passed onto the palletiser,
where the customer’s preferred packing specification requirement is completed.
The entire pallet is then wrapped for safety of transporting. The complete pallets
are stored in our warehouse for collection from the customer.
Machines used for manufacturing process:
o 4 x 20 000 Litre mixing tanks
o Sugar Dissolving Tank 8 000 Litres
o 2 x Water tanks 20 000 Litres and 10 000 Litres
o Rinser
o Filler
o Crowner
o Nottle Warmer
o Labeller
o Box Erecter
o Box Packer
o Taping Machine
o Palletiser
Raw material suppliers:
o Contract Packing Solutions CC does not buy any Raw materials for the
manufacturing of the products. All the materials needed are provided to them by
their clients.
List of Clients:
o Halewood Breweries
Exporting:
o Contract Packing Solutions CC will not be exporting any products.
List of products that will be manufactured with volume and brands:
o Belgravia Gin & Dry Lemon 660ml – 1.32%/100ml
o Buffelsfontein & Cola 660ml – 1.32%/100ml.
Estimated final product manufactured:
o Weekly: 7 500 Cases
o Monthly: 30 000 Cases
o Quarterly: 90 000 Cases
Transport mode of finished product:
o Contract Packing Solutions CC - clients arrange transport for collection of finished
products
and sealed (cap / can end). The finished product is sent down the line on
conveyors to the packer where they are shrink wrapped into 4-pack / 6-packs.
o Once shrink wrapped, the packs are transferred onto trays i.e. A case of finished
goods (24s). The final trays of finished goods are passed onto the palletiser,
where the customer’s preferred packing specification requirement is completed.
The entire pallet is then wrapped for safety of transporting. The complete pallets
are stored in our warehouse for collection from the customer.
Machines used for manufacturing process:
o 4 x 20 000 Litre mixing tanks
o Sugar Dissolving Tank 8 000 Litres
o 2 x Water tanks 20 000 Litres and 10 000 Litres
o Rinser
o Filler
o Crowner
o Nottle Warmer
o Labeller
o Box Erecter
o Box Packer
o Taping Machine
o Palletiser
Raw material suppliers:
o Contract Packing Solutions CC does not buy any Raw materials for the
manufacturing of the products. All the materials needed are provided to them by
their clients.
List of Clients:
o Halewood Breweries
Exporting:
o Contract Packing Solutions CC will not be exporting any products.
List of products that will be manufactured with volume and brands:
o Belgravia Gin & Dry Lemon 660ml – 1.32%/100ml
o Buffelsfontein & Cola 660ml – 1.32%/100ml.
Estimated final product manufactured:
o Weekly: 7 500 Cases
o Monthly: 30 000 Cases
o Quarterly: 90 000 Cases
Transport mode of finished product:
o Contract Packing Solutions CC - clients arrange transport for collection of finished products
Employees:
o Contract Packing Solutions CC has 70 employees, 20 employees will work in the
manufacturing warehouse.
2. Building:
o Floorplan has been submitted
o Door is fitted to accommodate a customs/excise lock
o Walls of the building is made of bricks and the roof is iron
o There is a Manufacturing Warehouse (VM) and Secondary Manufacturing Warehouse
(VMS) in the building (VMS). The partitioning is made of wire fencing.
o The building has cameras, alarm system, fire alarm, fire extinguishers and security on the
premises
DETAILED FINDINGS
The following actions occurred:
1. Compliance Confirmation: Client was found manufacturing without a licence.
2. Audit will be conducted once the client has been registered
CONCLUDING REMARKS, CLOSURE ACTION AND SIGN OFF
CLOSURE ACTION
For this matter, we conclude with the following remarks and conclusion:
1. The client exhibits a thorough understanding of their Excise compliance responsibilities,
indicating preparedness for any audits or inspections.
CONCLUDING REMARKS
1. Registration Recommendation: It is recommended to proceed with the registration of
the Secondary Manufacturing Warehouse (VMS) for spirits. The Criminal Investigator from
SARS Pretoria, Andile Hlela (012 0037494 – S1026250) will finalise their investigation
when the client is licensed.
2. No further action is required as the client submitted all required documents and
warehouse meets the requirements as per Customs and Excise Act no.91 of 1964.
May you kindly review the report using the auditing Jargons.
The following is a summary of the post registration/licensing visit (details provided further in this report):
1. New Registration: The team received a DA 185 application registration of a Secondary
Manufacturing Warehouse – VMS.
2. Inspection Coordination: The Inspection appointment was scheduled at the client’s
address at 7 union Street, Alberton North, 1449 on the 20 th of May 2025.
Follow up inspection was arranged for the 17 th of June 2025.
