Customs Control Act, 2014

Act 31 of 2014

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Customs Control Act, 2014

Citation: Act 31 of 2014
Date: 23 July 2014
Language: English
Publication: Download PDF (1.2 MB)

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- Business, Trade and Industry
- Finance and Money

Customs Control Act, 2014

Act 31 of 2014

Published in Government Gazette 37862 on 23 July 2014
Assented to on 21 July 2014
Not commenced
[This is the version of this document as it was from 23 July 2014 to 17 December 2017.]

(English text signed by the President)ACTTo provide for customs control of all vessels, aircraft, trains, vehicles, goods and persons entering or leaving the Republic; to facilitate the implementation of certain laws levying taxes on goods and of other legislation applicable to such goods and persons; and for matters incidental thereto.

WHEREAS current customs legislation has not kept pace with technological advances and does not fully reflect the modern standards of the Revised Kyoto Convention and other related international instruments to which the Republic has assented;AND WHEREAS the Revised Kyoto Convention and these other related international instruments serve as a model framework for modern, efficient and cost-effective customs control and simplified customs procedures and formalities;AND WHEREAS there is a need for establishing a new legislative framework for the further development and reform of customs legislation in an open and democratic society;AND WHEREAS the mere amendment of current legislation will not achieve the desired result of modernisation and transformation of customs legislation and the simplification of customs procedures and formalities;AND WHEREAS customs administration plays a critical role within the context of international trade and tourism in ensuring effective controls that secure revenue recovery, facilitation of legitimate trade and protection of society at large;AND WHEREAS customs procedures and formalities should be efficient, transparent and predictable for carriers, importers, exporters, traders, travellers and other persons involved in or affected by customs procedures and formalities and not impede legitimate international trade, economic competitiveness and the movement of people and goods across national boundaries;AND WHEREAS a new legislative framework must achieve a balance between effective customs control, the secure movement of goods and people into and from the Republic and the facilitation of trade and tourism;AND WHEREAS there is a need to establish legislation that can serve as a "platform" for the implementation of various other laws that impose taxes on goods, and laws that prohibit, restrict or control the import or export of certain goods,BE IT THEREFORE ENACTED by the Parliament of the Republic of South Africa, as follows:—

