On 08 February 2024, the South African Revenue Service called for comment on its amendment to Rule 26 to the Customs and Excise Act, 1964, relating to the transfer of ownership of warehoused goods. Comment is due by 01 March 2024.
According to SARS’ ‘Explanatory Note’ the proposed amendment provides that the SAD 500 or SAD 505 forms [SAD – Single Administrative Document] be regarded as an application for permission for the transfer of ownership of dutiable goods in a customs and excise warehouse.
1. The Rule is substituted for Rule 26.01:
“Application for permission for transfer of ownership of warehoused goods 26.01: For the purposes of section 26, the submission of form SAD 500 or SAD 505 reflecting the relevant transfer of ownership customs procedure code must be regarded as an application for permission for the transfer of ownership of dutiable goods in a customs and excise warehouse and shall be supported by the following, which upon request shall be produced to the Controller:
(a) Documents relating to such goods and the agreement in respect of the transfer of ownership;
(b) a statement by the transferee furnishing full particulars of his business and the destination of such goods;
(c) forms SAD 500 and SAD 505 in draft form for the purpose of re-warehousing of the goods;
(d) if for export, full particulars relating to the transaction and the consignee which shall include the order for the goods;
(e) the following declaration by the transferor and the transferee:
“I,………………………………………………for transferor, hereby declare that ownership of the above-mentioned goods, which are my property, is transferred to ………………..………………………........... address…………………………………………………………………………………………………………….For transferor…………………………………Date……………… I,…………………………………………… for transferee, hereby accept liability in terms of the provisions of the Customs and Excise Act, 1964 in respect of the goods described herein.
For transferee………………………Date ………………………...”;
and
(f) such security as the Controller may require.”.
2. The Rule is hereby inserted after rule 26.02:
“Release of goods to be regarded as approval of application for permission for transfer of ownership
26.03 The release notification issued by the Commissioner in respect of those goods must be regarded to be the granting of such an application.”