3. Walk through was done to assess risk and revenue implications, to secure any risk and to
conduct a site inspection to facilitate licensing and assist the client in complying and
improving administration in support of a formal application for licensing registration /
licencing visit performed.
POST REGISTRATION / LICENSING VISIT PROCEDURES
Inspection conducted at Contract Packing Solutions CC was conducted as follows:
1. We visited the client’s address at 7 union Street, Alberton North, 1449 on the 20 th of May
2025 and met with Lourens Venter, the Factory Manager, he took us to the warehouse
and the warehouse did not meet the requirements.
Follow up inspection was arranged for the 17 th of June 2025 at the client’s address above.
We met with Lourens Venter, the Factory Manager, he took us to the warehouse and gave
us a brief explanation of the company.
We also met with the Criminal Investigator from SARS Pretoria, which has detained the
warehouse as they were manufacturing without an excise license. The warehouse was
locked and the case officers from Pretoria opened the warehouse for us to conduct our
inspection.
The case officer from Pretoria is Andile Hlela (012 0037494 – S1026250)
Company Background:
o The company started in 2004. Contract Packing Solutions (CPS) is Halaal and
ISO18000/FSA/HACCP Food Safety compliant and certified. Contract Packing
Solutions CC is a contract packer company, does packing for clients. Contract
packer for premium, carbonated beverages, mostly energy drinks and alcoholic
RTD’s.
Manufacturing Process:
o Contract Packing Solutions CC will receive all pre-blended raw ingredients, i.e.
Sugar, preservatives and flavours from the customer’s suppliers. These are ready
for mixing and stabilising of their product.
o All raw ingredients will then be placed into storage, awaiting production.
o Municipal water is then transferred for processing. Municipal water will be directed
to the filtration plant where a process will take place to ensure the water is at the
correct filtration stage. This will then be utilised for mixing and stabilisation of the
customer’s product. UV enhances the quality of the filtration water ensuring the
water is in its purest form. This processed water is sent through the system to
commence the mixing and stabilisation process.
o At this stage, all pre-blended ingredients are mixed in a tank to enable stabilising
of the product, ensuring all ingredients are combined as per the product
specifications.
o A final filtration step in place ensuring all impurities is removed from the final
product. The mixing and stabilisation process, including dilution with filtered water,
making the product a ready-to-drink beverage. This is achieved with stirring tank
and in-line mixing machines. The in-line mixing machines will then send the final
product for bottling / canning.
o Cans / Bottles are depalletized and packed onto the conveyor line. These run
through the Rinser for cleaning leading to the Filler. Here, the bottle / can is filled
and sealed (cap / can end). The finished product is sent down the line on
conveyors to the packer where they are shrink wrapped into 4-pack / 6-packs.
o Once shrink wrapped, the packs are transferred onto trays i.e. A case of finished
goods (24s). The final trays of finished goods are passed onto the palletiser,
where the customer’s preferred packing specification requirement is completed.
The entire pallet is then wrapped for safety of transporting. The complete pallets
are stored in our warehouse for collection from the customer.
Machines used for manufacturing process:
o 4 x 20 000 Litre mixing tanks
o Sugar Dissolving Tank 8 000 Litres
o 2 x Water tanks 20 000 Litres and 10 000 Litres
o Rinser
o Filler
o Crowner
o Nottle Warmer
o Labeller
o Box Erecter
o Box Packer
o Taping Machine
o Palletiser
Raw material suppliers:
o Contract Packing Solutions CC does not buy any Raw materials for the
manufacturing of the products. All the materials needed are provided to them by
their clients.
List of Clients:
o Halewood Breweries
Exporting:
o Contract Packing Solutions CC will not be exporting any products.
List of products that will be manufactured with volume and brands:
o Belgravia Gin & Dry Lemon 660ml – 1.32%/100ml
o Buffelsfontein & Cola 660ml – 1.32%/100ml.
Estimated final product manufactured:
o Weekly: 7 500 Cases
o Monthly: 30 000 Cases
o Quarterly: 90 000 Cases
Transport mode of finished product:
o Contract Packing Solutions CC - clients arrange transport for collection of finished
products
and sealed (cap / can end). The finished product is sent down the line on
conveyors to the packer where they are shrink wrapped into 4-pack / 6-packs.
o Once shrink wrapped, the packs are transferred onto trays i.e. A case of finished
goods (24s). The final trays of finished goods are passed onto the palletiser,
where the customer’s preferred packing specification requirement is completed.
The entire pallet is then wrapped for safety of transporting. The complete pallets
are stored in our warehouse for collection from the customer.