Chapter 1
Interpretation, application and administration of this Act

Part 1 – Interpretation of this Act

1. Definitions

(1)In this Act, unless the context otherwise indicates—"accompanied baggage", in relation to a person entering or leaving the Republic, means all goods which a person has on or physically with him or her when processed through customs at the place of entry or exit through which that person enters or will leave the Republic;¹¹This includes all items booked as a person’s baggage or excess baggage irrespective of whether that baggage accompanied, or is to accompany, that person on the same vessel, aircraft, train or vehicle in which that person entered or is to leave the Republic or whether that baggage arrived, or is to be sent, on a separate vessel, aircraft, train or vehicle. It also includes any goods bought or acquired by a person from a tax free shop at the place of entry after having entered the Republic. The only condition is that the traveller must have the goods on or physically with him or her when processed through Customs. Baggage which is not with the traveller when processed through Customs is “unaccompanied baggage” as defined."accredited", in relation to a person, indicates that that person is a registered person or licensee and that an accredited client status certificate has been issued in terms of Chapter 30 to that person;"administrative penalty" means a penalty of any of the types stated in section 874;"agent", in relation to—(a)an importer, means a person located in the Republic² who represents in the Republic an importer not located in the Republic;²See section 1(3)(a).(b)an exporter, means a person located in the Republic who represents in the Republic an exporter not located in the Republic;(c)a carrier, means a person located in the Republic who represents in the Republic a carrier not located in the Republic; or(d)an owner of goods, means a person located in the Republic who represents in the Republic an owner of goods not located in the Republic;but does not include a licensedcustoms broker providing a service as customs broker on behalf of an importer, exporter, carrier or owner;"aircraft" means a craft of any kind whatsoever which is capable of flying, whether self-propelled or not, and includes its fittings and furnishings and any apparatus or equipment fitted on or to it;"air cargo depot"³ means premises whether within a customs airport or elsewhere—³Previously referred to in the Customs and Excise Act, 1964, as a degrouping depot.(a)where air cargo is—(i)received, packed or unpacked, or consolidated for export, or deconsolidated for delivery; and(ii)temporarily stored; and(b)from where air cargo is—(i)released for home use or a customs procedure; or(ii)removed to an air cargo terminal;"air cargo terminal" means premises within a customs airport where air cargo is—(a)off-loaded from, or loaded on board, foreign-going aircraft; and(b)temporarily stored after being off-loaded or before being loaded;"air travellers terminal" means premises within a customs airport where travellers and crew—(a)board, or disembark from, foreign-going aircraft; and(b)are processed for purposes of passenger control before boarding, or after disembarking from, foreign-going aircraft,and includes—(i)all transit areas through which travellers and crew must proceed to or from foreign-going aircraft; and(ii)all facilities used for or in connection with the operation of the terminal;"air waybill" means a document issued by an air carrier or other person duly authorised by an air carrier to transport, or to arrange the transport, of cargo to a particular destination on board an aircraft, and which serves as proof that the carrier or other person—(a)has received the cargo; and(b)has undertaken to transport, or to arrange the transport of, the cargo on the terms and conditions stated or referred to in the document;"assessment", in relation to tax, means a determination by the customs authority in terms of a tax levying Act of the taxability of goods, and if taxable, of the amount of tax payable on those goods in terms of that Act;"ATA carnet" means an internationally accepted customs clearance document which—(a)may in terms of an international clearance arrangement be used in the Republic as a clearance declaration for clearing goods, excluding means of transport, identified in the document for—(i)the temporary admission procedure; or(ii)the temporary export procedure; and(b)is covered by a guarantee for any tax that may be, or may become, payable on such goods;"bill of lading" means a document issued by a sea carrier or other person duly authorised by a sea carrier to transport, or to arrange the transport of, cargo to a particular destination on board a vessel and which serves as proof that the carrier or other person—(a)has received the cargo; and(b)has undertaken to transport, or to arrange the transport of, the cargo on the terms and conditions stated or referred to in the document;"breach", in relation to this Act or a tax levying Act, means any of the following acts or omissions whether or not that act or omission is an offence in terms of this Act or a tax levying Act:(a)A contravention of or failure to comply with a provision of this Act or a tax levying Act;(b)a contravention of or failure to comply with a term or condition of any registration, licence, accreditation, release, authorisation, permission, approval, exemption, instruction, direction or recognition issued or given in terms of this Act or a tax levying Act;(c)a failure to comply with a direction or instruction of the Commissioner, the customs authority or a customs officer in terms of this Act or a tax levying Act; or(d)an evasion of, or any act or omission aimed at evading, a provision of this Act or a tax levying Act or a term or condition of any registration, licence, accreditation, release, authorisation, permission, approval, exemption, instruction, direction or recognition issued or given in terms of this Act or a tax levying Act;"break bulk cargo" means general cargo transported on board a vessel, railway carriage or vehicle in separate packages or as loose items that are not packed, but excludes cargo transported in containers;"bulk cargo" means a large quantity of unpacked dry or liquid homogeneous cargo transported loose in the hold or cargo space of a vessel, railway carriage or truck;"bulk sea cargo terminal" means premises within a customs seaport where bulk cargo is—(a)off-loaded from, or loaded on board, foreign-going vessels; and(b)temporarily stored after being off-loaded or before being loaded,but excludes a special sea cargo terminal handling bulk cargo of a specific type;"bus" means a vehicle with a seating capacity to carry more than 15 passengers;"calendar day" means any one of the seven days of a week;"calendar year" means a year from the first day of January in a year to the last day of December in that year;"cargo", in relation to a vessel, aircraft, railway carriage or vehicle, means any goods on board, or to be loaded on board, or off-loaded from, a vessel, aircraft, railway carriage or vehicle, but excludes—(a)stores; and(b)the accompanied and unaccompanied baggage of travellers and crew members;"cargo reporter", in relation to cargo on board, or to be loaded on board, or off-loaded from, a vessel or aircraft, means a person who in terms of a contract of carriage concluded by that person with the consignor of the cargo or any other interested person is responsible for the delivery of the cargo, whether that person is the carrier who actually transports the cargo or a customs broker⁴ who arranged the transport of the cargo;⁴See paragraph (b) of the definition of “customs broker”."cargo status", in relation to cargo imported into or to be exported from the Republic by sea, means any of the following symbols used for indicating the form in which the cargo is imported or to be exported:(a)"FCL" for indicating that the cargo is contained in an FCL container or FCL (groupage) container;(b)"LCL" for indicating that the cargo is contained in an LCL container;(c)"Break Bulk" for indicating that the cargo is in break bulk; or(d)"Bulk" for indicating that the cargo is bulk;"carrier" means—(a)a shipping line, airline or other person carrying on business by transporting goods or travellers by sea or air for reward;(b)a person carrying on business by transporting goods or travellers by rail for reward;(c)a person carrying on business by transporting goods by truck or travellers by bus for reward; or(d)a person who—(i)conducts a business involving the selling or leasing of goods or the dealing in goods in any other manner, or the packing, repairing, reconditioning, processing or producing of goods; and(ii)in the course of conducting that business transports those goods;"clear"—(a)means submitting to the customs authority in accordance with this Act a clearance declaration complying with this Act in order to obtain the release of goods for home use or a customs procedure;⁵ and⁵The reference here to customs procedure includes clearance for export as the export of goods from the Republic is a customs procedure. See definition of “customs procedure”.(b)includes amending a submitted clearance declaration to the extent necessary to validate the declaration if the declaration does not fully comply with this Act;⁶⁶See sections 171 and 172."clearance declaration" means any of the documents referred to in section 164 which may in terms of this Act be submitted to the customs authority for the purpose stated in section 163;"coasting vessel" means a domestic vessel operated by a carrier and engaged in the transportation of cargo between seaports within the Republic, but excludes a foreign-going vessel which—(a)whilst on a voyage to its end destination in the Republic engages in such transportation during that part of the voyage in the Republic; or(b)whilst on a voyage to a destination outside the Republic engages in such transportation during that part of the voyage in the Republic;"combination sea cargo terminal" means premises situated within a customs seaport where both break bulk cargo and cargo in containers are—(a)off-loaded from, or loaded on board, foreign-going vessels; and(b)temporarily stored after being off-loaded or before being loaded;"Commissioner" means the Commissioner for the South African Revenue Service;"compensating products" means products obtained from the processing⁷ of—⁷See definition of “processing”.