Amendments to the Customs and Excise Act are set to tighten regulations around the supply of fuel, particularly concerning sections 21(1) and 60 of the Customs and Excise Act 91 of 1964. Irwin Arumugam, an associate in shipping and logistics at law firm Shepstone & Wylie, explains that these changes stem from an incident where one of BP's barges was detained by the SA Revenue Service (Sars). "Sars introduced these amendments after it was found that marine fuel cargoes were being delivered to f loating storage facilities and sold without first being properly registered and taxed as imports," he said. These amendments are designed to regulate fuel supply, but they could also result in delays, as imported bunker fuel now requires special customs and excise storage warehouses for proper registration and taxation before being sold or transhipped.Arumugam noted that there had been significant investment in bulk cargo storage, with companies like Cargo Compass and Improvon developing state-of-the-art warehousing facilities in Durban and Johannesburg. "These large warehouses are designed to optimise service delivery, allowing bulk cargo brought in by large container trucks to be broken down, segregated, and then distributed efficiently," he said. Another key development in the bulk sector is the recent change to duties on wheat, which has altered the logistics landscape. Arumugam suggested that bonded storage for such cargoes might become necessary or at least desirable to avoid upfront financial outlay, especially when these goods are destined for export. Additionally, the export of scrap metals has faced challenges, raising concerns within the industry.Arumugam also highlighted the growing issue of cargo contamination, which is becoming a worrying trend. "Recently, a case of parboiled rice was contaminated with rust particles from the cargo hold. South African legislation mandates that food products intended for sale in the country must meet high quality standards. Contaminated cargo will not be allowed for sale unless it complies with relevant regulations on outside contaminants," he said. "This is a significant concern for cargo and vessel owners as the financial consequences of testing, destroying, or repurposing contaminated cargo can be substantial." In addition to these industry shifts, the Ultra Galaxyran aground on July 9 after encountering heavy weather off the coast of South Africa. The crew abandoned the vessel and were rescued after entering a life raft. Salvage operations have since been conducted to recover the cargo, and pollution clean-up teams have begun removing any spillage.
