The South African Revenue Service (Sars) has released a list of Frequently Asked Questions and Answers (FAQs) on Covid-19 essential goods, their clearance, and movement.
Question and answer:
Question 1:
What is the impact of Covid-19 on Sars Customs during the lockdown period?
Answer:
For the latest on the impact of the Covid-19 pandemic on Customs, please see the Covid-19 page on the Sars Website www.sars.gov.za > Covid-19 Related Media Releases and Customs and Excise Updates.
Question 2:
Where do I find the COVID-19 Essential Goods List?
Answer:
Essential goods are defined in Annexure B of the Disaster Management Act under “Categories of Essential Goods and Services During Lockdown”.
Question 3:
What is the difference between critical supplies and essential goods?
Answer:
Critical supplies are specific goods listed by the International Trade Administration Commission of South Africa (Itac) that may qualify for both a rebate of duty and an import Value-added Tax (VAT) exemption, on application to Itac. Essential goods may qualify for an import VAT exemption, without application, provided that they meet specified conditions. Further details are set out in question 4 below.
Question 4:
What do we need to know about the importation of critical supplies or essential goods to the national state of disaster (Covid-19 pandemic)?
Answer 4:
Importation of essential goods can be done free of VAT into South Africa, under certain conditions. To qualify for rebate of duty under Rebate Item 412.11/00.00/01.00 (a) Critical supplies are listed on the Itac website, as is the application form, which must be furnished to Itac for approval. (b) Itac will send an email notification to qualify under rebate of duty under Rebate Item 412.11/00.00/01.00. (c) Once granted, the importation will follow the normal import procedure. (d) The rebate item is only valid for direct importations and not to be cleared into bond or warehousing. CPC A 14 must be used for importations from outside SACU and CPC A 12 for importations from the BLNS, with measure Rebate Item 412.11/00.00/01.00. Import VAT Exemption: Rebate Item 412.11. (e) Imports of critical supplies that qualify for a rebate of duty under paragraph 1. automatically qualify for the import VAT exemption. (f) Imports of essential goods qualify for the import VAT exemption unless: (i) They are dutiable; (ii) They may enter South Africa duty free as a result of a free trade agreement or Customs Union Agreement; and (iii) they are the subject of applications for duty support that are currently pending before Itac or are goods manufactured by a domestic industry that Itac has determined is being or is likely to be injured by imports. The importer must also be able to prove, on import, that any restrictions imposed on the use and/or sale of the essential goods in the essential goods list will be met. (g) There is no need to apply for a specific Itac certificate for essential goods that qualify for the import VAT exemption as set out above. (h) The Itac certificate, which sets out the exclusions in more detail, is available on the Coronavirus page on the Sars website.
https://www.sars.gov.za/Media/Pages/CoronaVirus.aspx
Question 5:
What are the conditions for the rebate of duty under Rebate Item 412.11/00.00/01.00 that are the subject of an Itac certificate?
Answer 5:
Conditions of rebate provision are: (1) This rebate provision is only applicable for Covid-19 relief purposes and for Covid-19 approved critical supplies, which do not include used or second-hand goods. (2) The e-mail notification certificate is non-transferable. (3) For direct importation only and not to be cleared into Bond. (4) Goods imported under this Rebate Item 412.11/00.00/01.00 shall not be sold or disposed of to any party who is not entitled to any privileges under the rebate item, or removed to the area of Botswana, Lesotho, Swaziland (Eswatini) or Namibia without the permission of the International Trade Administration Commission of South Africa (Itac). (5) Goods imported under this rebate item will be subject to monitoring and if a prima facie review establishes that any condition of the certificate is not complied with, the consignment in terms of which the rebate certificate was used can be seized and the rebate certificate will be temporarily suspended while Sars and Itac conduct an investigation. If it is established that non-compliance took place, appropriate steps will be taken. These steps will be taken in terms of the International Trade Administration Act, 2002 and the Customs and Excise Act, 1964 and can include, criminal charges, withdrawal of the certificate or certificates concerned and/or the rejection of future applications for certificates.
Question 6:
Do I need to apply for the VAT exemption under Rebate Item 412.11?
