On 30 June 2023, the South African Revenue Service (SARS) extended an invitation to comment on the proposed amendments to Schedule No.5 to the Customs and Excise Act, 1964 “Refunds or Drawbacks of Duties Upon Export of Imported Fuel”, on which comment is due by 21 July 2023.
The following draft amendments are proposed to Schedule No. 5, to provide for refunds or drawbacks of duties upon export of imported fuel:
- Substitution of Notes 8, 11, 12 and 13 to Schedule No. 5
By the substitution of Note 8 in Schedule No. 5 with the following:
8. Notwithstanding any provision to the contrary in this Schedule, for the purposes of items 501.00 to 521.00 in Part 1, items 522.02 to 522.07 in Part 2 and items 550.00 to 551.00 of this Schedule, a refund or drawback of duty as contemplated in section 75(1)(c), 54D or 54J, may be granted if the customs procedure code (CPC) applicable to the export as specified in the list published on the SARS website referred to in rule 00.06 and the relevant refund or drawback item are reflected on the export bill of entry or other export declaration: Provided that a refund or drawback may be granted in exceptional circumstances where -
(a) the Commissioner is satisfied on good grounds shown, that -
(i) the refund or drawback item number has been -
(aa) omitted from the export bill of entry or declaration in error or due to unforeseeable circumstances; or
(bb) reflected incorrectly on the export bill of entry or declaration; or
(ii) the CPC had been reflected incorrectly on the bill of entry or declaration;
(b) the mandatory information required on the bill of entry is completed or corrected post export; and
(c) the applicant has, in addition to any documents normally required to establish entitlement to a refund or drawback, also submitted the following with the application:
(i) An affidavit setting out the circumstances in which the omission or error referred to in paragraph (a) occurred, which circumstances must show that the omission or error was made in
good faith;
(ii) any documents constituting sufficient proof that the relevant goods were exported by the applicant, including -
(aa) a document evidencing that the goods were packed or loaded for export under customs supervision, or physically inspected prior to export; or
(bb) any other documents that the Commissioner considers to be such sufficient proof; and
(iii) any documents constituting sufficient proof that the same goods that were exported, were imported in the country of destination, including -
(aa) the import bill of entry or import declaration accepted and released by the customs authority of the country of destination, together with its supporting documents; or
(bb) any other documents that the Commissioner considers to be such sufficient proof.
By the substitution of Note 11 in Schedule No. 5 with the following:
11. A drawback or refund of fuel levy or Road Accident Fund levy paid under Part 5 of Schedule No. 1 in respect of any goods specified in Column ll of Part 4 of the Schedule shall, subject to the provisions of section 75 and the rules, be allowed to the extent stated in Column lll of the Part, in respect of such goods on compliance with the provisions of the item in this Part in which such goods are specified and of any notes applicable in respect of such item
By the substitution of Note 12 in Schedule No. 5 with the following:
12. Any particulars in Column lll in Part 4 in respect of any goods related to the fuel levy or Road Accident Fund levy specified in Part 5 of Schedule No. 1.
By the substitution of Note 13 in Schedule No. 5 with the following:
13. A drawback or refund of the fuel levy or Road Accident Fund levy specified in items 540.00 and 541.00 shall be paid only to the person who purchased and used the fuel levy goods in question for the purpose specified in such item, unless the Commissioner authorises payment of such drawback or refund to any other person on compliance with such conditions as he may impose in each case.
- Substitution of Note 5(a), the insertion of Note 8 as well as the insertion of refund items 522.07 and 522.07/00.00/01.00 in Part 2 of Schedule No. 5
By the substitution of the following Note(s) 5(a) in Part 2 of Schedule No. 5:
5.(a) For the purposes of refund item 522.03 and 522.07a refund of duty as intended by section 75(1)(c) shall only be granted to a person - (i) if the bill of entry for export is, at the time of submission thereof, accompanied by an application for a refund in the prescribed form (form DA 63); (ii) who, subject to the provisions of section 75(14), submits a general application for refund (form DA 66) together with an application for refund (form DA 63) and any other documents which the Commission may require in respect of the intended refund;
By the insertion of the following Note(s) after Note 7(d)(vi) in Part 2 of Schedule No. 5:
8. For the purposes of refund item 522.07, "equivalent goods" means goods entered for home consumption and released from customs control, that are identical in description, quality and technical characteristics to those described on the import documents.
