Imported Vehicles – Privileged Persons The South African Revenue Service (Sars) has issued a letter in respect of “Imported Vehicles Purchased by Privileged Persons from Dealers and Later Cleared in terms of Rebate Items 406.00 and 460.17 of Schedule no. 4 to the Customs and Excise Act” (the Act). According to the letter, Section 40(3)(ii) of the Act i.e. validity of entries, only provides for instances that fall outside the current practice whereby substitutions were allowed resulting in claims for refund of customs duty (duty) made and entertained. In the abovementioned scenario, for instance, it is held that no payment of duty was made in error at the time of importation and therefore falls outside the ambit of the said subsection to the Act. In order to ensure a fair approach and phasing out of this practice, where claims of this nature have been allowed, Sars has advised that it is prepared to entertain all claims of this nature until 25 November 2008 after which no further claims will be considered. Applications lodged previously for a substitution will be considered on merit. Sars has indicated that Diplomatic missions and other privileged persons who wish to purchase imported motor vehicles under the abovementioned rebate items should purchase these vehicles directly from the importer’s customs-bonded warehouse or directly. Tender on Tradability Of DCCs A tender was published in respect of the "Study to Investigate Sacu- Wide Implications for the Re-Instatement of the Tradability of Duty Credit Certificates (DCCs) to Non- Manufacturers". With 31 December 2008 almost upon us, the question being asked is whether the Chinese quotas will be extended.