Answer 6:
No, Itac issued a once-off global Certificate in terms of Schedule 1(8) of the Value Added Tax Act, Act 89 of 1991, under Rebate Item 412.11/00.00/01.00 and VAT Exemption Item 412.11/00.00/01.00 (re: Sars Essential Goods List), except for the exclusions mentioned in the Certificate issue by the Itac.Question 7:
Question 7:
Where can I find the certificate issued in terms of Schedule 1(8) of the Value Added Tax Act, 1991, Rebate Item 412.11/00.00/01.00 (re: Sars Essential Goods List)
Answer 7:
This List is available through a link Sars provided on 3 April – Goods qualifying for import VAT exemption under Rebate Item 412.11 – COVID-19 measures (Updated 9 April 2020 to reflect additional exclusion communicated by Itac, with effect from 8 April). Click on the link which will direct you to the response on the impact of COVID19 on Sars https://www.sars.gov.za/Media/Pages/CoronaVirus.aspx If the link fails to open, go to the Sars Coronavirus page on the Sars website.Question 8:
What clearance declaration procedure should be followed in respect of importations of all goods?
Answer 8:
Importation will follow the normal procedure described in the external policy SC-CF55 – Clearance declaration external policy. CPC A 14 must be used for importations from outside SACU and CPC A 12 for importations from the BLNS, with Rebate item 412.11/00.00/01.00.
Question 9:
Must you apply for an Itac certificate if the goods are duty free?
Answer 9:
There is no need to apply for an Itac Certificate for VAT exemption if the goods qualify for the import VAT exemption as set out in question 4 above.
Question 10:
I wanted to find out if you knew where we could get a list of all the medical products that will be VAT exempt?
Answer 10:
See the Itac list of critical supplies available on the ITAC website and the illustrative mapping of essential goods to their relevant tariff headings available on the Coronavirus page on the Sars website. The illustrative mapping has been prepared at a high level and may include non-essential goods. e.g. Chapters 28 and 29 contain chemicals that are not used for essential goods.
Question 11:
How long will the VAT Exemption Certificate issued by Itac apply?
Answer 11:
This Certificate will be valid from the date of application and shall remain valid for goods cleared up to and including 31 May.
Question 12:
Where can I find a list of goods that will benefit for a full rebate of customs duty and VAT exemption?
Answer 12:
For goods to benefit from a full rebate of customs duty (as well as a VAT exemption), they must appear on the List of Critical Supplies appearing on Itac’s website (clicking on the Covid-19 banner near the top of Itac’s homepage, will re-direct one to that list). On the same page there is an application form and other relevant information.
Question 13:
I need clarity on the temporary rebate application process for importation of undenatured ethyl alcohol to be used in the manufacture of hand sanitisers.
Answer 13:
All registration activities will be postponed. However, an exception process has been set up centrally to cater for the registration of entities importing essential goods. For registration as an importer and a rebate manufacturer of essential goods, the following procedure must be followed: - 1. Submit applications for import/export via email to BMvubu@sars.gov.za / NMotete@sars.gov.za / avandermescht@sars.gov.za 2. This should include: (2.1) A completed DA185; (2.2) Relevant supporting documents; and (2.3) A commercial Invoice clearly stating the value and the description of goods in question.
Question 14:
Are border posts open for imports and exports of goods?
Answer 14:
All borders of the Republic of South Africa are closed during the period of lockdown, except for ports of entry designated by the responsible Cabinet member for the transportation of fuel, cargo and goods during the period of lockdown as set out in Regulations published on 02 April 2020.
Question 15:
I want to import face masks. Can I apply for a customs importers code?
Answer 15:
Yes, follow the above-mentioned procedure in question 13.
Question 16:
I want to follow up on the status of my registration submitted prior to the lockdown. Where to now?
Answer 16:
All enquiries in this regard should be sent to Brita Groenewald at bgroenewald@sars.gov.za
Question 17:
I want to license a bonded warehouse. Where can I submit my application to?
Answer 17:
All licensing activities have been postponed, with the exclusion of licensing for rebate manufacturer of essential goods i.e. sanitisers. These clients should submit their applications to BMvubu@sars.gov.za / NMotete@sars.gov.za / avandermescht@sars.gov.za
Question 18:
We want our facility to be registered as a de-grouping facility to ease congestion in our transit shed. Is this allowed?
Answer 18:
This may be considered provided the requirements prescribed in rule 64G.09 of the Act are met. All applications in this regard should be forwarded to BMvubu@sars.gov.za / NMotete@sars.gov.za / avandermescht@sars.gov.za for consideration.
Question 19:
Do I need to register with Sars if I want to manufacture essential goods imported under rebate of duty?
