12 April 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) (certain sections quoted from the SARS website):

Rule 54I.03, .04, .06 and .09 to enhance the administration and compliance in respect of Health Promotion Levy on Sugary Beverages. Rule 202.00 in relation to the following forms was amended:

  • DA 185.4A16 – Client type 4A16 – Non-commercial manufacturer of sugary beverages;
  • DA 185 – Registration and Licensing of Customs and Excise Clients; and
  • DA 185.4B2 – Licensing client type 4B2 – Manufacturing warehouse;

Rules 38.14A and 59A in relation to the implementation of the UCR.

Amendments to Schedules to the Act (certain sections quoted from the SARS website):

Schedule 1 Part 1:

  • The insertion of new-8-digit tariff subheadings under headings 84.71 and 95.04 to provide for computers with a screen size exceeding 45cm as well as gaming consoles with images produced on any external screen (with effect from 1 April 2019);
  • Provision for separate tariff subheadings for sanitary pads, bread flour and cake flour to facilitate the zero rating/VAT exemption as tabled by the Minister of Finance on 20 February 2019 (with effect from 1 April 2019); and
  • Provision for separate tariff subheadings for pantyliners to facilitate the zero-rating/VAT exemption as tabled by the Minister of Finance on
    20 February 2019 (with effect from 1 April 2019);

Schedule 1 Part 2B:

  • (With effect from 1 April 2019) to give effect to the Budget proposals announced by the Minister of Finance on 20 February 2019 to apply ad valorem excise duty on:
  • computers with a screen size exceeding 45 cm; and
  • gaming consoles with images produced on any external screen or surface;

Schedule 1 Part 5A:

  • An increase of 15c/li in the rate of the general fuel levy from 337c/li to 352c/li and 322c/li to 337c/li on petrol and diesel (respectively) to give effect to the Budget proposals announced by the Minister of Finance on 20 February 2019 (with effect from 3 April 2019);

Schedule 1 Part 5B:

  • An increase of 5c/li in the RAF levy from 193c/li to 198c/li on both petrol and diesel to give effect to the Budget proposals announced by the Minister of Finance on 20 February 2019 (with effect from 3 April 2019);

Schedule 1 Part 7A:

  • An increase of 10c/g in the rate of the health promotion levy from 2.1c/g per 100ml to 2.21c/g per 100ml to give effect to the Budget proposals announced by the Minister of Finance on 20 February 2019 (with effect from 1 April 2019); and
  • To amend Note 5 to include the reference to grams per 100 millimetres and insert Note 6 to indicate how sugar content will be calculated;

Schedule 5:

  • Draft amendment relating to circumstances where a refund or drawback of duty as contemplated in s75(1)(c), s54D or s54J of the Act may be granted if the customs procedure code applicable to the export as specified in the list published on the SARS website referred to in rule 00.06 and the relevant refund or drawback item are not reflected on the export bill of entry or other export clearance declaration;

  Due date for comments: 10 May 2019;

  Comments to: lkeyser@sars.gov.za; and

Schedule 6:

  • As a consequence of the increase in the fuel and RAF levy as announced by the Minister of Finance in his budget speech of 20 February 2019, the diesel refund provisions are adjusted accordingly (with effect from 3 April 2019).

SARS has issued (certain sections quoted from the notices and/or SARS website):

  • A notice on 29 March 2019 relating to the postponement of implementation date of the new internal administrative appeal rules, published on 21 December 2018. The implementation date has been postponed to 1 September 2019; and
  • Effective 29 March 2019, its Customs External Policy, Offences and Penalties guideline.

The International Trade Administration Commission has (certain sections quoted from the notices):

  • Per notice dated 29 March 2019 issued its “Guidelines and Conditions Pertaining to a Bilateral Safeguard Application in the Economic Partnership Agreement (EPA) between the European Union (EU) Member States and the Southern African Development Community (SADC) Member States”; and
  • Per notice dated 29 March 2019 issued its “Guidelines, Rules and Conditions Pertaining to Caustic Soda Imported in Terms Of Rebate Items 306.15/2815.12/01.06 and 306.15/2815.12/02.06 for the Extraction of Copper and Nickel Classifiable Under Tariff Subheadings 2603.00 and 2604.00, respectively”.

On 29 March 2019 the Department of Trade and Industry has published its “Declaration of Nuclear-Related Dual-Use Equipment, Materials, Software and Related Technology as Controlled Goods, and Control Measures Applicable to Such Goods”.

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