On 16 May the South African Revenue Service (Sars) published its proposed draft rule amendment (insertion) to the Customs and Excise Act, 1964 to restrict the bulk removal of other fermented beverages to combat the illegal movement of such products to the illicit market.
According to the proposed draft rule amendment, other fermented beverages in bulk will only be allowed to move to another licensed manufacturing warehouse, a licensed special storage warehouse, or for direct export. For purposes of the amendment, other fermented beverages in bulk are products that are not in packaging for retail sale.
The exact wording of rule 20.23 reads as follows:
“Removal of bulk other fermented beverages
20.24 (a) A licensee of a customs and excise warehouse or special customs and excise warehouse in which other fermented beverages of tariff heading 22.06 are manufactured, may only remove, or permit the removal of, other fermented beverages in bulk -
(i) to the licensee of another such warehouse;
(ii) to the licensee of a VMP warehouse contemplated in the rules numbered 19A3 for the primary production of spirits;
(iii) to the licensee of a special customs and excise storage warehouse licensed for the storage of other fermented beverages for export; or
(iv) for direct export from that warehouse.
(b) For the purposes of paragraph (a), “other fermented beverages in bulk” means other fermented beverages not in packaging for sale by retail.”
Comment is due by 01 June 2016.