Machines used for manufacturing process:
o 4 x 20 000 Litre mixing tanks
o Sugar Dissolving Tank 8 000 Litres
o 2 x Water tanks 20 000 Litres and 10 000 Litres
o Rinser
o Filler
o Crowner
o Nottle Warmer
o Labeller
o Box Erecter
o Box Packer
o Taping Machine
o Palletiser
Raw material suppliers:
o Contract Packing Solutions CC does not buy any Raw materials for the
manufacturing of the products. All the materials needed are provided to them by
their clients.
List of Clients:
o Halewood Breweries
Exporting:
o Contract Packing Solutions CC will not be exporting any products.
List of products that will be manufactured with volume and brands:
o Belgravia Gin & Dry Lemon 660ml – 1.32%/100ml
o Buffelsfontein & Cola 660ml – 1.32%/100ml.
Estimated final product manufactured:
o Weekly: 7 500 Cases
o Monthly: 30 000 Cases
o Quarterly: 90 000 Cases
Transport mode of finished product:
o Contract Packing Solutions CC - clients arrange transport for collection of finished products
Employees:
o Contract Packing Solutions CC has 70 employees, 20 employees will work in the
manufacturing warehouse.
2. Building:
o Floorplan has been submitted
o Door is fitted to accommodate a customs/excise lock
o Walls of the building is made of bricks and the roof is iron
o There is a Manufacturing Warehouse (VM) and Secondary Manufacturing Warehouse
(VMS) in the building (VMS). The partitioning is made of wire fencing.
o The building has cameras, alarm system, fire alarm, fire extinguishers and security on the
premises
DETAILED FINDINGS
The following actions occurred:
1. Compliance Confirmation: Client was found manufacturing without a licence.
2. Audit will be conducted once the client has been registered
CONCLUDING REMARKS, CLOSURE ACTION AND SIGN OFF
CLOSURE ACTION
For this matter, we conclude with the following remarks and conclusion:
1. The client exhibits a thorough understanding of their Excise compliance responsibilities,
indicating preparedness for any audits or inspections.
CONCLUDING REMARKS
1. Registration Recommendation: It is recommended to proceed with the registration of
the Secondary Manufacturing Warehouse (VMS) for spirits. The Criminal Investigator from
SARS Pretoria, Andile Hlela (012 0037494 – S1026250) will finalise their investigation
when the client is licensed.
2. No further action is required as the client submitted all required documents and
warehouse meets the requirements as per Customs and Excise Act no.91 of 1964.
May you kindly review the report using the auditing Jargons.
Answers
Answered by
GPT-4o mini
**EXECUTIVE SUMMARY**
This report provides an overview of the post-registration/licensing visit conducted for Contract Packing Solutions CC regarding their application for a Secondary Manufacturing Warehouse (VMS). Key points include:
1. **New Registration**: The team received a DA 185 application for the registration of a Secondary Manufacturing Warehouse – VMS.
2. **Inspection Coordination**: Initial inspection was conducted on May 20, 2025, at the client's location, 7 Union Street, Alberton North, 1449, followed by a follow-up inspection scheduled for June 17, 2025.
3. **Site Assessment**: A walkthrough was performed to evaluate risk and revenue implications, ensuring compliance, and assisting the client with enhancements in their administrative processes in support of the licensing application.
**POST REGISTRATION / LICENSING VISIT PROCEDURES**
The on-site inspection at Contract Packing Solutions CC proceeded as follows:
1. On May 20, 2025, the inspection team met with Lourens Venter, the Factory Manager, and conducted a walkthrough of the warehouse. It was noted that the warehouse did not meet the necessary compliance requirements.
2. A follow-up inspection took place on June 17, 2025. Again, Lourens Venter facilitated the inspection, providing context on the company's operations.
3. Collaboration with SARS Pretoria was established, as a Criminal Investigator presented on-site due to the warehouse operating without an excise license. The warehouse remained secured, and the case officer from Pretoria, Andile Hlela, facilitated access for further examination.
**Company Background**
- **Established**: 2004, Contract Packing Solutions (CPS) specializes in contract packaging, primarily focused on premium carbonated beverages, energy drinks, and alcoholic ready-to-drink (RTD) products.
- **Certifications**: The company is Halaal and complies with ISO 18000/FSA/HACCP Food Safety standards.
**Manufacturing Process**
- The company operates a well-defined manufacturing process, starting from receiving pre-blended raw materials, through to the final product bottling/canning.
- **Key Steps**:
- Raw materials are stored until processing.
- Water is filtered and treated for use in mixing and stabilizing beverages.
- Ingredients are mixed, filtered, and prepared for bottling/canning, with various processing and packaging machines in use, including tanks, fillers, and palletizers.
**Equipment Utilization**
- The manufacturing process utilizes advanced machinery, including:
- 4 x 20,000 Litre mixing tanks
- Sugar dissolving and water storage tanks
- Rinser, filler, crowner, labeller, and packing machines
**Clientele and Product Overview**
- CPS does not procure raw materials; they are supplied by clients, including notable companies like Halewood Breweries.
