This week’s selected highlights in the Customs & Excise environment since our last instalment. 

1. Carbon Tax

The Carbon Tax Act, No 15 of 2019 has been promulgated. Its objective is to provide for the imposition of a tax on the carbon dioxide (CO2) equivalent of greenhouse gas emissions and to provide for matters connected therewith. The commencement date is 1 June 2019.

The Customs and Excise Amendment Act, No 13 of 2019 has been promulgated. Its objective is to amend the Customs & Excise Act, No 91 of 1964 (Act) so as to make provision for the administration and collection of carbon tax revenues and to provide for matters connected therewith. The commencement date is also 1 June 2019.

Comments in relation to draft amendments to the Schedules and Rules to the Act pertaining to carbon emissions tax (as dealt with in our Tax and Exchange Control Alert of 10 May 2019) has been extended to 14 June 2019. Further, form DA180 and annexures have now been added to the draft rule amendment and related forms, as follows (certain sections quoted from the SARS website):

  • Completion notes to form DA180 and annexures;
  • DA180 – Environmental Levy Return for Carbon Tax;
  • DA180.01A.1 – Fuel combustion stationary source;
  • DA180.01A.2 – Fuel combustion non-stationary source;
  • DA 180.01B – Fugitive emission source;
  • DA 180.01C – Industrial process source;
  • DA 180.02A.1 – Fuel combustion stationary: Allowances;
  • DA 180.02A.2 – Fuel combustion non-stationary source: Allowances;
  • DA 180.02B – Fugitive emission source: Allowances; and

As communicated previously by SARS, this account only needs to be submitted in July 2020.

2. Amendments to Rules to the Act (certain sections quoted from the SARS website):

Draft rules under s8 of the Act, relating to the reporting of conveyances and goods (RCG) for trains, and intended to replace the current rules under s8 of that Act were published for public comment.

The content of the proposed rules under s8 is closely related to Chapter 3 of the Customs Control Act, No 31 of 2014. The proposed rules are intended to bring the RCG requirements under the Act closer to what will be required in terms of the Customs Control Act when that Act comes into effect.

Due date for comments is 14 June 2019 and may be sent to C&E_legislativecomments@sars.gov.za.

3. We have dealt with the SARS rewrite of the excise legislation in our Tax and Exchange Control Alert of 29 March 2019. The due date for comments has been extended to 14 June 2019 for the attention of Ms Samantha Authar, either electronically to C&E_legislativecomments@sars.gov.za, or manually to the South African Revenue Service, Private Bag X923, Pretoria, 0001.

4. The South African Association of Freight Forwarders (SAAFF) has over an extended period requested SARS to publish tariff determinations made by SARS. SARS issued a communication to SAAFF dated 20 May 2019 wherein SARS advised that the request has been considered favourably and will be put forward for the Minister’s consideration as part of the 2020 Budget announcement.

5. The Department of Agriculture, Forestry and Fisheries published a notice in the Government Gazette on 17 May 2019 wherein its intention is made known to amend Prohibition Notice No. 570 dated 27 May 2016 regarding the removal of imported regulated agricultural products intended for sale in the Republic of South Africa from the prescribed ports of entry.

All interested parties are invited to submit comments and any representations concerning the proposed amendment in writing within 30 days from the date of the Notice to the following addresses:

Executive Officer: Agricultural Product Standards

Department of Agriculture, Forestry and Fisheries

Private Bag X343, Pretoria, 0001

30 Hamilton Street, Harvest House Building, Arcadia, Room 147

Tel. no.: (012) 319 6051; Fax no.: (012) 319 6265; Email: MadibaW@daff.gov.za.

6. The Department of Health published a notice in the Government Gazette on 23 May 2019 wherein certain preparations containing Cannabidiol (CBD) are excluded from operation of certain provisions of the Medicines and Related Substances Act, No 101 of 1965.