1 February 2019 by Tax & Exchange Control Alert

Customs & Excise Highlights

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

Amendments to Rules to the Customs & Excise Act, No 91 of 1964 (Act):

Draft Rules for sugary beverages levy to provide for the following (comment period extended to 7 February 2019, contact C&E_legislativecomments@sars.gov.za):

  • Deletion of the registration requirement for a commercial manufacturer of sugary beverages;
  • Issuing of source documents in respect of sugary beverages removed from a customs and excise warehouse;
  • Declaration of the amount of sugar content;
  • Determination of the sugar content of any concentrate or preparation for the making of sugary beverages; and
  • Insertion and amendment to the registration and licensing forms, being the following:
    • DA 185;
    • DA 185.4A14; and
    • DA 185.4B2.

Proposed amendments to Rules 38A and 59A to facilitate full implementation of the requirement of the unique consignment reference (UCR) on clearance declarations by including clearance declarations of importers and exporters who are not located in the Republic and who qualify to utilise the 70707070 code.

Amendments to Schedules to the Act:

Schedule 1 Part 1:

  • The substitution of tariff subheadings 1701.12, 1701.13, 1701.14, 1701.91 and 1701.99 to reduce the rate of customs duty on sugar from 460.86c/kg to 369.57c/kg;
  • To implement the revised Tariff Rate Quota in terms of the Economic Partnership Agreement (EPA) (retrospectively from 1 September 2018 up to 31 December 2018);
  • To implement the revised Tariff Rate Quota in terms of the Economic Partnership Agreement (EPA) (with effect from 1 January 2019); and
  • To implement changes to the rates of customs duties in terms of the Economic Partnership Agreement between the European Union and the Southern African Development Community EPA States for 2019 and other miscellaneous amendments (with effect from 1 January 2019).

Schedule 1 Part 2A:

  • To delete tariff items (within 106.20) as a consequence to a deletion in Schedule 1 Part 1 (with effect from 1 January 2019);

Schedule 1 Part 7A:

  • Draft amendment relating to the Health Promotion Levy on Sugary Beverages, as follows (comment period extended to 7 February 2019, contact mmaphosa@sars.gov.za / ampanza@sars.gov.za:
    • Note 5 is amended to include the reference to grams per 100 millilitres; and
    • Note 6 is amended to indicate how the sugar content of powders and concentrates or other preparations for the making of sugar beverages will be calculated.

Schedule 2:

  • The substitution of safeguard item 260.03/72.08/01.04, to exclude rebate items 460.15/7208.51/02.06 and 460.15/7208.51/03.06 from being subject to safeguard duty applicable to primary flat rolled steel classifiable in tariff subheading 7208.51 (up to and including 10 August 2019); and
  • The substitution of safeguard item 260.03/72.08/01.04, to exclude rebate items 460.15/7208.51/02.06 and 460.15/7208.51/03.06 from being subject to safeguard duty applicable to primary flat rolled steel classifiable in tariff subheading 7208.51 (11 August 2019 up to and including 10 August 2020);

Schedule 3:

  • To delete rebate item 315.05/7308.90.90/01.01 in Schedule 3 as a consequence to a deletion in Schedule 1 Part 1 and to insert rebate item 315.05/7308.90.99/01.01 (with effect from 1 January 2019); and
  • To delete Note 10 to rebate item 317.03, which covered the transitional note for the migration from the Motor Industry Development Programme (“MIDP”) to the Automotive Production and Development Programme (“APDP”) as it has become redundant (with effect from 1 January 2019).

Schedule 4:

  • The insertion of rebate items 460.15/7208.51/02.06 and 460.15/7208.51/02.06 in order to create a rebate facility on primary flat rolled steel classifiable in tariff subheading 7208.51; and
  • To delete rebate item 460.02/12.06/01.04 and rebate item 460.07/39.19/01.04 as they have become redundant (with effect from 1 January 2019).

Schedule 5:

  • To delete Note 1 to rebate item 537.00 applicable to MIDP and Note 2 is renumbered as Note 1, to remove the reference to rebate item 317.04 applicable to MIDP (with effect from 1 January 2019);
  • To delete refund items 537.01, 537.01/8701.20/01.06, 537.01/87.02/01.04, 537.01/87.03/01.04, 537.01/87.04/01.04 and 537.01/87.06/01.04, as they were applicable to MIDP (with effect from 1 January 2019); and
  • To delete refund item 538.00/00.00/02.00 applicable to MIDP (with effect from 1 January 2019).

Schedule 6:

  • The insertion of Note 7 as well as rebate items 620.25; 620.25/604.15.21/01.01 and 620.25/604.15.23/02.01 to create a rebate provision for unfortified wine used in the manufacture of foodstuff; and
  • To delete rebate items 623.27/105.10/01.01 and 623.27/105.10/02.01 as they have become redundant (with effect from 1 January 2019).

The following notices have been published in the Government Gazette:

  • No. R. 1420 of 21 December 2018, confirming that the new Rules in relation to internal administrative appeals (s77H of the Act, which has been dealt with in a previous newsletter), will replace the existing Rules from 1 April 2019; and
  • No. 22 of 21 January 2019 (in terms of the National Environmental Management: Waste Act, No 59 of 2008) regarding the control of the import and export of waste. Its purpose is to establish procedures and control measures for the import, export and transit of waste; and also to ensure cradle-to-cradle management in the transboundary movement of waste.

The International Air Transport Association has published its 2019 Lithium Battery Guidance Document relating to the “Transport of Lithium Metal and Lithium Ion Batteries”.

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