Sars on 31 May announced the proposed insertion of Rules 107A to the Act, 1964 “Requirements in respect of Tobacco Leaf Threshers”, and the substitution of form DA 185 “Application form - Registration / licensing of customs and excise clients”, and the insertion of form DA 185.4A17 “Application form - Client Type 4A17 - Registered leaf threshing factory”, on which comment is due by 28 June. [‘DA’ stands for Doeane en Aksyns.]
The insertion of draft Rule 107A to the Act, 1964 aims to ensure control of the supply chain in the tobacco industry. The Rule to the Act provides requirements in respect of tobacco leaf threshers. Tobacco leaf threshers are required to register their factories with the Sars Commissioner and keep records for purposes of inspection by the Commissioner.
The Insertion of rule 107A to the Act, 1964
Requirements in respect of tobacco leaf threshers
(a) For the purposes of these rules - “tobacco leaf thresher” means any person who carries out any preliminary, intermediate or supplementary processing of tobacco not stemmed or stripped, tobacco partly or wholly stemmed or stripped, or tobacco refuse; “tobacco not stemmed or stripped” means tobacco products classified under tariff subheading 2401.10 of Section IV of Part 1 of Schedule No. 1; “tobacco partly or wholly stemmed or stripped” means tobacco products classified under tariff subheading 2401.20 of Section IV of Part 1 of Schedule No. 1; and “tobacco refuse” means tobacco products classified under tariff subheading 2401.30 of Section IV of Part 1 of Schedule No. 1.
(b) Every tobacco leaf thresher shall -
(i) register his factory with the Commissioner on form DA 185 and the appropriate annexure for the carrying out of tobacco processing in terms of section 59A and the rules thereto;
(ii) keep records in respect of –
(aa) each supplier of tobacco inputs, together with the dates and values of each such supply;
(bb) the processes carried out in respect of such tobacco inputs;
(cc) the persons on whose behalf such processes were carried out; and
(dd) each purchaser of tobacco outputs, together with the dates and values of each such purchase; and
(iii) retain such records and the documents in support thereof available for inspection by the Commissioner for a period of five years calculated from the end of the calendar year in which any such record was created.”
The substitution of DA185
DA 185 - Application form: Registration/Licensing of Customs and Excise Clients.
The Insertion of form DA185.4A17
DA 185.4A17 - Registration client type 4A17 - Registered leaf threshing factory.
Story by: Riaan de Lange