APPLICATIONS FOR CHANGES IN CUSTOMS DUTIES
The following applications for changes in rates of customs duty were published in the past few weeks. Interested parties must submit comments to ITAC within 4 (four) weeks of the date the notice was first published unless otherwise stipulated.
Government Gazette 41445 – 2018-02-16
Government Gazette 41498 – 2018-03-16
(Note: application is for relief with retrospective effect to 6th December 2017)
HARBOUR CHARGES, DOCK DUES UP
All Portnet's rates have increased from 1st April. The following rates (exclusive of VAT at 15%) now apply to containerised traffic:
20'(6m) R2146,78 R636,03
40'(12m) R4293,52 1727,07
All empties R83,81 R83,81
The standard VAT rate in South Africa increased to 15% at the beginning of this month.
VAT is payable on goods and services at the ruling standard rate on either the date on which an invoice is raised or the date on which the goods/services are paid for, whichever is earlier.
Over the course of the next few weeks clients may receive invoices from Bidvest Panalpina Logistics on which both the old 14% rate and the new 15% rate appear together. This is because third party invoices and customs declarations dated before 1st April will show VAT calculated at the old rate while any transactions on or after 1st April will be at the new standard rate of 15%.
Clients should exercise caution in ensuring that that only actual VAT amounts paid are captured and claimed on their VAT returns to SARS.
ABNORMAL LOAD EMBARGOES
Both the Gauteng and KwaZulu-Natal provincial administrations have embargoes in place regarding the movement of abnormal road traffic over this month's Easter weekend and the extended Freedom Day/Worker's Day extended long weekend.
The embargo periods extend from noon on Thursday 29th March until midnight on 2nd April and again from noon on Thursday 26th April through till midnight on Tuesday 1st May. During this period the provincial authorities may also order within-specification heavy vehicles off the roads along major holiday routes during times of high traffic volumes.
HEALTH PROTECTION LEVY
We remind clients that the Health Protection Levy on sugary beverages ("sugar tax") has now been implemented and is collected by SARS on importation at 2,1c/gram/100ml on total sugar content exceeding 6g/100ml.
The Levy applies not only to drinks and fruit juices ready for consumption, but also to any concentrated, powdered or similar products that require dilution or mixing. For these the duty is payable on the sugar content after mixing according to manufacturer's directions.
Where inadequate information/analysis certificates are available SARS has the right to call for payment of the levy at an assumed sugar content of 20g/100ml of product.
Refunds of the levy are permitted where an importer subsequently sells goods to foreign buyers or imported goods are used for producing other products. In both cases importers are restricted to processing just one refund application per DA 500.
In view of this limitation importers who expect to re-export affected products or to supply same to manufacturers should consider holding stock in bond pending final resale to avoid finding themselves being barred from obtaining refunds of the levy.
Bidvest Panalpina Logistics has multiple bonded warehouses throughout South Africa that clients may use. Goods may be stored in bond for up to 24-months from date of declaration without payment of any duty, tax, levy or VAT. Taxes and duties are payable at the ruling rates applicable on date of withdrawal from bond if cleared for home consumption. For further information or rates quotations clients are asked to contact their Bidvest Panalpina Logistics office.
EXPORTS TO INDIA
From 1st April all consignments shipped to Indian ports require the following information to be shown on bills of lading in terms of Public Notice 33/2018 dated 7th March 2018 and issued by India's Commissioner for Customs:
The notice obliges Indian importers to make sure that this information is provided to their foreign suppliers and requires that suppliers ensure that this information is inserted on all bills of lading.
Bidvest Panalpina logistics' Durban offices will be moving to new premises in Umhlanga during May. Located about halfway between the port and King Shaka International Airport, the new facility will allow some divisional consolidation to take place and enhance service levels offered to clients.
During July the Bidvest Panalpina Logistics warehouse operation will also be moving: to larger premises in Mobeni. Available space will almost double, with additional loading bays and weighbridges also coming on stream.
This communication is published for general information and is not intended as professional advice of any kind. While every reasonable care has been taken to ensure the integrity and accuracy of the information contained herein, no liability or responsibility is accepted by Bidvest Panalpina Logistics or its employees for any damage or loss of any nature whatsoever resulting from the use or reliance upon this information.
© Bidvest Panalpina Logistics 2016.
All rights reserved. A Bidvest company and a member of the Panalpina global network.
Bidvest Panalpina Logistics is an Authorised Financial Services Provider.
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Telephone: + 27 11 570 6000