12 October 2018 by Tax and Exchange Control Alert

Customs and Excise Highlights

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

  1. Amendments to Schedules to the Customs & Excise Act, No 91 of 1964 (Act) (certain sections taken from the SARS website):

1.1   Schedule 1 Part 1:

1.1.1    The substitution of tariff subheadings 1001.91 and 1001.99 as well as 1101.00.10 and 1101.00.90 to reduce the rate of customs duty on wheat and wheaten flour from 64,06c/kg and 96,09c/kg to 29,85c/kg and 44,77c/kg respectively;

1.1.2   The substitution of tariff subheadings 1701.12, 1701.13, 1701.14, 1701.91, and 1701.99 to increase the rate of customs duty on sugar from 419.52c/kg to 460.86c/kg;

1.2   Schedule 2:

1.2.1   The insertion of safeguard item 250.02/0207.14.9/01.07 to implement safeguard duty of 35.3% on frozen bone-in chicken portions of fowls of the species Gallus domesticus (28 September 2018 up to and including 11 March 2019);

1.2.2   The substitution of safeguard item 250.02/0207.14.9/01.07 to phase down safeguard duty from 35.3% to 30% on frozen bone-in chicken portions of fowls of the species Gallus domesticus (12 March 2019 up to and including 11 March 2020);

1.2.3   The substitution of safeguard item 250.02/0207.14.9/01.07 to phase down safeguard duty from 30% to 25% on frozen bone-in chicken portions of fowls of the species Gallus domesticus. (12 March 2020 up to and including 11 March 2021); and

1.2.4  The substitution of safeguard item 250.02/0207.14.9/01.07 to phase down safeguard duty from 25% to 15% on frozen bone-in chicken portions of fowls of the species Gallus domesticus. (12 March 2021 up to and including 11 March 2022).

  1. SARS issued a circular dated 28 September 2018 relating to the customs deferment scheme wherein external stakeholders were advised as follows (certain sections quoted from the circular):

2.1   The deferment policy currently states that in the case of non-payment by the agreed date:

2.1.1   For a first default, the account holder will be suspended from the deferment facility for one month;

2.1.2   For a second default, the account holder will be suspended from the deferment facility for two months; and

2.1.3   For a third default, the account holder’s facility will be cancelled or terminated, and the account holder may not be re-instated for a period of 12 months.

2.2  The suspension and termination functionalities will be automated from 18 January 2019 and defaulters will be automatically suspended or terminated by the system.

2.3  Accountholders unable to make payment on the agreed date (due to genuine disputed amounts) are advised to approach the relevant customs branch office within seven days from the statement date to avoid suspension or cancellation.

  1. Please advise if additional information is required.
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