On 12 September 2019, the South African Revenue Service (Sars) published draft tariff amendments for the 2020 Economic Partnership Agreement (EPA) between the European Union (EU) and the Southern African Development Community (SADC) Economic Partnership Agreement (EPA) states, with effect from 01 January 2020, on which comment is due by 10 October.
There are 48 insertions and 65 substitutions to the ‘Ordinary Customs Duty’ in Part 1 of Schedule No.1 of Customs and Excise Act, 1964, and the amendment of Note G ‘Abbreviations and Symbols’ for carbon dioxide (CO²) equivalent of such emissions. Hence, General Note G to Schedule No.1 to the Act, 1964 is amended to insert the abbreviation and symbol “CO²e” to mean CO² equivalent. Note G is amended to insert Note G.12 and Notes G.12 to G. 53 are renumbered to read as Notes G.13 to G.54. The abbreviation of “t” as currently contained in General Note G is expanded to read as ton/tonne. The tonne is amended to align with the wording within the Carbon Tax Act.
A number of the tariff amendments relate to:
Request from the Southern African Customs Union (Sacu) for the creation of 8-digit tariff subheadings to differentiate between rough or synthetic diamonds and other synthetic gemstone. This is a provisional measure until the introduction of the Harmonised System 2022 version. Sacu motivated that this would ensure that international diamonds were not contaminated by undisclosed synthetics. It will also assist in the growth of national economies of Sacu members.
Draft Amendment in Part 1 of Schedule No.4 to the Act, 1964 ‘Rebates and Refunds of Customs Duties, Excise Duties, Fuel Levy, Road Accident Fund Levy, Environmental Levy and Health Promotion Levy - Specific Rebates of Customs Duties’ - To amend Note 5
Note 5 in Schedule No.4 to the Act, 1964 is being amended to substitute the reference to form DA 331 which was replaced with form TC-01 as published in Government Gazette of 20 April 2012. Form TC-01 is a traveller card used by travellers at ports of entry to declare personal and household effects. Note 5 in Schedule No.4 to the Act, 1964 is amended to read as follows:
“For the purposes of items 409.00, 480.00 and 490.00: (a) Where any goods or vehicles are imported or re-imported, as the case may be, in terms of these items by a person who is required to declare goods in terms of section 15, that person means a "traveller" as defined in the rules for that section and as contemplated in form TC-01; and (b) in addition to the Notes to these items, such a traveller must comply with the requirements of section 15, the rules for that section and form TC-01.”
Draft amendment in Part 2 of Schedule No.4 to the Act, 1964 “Rebates and Refunds of Customs Duties, Excise Duties, Fuel Levy, Road Accident Fund Levy, Environmental Levy and Health Promotion Levy - Temporary Rebates of Customs Duties” - To amend the Government Department name with effect from 01 January 2020.
On 29 May the South African president issued a statement regarding the merging of Government departments. The different departments dealing with land are merged, for example, and the Department of Agriculture, Forestry and Fisheries (Daff) and the Department of Rural Development and Land Reform.
As a consequence of the merging of departments, rebate Items 409.00, 460.01/03.04/01.04, 460.01/04.00/01.02, 460.01/04.09/01.04, 460.02/00.00/01.00, 460.02/1001.9/0105, 460.02/12.05/01.04, 460.03/0207.14.9/01.07 and 460.25 are being amended to change the name of a government department from Daff to Department of Agriculture, Land Reform and Rural Development.
Draft amendment in Part 3 of Schedule No.5 to the Act, 1964 “Specific Drawbacks and Refunds of Customs Duties, Fuel Levy and Health Promotion Levy - Miscellaneous Refunds of Customs Duties and Fuel Levy” - To delete Refund items 537.00 and 537.02/87.00/01.02 applicable to MIDP with effect from 01 January 2020.
Provisions relating to the Motor Industry Development Programme (MIDP) were replaced with the Automotive Production and Development Programme (APDP) that came into effect on 1 January 2013. The provisions of MIDP were in place from 2005 up to and including 31 December 2012.
Refund Items 537.00 and 537.02/87.00/01.02 are being deleted, as they were applicable to MIDP.
Refunds in terms of the MIDP were made valid after the introduction of APDP but only until 31 December 2018. Thus, Refund Items 537.00 and 537.02/87.00/01.02 were not immediately removed from the Schedules of the Act, 1964.
Draft amendment in Part 3 of Schedule No.6 to the Act, 1964 to “Rebates and Refunds of Excise Duties, Fuel Levy, Road Accident Fund Levy, Environmental Levy and Health Promotion Levy - Rebates and Refunds of Fuel Levy and Road Accident Fund Levy” – To amend the Government department name; and delete Rebate Items 672.01, 672.01/105.10/01.01 and 672.01/105.10/02.01, with effect from 01 January 2020.
The South African president issued a statement on 29 May regarding the merging of government departments.
Note (ij)(ii)(aa)(C) in Part 3 of Schedule No.6 to the Act, 1964 is being amended to change the name of a government department from the Daff to Department of the Environment, Forestry and Fisheries.
Note (l)(iii) in Part 3 of Schedule No.6 to the Act, 1964 is being amended to change the name of a government department from the Department of Mineral and Energy Affairs to Department of Mineral Resources and Energy.
Rebate Items 672.01, 672.01/105.10/01.01 and 672.01/105.10/02.01 are being deleted as they have become redundant. The new multi-purpose products pipeline government project was in place until 31 March 2012.
Story by: Riaan de Lange