Customs and Excise Highlights

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

1.1  Schedule 6:

1.1.1  Draft amendment relating to the insertion of rebate items 621.08/104.23.04/03.01,
621.08/104.23.04/03.02, 1.08/21.08/104.23.04/03.03, 621.08/104.23.28/04.01, 621.08/104.23.28/04.02 and 621.08/104.23.28/04.03.

The proposed amendment provides a rebate of the full excise duty for ethyl alcohol with an alcohol content of less than 80% under rebate item 621.08, which is for industrial use or for use in the manufacture of other non-liquor products.

Comments can be submitted to ampanza@sars.gov.za by 6 February 2018.

2. Draft amendments relating to the Health Promotion Levy (certain sections quoted from the SARS website):

2.1  Schedules to the Act:

2.1.1  Part 7A of Schedule No. 1 in order to align with the revised rules;

2.1.2  Schedule No. 4 to General Note 3, as well as to delete Part 7 of Schedule No. 4;

2.1.3  Part 5 of Schedule No. 5 as follows:

2.1.3.1   Note 8 is amended to include the reference to s54J in order to apply to the Health Promotion Levy;

2.1.3.2   Note 3 is amended to indicate that the prescribed form must reflect the item applicable and the tax type code; and

2.1.4  Part 6 of Schedule No. 5 as follows:

2.1.4.1   Note 3 is amended to indicate that the prescribed form must reflect the item applicable and the tax type code; and

2.1.4.2   Refund item 561.03 is inserted to provide for a refund instead of a Schedule No.4 rebate (ex499.02) to align with pure DAS principles;

2.1.5  Part 6 of Schedule No. 6 as follows:

2.1.5.1   Rebate item 690.01 has been amended to remove the reference to “(b) are being removed in bond” in line with pure DAS principles where no in-bond movements are allowed;

2.1.5.2   Rebate item 690.02 has been deleted as a rebate item and inserted as a refund item 691.05 to allow for HPL goods to be used in the manufacture of HPL or excise goods whereafter a refund can be claimed on a DA 66;

2.1.5.3   Rebate item 691.02 has been amended to align with similar provisions for perishable goods to allow for reprocessing or destruction and also to add the necessary control measures such as customs supervision, documentary evidence, etc; and

2.1.5.4   As a result of the amendment to rebate item 691.02, rebate item 691.03 has become redundant and will be deleted.

Comments can be submitted to mmaphosa@sars.gov.za by 6 February 2018.

2.2  Rules to the Act:

2.2.1  Rules 54I.01 to 54I.09; and

2.2.2  Forms DA 63, DA 64, DA 66, DA 179 & DA 185.4B2.

Comments can be submitted to C&E_legislativecomments@sars.gov.za by 6 February 2018.

3. Please advise if additional information is required.