(a)goods exported from the Republic under the outward processing procedure;(b)imported goods under the inward processing procedure; or(c)imported goods under the home use processing procedure,and includes products not solely obtained from such exported or imported goods, as may be determined in terms of a tax levying Act;"confiscate", in relation to goods, means to divest a person of ownership of goods and to vest ownership of the goods in the state;"container" means a receptacle, holder, tank or similar movable article—(a)specially designed and equipped for containing goods for transport by more than one mode of transport without intermediate unloading and reloading of the contents;(b)of a durable nature intended for repeated use;(c)capable of being sealed; and(d)which has an internal volume of not less than one cubic metre;and includes a demountable body;"container depot" means premises, whether situated within a customs seaport or elsewhere—(a)where containers are—(i)received;(ii)packed or unpacked; or(iii)temporarily stored;(b)from where containers or the unpacked contents are delivered—(i)to consignees upon clearing and release of the contents for home use; or(ii)for the carrying out of a customs procedure upon clearing and release of the contents for that customs procedure; and(c)where goods are received for packing into containers;"container terminal" means premises, whether situated within a customs seaport or elsewhere—(a)where packed and empty containers are received;(b)from where packed containers are delivered—(i)to container depots;(ii)directly to consignees upon clearing and release of the contents for home use; or(iii)for a customs procedure upon clearing and release of the contents for that customs procedure; and(c)where packed and empty containers are temporarily stored after being received or before being delivered;"Convention on Temporary Admission" means the Convention on Temporary Admission (Istanbul, 26 June 1990);"Counterfeit Goods Act" means the Counterfeit Goods Act, 1997 (Act No. 37 of 1997);"court" includes a tax court as defined in the Tax Administration Act in relation to a matter within the jurisdiction of that court;"CPD carnet" means an internationally accepted customs clearance document which—(a)may in terms of an international clearance arrangement be used in the Republic as a clearance declaration for clearing means of transport identified in the document for—(i)the temporary admission procedure; or(ii)the temporary export procedure; and(b)is covered by a guarantee for any tax that may be, or may become, payable on such means of transport;"crew" or "crew member", in relation to a vessel, aircraft, train, railway carriage or vehicle, means—(a)the on-board operator of the vessel, aircraft, train, railway carriage or vehicle; or(b)any other person travelling on board the vessel, aircraft, train, railway carriage or vehicle for the purpose of performing work on board the vessel, aircraft, train, railway carriage or vehicle in the course of its journey,but excludes a person referred to in paragraph (a) or (b) on board a small vessel, light aircraft or vehicle used as a private means of transport;⁸⁸For determining when a vessel, aircraft or vehicle qualifies as a small vessel, light aircraft or vehicle used as a private means of transport, see section 903(1)(n)."cross-border cable car" means a cable car by way of which goods are imported into or exported from the Republic;"cross-border conveyor belt" means a conveyor belt by way of which goods are imported into or exported from the Republic;"cross-border pipeline" means a pipeline through which liquid or gas commodities are imported into or exported from the Republic;"cross-border railway carriage" means a coach or wagon which—(a)forms part of a cross-border train that will transport goods or travellers out of the Republic, and includes a coach or wagon scheduled to form part of a cross-border train that will transport goods or travellers out of the Republic; or(b)forms part of a cross-border train that transported goods or travellers into the Republic, and includes a coach or wagon which formed part of a cross-border train that transported goods or travellers into the Republic and from which the goods have not yet been unloaded or the travellers have not yet disembarked;"cross-border train" means a train on, or scheduled for, a voyage—(a)from a place outside the Republic to a destination inside the Republic; or(b)from a place inside the Republic to a destination outside the Republic;"cross-border transmission line", in relation to electricity, means a transmission line through which electricity is imported into or exported from the Republic;"customs airport" means an airport designated as a place of entry or exit for aircraft and for persons and goods on board aircraft;"Customs and Excise Act, 1964" means the Customs and Excise Act, 1964 (Act No. 91 of 1964);"customs authority" means—(a)the Commissioner; or(b)a customs officer, but only if and to the extent that a power or duty assigned to the customs authority in terms of this Act has been delegated to that officer in terms of section 19;"customs broker" means a person carrying on business in the Republic by—(a)submitting on behalf of other persons clearance declarations for reward to clear goods for home use or a customs procedure, excluding—(i)a person who as the registered agent in the Republic of an importer, exporter, owner or carrier of goods not located in the Republic⁹ submits a clearance declaration on behalf of that importer, exporter, owner or carrier; or⁹See section 1(3)(a).(ii)a licensed carrier located in the Republic who submits a clearance declaration on behalf of a person whose goods that carrier is transporting;(b)arranging on behalf of other persons for reward the receipt, delivery or transport of goods imported into or to be exported from the Republic;(c)arranging on behalf of other persons for reward the consolidation or deconsolidation of goods imported into or to be exported from the Republic or consolidating or deconsolidating such goods on behalf of other persons for reward; or(d)handling on behalf of other persons for reward the formalities relating to the import into or the export from the Republic of goods;"customs code" means an identification symbol consisting of figures, letters or other characters allocated by the customs authority—(a)in terms of section 612(1)(c) to a registered person;(b)in terms of section 641(1)(d) to—(i)any licensed premises;(ii)a licensed cross-border transmission line, pipeline, cable-car or conveyor belt; or(iii)a licensed carrier or customs broker;(iv)any other premises, facility or person licensed for a purpose referred to in section 634(1), (2) or (3); or(c)to any other person, matter or thing for purposes of this Act or a tax levying Act;"customs control" means control in terms of this Act;"customs controlled area" means—(a)an area, premises or facility listed in section 43(1) as a customs controlled area; or(b)an area designated in terms of section 43(2) as a customs controlled area;"Customs Duty Act" means the Customs Duty Act, 2014 (Act No. 30 of 2014);"Customs Office" means an office established or designated as a customs office in terms of section 14(1) (a);"customs officer" means a person designated by the Commissioner in terms of section 10(1) as a customs officer;"customs procedure" means any conduct listed below involving goods imported into or to be exported from the Republic which may commence and be carried out only in accordance with this Act:(a)The national transit procedure;(b)the international transit procedure;(c)the excise warehouse transit procedure;(d)the transhipment procedure;(e)the temporary admission procedure;(f)the warehousing procedure;(g)the tax free shop procedure;(h)the stores procedure;(i)the export procedure;(j)the temporary export procedure;(k)the inward processing procedure;(l)the home use processing procedure; or(m)the outward processing procedure;"customs seaport" means a seaport designated as a place of entry or exit for vessels and for persons and goods on board vessels;"Customs Tariff" means the Customs Tariff referred to in section 7 of the Customs Duty Act;"customs value", in relation to goods, means the value of goods for customs purposes as calculated in accordance with Chapter 7 of the Customs Duty Act;"damage"¹⁰, in relation to goods, includes any deterioration or spoiling of goods due to any act or omission without rendering the goods commercially valueless, but excludes stealing of goods;¹⁰It is to be noted that “damage” retains its ordinary grammatical meaning and that the definition, by using the word “includes”, merely extends, and not replaces, the ordinary grammatical meaning."declare"¹¹, in relation to goods, means—¹¹The notion of “declaring” goods does not imply “clearing” the goods for home use or a customs procedure. The declaration or disclosure of goods to a customs officer may (but not necessarily) lead to the clearance of the goods depending on the value of the goods, the nature of the goods, etc.(a)to disclose goods to the customs authority; and(b)to provide the customs authority with all information relating to the goods required by the customs authority for purposes of this Act, including any information necessary to determine whether—(i)the goods are taxable, and, if so, to assess any tax payable on the goods;(ii)the goods are goods that must be cleared for home use or a customs procedure;(iii)the goods are not prohibited, restricted, sectorally controlled or counterfeit goods; and(iv)the goods may be released for home use or the customs procedure for which the goods were cleared;"delegation", in relation to a duty that must be performed, includes an instruction or request to perform or to assist in performing the duty;"demountable body" means a load compartment which has no means of locomotion and which is designed to be transported on, or as a detachable part of, a specially adapted vehicle, and includes a swap-body which is a load compartment designed for combined road and rail transport;"depot" means—(a)a container depot;(b)an air cargo depot; or(c)an international postal clearance depot;"destroy", in relation to goods, includes an act or occurrence that renders goods commercially valueless;¹²¹²It is to be noted that “destroy” retains its ordinary grammatical meaning and that the definition, by using the word “includes”, merely extends, and not replaces, the ordinary grammatical meaning."detain", in relation to goods, means restrict the movement or handling of goods pending a decision concerning the goods in terms of this Act, a tax levying Act or other legislation applicable to the goods;"divert for home use", in relation to any of the following categories of goods, means acquiring, purchasing, handling, transporting, storing, keeping, selling, trading in, utilising, processing, disposing of or in any other way dealing with the goods as if the goods are in free circulation:(a)Goods imported into the Republic—(i)that are required to be cleared but that have not been cleared either for home use or a customs procedure; or(ii)that have been cleared for home use but not released for home use; or(b)goods under a customs procedure.¹³ including compensating products under—¹³Goods come under a customs procedure when cleared for that customs procedure. See provisions on commencement of customs procedures in Chapters dealing with each customs procedure.