THE INCOMING electronic world of trade - where the current reams of paper documentation will give way to EDI (electronic data interchange) - has forced government to drop stamp duty on bills of entry.
In a letter from SARS (SA Revenue Services) to SAAFF (SA Association of Freight Forwarders) it has been confirmed that stamp duty will be removed on April 1.
It's not government being kind, said SAAFF executive director, Edward Little. It's just a bit difficult to physically attach a stamp to an electronic transmission.
The SARS announcement follows the February budget speech of the Minister of Finance, Trevor Manuel, when it was proposed that the stamp duties on bills of exchange, bills of entry, securities and suretyships would go.
The amendment, said SARS, only relates to the aforementioned - and, therefore, all other requirements for the revenue stamp shall remain unchanged (e.g. Rule 120.07).
However, it means that a lengthy list of 18 customs forms will no longer need a stamp.
Also, said SARS: Please take note that this provision includes all security bonds - for example, those of depot operators, 470.03 rebate users, and container operators.
The saving's not going to be significant, Little told FTW. Nobody's going to save a fortune - with stamp duty levied at R1 per bill of entry.
However, he added, a large forwarder could show a monthly saving of around R5 000, and the larger of the express companies could be looking at R10 000.
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