On 05 September the South African Revenue Service (Sars) called for comment, which is due by 27 September, on its proposed insertion of draft Rule 107A to the Customs and Excise Act, 91 to 1964 and forms DA185 and DA 185.4A17, which aims to ensure control of the supply chain in the tobacco industry.
The intention of the rule is to provide requirements in respect of tobacco leaf threshers. Tobacco leaf threshers are required to register their factories with the Commissioner for Sars (CSARS) and keep records for purposes of inspection by the CSARS.
Rules 107A to the Act, 1964, “Requirements in respect of tobacco growers and tobacco leaf dealers”, which read “107A.01 (a) For the purposes of this rule – “tobacco grower” means any person who engages in the farming of tobacco leaf product; “tobacco leaf dealer” means any person who engages in the storing, processing or transacting of tobacco leaf product, excluding the farming thereof; “tobacco leaf processing” means any preliminary, intermediate or supplementary process in connection with tobacco leaf product, including the drying and threshing thereof. “tobacco leaf product” means tobacco not stemmed or stripped, tobacco partly or wholly stemmed or stripped, or tobacco refuse; “tobacco not stemmed or stripped” means tobacco classified under tariff subheading 2401.10 of Section IV of Part 1 of Schedule No. 1; “tobacco partly or wholly stemmed or stripped” means tobacco classified under tariff subheading 2401.20 of Section IV of Part 1 of Schedule No. 1; and “tobacco refuse” means tobacco classified under tariff subheading 2401.30 of Section IV of Part 1 of Schedule No. 1. (b) Every tobacco leaf dealer shall register for that purpose with the Commissioner on form DA 185 and the appropriate annexure in terms of section 59A and the rules thereto. (c) Every tobacco grower and tobacco leaf dealer shall – (i) keep records in respect of – (aa) each receipt of tobacco leaf product, including the name, address and customs and excise client number of the supplier; (bb) the date, volume, value and detailed description of each such receipt of tobacco leaf product; (cc) the tobacco leaf processing carried out in respect of each such receipt of tobacco leaf product; (dd) the person on whose behalf such tobacco leaf processing was carried out, including the name, address and customs and excise client number of such person; (ee) each supply of tobacco leaf product, including the name, address and customs and excise client number of the recipient; and (ff) the date, volume, value and detailed description of each such supply of tobacco leaf product; and (ii) retain such records and the documents in support thereof available for inspection by the Commissioner for a period of five years calculated from the end of the calendar year in which any such record was created.”
The substitution of forms DA185 “Application form: Registration/Licensing of Customs and Excise Clients”, and DA 185.4A17 “Registration client type 4A17 – Registered tobacco leaf dealer”.
Story by: Riaan de Lange