Answer 19:
You have to be a registered importer. Applications may be sent to BMvubu@sars.gov.za/NMotete@sars.gov.za/ avandermescht@sars.gov.za
Question 20:
Do I have to be registered to import essential goods under Rebate Item 412.11?
Answer 20:
No registration is required to enter under the Rebate Item. However, registration for an importer’s customs code number is required; and application to be made as described above.
Question 21:
May I use the General Customs Code 70707070 to import material for purposes of manufacturing essential goods?
Answer 21:
No, unless you comply with the Rule 59A.03(1)(iii) to the Customs and Excise Act, 1964.
Question 22:
May I use the General Customs Code 70707070 to import essential good such as face masks under rebate of duty?
Answer 22:
No, unless you comply with the Rule 59A.03(1)(iii) to the Customs and Excise Act, 1964.
Question 23:
I want to import essential goods but do not have a customs importers code. What can I do?
Answer 23:
You have to apply for an importer’s code. An application form DA185 plus relevant annexures and supporting documents and a commercial Invoice clearly stating the value and the description of goods in question as per the DA185 has to be emailed to BMvubu@sars.gov.za/NMotete@sars.gov.za/ avandermescht@sars.gov.za. Please ensure all sections are completed in full.
Question 24:
During what time and days are Customs offices open?
Answer 24:
Customs offices are closed for conducting usual business. Sars urges clients to make use of digital channels to communicate with us as far as possible to limit the need for visiting our offices. Staff will be available to respond to email and telephone enquiries throughout the lockdown period. Appointments to come into certain offices can be made by contacting the particular office. Contact details are on the Customs and Excise page of the Sars website.
Question 25:
Will origin certificates be processed for essential goods?
Answer 25:
Customs clients submitting Certificates of origin, including: Form A, EUR1, SADC, MERCOSUR and AGOA, will continue to do so at their local branch as per communiqué dated 26 March (using an appointment process).
Question 26:
When can I make an appointment for the processing and issuing of ROO certificates, processing of manual provisional payments and form DA73?
Answer 26:
This should be made a day in advance.
Question 27:
I wish to follow up on cargo held by Customs for inspection. Traders require updates on inspections.
Answer 27:
The Customs Branch Manager should be contacted, contact details are available on the Sars Coronavirus page on the Sars website.
Question 28:
Can I send my queries to Sars Head Office?
Answer 28:
To save duplication and time, clients are reminded that queries must be sent to the relevant branch/processing hub first before escalation to osc@sars.gov.za.
Question 29:
To whom should queries be escalated in the event that the Customs Branch Office cannot resolve my issue?
Answer 29:
During the Covid-19 pandemic, Sars Customs has set up a command centre to deal with escalations that may not have been dealt with at branch level. Your existing call reference number, transaction (SSM/LRN), can then be sent to osc@sars.gov.za For processing queries: Please use the escalation mailbox Escalation-C&E@sars.gov.za
Question 30:
What information should be provided to the Operational Command Centre (OSC) for escalation?
Answer 30:
If you need to escalate beyond branch offices, your existing call reference number no and transaction (SSM/LRN) can then be emailed to osc@sars.gov.za
Question 31:
What do I do in the event that my goods were stopped for examination during the lockdown period?
Answer 31:
Customs inspections will now take place in respect of all cargo and will no longer be limited only to essential cargo. We will, however, still prioritise essential cargo for inspection in order to avoid any undue disruption in respect of the supply of critical goods. Extensive use will be made of documentary inspections and, where possible, nonintrusive examination methods will be employed in an effort to limit physical inspections to numbers that match our operational capacity at this time.
Question 32:
Where can I find the Customs Branch Contact details?
Answer 32:
During the lockdown period, for any escalations pertaining to a specific Customs branch, see the Customs Branch Managers’ contact details on the Coronavirus page or Customs and Excise page on the Sars website.
Question 33:
Which services are rendered at customs branch level during the lockdown period?
Answer 33:
Procedures that Sars Customs have put in place during the lockdown period, focusing primarily on facilitating trade in essential services at Customs offices, cover the following: (1.) Registration; (2.) Licensing and Accreditation; (3.) Applications for Embargoes; (4.) Special Attendance; (5.) De-grouping Removal in Bonds, etc. and (6.) Physical Inspections.
Question 34:
Is the Customs Branch Front End available for usual customs business?
Answer 34:
No not at all. Branch Offices are closed for usual business. In cases where visits to Sars offices are unavoidable and essential, such as for the processing of origin certificates, clients should contact the relevant branch and make an appointment to come in.
