10 May 2019 by Tax & Exchange Control Alert

Customs & Excise Highlights

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

  1. Draft amendments in relation to carbon emissions tax (certain sections quoted from the SARS website):

    Government proposed the introduction of carbon tax as announced by the Minister of Finance in Budget Review 2015 and further outlined in Budget Review 2019. This tax gives effect to the polluter-pays principle. The tax will come into effect on 5 June 2019.

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

  • Draft amendment to Schedule 1 Part 1 – in order to insert the provision of carbon emissions tax;
  • Draft amendment to Schedule 1 Part 3F – to provide for the environmental levy on carbon emissions; and
  • Draft amendment to Schedule 6 Part 6 – to provide for rebates and refunds on carbon tax.

          Comments can be submitted to MMaphosa@sars.gov.za by 31 May 2019.

          Draft rule amendment:

  Draft rules have been inserted for implementation of the carbon tax, to provide details on the envisaged carbon tax administration, including the
  registration of clients, licensing of emissions facilities, carbon tax environmental levy accounting and application of allowances as rebates, all of
  which need to be synchronised with the essential systems development. Form DA 180 – Environmental levy return for carbon tax will be added at a
  later stage. Also note that this account only needs to be submitted in July 2020.

  • DA 185 – Application form – Registration / licensing of customs and excise clients;
  • DA 185.4A17 – Client Type 4A17 – Operator of an emissions generation facility below the carbon tax threshold; and
  • DA 185.4B2 – Licensing Client Type 4B2 – Manufacturing warehouse.

  Comments can be submitted to C&E_legislativecomments@sars.gov.za by 31 May 2019.

2.    The Department of Trade and Industry published the following notices on 3 May 2019 (certain sections quoted from the notice):

  • Regulations relating to the tariff of fees charged for services rendered in terms of the Legal Metrology Act by the National Regulator for Compulsory Specifications (nrcs): Amendments.

It has regard to the deletion of the existing tariffs and the substitution thereof with the tariffs as set out in the Schedule.

  • Regulations relating to the payment of levy and fees with regard to compulsory specifications: Amendments.

It has regard to the deletion of the existing tariffs for Automotive, Chemical, Mechanical and Materials, Electrotechnical, and Food and Associated Industries, and the substitution thereof with the tariffs as set out in the Schedule.

  1. The Department of Agriculture, Forestry and Fisheries published the following notices on 12 April 2019 (certain sections quoted from the notices):
  • Establishment of statutory measure – registration of certain persons in respect of pome fruit, stone fruit, grapes and citrus fruit.

The purpose and aims of this statutory measure are to compel exporters and producers of fruit to register with Agri-hub. These shall also include any person, eg a producer who acts in the capacity of the aforementioned persons. Registration of the said persons is necessary in order to ensure that market information in respect of fruit is made available for all role-players in the relevant industry.

  • Establishment of statutory measure – records and returns in respect of pome fruit, stone fruit, grapes and citrus fruit.

The purpose and aims of this statutory measure are to compel exporters and producers of fruit to keep records and furnish returns to Agri-hub. These shall also include any person, eg a producer who acts in the capacity of the aforementioned persons. These measures are necessary to ensure that continuous, timeous and accurate information relating to the fruit industry is available to all role-players in order for them to make informed decisions.

  • Deciduous fruit industry application for the continuation of statutory measures on pome and stone fruit.

The Minister of Agriculture, Forestry and Fisheries received a request from Hortgro, on behalf of Hortgro Pome and Hortgro Stone, for the continuation of statutory measures (levies, records and returns and registration) on pome fruit (apples and pears) and stone fruit (plums/prunes, peaches/nectarines and apricots) in terms of the Marketing of Agricultural Products Act, 1996. Hortgro requested that the proposed statutory measures be approved for a new 4 (four) year period with effect from 1 October 2019 and lapse 4 (four) years later.

Directly affected groups (eg agents, certification bodies, exporters, export inspection bodies, fresh produce markets, producers, processors and traders) in the pome and stone industry are kindly requested to submit any comments, in writing, regarding the proposed statutory measures, to the National Agricultural Marketing Council (NAMC) on or before 10 May 2019, to enable the Council to finalise its recommendation to the Minister in this regard.

  • Enquiries may be made to the NAMC, Mathilda van der Walt, e-mail: mathildavdw@namc.co.za, tel: (012) 341-1115, fax: (012) 341-1911.
  1. The following notice was published in Government Gazette by the Economic Development Department on 2 May 2019:
  • Extension of the policy directive on the exportation of ferrous and non-ferrous waste and scrap metal

On 10 May 2013, the Minister of Economic Development (Minister) issued a Trade Policy Directive to the International Trade Administration Commission of South Africa (ITAC) in terms of s5 of the International Trade Administration Act, No 71 of 2002 on the exportation of ferrous and non-ferrous waste and scrap metal.

In the Budget Speech of 20 February 2019, the Minister of Finance stated that the National Treasury will work with the Department of Trade and Industry and the Department of Economic Development to explore the introduction of an export tax on scrap metal.

The Minister is considering extending the Policy Directive for a period of nine months from 30 June 2019 until March 2020, to enable the National Treasury, the Department of Trade and Industry and the Department of Economic Development to explore the introduction of an export tax on ferrous and non-ferrous waste and scrap metal and its implications for the Directive.

Representations and comments must be submitted within a period of 14 days from publication of this notice, to the Minister of Economic Development for the attention of Dr Molefe Pule, email: Ministry@economic.gov.za, Economic Development Department, Private Bag X149, Pretoria, 0001 or hand delivered at 77 Meintjies Street, Block A, Utangamiri Building, 3rd Floor, Sunnyside, 0132.

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