On 14 July the South African Revenue Service (Sars) announced the insertion of paragraph 2.4.1(t) in its Excise External Policy Licensing and Registration, which was effective on the day.
According to Sars, a new paragraph was inserted for the purposes of Rebate Item 621.08, [Spirits for industrial use or for use in the manufacture of other non-liquor products:] regarding the special conditions, which shall apply to recipients and users of partially denatured or un-denatured ethyl alcohol for the manufacture of disinfectant classifiable in heading 38.08 [Insecticides, rodenticides, fungicides, herbicides, anti-sprouting products and plant-growth regulators, disinfectants and similar products, put up in forms or packings for retail sale or as preparations or articles (for example, sulphur-treated bands, wicks and candles, and fly-papers):]
For ease of reference the “Summary of Main Points” of the External Policy are:
(a) This policy deals with the types of registrations and licences administered by Excise and sets the requirements that must be met prior to and subsequent to registration and licensing for selected activities.
(b) The purpose of registration and licensing is to regulate specific activities pertaining to Excisable/Levy goods and to govern acceptable practice in terms of the Act.
(c) The following Excise client registrations are covered by this policy:
(i) Commercial manufacturer of biodiesel;
(ii) Commercial manufacturer of sugary beverages;
(iii) Diamond producer, dealer, beneficiator or the holder of an export permit;
(iv) Electricity producer;
(v) Manufacture of Excisable Goods solely for own use by the manufacturer – Section 116;
(vi) Non-commercial manufacturer of biodiesel;
(vii) Non-commercial manufacturer of sugary beverages;
(viii) Rebate User (Schedule 6);
(ix) Registered still; or
(x) Tobacco leaf dealer.
(d) The following Excise client licences are covered by this policy:
(i) Excise Warehouses:
(A) Manufacturing Warehouses (VM);
(B) Primary and Secondary Manufacturing Warehouses (VMP and VMS);
(C) Special Manufacturing Warehouses (SVM);
(D) Special Storage Warehouses (SOS);
(E) Storage Warehouses (OS); and
(F) Special Ad Valorem Manufacturing Warehouse for purposes of excise duty specified in Section B of Part 2 of Schedule 1 (VS).
(ii) Licensed Distributor of Fuel (LDF) - Although not an excise “warehouse”, Section 60 read with Section 64F stipulates that any person, other than the licensee of a fuel-manufacturing warehouse who wishes to claim a refund on fuel has to license as an LDF with the Sars. Such refunds can only be claimed on fuel obtained at any place in South Africa (SA) from duty-paid stocks of a fuel-manufacturing warehouse for delivery to any destination outside SA.
(iii) Agricultural Distiller - Although not an Excise “warehouse”, Section 60 read with Section 62 stipulates that any person distilling spirits has to license. Only renewal of existing agricultural distiller licenses, as no new licenses, shall be granted to any person after the commencement of the Customs & Excise Act 91 of 1964.
(iv) Stills – Although not an Excise “warehouse”, Section 60 read with Section 63 stipulates that any person who owns or has in his possession or under his control any still, has to license. This includes the manufacture or importation of stills for sale or the repair of stills for reward.
(e) This policy does not cover:
(i) The legal entity registration which must precede registration or licensing (refer to ECS-LER-03).
(ii) Bonds as this is dealt with in document SE-BON-02; and
(iii) Completion of the DA 185 as this is dealt with in document SE-LR-03-M01.
The External Policy is accessible at:
Story by: Riaan de Lange