(i)the inward or outward processing procedure; or(ii)the home use processing procedure that are not in free circulation;¹⁴¹⁴See section 445."document" includes—(a)any instrument, whether paper-based or from any other material, on or in which there—(i)is writing;(ii)are images; or(iii)are perforations which have meaning;(b)any instrument from which writing, sounds or images can be reproduced or retrieved with or without the aid of any device; or(c)any computer, computer hardware or other device containing electronically stored information or from which electronically stored information is retrievable;"domestic tax", in relation to goods, means—(a)value-added tax imposed in terms of the Value-added Tax Act, other than value-added tax falling within the definition of "import tax";(b)an excise duty, fuel levy, Road Accident Fund levy or environmental levy imposed in terms of the Excise Duty Act, other than an excise duty, fuel levy. Road Accident Fund levy or environmental levy falling within the definition of "import tax"; or(c)any tax, levy or duty imposed on goods in terms of another tax levying Act, other than any tax, levy or duty falling within the definition of "import tax";"domestic vessel" means any vessel at a seaport, harbour or other place in the Republic or in the territorial waters of the Republic which is not a foreign-going vessel;"due date" means, in relation to—(a)an administrative penalty, the date on or before which the penalty must be paid in terms of Chapter 39; or(b)any other amount owed to the Commissioner in terms of this Act, the date specified for payment in a notice demanding payment of the amount;"enforcement function", in relation to the customs authority or a customs officer, means a power or duty assigned to the customs authority in terms of this Act or a tax levying Act or assigned or delegated to a customs officer in terms of this Act or a tax levying Act—(a)to implement and enforce this Act or a tax levying Act; or(b)to assist in the implementation or enforcement of other legislation referred to in Chapter 35 or 36;"enter", in relation to the Republic, means—(a)in the case of a vessel or goods or persons on board a vessel, when the vessel crosses into the territorial waters of the Republic;(b)in the case of an aircraft or goods or persons on board an aircraft, when the aircraft crosses into the airspace above the Republic;(c)in the case of a cross-border train or goods or persons on board a cross-border train, when the train crosses the border into the Republic;(d)in the case of a vehicle or goods or persons on board a vehicle, when the vehicle crosses the border into the Republic;(e)in the case of electricity, when the electricity is transmitted through a transmission line into the Republic;(f)in the case of goods in a cross-border pipeline, when the goods cross the border through the pipeline into the Republic;(g)in the case of goods on a cross-border cable car or conveyor belt, when the goods cross the border on the cable car or conveyor belt into the Republic; or(h)in the case of a person on foot or goods that such a person has with him or her, when that person crosses the border into the Republic,and includes when trains, vehicles, goods or persons are regarded in terms of section 34(2)(c) to have entered the Republic;"Excise Duty Act" means the Excise Duty Act, 1964 (Act No. 91 of 1964);"excise warehouse" has the same meaning as assigned to it in the Excise Duty Act;"excise warehouse transit" or "excise warehouse transit procedure" means the customs procedure described in section 221;"exporter"¹⁵ means—¹⁵“Exporter” is used in two senses in the Act. Firstly, as a person who exports goods from the Republic to another country, and, secondly, as a person who exports goods from another country to the Republic. See definitions of “export from the Republic” and “export to the Republic”.(a)in relation to goods exported or to be exported from the Republic, the person who exported, is in the process of exporting or intends to export those goods from the Republic; or(b)in relation to goods exported or to be exported to the Republic, the person who exported, is in the process of exporting or intends to export those goods to the Republic,and includes—(i)a person who at the time when the goods are exported or in the process of being exported from or to the Republic—(aa)is the owner of the goods;(bb)carries the risk in respect of the goods; or(cc)is beneficially interested in the goods in any way whatsoever;(ii)a person who actually transports or attempts to transport the goods out of or into the Republic, except when that person is—(aa)a licensed carrier;(bb)a carrier not located in the Republic and represented in the Republic by a registered agent; or(iii)a person who represents, or pretends to be or to represent, a person referred to in paragraph (a) or (b) or paragraph (i) or (ii), except when that person is a licensed customs broker who as a customs broker represents a person referred to in any of those paragraphs;"export from the Republic", in relation to goods, means transporting, taking, sending or removing goods out of the Republic, subject to sections 2(a) and 30;"export procedure" means the customs procedure described in section 362;"export tax" means—(a)an export duty imposed in terms of the Customs Duty Act on goods exported from the Republic; or(b)any other tax, levy or duty on goods exported from the Republic;¹⁶¹⁶Such as the levy on diamonds exported from the Republic in terms of the Diamond Export Levy Act, 2007 (Act No. 15 of 2007). It is to be noted that no export duty has been imposed in terms of the Customs and Excise Act on goods exported from the Republic."export to the Republic", in relation to goods, means taking, sending or transporting goods from outside the Republic to a destination inside the Republic;"FCL container" means a container containing goods consigned from more than one consignor to a single consignee;"FCL (groupage) container" means a container containing goods consigned from more than one consignors to more than one consignees;"final judgement" means—(a)a judgement given or confirmed by a court of final instance; or(b)a judgement given by another court if the time for noting an appeal against the judgement to a higher court has expired and no appeal has been lodged;"fixed amount penalty" means an administrative penalty of a type referred to in section 876;"foreign-going aircraft" means—(a)an aircraft at an airport, landing strip or other place in the Republic if that aircraft—(i)has arrived at that airport, landing strip or other place in the course of a voyage from outside the Republic to a destination or destinations inside the Republic, whether that airport, landing strip or other place is that destination or one of those destinations or a stopover on its way to that or any of those destinations; or(ii)is scheduled to depart from that airport, landing strip or other place in the course of a voyage to a destination outside the Republic, whether that airport, landing strip or other place is its place of departure to that destination or a stopover or one of several stopovers in the Republic from where it will depart in the course of that voyage;(b)an aircraft in the airspace above the Republic on a voyage referred to in paragraph (a)(i) or (ii); or(c)an aircraft on a voyage from a place outside the Republic to a destination outside the Republic—(i)passing through the airspace above the Republic; or(ii)making a stopover at any airport, landing strip or other place in the Republic;"foreign-going vessel" means—(a)a vessel at a seaport, harbour or other place in the Republic if that vessel—(i)has arrived at that seaport, harbour or other place in the course of a voyage from outside the Republic to a destination or destinations inside the Republic, whether that seaport, harbour or other place is that destination or one of those destinations or a stopover on its way to that or any of those destinations; or(ii)is scheduled to depart from that seaport, harbour or other place in the course of a voyage to a destination outside the Republic, whether that seaport, harbour or other place is its place of departure to that destination or a stopover or one of several stopovers in the Republic from where it departs in the course of that voyage;(b)a vessel in the territorial waters of the Republic on a voyage referred to in paragraph (a)(i) or (ii); or(c)a vessel on a voyage from a place outside the Republic to a destination outside the Republic—(i)passing through the territorial waters of the Republic; or(ii)making a stopover at any place in the Republic;"free circulation" means—(a)in relation to goods imported into the Republic, that the goods—(i)have been released for home use and that the release for home use was unconditional or, if conditional, has due to compliance with the condition become unconditional; or(ii)fall within a category of goods referred to in section 91(1)(e), (g), (h), (i) or (j) and are allowed into the Republic free from customs control subject only to customs verification that the goods fall within that category;(b)in relation to products obtained from the processing of imported goods conditionally released for home use processing,¹⁷ that—¹⁷See section 442.(i)the products have been produced in compliance with the conditions subject to which the imported goods were released for home use processing and that the release of the imported goods for home use processing has due to such compliance become unconditional; and(ii)no tax levying Act prevents the products from being dealt with in accordance with section 445(1)(a) or (b);(c)in relation to goods manufactured in an excise warehouse, that the goods have been entered for home consumption in accordance with the Excise Duty Act; or(d)in relation to goods produced in the Republic otherwise than as contemplated in paragraph (b) or (c), that the goods have been produced in circumstances in which this Act and the Excise Duty Act do not apply:Provided that goods in free circulation by virtue of paragraph (a), (b), (c) or (d) lose their free circulation status if the goods are subsequently cleared for a customs procedure that allows goods in free circulation to be cleared for that procedure;¹⁸¹⁸Such as for outright export, temporary export or outward processing."general cargo" means cargo of a diverse nature whether in packages or containers;"general sea cargo terminal" means premises within a customs seaport where break bulk cargo is—(a)off-loaded from, or loaded on board, foreign-going vessels; and(b)temporarily stored after being off-loaded or before being loaded;but excludes a special sea cargo terminal handling break bulk cargo of a specific type;"goods" means any wares, supplies, merchandise, articles, products, commodities, substances, documents or any other things capable of being transported, whether loose, packed, in a package or holder, containerised or in bulk, and includes—(a)any animals, whether dead or alive, or parts of animals;(b)any plants, whether dead or alive, or parts of plants;(c)any postal items;(d)any baggage of persons entering or leaving the Republic, whether accompanied or unaccompanied;(e)any vessels, aircraft, locomotives, railway carriages, vehicles or other means of transport, whether or not used for the transport of goods or travellers;(f)any transport equipment whether or not used in the transport of goods, including reusable transport equipment;(g)currency;(h)any commodity capable of being pumped through pipelines or conveyed by means of cable-car or conveyor belt; and(i)electricity;"guaranteeing association" means—(a)in relation to the temporary admission procedure, an association guaranteeing in accordance with the Convention on Temporary Admission or any international agreement referred to in section 280(1)(a)(ii) the payment