On 12 March 2025, the Finance Minister delivered the National Budget for 2025. The following provides you with an insight into the proposed Tax Administration changes from a Customs and Excise perspective:
Delegation of functions of customs officers and designation of persons as customs officers
It is proposed that Section 3 of the Customs and Excise Act, 1964 be amended to insert a provision providing that the Commissioner for the South African Revenue Service (SARS) may, with the concurrence of an organ of state or institution with whom the SARS Commissioner has concluded an agreement in terms of Section 2(1A) of the Act, 1964 delegate functions of customs officers to persons in the service of such organ of state or institution, or designate persons in the service of such organ of state or institution to act as customs officers for a specific purpose.
This amendment is related to the implementation of the new SARS electronic traveller management system, among other things.
Customs voluntary disclosure programme
The Tax Administration Act, 2011 provides for a voluntary disclosure programme but excludes customs and excise. It is proposed that the Act, 1964 be amended to provide for a customs and excise voluntary disclosure programme.
Timing of adjustment of Bill of Entry (BOE)
It is proposed that Section 40 of the Act, 1964 be amended in relation to the timing of the adjustment of the bill of entry to create flexibility in respect of adjustments made in a manner prescribed by the SARS Commissioner. The required flexibility can be achieved by providing for the SARS Commissioner to also prescribe the timing for such adjustments.
Annexure C
Additional Tax Policy and Administrative Adjustments
National Treasury 2025 Budget Review
The SARS Commissioner may, by Rule, determine a different manner to adjust a BOE – for example, by allowing a single consolidated document to be submitted to adjust various affected BOEs. This could happen in instances of Transfer Pricing (TP) adjustments or where invoices for bulk export shipments are amended. In these instances, the mandatory adjustment of the affected BOE cannot happen “without delay,” as currently required by Section 40 of the Act, 1964.
SARS is also reviewing how a single document could be used to adjust various bills of entry in such instances.
Body-worn cameras
SARS is investigating issuing body-worn cameras to customs officers to promote trust, transparency and accountability in relation to the enforcement functions performed by customs officers.
Diesel refund
The Act, 1964 may require amendments to facilitate the implementation of the new diesel refund system. Dutiability of waste derived from processing imported goods in manufacturing plants SARS aims to consider, with the cooperation of relevant government agencies such as the International Trade Administration Commission of South Africa (ITAC), the dutiability of waste derived from processing imported goods in a manufacturing plant to provide for relief when waste is disposed of in a sustainable and environmentally friendly manner such as recycling.
Movement of fuel products
The fuel industry in South Africa has increasingly shifted from local manufacturing to importing refined petroleum products such as petrol, diesel, illuminating kerosene and aviation kerosene. Companies importing fuel levy goods highlighted the challenges they encountered in moving imported products (especially aviation kerosene) through the national multi-product pipeline. SARS proposes to review the legislation pertaining to the fuel industry to align it with changes in this industry and to facilitate the movement and storage of fuel products.