Most Read Contributor in South Africa, September 2016
On 24 October 2013 the Customs Duty Bill, the Customs and Excise
Amendment Bill and the Customs Control Bill were introduced in the
National Assembly by the Minister of Finance.
The Customs and Excise Amendment Bill changes the name of the
Customs and Excise Act, 1964, to the Excise Duty Act, 1964, and
amends the Customs and Excise Act so as to delete all provisions
dealt with by the Customs Control Act applicable to customs control
of imported goods and goods to be exported, the imposition,
collection and refunding of customs duties and other matters
relating to customs duties.
The current Customs and Excise Act will apply only to excise
duties, fuel levies, Road Accident Fund levies, environmental
levies, air passenger taxes and matters relating thereto.
Certain of the provisions of the Customs Control Bill will also
apply to matters dealt with in the new Excise Duty Act and the
current Customs and Excise Act will therefore be amended to allow
for that, for example:
Customs controlled areas
Exporter and importer will have the same meaning as in the
Customs Control Bill
The definition of illicit goods
Entry of goods for specific purposes upon importation and
exportation and bills of entry will be in terms of the Customs
Fines and penalties of the Customs Control Bill will apply
Other provisions introduce existing concepts but specific to the
excise environment, for example:
Excise manufacturing and excise storage warehouses (previously
dealt with by the Customs and Excise Act as customs and excise
manufacturing and storage warehouses).
The definition of 'home consumption' consumption as used
in the Customs and Excise Act is amended to read that the goods may
be consumed, utilised, processed or otherwise disposed of in the
Republic as goods that are no longer subject to customs
Customs officers and excise officers.
Liability for duty and diversion of goods.
Once the above legislation is implemented, importers, exporters
and manufacturers of excisable goods will have three pieces of
legislation to comply with as far as customs and excise is
Importers, exporters and manufacturers of excisable goods will
have to be aware of the provisions of each of these pieces of
legislation as well as the relevant provisions thereof that apply
across customs and excise and the interactions between them. This
could prove quite a challenge whilst stakeholders get used to
working with the new legislation.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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Effective collaboration amongst government agencies, automation of processes and capacity building by tax authorities have always been identified by stakeholders as strategies for achieving an efficient tax system.
In response to information provided by FIRS, NSE has sent letters to publicly listed companies, who were purportedly identified by FIRS as non-compliant.
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