of any import tax that may become payable on goods temporarily admitted into the Republic on authority of a CPD or ATA carnet; or(b)in relation to the temporary export procedure, an association guaranteeing in accordance with the Convention on Temporary Admission or any international agreement referred to in section 393(1)(a)(ii) the payment of any export tax that may become payable on goods temporarily exported from the Republic on authority of a CPD or ATA carnet;"home use", in relation to imported goods, means that the goods may be consumed, utilised, processed or otherwise disposed of in the Republic as goods that are no longer subject to customs control;"home use compensating products" means compensating products obtained from imported goods under the home use processing procedure;"home use processing" or "home use processing procedure" means the customs procedure described in section 435;"home use processing premises" means premises referred to in section 630(2)(b) but excludes an excise warehouse;"import", in relation to goods, means transporting, sending or bringing goods into the Republic, subject to sections 2(a) and 30;"importer", in relation to goods, means a person who imports goods into the Republic, and includes a person who—(a)at the time of importation—(i)is the owner of the goods that are imported;(ii)carries the risk in respect of the goods that are imported; or(iii)is beneficially interested in any way whatsoever in the goods that are imported;(b)actually transports or attempts to transport the goods into the Republic, except when that person is—(i)a licensed carrier; or(ii)a carrier not located in the Republic and represented in the Republic by a registered agent; or(c)represents, or pretends to be or to represent, a person importing goods or referred to in paragraph (a) or (b), except when that person is a licensed customs broker who as a customs broker represents a person—(i)importing goods; or(ii)referred to in any of those paragraphs;"import tax" means—(a)an ordinary import duty, anti-dumping duty, countervailing duty or safeguard duty imposed in terms of the Customs Duty Act on goods imported into the Republic, and includes a provisional anti-dumping duty, countervailing duty and safeguard duty on such goods;(b)value-added tax imposed in terms of the Value-added Tax Act on goods imported into the Republic;(c)an excise duty, fuel levy, Road Accident Fund levy or environmental levy imposed in terms of the Excise Duty Act on goods imported into the Republic; or(d)any other tax, levy or duty on goods imported into the Republic;"incomplete clearance declaration" means a clearance declaration that may be used to clear goods for home use or a customs procedure in the circumstances set out in Part 1 of Chapter 24 and that does not contain all the information required to be included in a regular clearance declaration due to the unavailability of some of that information;"inspect", as an action performed by a customs officer in relation to goods, includes to perform any or all of the actions referred to in section 722(3);"international agreement" means—(a)an international trade agreement; or(b)a convention, treaty or other international agreement irrespective of its designation, including—(i)any protocol to such agreement;(ii)any annex or appendix or other addition to the agreement or any such protocol;(iii)any regulation or other measure issued under the agreement or any such protocol;(iv)any amendment to the agreement or any such protocol, to any such annex, appendix or other addition, or to any such regulation or other measure; and(v)any other instrument that forms part of the agreement or any such protocol;"international clearance arrangement" means an arrangement for the clearance of goods in accordance with—(a)the Convention on Temporary Admission; or(b)an agreement between the Republic and another country to regulate, otherwise than in accordance with formal clearance requirements—(i)the temporary admission of goods from that country into the Republic; and(ii)the temporary export of goods from the Republic to that country;"international postal article" means a postal article—(a)posted outside the Republic for—(i)delivery inside the Republic; or(ii)transit through the Republic to another country; or(b)posted inside the Republic for delivery outside the Republic;"international postal clearance depot" means premises operated by the South African Post Office for the sorting and processing of international postal items for—(a)delivery inside the Republic, in the case of postal items posted outside the Republic for delivery in the Republic; or(b)despatch on board foreign-going vessels or aircraft, cross-border railway carriages or vehicles departing from the Republic, in the case of postal items posted inside the Republic for delivery outside the Republic;"international trade agreement" means an international trade agreement as defined in section 1 of the Customs Duty Act;"international transit" or "international transit procedure" means the customs procedure described in section 194(2);"inward processed compensating products" means compensating products—(a)obtained from the processing of imported goods under the inward processing procedure; and(b)destined for export or exported from the Republic;"inward processing" or "inward processing procedure" means the customs procedure described in section 408;"inward processing premises" means premises referred to in section 630(2)(a);"issuing association" means—(a)in relation to the temporary admission procedure, an association which in terms of the Convention on Temporary Admission or any international agreement referred to in section 280(1)(a)(ii) is authorised to issue CPD or ATA carnets for the temporary admission of goods into the Republic; or(b)in relation to the temporary export procedure, an association which in terms of the Convention on Temporary Admission or any international agreement referred to in section 393(1)(a)(ii) is authorised to issue CPD or ATA carnets for the temporary export of goods from the Republic for temporary admission into another country;"juristic entity" includes—(a)a company, close corporation or co-operative incorporated or registered in terms of legislation whether in the Republic or elsewhere;(b)an association, partnership or club or other body of persons of whatever description, corporate or unincorporated;(c)a trust or trust fund;(d)any entity referred to in paragraph (a), (b) or (c) in liquidation or under judicial management; and(e)the estate of a deceased or insolvent person;"land border-post" means—(a)in relation to vehicles, a road border crossing designated in terms of section 31(1)(d) as a place of entry or exit for vehicles, and persons and goods on board vehicles; or(b)in relation to persons on foot, a road or other border crossing designated in terms of section 31(1)(e) as a place of entry or exit for persons on foot, and goods that such persons have with them;"LCL container" means a container containing goods consigned from one or more consignors to more than one consignees;"leave", in relation to the Republic, means—(a)in the case of a vessel or goods or persons on board a vessel, when the vessel moves out of the territorial waters of the Republic;(b)in the case of an aircraft or goods or persons on board an aircraft, when the aircraft moves out of the airspace above the Republic;(c)in the case of a cross-border train or goods or persons on board a cross-border train, when the train crosses the border out of the Republic;(d)in the case of a vehicle or goods or persons on board a vehicle, when the vehicle crosses the border out of the Republic;(e)in the case of electricity, when the electricity is transmitted through a transmission line out of the Republic;(f)in the case of goods in a cross-border pipeline, when the goods cross the border through the pipeline out of the Republic;(g)in the case of goods on a cross-border cable car or conveyor belt, when the goods cross the border by way of the cable car or conveyor belt out of the Republic; or(h)in the case of a person on foot or goods that such a person has with him or her, when that person crosses the border out of the Republic;"licence" means a licence issued by the customs authority in terms of Chapter 29, subject to subsection (4) of this section;"licensed" means licensed in terms of Chapter 29, subject to subsection (4) of this section;"licensee" means the holder of a licence, subject to subsection (4) of this section;"lost" or "loss", in relation to goods, means that goods have become lost due to—(a)theft or robbery;(b)falling overboard;(c)being left behind or forgotten somewhere;(d)loading on board the wrong vessel, aircraft, railway carriage or vehicle;(e)off-loading at the wrong place; or(f)any other specific act or occurrence other than the destruction or damage of goods;"manifest" or "cargo manifest" means a summary of cargo on board or to be off-loaded from a vessel, aircraft, railway carriage or vehicle at a specific place as reflected in the transport documents issued in respect of that cargo;"means of transport" means a vessel, aircraft, locomotive, railway carriage or vehicle engaged in the transport of goods or persons;"Minister" means the Cabinet member responsible for finance;"mode of transport" means transport by sea, air, rail or road;"multi-modal transport" means the transport of goods from one point to another by switching in the course of the journey from one mode of transport to another;"multi-purpose sea cargo terminal" means any premises within a customs seaport handling any combination of—(a)general cargo;(b)special cargo;(c)bulk cargo; and(d)containers, including empty containers;"national transit" or "national transit procedure" means the customs procedure described in section 194(1);"non-prosecutable breach", in relation to this Act, means a breach of this Act which is not an offence in terms of this Act;"official", in relation to SARS, means—(a)the Commissioner;(b)any other employee of SARS;(c)a person employed by another organ of state, including any institution which is not an organ of state, and seconded to SARS to work as a member of the staff; or(d)a person contracted by SARS to work as a member of the staff otherwise than as an employee;"on-board operator" means—(a)in relation to a vessel, aircraft or train, a person on board the vessel, aircraft or train who is in on-board command¹⁹ of the vessel, aircraft or train;¹⁹This refers to the master or captain of a vessel or the pilot or captain of an aircraft, etc., but excludes harbour pilots guiding vessels in a port and train pilots guiding trains on a track.