On 24 June 2021, the South African Revenue Service (SARS) announced proposed amendments to Rules 77H.11 and 77H.12 to the Customs and Excise Act, 1964 on which comment is due on 07 July 2021.
According to SARS’ Explanatory Note:
“The proposed amendments are intended to assist with the current accumulation of diesel refund appeals, as an interim measure until more comprehensive amendments of the rules under section 77H are promulgated. One of the proposed amendments is intended to clarify that appeals relating to decisions taken after 1 September 2019 in respect of diesel refunds can be heard by Customs and Excise Branch Office Appeal Committees. The jurisdictional amount is also increased in respect of those matters. This amendment has retrospective effect from 1 September 2019. Furthermore, the Chairperson of the Customs and Excise National Appeal Committee and the Tariff, Valuation and Origin Appeal Committee is given the authority to designate a person to act as presiding officer at meetings and perform the functions of Chairperson.”
The amendment of Rule 77H.11 to the Act,1964 by the substitution for paragraph (b) of subrule (2) of the following paragraph:
(b) A Customs and Excise Branch Office Appeal Committee may not consider and decide an appeal 2(i) if, in the case of an appeal in respect of which it is possible to quantify an amount to which the appeal relates, such amount exceeds R10 000 000; or
(ii) in relation to any decision involving a determination of the tariff, value or origin of goods: Provided that such committee may consider an appeal in relation to a determination referred to in section 47(9)(a)(i)(bb) made after 1 September 2019 at Branch Office level concerning goods contemplated in item 670.04 of Schedule No. 6 in respect of which the amount to which the appeal relates does not exceed R30 000 000.
(3) The Tariff, Valuation and Origin Appeal Committee must, subject to the proviso in subrule (2)(b), consider and decide appeals in relation to all decisions involving a determination of the tariff, valuation or origin of goods, taken at Branch Office level irrespective of the amount to which the appeal relates.
According to this notice, this amendment must be regarded to have come into effect on 01 September 2019.
Amendment of Rule 77H.12 to the Act, 1964 by the addition of the subrule after subrule (2):
(3) The Chairperson referred to in subrule (1)(a)(iii) may, in relation to a matter to be considered by an appeal committee contemplated in item (aa) or (bb) of subrule (1)(a)(iii), in writing designate an officer or SARS official with the necessary knowledge and skills to – (a) act as presiding officer at meetings of such committee in respect of that matter; and (b) perform the functions of Chairperson in relation to that matter.
According to the notice an adjudication by the Tariff Valuation and Origin Appeal Committee between 01 September 2019 and the effective date of an appeal which in terms of the amendment contained in item 1 falls within the jurisdiction of a Customs and Excise Branch Office Appeal Committee, is not affected by the amendments in this Notice.
The proposed draft amendments are accessible at:
Story by: Riaan de Lange