The South African Revenue Service’s (Sars’) External Policy – Customs Deferment came into effect on January 12.

This document encapsulates the deferment requirements and processing of customs duties and value-added tax (Vat) for a period of up to 30 days for clients on the customs system. It caters for the deferment of customs duties and Vat payable on importation for both international and Botswana, Lesotho, Namibia and Swaziland (or BLNS) trans- actions and outlines the legal requirements and the respective timeframes allowed. Registration for the deferment facility is covered in a different document.

Sars says that only registered customs clients may use the deferment scheme, that the payment of customs duties and Vat at the time of importation may be deferred for up to 30 days and that no locally manufactured goods qualify for this scheme.

Further, the respective bond requirements are covered in a different document. If agents use importers’ deferment accounts, they must obtain power of attorney.

In cases where clients are not satisfied with any decision taken in terms of the Customs and Excise Act, they have the right to appeal to the relevant appeal com- mittee and, should clients be unhappy with a decision of any appeal committee, they may lodge an application for alternative dispute resolution (ADR) with the relevant appeal committee. The committee will attach its comments and forward the application to the ADR unit.

Every client must keep, for a period of five years, books, accounts and documents in respect of all transactions relating to the rules for the purpose of any acquittal procedure and any data related to such documents created by a computer. The five-year period is calculated from the end of the calendar year in which the docu- ment was created, lodged or required. Every client must produce such books, accounts and documents on demand.

Failure to adhere to the provisions of the Act, as set out in this document, is considered an offence, and a client may be liable to mone- tary penalties, criminal prosecution and/or suspension and/or the cancellation of registration, his or her licence, accreditation and/or designation.

Sars’ External Policy on Bonds
Sars’ External Policy – Bonds came into force on January 16. This policy covers the standards used to determine the amount of security and the criteria used to review the amount of security; the registration, cancellation and govern- ance of bonds and addendums which are the acceptable forms of security; and surety, where it is a condition of approval, regis- tration, licensing or designation.

Cash deposits on provisional payments in lieu of surety bonds are no longer accepted for surety for any new applications.

This document does not apply to licensing, registration and designation; the comple- tion of bonds and addendums; excise securities; other forms of security, for example, the placing of liens are covered in the enforcement procedures; plant and machinery that can- not be used as security to cover any customs security risks; and surety that could be furnished at transaction level.

Taxation Laws Amendment Act
On January 13, Sars informed of the promulgation, on January 12, of the Taxation Laws Amendment Act of 2011.

The amendment, with respect to the Customs and Excise Act, relates to, besides other things, the amendment to the air passenger tax and the amendment of the rate of customs duty and excise duty in Schedule No 1, and also makes provision for continuations.

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