On 31 July 2026, the South African Revenue Service (SARS) invited comment on the review of fuel products classifiable under Chapter 27 (fuel products) to the Schedules to the Customs & Excise Act, 1964. Comment is due by 29 August 2026.
The SARS explanatory memorandum offers the following explanation:
Background
The 2025 Budget proposals announced that the fuel industry in South Africa has increasingly shifted from local manufacturing to importing refined petroleum products such as petrol, diesel, illuminating kerosene and aviation kerosene.
Companies importing fuel levy goods highlighted the challenges they encounter in moving imported products (especially aviation kerosene) through the national multi-product pipeline. SARS proposes a review of the legislation pertaining to the fuel industry to align it with changes in this industry and to facilitate the movement and storage of fuel products.
These draft amendments to the Schedules to the Act, 1964 are intended to refine the classification and regulatory framework for petroleum and related products, taking into account evolving industry practices, environmental considerations, and applicable national and international standards. The amendments support alignment with fuel industry changes, promote standardisation through recognised specifications (including SANS, ISO and ASTM), and respond to industry requests for clearer product differentiation, particularly in relation to blending components and low‑carbon fuel alternatives. In addition, the amendments seek to improve the accuracy of tariff classification, facilitate compliance, and ensure that obsolete provisions are removed.
The last fuel products review, as classified in Chapter 27 of the Act, 1964, was conducted by SARS in 2009. Since then, the fuel industry in South Africa has increasingly shifted from local manufacturing to importing, while new products have also emerged in the market. The amendments are made in accordance with SARS’ strategic objective: to provide clarity and certainty for taxpayers and traders of their obligations.
The proposed amendments are in respect of fuel products classifiable under tariff subheadings 2710.12 and 2710.19. In addition, respective consequential amendments are as follows:
- Amendments in Part 1 of Schedule No.1 to the Act, 1964;
- Amendments in Part 2A of Schedule No.1 to the Act, 1964;
- Amendments in Part 5A of Schedule No.1 to the Act, 1964;
- Amendments in Part 5B of Schedule No.1 to the Act, 1964; and
- Amendments of Schedule No.6 to the Act, 1964.
Amendments in Part 1 of Schedule No. 1 to the Act, 1964
Introduction of tariff subheading and definition for Bioethanol
Bioethanol is defined as ethyl alcohol produced from various organic resources, and denatured Bioethanol must comply with South African National Standards. Further, denatured Bioethanol must comply with South African National Standard (SANS) 465, and such certification must be presented to the customs officer upon request.
Introduction of tariff heading and definition for synthetic ethanol
Synthetic ethanol is defined as ethyl alcohol produced through chemical synthesis from petrochemical renewable feedstocks. Further, this fuel shall comply with SANS 1164:2013 Title: Automotive fuels – Requirements and specifications for fuel ethanol as a blending component with petrol and must be supported by a Fuel Quality Testing Report, and such report to be presented to the customs officer upon request.
Deletion of Power Kerosene subheading
Tariff subheading 2710.12.09 that provides for Power Kerosene is deleted due to its obsolescence in the South African market, as evidenced by import statistics.
Introduction of an 8-digit tariff subheading for petrol component
A new tariff subheading for petrol component intended for blending with petrol is introduced, with specification requirements in line with industry. These components must comply with SANS 1598, with certification to be presented to the customs officer upon request.
Introduction of an 8-digit tariff subheading and definition of sustainable aviation fuel (SAF)
A new tariff subheading for “Sustainable Aviation Fuel” is created and defined as a renewable, low-carbon alternative to conventional jet fuel, produced from waste oils and fats, agricultural and forest residues, municipal solid waste and other similar non-fossil, sustainable feedstocks. This fuel must comply with ASTM D7566 - Standard Specification for Aviation Turbine Fuel Containing Synthesised Hydrocarbons and be supported by an originator’s Certificate of Quality in accordance with ASTM D7566 and such certification to be presented to the customs officer upon request.
Distillate fuel compliance requirements
An additional requirement is introduced for distillate fuels to comply with SANS 345, with certification to be provided upon request.
Introduction of an 8-digit tariff subheading for Diesel Component
A new tariff subheading for diesel components for blending with distillate fuels, with specification requirements in line with industry. The components must comply with SANS 345, with certification to be presented to the customs officer upon request.
Fuel Oils Classification by Sulphur Content:
New tariff subheadings are introduced for fuel oils based on sulphur content, with specific definitions. Below are the proposed definitions:
- “Very-Low Sulphur Fuel Oil (VLSFO)”, being products intended for use, advertised for use, put for use or otherwise marketed or disposed of for use in furnaces, boilers, ships and boats. Further, we propose that this fuel must be manufactured in accordance with ISO 8217:2024 and such certification to be presented to the customs officer upon request.
