APDP for MIDP The South African Revenue Service (Sars) on 14 March 2014 announced the amended Rules to the Customs and Excise Act through the substitution of form DA 185 “Application form: Registration/Licensing of Customs and Excise Clients and form DA 185.4A5 “Registration Client Type 4A5 – Special Manufacturing Warehouse: APDP”. The amendment to the forms was to change the references from Motor Industry Development Programme (MIDP) to Automotive Production and Development Programme (APDP). According to the NAACAM website, the APDP replaced the MIDP on 01 January 2013. The APDP consists of 4 pillars: (i) Import Duty; (ii) Vehicle Assembly Allowance (VAA); (iii) Production Incentive (PI); and Automotive Investment Scheme (AIS). Cheque Payments Rules Sars has published the proposed draft rule amendment to the Act (insertion of Rule 120.12) for the reduction in the limit of the amount for which cheques may be made out to Sars from R100 000 to R50 000. Comment is due by 20 March 2014. The intention is for the amendment to be effective from 01 April 2014. VAT on Imported Potatoes A Value-added Tax (VAT) Draft Binding General Ruling on the treatment of the supply and importation of various types of frozen potato products was published by Sars on 12 March 2014. The ruling deals with zero-rated supplies and standard-rated supplies, specifying the criteria of classification. Comment is due by 15 May 2014. Imported frozen potato chips are presently subject to anti-dumping measures, with the safeguard measure being suspended. Court Favours Sars The High Court of South Africa, Pretoria on 13 March 2014 ruled in favour of Sars in an application made by DKR Auto CC for an order setting aside the seizure on 18 November 2011 by the Commissioner for Sars of a Lamborghini Murcielago. The seizure was in terms of Section 88(1)(c) of the Act to have it set aside and for the vehicle to be returned in terms of Section 89 of the Act “Notice of claim by owner in respect of seized goods”. The Sars Commissioner contended that DKR Auto CC was not the owner of the seized vehicle and consequently lacked locus standi to bring the application. According to the judgement, at the time the vehicle was detained it was registered on the E-Natis system in the name of Mr Ryan Drake but was kept at the home of Mr Radovan Krejcir, the husband of Ms Katerina Krejicrova, the sole member of DKR Auto CC. The court ruled that DKR Auto CC could not support locus standi and thus dismissed the application. Energon The Department of Environmental Affairs (DEA) announced on 11 March 2014 that on 27 February 2014 Eskom had submitted postponement applications for 16 of its power stations to comply with the Minimum Emissions Standards. Duty Calls Watch List Comment on the proposed protection of European Union Geographical Indications (GIs) for wines and spirits is due by 06 April 2014. Comment is due on the proposed increase in the rate of customs duty on vitreous enamels by 21 March 2014 (Human Rights Day).
