Draft Customs and Excise Rule Amendments for comment

1. Draft Rule Amendments administration of the excise duty on vaping liquids

3 February 2023 – Due date for comments 24 Feb 2023

On 03 February 2023, the South African Revenue Service (SARS) called for comment on the proposed amendment of Rule 19A to the Customs and Excise Act, 1964 (Special Provision in respect of Customs and Excise Warehouses in which Excisable or Fuel Levy Goods are Manufactured or Stored) for the implementation of tobacco products related excise duties on nicotine and nicotine-substitute solutions in vaping products, on which comment is due by 24 February 2023.

The proposed amendments include changes to DA forms:

• DA 260 tobacco products (SOS)
• DA 260 tobacco products (VM)

Government proposed a flat excise duty rate of R2.90/ml for both nicotine and nicotine-substitute solutions in Schedule 1 Part 2A of the Customs and Excise Act. This was published in the Taxation Laws Amendment Act, 2022 dated 5 January 2023.

Item 202.00 of the Schedule to the rules is hereby amended by the substitution of the following forms: “DA 180 Environmental Levy Account for Carbon Tax (front page) Completion notes to DA 180 carbon tax account”

You can read the explanatory note here.

Comments to be recorded on the Customs and Excise Rule Amendments Comment Sheet that can be downloaded from the SARS website here or contact technical@saiba.org.za before 14 Feb 2023 for CIBA to make a submission on behalf of CIBA Tax Practitioners.

It is anticipated that the proposed Rule and DA Form amendments relate to the administration of the tax which will be implemented on 01 June 2023.

2. Draft Rule Amendments Storage of fuel levy goods

6 February 2023 – Due date for comments 20 Feb 2023

An amendment to rule 19A4.01(b)(ii) is published for comment to clarify that a special customs and excise storage warehouse for the storage of locally manufactured fuel levy goods contemplated in section 19A may remove such goods to the BELN countries or for export including ship stores.

BELN countries are Botswana, Eswatini, Lesotho and Namibia

You can find the explanatory note here.

Comments to be recorded on the Customs and Excise Rule Amendments Comment Sheet that can be downloaded from the SARS website here or contact technical@saiba.org.za before 14 Feb 2023 for CIBA to make a submission on behalf of CIBA Tax Practitioners.