(b)in relation to a railway carriage, a person on board the train of which that railway carriage forms part or is scheduled to form part and who is in on-board command of the train; or(c)in relation to a vehicle, the driver of the vehicle or, if the driver drives the vehicle on the instructions of another person in the vehicle, that other person;"origin", in relation to goods, means the country in which the goods were produced or regarded to have been produced according to the rules of origin applicable to the goods in terms of Chapter 8 of the Customs Duty Act;"outright export", in relation to goods, means the export of goods from the Republic otherwise than under—(a)any of the following customs procedures:(i)The international transit procedure;(ii)the transhipment procedure;(iii)the temporary admission procedure;(iv)the temporary export procedure;(v)the tax free shop procedure;(vi)the stores procedure;(vii)the inward processing procedure; or(viii)the outward processing procedure; or(b)an exemption or exclusion from export clearance formalities;"outturn report" means a report giving the information as may be prescribed by rule concerning—(a)goods—(i)packed into containers, or consolidated, whether on pallets or in another way, for transportation;(ii)loaded on board a vessel, aircraft, railway carriage or vehicle for transportation;(iii)unloaded from a vessel, aircraft, railway carriage or vehicle; or(iv)unpacked from containers or de-grouped from consolidated packages; or(b)empty containers unloaded from or loaded onto vessels or railway carriages;"outward processed compensating products" means compensating products—(a)obtained from the processing of goods exported from the Republic under the outward processing procedure; and(b)imported under that procedure for home use;"outward processing" or "outward processing procedure" means the customs procedure described in section 454;"owner", in relation to goods, includes a person holding a share in the ownership of goods;"ownership", in relation to goods, includes a share in the ownership of goods;"package" means—(a)any wrapping or outer cover and its contents;(b)any bundle tied together; or(c)any single piece in the case of unpacked goods;"permissible"—(a)in relation to a clearance of goods for a customs procedure, means that clearance of the goods for that customs procedure—(i)is not inconsistent with this Act or a tax levying Act; and(ii)would not in the ordinary course of applying this Act result in a refusal by the customs authority to release the goods for that customs procedure; or(b)in relation to a clearance of goods for home use, means that clearance of the goods for home use—(i)is not inconsistent with this Act or a tax levying Act; and(ii)would not in the ordinary course of applying this Act result in a refusal by the customs authority to release the goods for home use;²⁰²⁰See for instance sections 99 and 100 stating the circumstances in which the release of goods for home use or a customs procedure must or may be refused."person" means a natural person or a juristic entity, and includes an organ of state or an official of an organ of state;"place of entry" means a place designated in terms of section 31 or 34 as a place of entry for the control of vessels, aircraft, trains, vehicles, goods and persons entering the Republic;"place of exit" means a place designated in terms of section 31 or 34 as a place of exit for the control of vessels, aircraft, trains, vehicles, goods and persons leaving the Republic;"police officer" means a member of the South African Police Service established in terms of the South African Police Service Act, 1995 (Act No. 68 of 1995);"port authority" means the authority in charge of a customs seaport or a customs airport;"postal article" means any letter, postcard, letter card, envelope, book, packet, pattern or sample packet or any parcel or other article when conveyed by post, and includes a telegram when conveyed by post;"posted" means posted at a post office operated by the South African Post Office;"post office" includes any house, building, room, vehicle, place or structure where the South African Post Office—(a)receives, sorts, delivers, make up or dispatch postal articles; or(b)renders any postal, savings, money transfer or other service,and includes any pillar box or other receptacle provided by or with the approval of the South African Post Office for the reception of postal articles;"premises" means any site, property, building, structure or any part of a site, property, building or structure;"private storage warehouse" means licensed premises used exclusively by the licensee of the premises for the storage of goods owned by the licensee or in which the licensee has a material interest, but excludes an excise warehouse;"processing" means—(a)in relation to goods under the inward processing procedure—(i)to repair, clean, recondition, alter, adapt, pack or re-pack imported goods;(ii)to subject imported goods to an industrial process; or(iii)to use imported goods in a manufacturing process or for the production of manufactured products;(b)in relation to goods under the home use processing procedure—(i)to repack imported goods in retail quantities;(ii)to repair, alter, adapt or recondition imported goods;(iii)to subject imported goods to an industrial process; or(iv)to use imported goods in a manufacturing process or for the production of manufactured products; or(c)in relation to goods under the outward processing procedure—(i)to repair, alter, adapt or recondition goods exported from the Republic abroad;(ii)to subject goods exported from the Republic to an industrial process abroad; or(iii)to use goods exported from the Republic in a manufacturing process or for the production of manufactured products abroad,to any extent, or subject to any limitations or qualifications, as may be determined in terms of a tax levying Act;"produce", in relation to goods, includes plant, grow, harvest, manufacture, make, assemble, mine, extract or process goods or in any other way create or bring forth goods;"producer", in relation to goods, means a person who produces goods;"prohibited goods" means goods described in section 774;²¹²¹“Prohibited goods” excludes counterfeit goods which are dealt with separately in Chapter 36."prosecutable breach", in relation to this Act, means a breach of this Act which is an offence in terms of this Act;"prosecution avoidance penalty" means an administrative penalty of a type referred to in section 878;"provisional clearance declaration" means a clearance declaration that may be used to clear goods for home use or a customs procedure in the circumstances set out in Part 1 of Chapter 24 and that contains information provisionally included in the declaration pending subsequent confirmation or correction;"public storage warehouse" means licensed premises made available by the licensee of the premises to clients generally for the storage of their goods that are not in free circulation, but excludes—(a)a terminal or depot where goods are temporarily stored;(b)a state warehouse or premises regarded in relation to any specific goods to be a state warehouse in terms of section 580; and(c)an excise warehouse;"rail cargo terminal" means premises on a railway station where cargo is—(a)off-loaded from, or loaded on board, cross-border railway carriages; and(b)temporarily stored after being off-loaded or before being loaded;"rail consignment note" means a document issued by a rail carrier or other person duly authorised by a rail carrier to transport, or to arrange the transport of, cargo to a specific destination on board a railway carriage, and which serves as proof that the carrier or other person—(a)has received the cargo; and(b)has undertaken to transport, or to arrange the transport of, the cargo on the terms and conditions stated or referred to in the document;"rail travellers terminal" means premises on a railway station where travellers—(a)board, or disembark from, cross-border railway carriages; and(b)are processed before boarding, or after disembarking from, cross-border railway carriages, and includes—(i)all transit areas through which travellers must proceed to or from cross-border railway carriages; and(ii)all facilities used for or in connection with the operation of the terminal;"railway station" includes a railway siding serving a specific agricultural, mining, industrial or commercial enterprise, complex or area;"railway terminal" means—(a)a rail cargo terminal; or(b)a rail travellers terminal;"recognised cause", in relation to—(a)goods that were damaged, destroyed, lost or unaccounted for, means a cause set out in section 544(1), 545(1), 546(1) or 547(1); or(b)compensating products that were damaged, destroyed, lost or unaccounted for, means a cause set out in section 551(1), 552(1), 553(1) or 554(1);"registered" means registered in terms of Chapter 28, subject to subsection (4) of this section;"regular clearance declaration" means a clearance declaration that must be used for the clearance of goods for home use or a customs procedure in circumstances where a clearance declaration referred to in section 164(1)(b), (c), (d), (e) or (f) is not allowed;"regulation" means a regulation made by the Minister in terms of section 902;"re-imported unaltered goods" means goods imported into the Republic that—(a)were previously exported from the Republic, whether temporarily or outright; and(b)whilst abroad, have not undergone any manufacturing, processing or repairs except maintenance in connection with their use abroad;"release", in relation to goods, means a decision by the customs authority to allow the goods—(a)into free circulation, in the case of imported goods that are cleared for home use; or(b)to be dealt with in accordance with a specific customs procedure, in the case of goods that are cleared for that customs procedure;"release agent", in relation to goods, means the licensee of the customs controlled area where the goods are located immediately before their release for home use or a customs procedure;"release notification" means a notification in terms of section 180 stating that goods have been released for home use or a customs procedure;"Republic" means the territory of the Republic of South Africa, including its internal and territorial waters referred to in sections 3 and 4 of the Maritime Zones Act, 1994 (Act No. 15 of 1994), and the airspace above its territory and internal and territorial waters;"restricted goods" means goods described in section 783;"reusable transport equipment" means containers, pallets, packing material or other transport equipment designed for continuous reuse in the transport of goods in the ordinary course of trade;"reward", in relation to the transport of goods or travellers, includes any form of consideration received or to be received wholly or partly in connection with the transport of the goods or travellers, irrespective of the person by whom or to whom the consideration has been or is to be paid or given;"road waybill" means a document issued by a road carrier to transport, or to arrange the transport of, goods to a particular destination on board a vehicle, and which serves as proof that the carrier or that person—(a)has received the goods; and(b)has undertaken to transport, or to arrange the transport of, the goods on the terms and conditions stated or referred to in the document;"rule" means a rule made by the Commissioner in terms of section 903;"SACU" means the Southern African Customs Union;"SACU Agreement" means the Southern African Customs Union Agreement;"SACU member state" means a state which is a member of SACU;"SADC" means the Southern African Development Community;"safeguard measure" means a safeguard measure within the meaning of the International Trade Administration Act;"SARS" means the South African Revenue Service