The serious business of in-bond acquittals

In bond and in transit
movements pose a
substantial financial risk to
Sars since VAT and duty on
these entries have not yet
been brought to account.
Where goods are moved
in transit/in bond it is
necessary to acquit the entry
with Customs ie, prove that
the goods have reached
their final destination (as
declared on the bill of
entry) and were not entered
for home consumption. If
unable to provide Sars with
the necessary acquittal
documentation when
requested to do so, one
will be liable for the VAT
and duties applicable to the
entries in question, as well
as penalties and possible
forfeiture.
The Customs & Excise
Act 91 of 1964 (“the Act”)
allows 30 days from the
bill of entry date in which
to obtain the acquittal
documentation for record
purposes. If day 30 falls on
a Sunday or public holiday
then the acquittals must be
obtained on the last working
day before the Sunday or
public holiday.
Sars has chosen to acquit
entries on a risk-based
system. In terms of the
risk-based acquittal system/
process, clients must obtain
their acquittal documents
within the 30-day period
and retain the documents
for record purposes. Sars
will issue a letter requesting
the required acquittal
documents. Clients then have
seven days from the date of
the letter in which to present
the requested documentation
to Sars. In terms of Rule
18.7(b) of the Act, there is no
provision for an extension
of this 7-day period. It is
therefore not possible for a
Sars official to permit any
extension of this time period.
If, for whatever reason, the
client expects that they will
not be in a position to obtain
the necessary documentation
within the 30-day period,
they must, before the end of
that period, notify Sars in
writing or bring duties and
VAT to account as if the
goods had been entered for
home consumption. If the
client opts to make payment
of the duty and VAT and is
later in a position to provide
the acquittal documentation
to Sars, he may then submit
a refund claim to sars for the
amounts paid.
Sars view acquittals of in
bond and transit movements
very seriously. If, for
example, you operate as a
clearing and forwarding
agent and do not submit your
acquittals timeously, not
only do you stand to incur
huge financial costs, but you
also run the risk of having
your counter closed by Sars.
If you are unsure of what
acquittals are outstanding,
it is strongly recommended
that you contact Sars and
request a print-out reflecting
your un-acquitted entries
on their system. It is also
advisable to retain proof
of receipt of acquittal
documentation since Sars
may request copies of
acquittal documents which
have already been submitted.