On 08 February 2022, the South African Revenue Service (SARS), published for comment, its draft amendment to Part 1D of Schedule No. 6 to the Customs and Excise Act, 1964 by the insertion of Note 10 in order to align with the similar corresponding refund provisions of malt beer and other fermented beverages. Comment is due by 09 March 2022.
According to the ‘Explanatory Note’, Rebate item 621.21 provides for spirituous beverages, after removal from a secondary customs and excise manufacturing warehouse (VMS) after entry for home consumption and payment of duty, are found to be off specification or have become contaminated or have undergone post-manufacture deterioration and are returned for destruction to a primary customs and excise manufacturing warehouse (VMP), secondary manufacturing warehouse (VMS), or other such place or facility as directed by the SARS Commissioner; or for processing in a VMP, subject to the provisions of Note 9 to this section.
The provision is unnecessarily restrictive to both licensee and SARS with regards to the practicalities in the return of spirits to a VMP for destruction or reprocessing. Additionally, occasions arise when it is not possible for SARS staff to attend to the distruction processes.