On 27 January Sars published an array of tariff amendments for environmental levy on tyres, announced by the Minister of Finance on 24 February 2016, to be implemented on 01 February 2017. It includes the amendment to Rule 54F to the Customs and Excise Act, 1964, with the amended Forms DA178 and DA185.4B2 to follow at an unspecified date.
Imposition of the levy will make tyres more expensive.
The tariff amendments relate to:
- Part 1 of Schedule No. 1, as a consequence of the publication of environmental levy on tyres
- Part 3D of Schedule No. 1 to include hybrid vehicles under environmental levy on carbon dioxide (CO2) emissions of motor vehicles
- Part 3E of Schedule No. 1, as promulgated in the Rates and Monetary Amounts and Amendment of Revenue Laws Act No. 13 of 2016 published in Government Gazette No. 40560 dated 19 January 2017
- Part 1 of Schedule No. 3
- Part 5 of Schedule No. 4
- Part 4 of Schedule No. 6
- Schedule No. 8
The implementation date is 01 February 2017.
The amendment to Rule 54F to the Customs and Excise Act, 64. Implementation date on 01 February 2017:
(a) By the substitution in rule 54F.02 for the words after paragraph (b) of the following words:
“to any Controller or officer in these rules or in any section or rule regulating the operation of customs and excise warehouses, such power is delegated or such duty is assigned, as the case may be, to the Senior Manager: Trade Administration.”
(b)By the insertion after rule 54FB.05 of the following heading and rules:
Environmental levy imposed on tyres manufactured in or imported into the Republic in terms of items 152.00 to 155.00 in Section E of Part 3 of Schedule No. 1
54FC.01
(a) Except as otherwise provided in these rules, the rules numbered 54F.01 to 54F.14 apply with any necessary changes as the context may require to the environmental levy imposed on tyres manufactured in or imported into the Republic in terms of items 152.00 to 155.00 in Section E of Part 3 of Schedule No. 1.
(b) For the purposes of Chapter VA, these rules and any form to which these rules relate unless the context otherwise indicates –
(I) “design mass” means the weight in respect of a certain size, type or class of tyre that forms part of the design specifications for that particular category of tyre.
(ii) “nett mass” means the design mass in respect of any tyre that has been verified and specified in writing by the tyre manufacturer to its customer.
Keeping of books, accounts and documents
54FC.02
(a) For the purposes of rule 54F.06, every licensee must keep supporting data and documents to confirm the nett mass of all tyres manufactured in, obtained in, or imported into the Republic by such licensee.
(b) Every importer of tyres must similarly keep supporting data and documents for the period specified in rule 54F.06 to confirm the nett mass of all tyres imported into the Republic by such importer.
Closing and submission of accounts for environmental levy
54FC.03
For the purposes of rule 54F.07–
(a) An account for payment of environmental levy must be completed and submitted quarterly on form DA 178.
(b) The account, validating documents and payment must reach the Controller on a working day not later than the 25th day of the month following the end of the accounting period.
(c) The accounting period that includes the month of February must end on the last day of March and payment be effected during April.
(d) The DA 178 environmental levy account of a licensed motor vehicle manufacturer must be submitted and paid together with its DA177 environmental levy account and DA75 ad valorem excise duty account.
Implementation provisions
54FC.04
For the purposes of rule 54F.14 –
(a) Every manufacturer must take stock, and keep a stock report on record, in respect of goods liable to the environmental levy on the manufacturing premises and in storage at any tyre distribution centre at the close of business on the day before these provisions come into operation.
(b) The licensee must, when issuing any invoice or delivery note contemplated in rule 54F.05 in respect of goods manufactured before the date the environmental levy came into operation, endorse such invoice or note “manufactured before 01 February 2017”.
(c) The implementation accounting period will commence on 01 February 2017 and end on 31 March 2017, after which the three-month quarterly accounting periods will commence on 01 April 2017.