- “High Sulphur Fuel Oil (HSFO)”, being products intended for use, advertised for use, put for use or otherwise marketed or disposed of for use in furnaces, boilers, ships and boats. This fuel must be manufactured in accordance with ISO 8217:2024 and such certification must be presented to the customs officer upon request.
Circumscribe the application of 2710.19: The application of tariff subheading 2710.19 is limited to:
- Medium oils and preparations of which less than 90% by volume (including losses) distil at 210°C and 65% or more by volume (including losses) distil at 250°C according to the ISO 3405 method (equivalent to the ASTM D 86 method) and such certification to be presented to the customs officer upon request.
- Heavy oils and preparation of which less than 65% by volume (including losses) distil at 250°C according to the ISO 3405 method (equivalent to the ASTM D 86 method) and such certification to be presented to the customs officer upon request, or of which the distillation percentage at 250°C cannot be determined by that method.
Additional 8-digit tariff subheadings provided for Naphtha
A new tariff subheading to provide for Naphtha is introduced under tariff subheadings 2710.12 and 2710.19.
Naphtha is defined as a petroleum-derived product consisting of a complex mixture of hydrocarbons, with hydrocarbon molecules ranging between 4 and 12 carbon atoms.
Additional 8-digit tariff subheadings for other kerosene
New subheadings for other aviation kerosene and other illuminating kerosene are introduced under 2710.12 and 2710.19.
The new subheadings provide for the kerosene products whose intended use falls outside the scope of the Additional Notes 1(d) and 1(e).
Creation of a separate 8-digit tariff subheading for liquefied petroleum gas and mixtures
A new tariff subheading to provide for liquefied petroleum gas and mixtures is introduced under tariff subheading 2710.19. Compliance requirements with SANS specification 1774:2016 are prescribed, and such certification is to be presented to the customs officer upon request.
Amendments in Part 2A of Schedule No.1 to the Act, 1964
Additional tariff subheadings have been inserted in Chapters 22 and 27 to Part 1 of Schedule No.1 to the Act, 1964. As a result, consequential amendments are made in Part 2A of Schedule No.1 to the Act, 1964.
Tariff subheadings 2207.20.10, 2207.20.20 and 2207.20.90 to provide for denatured Bioethanol, synthetic ethanol and “other” have been inserted in Part 1 of Schedule No.1 to the Act, 1964. As a result, new items in Part 2A of Schedule No.1 to the Act, 1964 are inserted.
The amended structure pertaining to fuel products classifiable under tariff heading 2710.12 in Part 1 of Schedule No.1 to the Act, 1964 has also resulted in consequential amendments in Part 2A of Schedule No.1 to the Act, 1964
Amendments in Part 5A and 5B of Schedule No.1 to the Act, 1964
Petrol and diesel are subject to the general fuel levy and RAF levy in Parts 5A and 5B of Schedule No.1 to the Act, 1964. Due to the addition of new tariff subheadings for petrol and diesel components in Part 1 of Schedule No.1, Parts 5A and 5B to the Act, 1964 are amended accordingly as a consequence.
Amendments in Schedule No.6 to the Act, 1964
Rebates and refund of specific excise duties on spirits and spirituous beverages and on mineral products in Part 1D and 1F of Schedule No.6 of the Act, 1964, respectively, are being amended as a result of new tariff subheadings inserted in Part 1 of Schedule No.1 to the Act, 1964. The opportunity is used to correct the structure of Schedule No.6 to the Act, 1964 where applicable.
The Explanatory Memorandum and proposed tariff amendments are accessible at:
- Explanatory Memorandum – Elaborates on specific changes included in the amendment of the Schedules to the Act, 1964.
- Draft amendment to Part 1 of Schedule No.1 to the Act, 1964, as a consequence of the amendment in Part 1 of Schedule No.1 to the Act, 1964.
- Draft amendment to Part 2A of Schedule No.1 to the Act, 1964, as a consequence of the amendment in Part 1 of Schedule No.1 to the Act, 1964.
- Draft amendment to Part 5A of Schedule No.1 to the Act, 1964, as a consequence of the amendment in Part 1 of Schedule No.1 to the Act, 1964, to implement Harmonised System (HS) 2022.
- Draft amendment to Part 5B of Schedule No.1 to the Act, 1964, as a consequence of the amendment in Part 1 of Schedule No.1 to the Act, 1964.
- Draft amendment to Part 1D of Schedule No.6 to the Act, 1964, as a consequence of the amendment in Part 1 of Schedule No.1 to the Act, 1964.
- Draft amendment in Part 1F of Schedule No.6 to the Act, 1964, as a consequence of the amendment in Part 1 of Schedule No.1 to the Act, 1964.
- Correlation table