Sars Letter Deferment Facility for Importers In a letter dated 07 June 2010 the South African Revenue Service (Sars) clarified several issues relating to “Deferment Facility for Importers”. Various requests have over the past few months been received from importers wishing to use their own deferment bonds whilst the declarations are still prepared and submitted by clearing agents. These requests have originated mainly from offices where the CAPE System is used for the processing of import declarations. The current system uses the code declared as the “Agent Code” to link the declarations to the specific deferment account. However the process also allows for the importer code to be used for such clearances. In order for the importer code to be used, the following should be noted: (i) An arrangement/written agreement should be made with the relevant clearing agent to accommodate this. It is also suggested that the responsibilities of both parties, the agent and the importer, be clearly defined and agreed upon should any legal issues arise. (ii) Upon request by Customs this agreement must be produced. (iii) The importer should register his/her deferment in the prescribed manner. (iv) When completing the declaration the importer code should be inserted in the space provided for the agent code as well as in the field for “Importer Code”. The above arrangement should only be regarded as a temporary measure until it is replaced by a more permanent solution. This issue has been brought to the attention of the relevant team working on the modernisation of Customs. Exemption from Fringe Benefit Tax – Fifa 2010 On 10 June 2010 Sars issued a media release relating to the exemption from fringe benefit tax in respect of the Fifa 2010 World Cup. Draft legislation proposes a once-off de minimis exemption of R750 on 2010 Fifa World Cup related items provided by employers to their employees. The exemption will only apply to 2010 World Cup related goods, such as T-shirts, jerseys and similar clothing, and match tickets. It will be effective for individual taxpayers for the 2010/11 tax year. The proposed exemption is also in support of employers that have encouraged their employees to wear Fifa World Cup T-shirts and jerseys, particularly on what has become known as “Football- Friday”, to show their support for South Africa’s hosting of the World Cup. In most cases these T-shirts, jerseys and similar clothing are acquired by the employees themselves. However, some employers are providing World Cup T-shirts, jerseys and match tickets to their employees at little or no cost. Such items are normally subject to fringe benefits tax under the current provisions of the Income Tax Act, 1962. The draft legislation proposes a limited exception to this rule. Sunset Review of Anti-Dumping Due On 28 June 2010 comment is due in respect of the sunset review of the anti-dumping duties on acetaminophenol, classifiable under tariff subheading 2924.29.05, originating in or imported from the People’s Republic of China and the United States of America.
