6 April 2018 by Tax and Exchange Control Alert

Customs and Excise Highlights

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

Herewith below 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 quoted from the SARS website):

1.1      Schedule 1 Part 1:

1.1.1   The insertion of new-8-digit tariff subheadings 8517.62.20, 8517.69.10 and 8517.69.90 for apparatus designed for use when carried in the hand or on the person (with effect from 1 April 2018);

1.2      Schedule 1 Part 2B:

1.2.1  The substitution of Note 2 to increase the maximum ad valorem excise duties on motor vehicles from 25% to 30% (with effect from 1 April 2018);

1.2.2  The insertion of items 124.37.11 and 124.37.15 to provide for apparatus designed for use when carried in the hand or on the person (with effect from 1 April 2018);

1.2.3  The substitution of various tariff subheadings to increase the ad valorem excise duties on goods from 5% to 7% and, from 7% to 9% respectively (with effect from 1 April 2018);

1.3      Schedule 1 Part 3A:

1.3.1   An increase in the rate of the environmental levy on plastic bags from 8c/bag to 12c/bag (with effect from 1 April 2018);

1.4      Schedule 1 Part 3C:

1.4.1   An increase in the rate of the environmental levy on incandescent light bulbs from R6.00 to R8.00 per globe (with effect from 1 April 2018);

1.5      Schedule 1 Part 3D:

1.5.1   An increase in the motor vehicles emissions tax on passenger vehicles from R100 to R110 for every gram of CO2 emissions per kilometre above 120g CO2/km and, in the case of double cabs, from R140 to R150 for every gram of CO2 emissions per kilometre in excess of 175g CO2/km (with effect from 1 April 2018);

1.6      Schedule 1 Part 5A:

1.6.1   An increase of 22c/li in the rate of the general fuel levy from 315c/li to 337c/li and 300c/li to 322c/li on petrol and diesel, respectively (with effect from 4 April 2018);

1.7      Schedule 1 Part 5B:

1.7.1   An increase of 30c/li in the RAF levy from 163c/li to 193c/li on both petrol and diesel (with effect from 4 April 2018); and

1.8      Schedule 6:

1.8.1   As a consequence of the increase in the fuel levy as announced by the Minister of Finance in his budget speech of 21 February 2018, the diesel refund provisions are adjusted accordingly (with effect from 4 April 2018).

  1. Customs Duty Act, 2014 and Customs Control Act, 2014:

The following documents were published on the Draft Documents for Public Comment:

2.1    Covering note for publication of “frozen” drafts of Customs Duty Rules (including Part on Deferment) and Control Rules (including consequential amendments to Chapter 30);

2.2    Customs Duty Rules “frozen” draft (including Part on Deferment); and

2.3    Customs Control Rules “frozen” draft (including consequential amendments to Chapter 30).

Please note that these drafts are not published for public comment – “for sight only”.

However, it appears that deferment of “ex-bond” home use clearances have been catered for subject to level 2 accreditation.

3     Please advise if additional information is required.

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