By Quintus van der Merwe & Taryn Hunkin
The Customs & Excise Act 91 of 1964 ("the Act") states that security is required as a condition of licensing or registering for particular facilities and activities.
As part of the application to Sars, entities must do an accurate self-assessment of the amount of security required.
Sars will review the application and make a final determination of the amount of security to be furnished.
Entities must have sufficient security to cover any potential duty and VAT which may become due to Sars and should conduct internal audits to ensure that the necessary security is in place.
Providing sufficient security to customs protects the entities’ assets against claims by Sars.
For more information, contact Shepstone & Wylie at 031 575 7000.