Customs

Ethyl Alcohol Tariff Application

The proposed rebate of the customs duty on ethyl alcohol of an alcoholic strength by volume of 80 percent volume or higher, classifiable under tariff heading 22.07, at such times, in such quantities and subject to such conditions as the International Trade Administration Commission of South Africa (Itac) may allow by specific permit, for the manufacture of petrol of tariff subheading 2710.11.02. Provided that: (a) In the case of undenatured or partially denatured ethyl alcohol, (i) The provisions of Rule 19A.09(c) of the Customs and Excise Act (Act) are complied with; (ii) All other provisions of the Act pertaining to locally manufactured excisable goods are complied with; (iii) The goods are imported by a licensed manufacturer or licensed supplier, into a storage (OS) or manufacturing warehouse (VMP or VP); (iv) The goods are removed by such licensee or licensed remover as contemplated in Rule 64D of the Act; and (b) Fully denatured ethyl alcohol complies with the provisions of Note 4(c) to Section D of Part 1 to Schedule No.6 of the Act. The application was lodged by Arengo 316 (Pty) Ltd, whose stated reason for the application was that the company is in the process of developing distillation plants that will use non-mineral based and locally produced feedstock to manufacture bio-ethanol which will be sold to South African fuel producers. Accordingly, the creation of this rebate would enable the fuel industry to have a secured and constant supply of bio-ethanol. Comment is due by 15 April 2010.

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