DUTY CALLS

Rebate of Petroleum
Exploration
On 10 September 2013 the
South African Revenue
Service (Sars) invited
comment by 30 September
2013 on draft amendments
to both the Customs and
Excise Act (C&E Act) and the
Value-added Tax Act (VAT
Act). The amendments relate
to goods imported or cleared
from a customs and excise
warehouse for exploration for
or production of petroleum.
The draft amendment of
Part 2 of Schedule No. 4 to the
C&E Act “General Rebates
Of Customs Duties And Fuel
Levy: Temporary Rebates Of
Customs Duties”, provides
for a new rebate item for
duty-free goods imported for
exploration for or production
of petroleum, as well as the
Notes to Rebate Item 460.23
with regard to exemption
of an International Trade
Administration Commission
of South Africa (Itac) permit
for the mentioned goods.
Rebate Item 460.23 reads
“Goods imported or cleared
from a customs and excise
warehouse for the exploration
for petroleum or production of
petroleum as certified by the
Director-General: Mineral
Resources”.
The proposed
substitution of Rebate Item
460.23/00.00/01.00 and
the insertion of Rebate Item
460.23/00.00/02.00.
The draft amendment of
paragraph 8 of Schedule 1 to
the VAT Act, to provide for
the exemption from VAT on
importation of dutiable goods
subject to an Itac permit and
duty-free goods not subject to
the Itac permit.
The proposed amendments
(1) Make a distinction
between imported goods
that are duty-free and not
subject to an Itac permit and
those that attract duty but
are subject to an Itac permit.
(2) Allow for the temporary
imports provided the
conditions stipulated in the
item notes are complied with.
(3) Provide for exemption
from VAT on the goods
imported solely for use in
petroleum exploration.
These amendments are
intended for implementation
from 01 January 2014.
Draft Taxation Laws
Bills, 2013
On 11 September 2013 Sars
and National Treasury
published their draft response
document to the Standing
Committee on Finance (SCoF)
on the draft Taxation Laws
Amendment Bill, 2013 and
the Tax Administration Laws
Amendment Bill, 2013 (Bills).
The article merely lists the
references to the C&E Act
(the reference used in the
Response Document has been
maintained). 9.2.1. Clause
9: Section 4 of the C&E Act
– Search of premises; 9.2.2.
Clause 9: Section 4 of the C&E
Act – Investigation of statutory
offences by Sars officials; and
9.2.3. Clause 14: Section 73
of the C&E Act – Currency
conversion for imported goods.
(Full article in Customs Buzz.)
Tariff Application
Correction
On 06 September 2013 Itac
published a correction notice
(original notice published on
23 August 2013), amending
the tariff subheading for heat
exchange units from tariff
subheadings 8419.40 to
8419.50.
Comments due by 04
October 2013.
Sacu Tariff Board
Tender
The Southern African
Customs Union (Sacu)
has published a tender for
an expert assessment of
the current architecture
and modus operandi
for establishing and
operationalising member
states’ national bodies and the
Sacu Tariff Board.
The tender closes on 24
September 2013.