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.