established by section 2 of the South African Revenue Service Act, 1997 (Act No. 34 of 1997);"sea cargo terminal" means—(a)a general sea cargo terminal;(b)a special sea cargo terminal;(c)a bulk sea cargo terminal;(d)a container terminal;(e)a combination sea cargo terminal; or(f)a multi-purpose sea cargo terminal;"sea travellers terminal" means premises within a customs seaport where travellers and crew—(a)board, or disembark from, foreign-going vessels; and(b)are processed before boarding, or after disembarking from, foreign-going vessels, and includes—(i)all transit areas through which travellers and crew must proceed to or from foreign-going vessels; and(ii)all facilities used for or in connection with the operation of the terminal;"sectorally controlled goods" means goods described in section 792;"security" means security provided in terms of Chapter 31;"seize", in relation to goods, means to take physical possession of the goods without divesting a person of ownership of the goods;"self-assessment", in relation to import or export tax, means a determination in terms of a tax levying Act by a person clearing goods concerning the taxability of the goods and, if taxable, of the amount of import or export tax payable on the goods in terms of that Act;"SEZ enterprise" means an enterprise within a special economic zone or part of a special economic zone designated in terms of section 43(2)(c) as a customs controlled area;"simplified clearance declaration" means a clearance declaration that may be used to clear goods for home use or a customs procedure in accordance with simplified clearance requirements—(a)referred to in Part 3 of Chapter 24; or(b)that may be prescribed by rule for accredited persons in terms of Chapter 30;"South African Post Office" means the South African Post Office Limited established in terms of section 3 of the Post and Telecommunication-Related Matters Act, 1958 (Act No. 44 of 1958);"special economic zone" means an area designated as a special economic zone in terms of the Special Economic Zones Act, 2014 (Act No. 16 of 2014);"special sea cargo terminal" means premises within a customs seaport where cargo of a specific type, whether bulk or break bulk cargo, but other than cargo in containers is—(a)off-loaded from, or loaded on board, foreign-going vessels; and(b)temporarily stored after being off-loaded or before being loaded;"state warehouse" means a facility referred to in section 569(a) or (b) to which goods must be removed when required in terms of this Act, a tax levying Act or other legislation;"storage warehouse" means a public or private storage warehouse;"stores" means goods taken on board a foreign-going vessel, foreign-going aircraft or cross-border train, whether in the Republic or elsewhere, exclusively for the purpose of meeting the reasonable needs of the next voyage of the vessel, aircraft or train, including stopovers, and includes goods intended to be used—(a)as provisions for travellers and crew on board the vessel, aircraft or train during that voyage;(b)for the operation of the vessel, aircraft or train on that voyage;(c)for the maintenance of the vessel, aircraft or train during that voyage; or(d)as tax free items for sale on board the vessel, aircraft or train to travellers and crew, in the case of a vessel, aircraft or train entitled in terms of section 349 to sell tax free items to travellers and crew,but excludes any goods prescribed by rule;"stores procedure" means the customs procedure described in section 335;"stores supplier" means a person conducting business by supplying stores to foreign-going vessels, foreign-going aircraft or cross-border trains, whether those stores are goods in free circulation or goods not in free circulation;"supplementary clearance declaration" means a clearance declaration that supplements—(a)a provisional clearance declaration by confirming or correcting clearance information provided provisionally; or(b)an incomplete clearance declaration by providing all outstanding clearance information required for a regular clearance;"supporting document" includes a document referred to in section 176;"tariff classification", in relation to goods that are cleared for home use or a customs procedure, means the classification of the goods under a heading, subheading, tariff item or other item as may be specified in a tax levying Act;"tax", in relation to goods, means an import tax, export tax or domestic tax on goods;"taxable", in relation to goods, indicates that an import or export tax has been imposed on the goods in terms of a tax levying Act;"Tax Administration Act" means the Tax Administration Act, 2011 (Act No. 28 of 2011);"tax due status" means a tax status described in section 134(1);"tax free status" means a tax status described in section 134(2);"tax free shop" means premises from where goods are sold in accordance with the tax free shop procedure, and includes any storage facilities on the premises;²²²²These facilities are not a private customs warehouse, but part of the tax free shop."tax free shop procedure" means the customs procedure described in section 316;"tax levying Act" means any legislation, other than this Act, imposing or imposing and regulating the administration of a specific tax on goods, and includes any of the following Acts together with any rules, regulations or other subordinate legislation issued in terms of any of those Acts and any international agreements that are regarded to be part of any of those Acts:(a)The Customs Duty Act;(b)the Value-added Tax Act;(c)the Excise Duty Act;(d)the Diamond Export Levy Act, 2007 (Act No. 15 of 2007); and(e)the Diamond Export Levy Administration Act, 2007 (Act No. 14 of 2007);"tax refundable status" means a tax status described in section 134(3);"temporary admission" or "temporary admission procedure" means the customs procedure described in section 263;"temporary export", in relation to goods, means the export of goods under the temporary export procedure;"temporary export procedure" means the customs procedure described in section 375;"temporary storage", in relation to goods, means the storage of goods at—(a)a terminal until the goods are—(i)loaded on board a vessel, aircraft, railway carriage or vehicle at the terminal; or(ii)removed from the terminal; or(b)a depot until the goods are removed from the depot,but excludes the storage of goods when the goods are retained at the terminal or depot under a direction in terms of section 580(1);"terminal" means—(a)a sea cargo terminal;(b)an air cargo terminal;(c)a sea travellers terminal;(d)an air travellers terminal; or(e)a railway terminal;"this Act" includes—(a)the regulations and the rules;(b)any notices of general application published by the Minister in terms of a provision of this Act in the Gazette; and(c)any international agreement that—(i)has been enacted into law whether before or after this Act took effect; and(ii)is as such binding for the purposes of a matter dealt with in this Act;"train" means a locomotive with or without any passenger, goods or other railway carriages attached to it, including the fittings and furnishings of such locomotive or railway carriage and any apparatus or equipment fitted on or to such locomotive or railway carriage;"transhipment" or "transhipment procedure" means the customs procedure described in section 242;"transit", in relation to goods, means, as may be appropriate in the context, national transit, international transit or excise warehouse transit of goods;"transit operation"—(a)in relation to goods under the national or international transit procedure, includes—(i)the receipt of goods for carrying out that procedure;(ii)the transport of those goods under that procedure; and(iii)the delivery of those goods under that procedure at the destined customs controlled area; and(b)in relation to goods under the excise warehouse transit procedure, includes—(i)the receipt of goods for carrying out that procedure;(ii)the transport of those goods under that procedure; and(iii)the delivery of those goods under that procedure to the destined excise warehouse;"transport document", in relation to cargo transported on board—(a)a vessel, means a bill of lading or other similar document issued in respect of the transport of that cargo;(b)an aircraft, means an air waybill or other similar document issued in respect of the transport of that cargo;(c)a railway carriage, means a rail consignment note or other similar document issued in respect of the transport of that cargo; or(d)a vehicle, means a road waybill, road manifest or other similar document issued in respect of the transport of that cargo;"traveller" means a person travelling on board a vessel, aircraft, train or vehicle or on foot, but excludes a crew member of the vessel, aircraft, train or vehicle;"truck" means a vehicle—(a)with a gross vehicle mass exceeding 3500 kilograms;²³ and²³See National Road Traffic Act, 1996 (Act No. 93 of 1996).(b)that is designed or adapted for the transport of goods;"unaccompanied baggage", in relation to a person entering or leaving the Republic, means any items in the baggage of a person entering or leaving the Republic that, because of a delay in the travelling process, separate travelling arrangements or for any other reason, were not or could not physically be with that person when that person is processed through customs at the place of entry through which that person enters or at the place of exit through which that person leaves the Republic;"unaccounted", in relation to goods, means a shortfall in goods according to any documents or records relating to the goods, where the reason for the shortfall cannot be ascribed to the destruction, damage or loss of the goods;"vehicle" means—(a)a motor car, bus, mini-bus, van, truck, trailer, semi-trailer, motor cycle, wagon, cart, cycle, wheelbarrow or other means of conveyance of any kind whatsoever capable of moving on land, whether self-propelled or not, and including its fittings and furnishings and any apparatus or equipment fitted on or to it;(b)any combination of coupled vehicles referred to in paragraph (a) travelling or capable of travelling as a unit; or(c)any pack animal when used as a means of conveyance, including its harness and tackle and any cart, apparatus or article pulled by the animal,but excludes an aircraft, vessel, train, locomotive or railway carriage;"vessel" means—(a)a craft of any kind whatsoever capable of moving in, on or under water, whether self-propelled or not;(b)a hovercraft; or(c)any floating structure, whether moored or not,including the fittings and furnishings of such craft or floating structure and any apparatus or equipment fitted on or to such craft or floating structure;"warehousing" or "warehousing procedure" means the customs procedure described in section 296;"working day" means any day other than a Saturday, Sunday or public holiday;"wreck" includes—(a)any flotsam, jetsam, lagan or derelict;(b)any portion of a vessel or aircraft that has been lost or abandoned or that has been stranded or crashed;(c)any of the cargo, stores, apparatus or equipment of any such vessel or aircraft; and(d)any personal property on board such vessel or aircraft when it was lost or abandoned or when it was stranded or crashed.

