Customs and Excise Highlights

This week’s selected highlights in the Customs and Excise environment since our last instalment.

23 Jun 2017 3 min read Tax and Exchange Control Alert Article
  • The SARS Annual Performance Plan 2017/2018 was released on the SARS website in mid-June 2017. Relating to Customs, the plan appears to focus on the following:

Enforcement and increased activity relating to tariff classification, rules of origin and valuation; and

In respect of the new customs Acts, it appears that the current financial year is earmarked to implement the first stage, being registration, licensing and accreditation as well as cargo reporting. We quote from the plan:

During the 2017/18 fiscal period, SARS will continue with the design and development of the necessary processes, policies, procedures and systems in preparation for the implementation of the provisions of the new customs Acts. The focus of SARS activities during 2017/18 will be on ensuring an effective and efficient process for registration, licensing and accreditation, and reporting conveyance and goods.

  • We quote from the International Trade Administration Commission: Custom Tariff Applications - List 05/2017 (which is self-explanatory):

Increase in the rate of duty on:

Self-adhesive plates, sheets, film, foil, tape, strip and other flat shapes, of biaxially oriented polymers of propylene (excluding that which is self-adhesive on both sides), in rolls of width not exceeding 25mm and of value for duty purposes exceeding 1300c/m2, classifiable in tariff subheading 3919.10.41, from free of duty to 20% ad valorem; and

biaxially oriented polymers of propylene (excluding that which is self- adhesive on both sides), of a width not exceeding 200mm, classifiable in tariff subheadings 3919.10.43 and 3919.10.47, from free of duty and 10% ad valorem, respectively, to 20% ad valorem, by amending the scope of tariff subheading 3919.10.43 to the following: Of biaxially oriented polymers of propylene (excluding that which is self-adhesive on both sides) and amend the description of tariff subheading 3919.10.47 to the following: Other biaxially oriented polymers of propylene, self-adhesive on both sides.

The duty on self-adhesive biaxially oriented polymers of propylene will remain unchanged at free of duty for 3919.10.47.

 [Ref: 29/2016 Enquiries:
 Email: Mrs. Ayanda Gandi,
 Fax: (012) 394 4724 and Mr Nkulana Phenya,
 Fax: (012) 394-4677;

Reason for the application: 

As a reason for the application, the applicant indicated, among others, the following: “Similar products which do not add value to the SACU market, are imported at cheaper prices. Some of the similar products are imported under a tariff subheading which is free duty.”

  • The guide “Understanding the Customs and Excise Transitional Provisions” relating to the Customs & Excise Act 1964, the Excise Duty Act 1964, the Customs Control Act 2014 and the Customs Duty Act 2014 has been published. The document can be accessed here.  

  • Regarding the proposed sugar tax, National Treasury indicated during a recent meeting with Parliament’s Finance Standing Committee, that it will make the following tax design changes, following comments and input from the public:

A threshold will be introduced in terms of which 4g/100ml is exempt (only sugar content above 4g/100ml will be taxable); and

The tax rate was lowered slightly from 2.29c/g to 2.1c/g.

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