On 20 March 2025, the South African Revenue Service (SARS) advised that its Commissioner was aware that certain clients and traders were continuing to operate their businesses and, specifically, certain requirements as outlined in the Customs and Excise Act, 1964 (the Act), under the auspices of certain concessions (deviations, agreements, or special allowances) that have been granted in the past by Customs and Excise Offices.
These practices have been reviewed in the past, and it is now the intention of the SARS Commissioner to formally withdraw all concessions on which certain clients are relying.
The SARS Commissioner’s letter reads:
Intention of the SARS Commissioner to Formally Withdraw All Concessions
Purpose
This letter serves as a notification in terms of section 3(2) of the Promotion of the Administrative Justice Act, No. 3 of 2000 (PAJA), to withdraw all forms of concessions currently in use, which are ultra vires.
Background
The Commissioner of SARS is aware that certain clients and traders are continuing to operate their businesses and, specifically, certain requirements as outlined in the Customs and Excise Act, 1964 (the Act), under the auspices of certain concessions (deviations, agreements, or special allowances) that have been granted in the past by Customs and Excise Offices.
These practices have been reviewed in the past, and it is now the intention of the SARS Commissioner to formally withdraw all concessions on which certain clients are relying.
Some concessions date back 20 years and were granted for a specific purpose at the time that is no longer applicable. Many concessions have been overtaken by legislative, policy and procedure development and technological advances. The Commissioner must, therefore, ensure through this process that all activities related to the Act are, in fact, compliant with the provisions of the Act and not ultra vires thereto.
Intended Action to be taken by the Commissioner
Clients and traders who are directly impacted by any concession that is not addressed in legislation, policy, procedure, or systems are required to make submissions to SARS, individually and/or through the appropriate industry associations, stating why the concessions should not be withdrawn in their totality as intended by this communication.
Clients and industry are simultaneously invited to provide submission for amendment of legislation where a current concession they are utilising is not provided for in the Customs and Excise Act, to the Customs and Excise Legislative Policy Unit. These should be submitted to Ms Samantha Authar - sauthar@sars.gov.za.
Provision of Time for Response
You are hereby afforded the opportunity to respond by not later than 21 business days from the date of this letter to furnish the Commissioner with such evidence and/or submission as you may deem necessary.
Upon receipt of your evidence and/or submissions, the Commissioner will take a decision as to whether the relevant provisions of the Customs Act have been complied with or not and will advise you of his decision. Should you fail to timeously respond to this letter, a decision will be taken on the available evidence/submission.
Should you have any queries, please address them to the designated SARS officials as per the contact details above.