Sars on 07 June released its proposed amendment of Section C to Part 1 of Schedule No. 6 to the Act (Refunds and Rebates of Excise Duties, Fuel Levy and Environmental Levy: Rebates and Refunds of Specific Excise Duties: Rebates and Refunds of Specific Excise Duties on Wine and Other Fermented Beverages (Excluding Beer Made From Malt and Traditional African Beer), Mixtures of Fermented Beverages and Mixtures of Fermented Beverages and Non-Alcoholic Beverages not elsewhere Specified or Included) to provide for the refund provision for the return of duty paid wine, vermouth and other fermented beverages which are off-specification or have become contaminated or have undergone post-manufacturing deterioration, on which comment is due by 21 June 2016.
“6. For the purpose of items 620.22, 620.23 and 620.24 the following: (a)(i) Wine, vermouth and other fermented beverages which are off-specification or have become contaminated or have undergone post-manufacturing deterioration may be returned to a customs and excise special manufacturing warehouse (SVM) for destruction or reprocessing, only if such products are found to be off-specification, contaminated or to have undergone post-manufacturing deterioration within a period of 12 months after removal from the SVM and if the goods are returned within this period. (ii) The provisions of this item shall apply in respect of wine, vermouth and other fermented beverages - (aa) under the control of the manufacturer; (bb) returned as produced from the same batch(es); and (cc) returned in the originally sealed containers for wholesale or similar packaging. (iii) The licensee of the customs and excise manufacturing warehouse in which such goods will be reprocessed or destroyed must apply to the Commissioner for such reprocessing or destruction stating the circumstances in which the goods have become, and the extent to which the goods are, off-specification or contaminated. (b)(i) If the Commissioner approves the application, any wine, vermouth or other fermented beverages returned in terms of this item shall be - (aa) kept intact and entirely separate from any other goods or materials until they have been examined and identified by an officer; and (bb) unpacked, where applicable, and transferred to and mixed with stocks of materials for reprocessing, under supervision of an officer; or (cc) destroyed under supervision of an officer. (ii) The licensee of a SVM to which such products are returned for destruction or reprocessing must keep a record which includes at least the following - (aa) a detailed description of the goods received including the applicable tariff item; (bb) the quantity received; (cc) the date of receipt; (dd) the delivery note under cover of which such products were returned; (ee) proper record of the excise inspection processes; and (ff) proper record of the excise permission to destroy or reprocess. (c)(i) For the purpose of section 75(11A), the licensee of the SVM making such application must produce proof that duty was in fact paid as well as the rate at which the excise duty was paid on such products presented for destruction or reprocessing in accordance with the provisions of this item and, if the licensee is unable to produce such proof, the duty on any quantity so returned shall be calculated for refund purposes at the lowest rate of excise duty levied in terms of this Act on such products during the 12-month period contemplated in Note 6(a)(i). (ii) Where any goods containing spirits for which any rebate of duty on the spirits has been allowed as contemplated in section 75(18) are returned to a customs and excise manufacturing warehouse for reprocessing or destruction as provided in this item, the excise duty so allowed as a rebate in respect of the goods returned must be paid back before any process of reworking the product or destruction thereof may take place. (d) The licensee of such warehouse may, after reprocessing or destruction of the products concerned, and on accounting for the goods reprocessed or destroyed in the monthly account, prescribed in the rules for section 19A, set off as contemplated in section 77, any amount duly refundable against the amount payable on such account during a period of two years after receipt of the goods for destruction, as the case may be.”
Rebate Item 620.22/104.15 to the Act - Wine, after removal from a special manufacturing warehouse (SVM) after entry for home consumption and payment of duty, is found to be off–specification or to have become contaminated or to have undergone post-manufacture deterioration and is returned to an SVM for destruction or reprocessing, subject to the provision of Note 6 to this Section:.
Rebate Item 620.23/104.16 to the Act - Vermouth, after removal from a special manufacturing warehouse (SVM) after entry for home consumption and payment of duty, is found to be off-specification or to have become contaminated or have undergone post manufacture deterioration and is returned to an SVM for destruction or reprocessing subject to the provision of Note 6 to this Section:.
Rebate Item 620.24/104.17 to the Act - Other fermented beverages, after removal from a special manufacturing warehouse (SVM) after entry for home consumption and payment of duty, are found to be off-specification or have become contaminated or have undergone post manufacture deterioration and are returned to an SVM for destruction or reprocessing subject to the provision of Note 6 to this Section:.