Call for import control permit exemption

The Cape Chamber of Commerce and Industry has called on the Minister of Economic Development to exempt ships and aircraft from import permit controls. In a letter to Minister Ebrahim Patel, the organisation asks for an exemption saying this will facilitate the smooth movement of vessels being brought into the country for the oil and gas sector. The oil and gas industry is a fast-growing sector in the Western Cape and has been identified as a major opportunity for importers and exporters alike, but existing legislation has been an obstacle in many cases. According to a spokesman for the Chamber, under certain circumstances temporary admission of vessels and aircraft arriving under own power in South Africa requires an import permit. “All vessels and aircraft can be brought into the country under rebate items 470.00, 480.00 or 490.00 in Schedule 4 to the Customs and Excise Act without an import permit but are then subjected to a measure of security by Sars to secure a portion of the VAT in terms of Schedule 1 to the VAT Act,” said the spokesman. The security to cover a fraction of the VAT amounts are staggering – with a provisional deposit of R500 000 required in Cape Town by Sars, while in Durban it is R1 million per vessel or aircraft. In its letter the Chamber calls on the minister to exempt vessels from these import permits if they are to be used in the petroleum offshore sector. “We have received an acknowledgement from the Minister’s office and also a request for more input and clarification on the matter which we are very happy about. It is an indication that there is interest in this matter and that we may be seeing some very real progess on something that is a great concern and a major obstacle in the oil and gas industry at present.” CAPTION Industry believes that vessels used in the petroleum offshore sector should get permit exemption. Photo: Panoramio