By the insertion of the following:
FUEL LEVY GOODS EXPORTED FOR TRADE PURPOSES
Refund Item: 522.07/00.00/01.00
Description: Imported fuel levy goods, exported (excluding removals to the BELN countries) if such fuel levy goods are - (a) in the same condition as imported; or (b)identifiable as the same or equivalent goods to those described on the import documents, provided the applicant for a refund or drawback is - (i)the person who paid the duties on the fuel levy goods; and (ii) the exporter of the fuel levy goods.
Notes: 1. No payment for a drawback will be granted unless the Commissioner is satisfied that the - (a) goods were loaded for export and sealed under supervision of an officer; (b) seal number and the unique consignment reference number is endorsed on the export declaration; (c) proof of payment for the export and the relevant documentation has been furnished; (d) goods have been transported by a licensed remover of goods in bond; and (e) the goods were exported within six (6) months from the date of entry for home consumption.
Extent of Refund : Full duty
- Substitution of Note 1, the insertion of Notes 3, 4 and 5 as well as the insertion of refund items 541.00 and 541.01/00.00/01.00 in Part 4 of Schedule No. 5
By the insertion of the following Note(s) 3, 4 and 5 after Note 2 in Part 4 of Schedule No. 5:
3. "Full duty" specified in this Part means the fuel levy or road accident fund levy paid in terms of the relevant items of Part 5 of Schedule No. 1 less any rebate, refund or drawback of such levy previously granted in respect of the goods.
4. For the purposes of refund item 522.07, "equivalent goods" means goods entered for home consumption and released from customs control, that are identical in description, quality and technical characteristics to those described on the import documents.
5 (a) For the purposes of refund item 522.03 and 522.07 a refund of duty as intended by section 75(1)(c) shall only be granted to a person - (i) if the bill of entry for export is, at the time of submission thereof, accompanied by an application for a refund in the prescribed form (form DA 63); (ii) who, subject to the provisions of section 75(14), submits a general application for refund (form DA 66) together with an application for refund (form DA 63) and any other documents which the Commissioner may require in respect of the intended refund.
By the substitution of the following Note(s) in Part 4 of Schedule No. 5:
DRAWBACKS AND REFUNDS OF FUEL LEVY AND ROAD ACCIDENT FUND LEVY
By the substitution of Note 1 in Part 4 of Schedule No. 5 with the following:
1. A drawback or refund of fuel levy (except the fuel levy specified in fuel levy item 195.30) paid under Part 5 of Schedule No. 1 in respect of any goods specified in Column II of this Schedule shall, subject to the provisions of section 75 and the regulations, be allowed to the extent stated in Column III of this Part, in respect of such goods on compliance with the provisions of the terms in this Part in which such goods are specified and of any notes applicable in respect of such item.
By the insertion of the following:
541.00 DRAWBACK OF FUEL LEVY AND ROAD ACCIDENT FUND LEVY PAID ON GOODS EXPORTED
Refund Item: 541.01/00.00/01.00 Imported fuel levy goods, exported (including removals to the BELN countries) if such fuel levy goods are -
(a) in the same condition as imported; or (b) identifiable as the same or equivalent goods to those described on the import documents, provided the applicant for a refund or drawback is - (i) the person who paid the duties on the fuel levy goods; and (ii) the exporter of the fuel levy goods.
Notes:
1. No payment for a drawback will be granted unless the Commissioner is satisfied that the - (a) goods were loaded for export and sealed under supervision of an officer; (b) seal number and the unique consignment reference number is endorsed on the export declaration; (c) proof of payment for the export and the relevant documentation has been furnished; (d) goods have been transported by a licensed remover of goods in bond; and (e) the goods were exported within six (6) months from the date of entry for home consumption.
Extent of Refund: Full duty