The South African Revenue Service (Sars) informed on March 20 that, with effect from April 1, all imported and domestically manufactured alcoholic beverages would be subject to compulsory tariff determinations, also known as tariff classifications, considered as one of the three cornerstones of customs and excise.

The compulsory tariff determinations were introduced through the insertion of Section 47(9)(a)(iv) of the Customs and Excise Act, No 91, of 1964 – “compulsory tariff determinations for alcoholic beverages”. The proposed rule amendments follow the publication of the draft rules that were published on December 8, 2014, and comment on which was due by January 9.

According to the rules, any alcoholic beverage that is a first importation or new manufacture must be submitted for tariff determination through the office of the Customs Controller at the place where the beverage is imported or manufactured before the procedures specified in items of that section are applied.

The rules also distinguish between alcoholic beverages for which no tariff determination was issued prior to April 1, 2015, and also for alcoholic beverages for which a tariff determination was issued 24 months or more prior to April 1.

According to the rule, in the instance of alcoholic beverages for which the tariff determination was issued prior to April 1, 2015, submission for tariff determinations needs to be made, dependent on the classification of the alcoholic beverage at a specified time from April 1, namely:

(i) Other spirituous beverages entered under subheading 2208.90 (undenatured ethyl alcohol of an alcoholic strength by volume of less than 80% volume; spirits, liqueurs and other spirituous beverages: other), within a period of six months.

(ii) Other fermented beverages entered under subheading 2206.00.90 (other fermented beverages – for example, cider, perry, mead); mixtures of fermented beverages and mixtures of fermented beverages and nonalcoholic beverages, not elsewhere specified or included: other), after a period of 6 months, but within a period of 12 months.

(iii) Liqueurs and cordials entered under subheading 2208.70 (liqueurs and cordials) and other fermented alcoholic beverages entered under subheadings 2206.00.83 (other fermented apple or pear beverages, fortified, with an alcoholic strength of at least 15% by volume but not exceeding 23% by volume), 2206.00.84 (other fermented fruit beverages and mead beverages including mixtures of fermented beverages derived from the fermentation of fruit or honey, fortified, with an alcoholic strength of at least 15% by volume but not exceeding 23% by volume) and 2206.00.87 (other mixtures of fermented fruit beverages or mead beverages and nonalco- holic beverages, fortified, with an alcoholic strength of at least 15% by volume but not exceeding 23% by volume), after a period of 12 months, but within a period of 18 months.

(iv) Beer made from malt entered under subheading 22.03.00.90 and cider, perry and mead entered under subheadings 2206.00.81, 2206.00.82 and 2206.00.85, after a period of 18 months, but within a period of 24 months.

(v) All other classes or kinds of alcoholic beverages not mentioned above, after a period of 24 months, but within a period of 36 months.

For alcoholic beverages for which a tariff determination was issued 24 months or more prior to April 1, application must be made after a period of 36 months, but within a period of 48 months. For alcoholic beverages for which a tariff determination was issued within 24 months prior to April 1, application must be made after a period of 48 months, but within a period of 60 months.

In the final instance, the rule specifies that no new tariff determination application in respect of an existing determination is required for any change in the alcoholic strength or vintage of beverages classified under any subheading of heading 22.04 (wine of fresh grapes, including fortified wines; grape must) or 22.05 (vermouth and other wine of fresh grapes flavoured with plants or aromatic substances), provided the alcoholic strength remains within the range specified in the tariff subheading of the existing tariff determination.

Special Economic Zones
On March 20, Sars informed of the amendment of the rules of Section 21A of the Act for alignment with new special economic zones (SEZs) legislation to be implemented at a later date. The amendment relates to the substitution of industrial development zones, or IDZs, for SEZs.

Customs Control Act Workshop
Sars postponed fourth workshop on chapters 32 to 41 of the Customs Control Act will be held on April 23. The chapters are featured in Part 2 of Chapter 2 and deal with places of entry and exit, specifically “customs control, places of entry and exit and customs controlled areas”. Chapter 31 deals with the designation of places of entry and exit, Chapter 32 the purposes for which places of entry or exit may be used, Chapter 33 restrictions on the use of places of entry or exit, Chapter 34 places of entry or exit in terms of international agreements with adjoining countries, Chapter 35 information sharing agreements, Chapter 36 places of entry for foreign-going vessels and aircraft, Chapter 37 calls or landings resulting from forced circumstances, Chapter 38 places of entry or exit for cross-border trains, Chapter 39 places of entry or exit for vehicles, Chapter 40 places of entry or exit for persons, Chapter 41 places of entry or exit for goods and Chapter 42 the consequences in the event of contravention of entry or exit requirements.

Garlic Sunset Review
On March 20, the International Trade Admini- stration Commission of South Africa (Itac) gave notice of the initiation of a sunset review of the antidumping duties on fresh or chilled garlic, classifiable under tariff subheadings 0703.20 and 0712.90.90, originating in or imported from the People’s Republic of China.

The notice follows an earlier one on June 20, 2014, in which Itac notified interested parties that, unless a substantiated request was made indicating that the expiry of the antidumping duties would likely lead to the continuation or recurrence of dumping and material injury, it would expire on March 25, 2015.

On October 2, 2014, Itac received a sunset review application from the South African Garlic Growers Association. Comment is due by April 27.

Publication and Guide
On March 20, Sars published Issue 11 of the Guide on Tax Rates, Duties and Levies. This followed the publication on March 12 of Taxation in South Africa (2014/15), which provides an overview of the various forms of tax legislation administered in South Africa by the commissioner of Sars, such as the Customs and Excise Act. It is not an official publication as defined in Section 1 of the Tax Administration Act, 2011, and, accordingly, does not create a practice generally prevailing under Section 5 of that Act.

Glass Sunset Review
Comment on the sunset review investigation into clear float and drawn glass originating in or imported from China and India was due by April 1.