On 10 September 2013 the South African Revenue Service (Sars) invited comment by 30 September 2013 to 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.
