SA Revenue Service (Sars)
recently published for
comment the rules relating
to the Deferment of Duty
Benefit (“the Benefit”)
provided for under Chapter
3 of the Customs Duty Act
30 of 2014 (“the Duty Act”).
Comment is due by 31 July
2017.
In terms of Section
24(2)(a) of the Duty Act,
the Benefit may only be
granted to either a person
liable for payment of duty
or to that person’s customs
broker. Footnote 1 to draft
rule 3.11B(2)(a) limits the
category of persons who
may apply for the Benefit
to: “those persons clearing
goods as stated in that
section for home use under
Chapter 8 [of the Customs
Control Act 31 of 2014] upon
importation of the goods”.
In terms of Footnote 1
to draft rule 3.11B(2)(a),
the Benefit is not available
to people clearing goods
for home use after such
goods have been cleared for
a customs procedure. For
example, if one clears goods
under the warehousing
procedure and subsequently
clears the same goods
for home use, one cannot
make use of the Benefit
when clearing the same
goods for home use. As
such, duty becomes payable
immediately.
In terms of draft rule
3.13, a Benefit granted to
either a person liable for
payment of duty or such
person’s customs broker
may be utilised only for
payment of duty on goods
cleared for home use and
underpayments of duty on
home use declarations.
Other people excluded
from making application
for the Benefit are those
who do not clear goods for
home use, eg, casual and
non-local importers. A
registered agent representing
a non-local importer (who
is not considered a casual
importer) may apply for the
deferment benefit.
Draft rule 3.14 states that
successful applicants are
entitled to a single deferment
account or separate
deferment accounts for each
place of entry.
As with most licences
and registrations in the
new customs legislation,
the deferment benefit also
remains valid for a period of
three years (unless otherwise
specified).
It is highlighted that the
Duty Act does not provide
for the deferment of VAT.
Sars has indicated that the
deferment of Value-Added
Tax (VAT) on imported
goods will be provided
for under the relevant
legislation, ie, the Value
Added Tax Act 89 of 1991
(“VAT Act”). It is yet to be
seen when the VAT Act will
be amended to allow for
the deferment of VAT upon
importation.
