On 06 October 2021, the South African Revenue Service (SARS) released a letter to external stakeholders titled “AUTOMATED CONTROLS FOR REBATE ITEM 536 DURING THE COVID-19 PANDEMIC” from SARS’ Customs and Excise: Product & Process, lead.
The letter reads:
The purpose of this letter is intended to ease and streamline the Original Equipment Manufacturer (OEM) report stamp requirement under refund claim 536 and to provide control measures during the COVID pandemic and beyond through limiting physical contact, giving direct access and allowing for an automated assessment/verification as a control measure for Customs officers to perform their legislative and operational requirements for verification and assessment.
With regards to the controls and reporting requirements the following is important and needs to be complied with:
- Motor vehicle parts and accessories - Automotive components, as defined in Note 8 to Chapter 98, on which duty has been paid and which have been supplied to a motor vehicle manufacturer for use as original equipment components, as defined in Note 3 to Chapter 98, in the manufacture of specified motor vehicles as defined in Rebate Item 317.03/4; or which have been incorporated in original equipment components supplied to motor vehicle manufacturers provided:
- Such component manufacturer or supplier can produce proof by means of copies of the bills of materials reflecting the actual number of imported automotive components used in the manufacture of a specific original equipment component supplied;
- Proof of the quantity of each original equipment component supplied to a motor vehicle manufacturer substantiated by a statement from the motor vehicle manufacturer to whom such components were supplied with specific reference to the part number, description and quantity received, is produced;
- The statement by the motor vehicle manufacturer is certified by a Customs and Excise officer; and
- The imported component value has been declared on a Form C1/C2 and it can be produced on request.
Section 76(4) indicates that no application for a refund or payment in terms of this section shall be considered by the Commissioner unless it is received by the Controller, duly completed and in the form as may be prescribed by rule and supported by the necessary documents and other evidence to prove that such refund or payment is due under this section within a period of two (2) years from the date on which the charge to which the application relates was paid; or in any other case within the relevant period specified in Section 76B.
In order to accommodate the legal provisions and requirements, SARS is adopting an automated approach wherein clients are encouraged to scan and email the required OEM report(s), including the source documents, to the relevant Customs Branch Offices through email. Documents are to be forwarded via email to where the vehicle manufacturer is registered and submits the APDP account.
The designated Customs officer will ensure that the information submitted qualifies in all respects with the conditions and requirements under Refund claim 536. Once the Officer has concluded the necessary documentary verification they will stamp and sign the OEM report for approval and return it to the client.
Where irregularities exist in the submitted documents, the OEM report will be rejected and will not be signed. Also, if any serious irregularities are found, a physical inspection will be conducted. A scanned and signed OEM report feedback will be provided through email.
Clients are encouraged to acknowledge and support the automated process for the electronic submission of the relevant documents for verification and assessment by the relevant Branch Officers responsible for APDP.
The Letter is available on request.