- Product Manufacturing Volumes include:
- Weekly: 7,500 Cases
- Monthly: 30,000 Cases
- Quarterly: 90,000 Cases
**Compliance Findings and Actions**
1. The client was found to be manufacturing without the requisite licenses, necessitating immediate attention to rectify this issue.
2. A pending audit will be conducted following the formal registration of the warehouse.
**CONCLUDING REMARKS, CLOSURE ACTION, AND SIGN-OFF**
**CLOSURE ACTION**
In conclusion, we recommend the following:
1. **Registration Recommendation**: Approve registration for the Secondary Manufacturing Warehouse (VMS) for spirits. The ongoing investigation by the Criminal Investigator from SARS, Andile Hlela, will proceed to finalize as the client complies with licensing.
2. Compliance Documentation: The client has adequately submitted all required documents, and the warehouse is positioned to meet the compliance criteria set forth by the Customs and Excise Act No. 91 of 1964.
This report advocates for efficiently progressing the registration process while ensuring continued adherence to compliance requirements and readiness for potential audits. Please review the findings and recommendations in alignment with established auditing standards and best practices.
This report provides an overview of the post-registration/licensing visit conducted for Contract Packing Solutions CC regarding their application for a Secondary Manufacturing Warehouse (VMS). Key points include:
1. **New Registration**: The team received a DA 185 application for the registration of a Secondary Manufacturing Warehouse – VMS.
2. **Inspection Coordination**: Initial inspection was conducted on May 20, 2025, at the client's location, 7 Union Street, Alberton North, 1449, followed by a follow-up inspection scheduled for June 17, 2025.
3. **Site Assessment**: A walkthrough was performed to evaluate risk and revenue implications, ensuring compliance, and assisting the client with enhancements in their administrative processes in support of the licensing application.
**POST REGISTRATION / LICENSING VISIT PROCEDURES**
The on-site inspection at Contract Packing Solutions CC proceeded as follows:
1. On May 20, 2025, the inspection team met with Lourens Venter, the Factory Manager, and conducted a walkthrough of the warehouse. It was noted that the warehouse did not meet the necessary compliance requirements.
2. A follow-up inspection took place on June 17, 2025. Again, Lourens Venter facilitated the inspection, providing context on the company's operations.
3. Collaboration with SARS Pretoria was established, as a Criminal Investigator presented on-site due to the warehouse operating without an excise license. The warehouse remained secured, and the case officer from Pretoria, Andile Hlela, facilitated access for further examination.
**Company Background**
- **Established**: 2004, Contract Packing Solutions (CPS) specializes in contract packaging, primarily focused on premium carbonated beverages, energy drinks, and alcoholic ready-to-drink (RTD) products.
- **Certifications**: The company is Halaal and complies with ISO 18000/FSA/HACCP Food Safety standards.
**Manufacturing Process**
- The company operates a well-defined manufacturing process, starting from receiving pre-blended raw materials, through to the final product bottling/canning.
- **Key Steps**:
- Raw materials are stored until processing.
- Water is filtered and treated for use in mixing and stabilizing beverages.
- Ingredients are mixed, filtered, and prepared for bottling/canning, with various processing and packaging machines in use, including tanks, fillers, and palletizers.
**Equipment Utilization**
- The manufacturing process utilizes advanced machinery, including:
- 4 x 20,000 Litre mixing tanks
- Sugar dissolving and water storage tanks
- Rinser, filler, crowner, labeller, and packing machines
**Clientele and Product Overview**
- CPS does not procure raw materials; they are supplied by clients, including notable companies like Halewood Breweries.
- Product Manufacturing Volumes include:
- Weekly: 7,500 Cases
- Monthly: 30,000 Cases
- Quarterly: 90,000 Cases
**Compliance Findings and Actions**
1. The client was found to be manufacturing without the requisite licenses, necessitating immediate attention to rectify this issue.
2. A pending audit will be conducted following the formal registration of the warehouse.
**CONCLUDING REMARKS, CLOSURE ACTION, AND SIGN-OFF**
**CLOSURE ACTION**
In conclusion, we recommend the following:
1. **Registration Recommendation**: Approve registration for the Secondary Manufacturing Warehouse (VMS) for spirits. The ongoing investigation by the Criminal Investigator from SARS, Andile Hlela, will proceed to finalize as the client complies with licensing.
2. Compliance Documentation: The client has adequately submitted all required documents, and the warehouse is positioned to meet the compliance criteria set forth by the Customs and Excise Act No. 91 of 1964.
This report advocates for efficiently progressing the registration process while ensuring continued adherence to compliance requirements and readiness for potential audits. Please review the findings and recommendations in alignment with established auditing standards and best practices.