SARS Letter – Schedule No.5 On 24 May 2011 the South African Revenue Service (Sars) released the following letter under the title “Amendments to Schedule No.5 to the Customs and Excise Act”. The amendments have been published in Government Gazette No. 34272 dated 13 May 2011 and became effective on 1 June 2011. General Note 1 of Schedule No. 5 stipulates the requirements that must be complied with before a refund or drawback of duty will be allowed. The newly inserted General Note 8 to Schedule No. 5 places a legal obligation on exporters to insert, on the export declaration, the customs procedure code (CPC) applicable to the export, as well as the relevant refund or drawback item for refund or drawback of duty purposes. The proviso contained in Note 5(a)(i) to refund item 522.00 that was applicable to refund item 522.03 allowing for a refund application to be considered, even in instances where the export declaration was not accompanied by the form DA 63 at the time of submission, has been deleted. The effect of this amendment is that the export declaration and the form DA 63 must be presented simultaneously to afford Sars the opportunity to positively identify the goods on exportation as being the same as those imported. Applications for a refund or drawback of duty submitted prior to 1 June 2011 will be handled according to the procedures in place at that time. Soft Drinks Regulations – Comment Due In a Government Gazette notice the Minister of Health published Regulations – Soft Drinks: Draft Amendment for public comment. The proposed amendments relate, amongst others, to labelling of soft drinks, as: (i) “High Caffeine Content”; and (ii) “Not Recommended for Children under 12 Years of Age, Pregnant Women, Persons Sensitive to Caffeine, and not to be Consumed as a Mixture with Alcohol Beverages”. Comment is due by 13 August 2011. Regulations for RIP Cigarettes In a Government Gazette notice the Department of Health published Regulations relating to the Standards for Manufacturing of Reduced Ignition Propensity (RIP) Cigarettes. The notice’s table of contents covers: (i) Definitions; (ii) Requirements; (iii) Performance Standard; (iv) Testing Requirement; (v) Certification and Product Range; and (vi) Packing and Marking Requirements. Sars Confiscates Illegal Cigarettes A joint operation by the Sars Customs Border Control Unit and the South African Police Service (SAPS) has resulted in the detention of about 431 master cases of illegal cigarettes, or about 4.3 million cigarettes. The illegal cigarettes would have brought about R 2.5 million in import duty and Value Added Tax into the Sars coffers. Sars will continue to take a tough stance against all forms of smuggling and has encouraged the public to report any suspicious activities to its Anti- Corruption and Fraud hotline on 0800 00 2870. Duty Calls’ Watch List Comments on Sars’ Draft Customs Duty Bill are due by 06 June 2011. Comment on the proposed increase in the rate of customs duty on artificial turf is due by 03 June 2011.
