On 19 April 2024, the South African Revenue Service (SARS) extended an invitation for comment on its proposed draft Rule amendments to the Customs and Excise Act, 1964 relating to the storage of imported bunker fuel in special customs and excise storage warehouses. Comment is due by 10 May 2024.
The Rule amendments are:
- Insertion of the Additional Note 1(h) to Chapter 27 of Schedule No.1 to the Act, 1964.
- Form DA 185 – Application form – Registration or Licensing of Customs and Excise Clients
- Form DA 185.4B4 – Licensing Client Type 4B4 – Special storage warehouse
- Form DA 185.4B17 – Licensing Client Type 4B17 – Marine remover of imported bunker fuel
SARS’ Explanatory Note:
The amendments to the rules under sections 21 and 60 relating to the creation of a new warehousing type namely a special customs and excise storage warehouse for imported fuel levy goods (land-based and sea-based), published for public comment on 11 December 2023, have been reviewed after extensive public comments were received and considered. A new draft of the rule amendments is hereby published for a second round of public comment due to changes in approach.
The new warehouse type is now ring-fenced for duty suspended warehousing of imported bunker fuel and is called a special customs and excise storage warehouse for imported bunker fuel. Bunker fuel includes distillate fuel and residual fuels used for supply to vessels. Please note in this regard also the proposed amendment in Part 1 of Schedule No.1 to Note 1(h) to Chapter 27 inserting a requirement of a maximum of 0.5% m/m sulphur content for purposes of residual fuel oil products intended for use in ships or boats as marine fuel or marine oil.
The permissible movements out of these warehouses are related to the bunkering of vessels –
- from sea-based: removal for export for supply as ship stores for use by foreign-going vessels.
- from land-based: removal for export for supply as ship stores for use by foreign-going vessels, and
- removal for home use on payment of duty for supply to coasting vessels.
No re-warehousing is permitted.
Provision is also made for licensed marine removers of imported bunker fuel to remove or transport imported bunker fuel to and from these warehouses.
There are two types of licensed marine removers, namely:
- A licensed marine remover moving duty suspended imported bunker fuel to or from a special storage warehouse for imported bunker fuel.
- A licensed marine remover moving duty paid imported bunker fuel from a special storage warehouse for imported bunker fuel.