Question 35:
It is said that we must make use of email to contact customs. Where do I find contact details?
Answer 35:
An updated list of contact details (phone and email addresses) for all offices has been posted on the Sars website and can be accessed through the following link: https://www.sars.gov.za/ClientSegments/Customs-Excise/Pages/default.aspx
Question 36:
May imported essential goods be cleared into a licensed Customs and Excise warehouse?
Answer 36:
No, the VAT exemption is only valid for direct importations and not to be cleared into bond or warehousing.
Question 37:
What is the impact of the lockdown in terms of essential services and essential goods?
Answer 37:
See Annexure B to Regulation 11B. to the Disaster Management Act, 2002 on essential services and essential goods
Question 38:
May goods which landed at a port of entry be removed to other places of entry in the Republic?
Answer 38:
Yes, imported cargo, with the exception of liquor, may be transported from ports of entry to warehousing sites.
Question 39:
May I clear imported goods during the lockdown period?
Answer 39:
Yes, all cargo may be cleared.
Question 40:
May containers with contents be removed to the depot?
Answer 40:
Yes, imported cargo, with the exception of liquor, may be transported from ports of entry to warehousing sites and essential goods may be transported from warehousing sites to essential service providers
Question 41:
Where can I have CN1s printed for release of cargo?
Answer 41:
For printing of CN1s: DBN – DBN_Reprints@sars.gov.za ALB – AlbertonBranch@sars.gov.za Otherwise you may contact the Branch Manager at the Port of entry of the goods.
Question 42:
May essential cargo be released to importers?
Answer 42:
Yes, essential goods may be transported from warehousing sites to essential service providers
Question 43:
Should cargo only be removed under carrier haulage to temporary facilities under customs control?
Answer 43:
No, it is not prescribed that cargo must be moved to temporary storage facilities under carrier haulage only. ie Bonded movement is subject to Customs control, which means that the cargo may only be removed on the basis of a suitable customs clearance (Removal in Bond) and release, or by an approved container operator based on a manifest reflecting the details of the underlying transport document.
Question 44:
I have a consignment of hand sanitisers arriving soon. Which tariff heading applies?
Answer 44:
Sanitisers are grouped under the heading “Disinfectants” as per the tariff and classifiable under tariff subheading 3808.94.
Question 45:
I have an “essential” product and do not know where to classify it.
Answer 45:
Formal application for tariff determination relating to the goods can be sent to AMboweni@sars.gov.za
Question 46:
I want to apply for embargo. Where can I send my application to?
Answer 46:
The following is applicable: - (1.) All applications for embargoes should be forwarded to osc@sars.gov.za; and (2.) In the case of approval, that email will be your source document to enable further action.
Question 47:
May cargo be transported during the lockdown period?
Answer 47:
See Regulation 11B.(1)(a)(iii) to the Disaster Management Act, 2002 on transportation of goods.
Question 48:
May essential cargo be removed in transit or for export?
Answer 48:
See Regulation 11B.(1)(a)(iii) to the Disaster Management Act, 2002 on transportation of goods
Question 49:
What will happen to non-essential goods after importation?
Answer 49:
See Regulation 11B.(1)(a)(iii) to the Disaster Management Act, 2002 on transportation of goods
Question 50:
Will container operators/carriers, container etc. be allowed to deliver non-essential cargo to importers?
Answer 50:
See Regulation 11B.(1)(a)(iii) to the Disaster Management Act, 2002 on
transportation of goods
Question 51:
I need information regarding the transportation of goods.
Answer 51:
See Regulation 11B.(1)(a)(iii) to the Disaster Management Act, 2002 on transportation of goods
Question 52:
To whom should I apply to have temporary storage facilities approved?
Answer 52:
Submit an application to Sars via e-mail to BMvubu@sars.gov.za / NMotete@sars.gov.za / avandermescht@sars.gov.za on a company letterhead.
Question 53:
Is there a limitation on what may be exported during the lockdown?
Answer 53:
See Regulation 11B.(1)(a)(iii) to the Disaster Management Act, 2002 on the transportation of goods.
Question 54:
Can Sars clarify provision of the Regulations relating to the movement of cargo?
Answer 54:
The regulations are issued by the minister of Cooperative Governance and Traditional Affairs in consultation with the Department of Transport. Queries should be directed to the Department of Transport.
Notification
According to SARS the above FAQs may be subject to amendments at short notice in order to reflect any changes in the Regulations to the Disaster Management Act, 2002, or to address any operational measures that may result from that.