(2)In this Act, a word or expression which is a derivative or other grammatical form of a word or expression defined in subsection (1) or another provision of this Act, has a corresponding meaning unless the context indicates that another meaning is intended.

(3)Unless inconsistent with the context, any reference in this Act or a tax levying Act to—

(a)a person located in the Republic must be read—

(i)in the case of a natural person, as a reference to a natural person ordinarily resident in the Republic at a fixed physical address in the Republic; or

(ii)in the case of a person which is a juristic entity, as a reference to a juristic entity—

(aa)which is incorporated, registered or recognised in terms of the laws of the Republic or of another country; and

(bb)which has a place of business at a specific physical address in the Republic;

(b)a specific Chapter of this Act must be read as including any regulation or rule made for the purpose, or to facilitate the implementation, of that Chapter;

(c)a specific Part of a Chapter of this Act must be read as including any regulation or rule made for the purpose, or to facilitate the implementation, of that Part; and

(d)a specific section of this Act must be read as including any regulation or rule made for the purpose, or to facilitate the implementation, of that section.

(4)When applying a provision of this Act to goods to which the Excise Duty Act applies or for purposes of implementing or enforcing that Act, any reference in that provision to—

(a)a registered person must be read as including a reference to a person registered or who is the holder of any registration in terms of that Act;

(b)a licensee must be read as including a reference to a person licensed or who is the holder of any licence in terms of that Act; and

(c)licensed premises or facilities must be read as including a reference to premises or facilities licensed in terms of that Act.

2. Time of importation or exportation and of arrival or departure

For the purposes of this Act and of a tax levying Act, except where inconsistent with the context—

(a)goods must be regarded to be—

(i)imported into the Republic when the goods enter the Republic or are in terms of section 34(2)(c) regarded as having entered the Republic;²⁴ or²⁴See definition of “enter” in section 1.

(ii)exported from the Republic when the goods leave the Republic;²⁵²⁵See definition of “leave” in section 1.

(b)a foreign-going vessel, or goods or persons on board a foreign-going vessel, must be regarded as—

(i)arriving in the Republic when the vessel docks at the first seaport, harbour or other place after it entered the territorial waters of the Republic;

(ii)arriving at a customs seaport when the vessel upon reaching the seaport docks for the first time at that seaport, whether inside the seaport or at a docking facility outside the seaport; or

(iii)departing from a customs seaport when the vessel undocks to move out of or away from the seaport;

(c)a foreign-going aircraft, or goods or persons on board a foreign-going aircraft, must be regarded as—

(i)arriving in the Republic when the aircraft lands at the first airport, landing strip or other place after it entered the airspace of the Republic;

(ii)arriving at a customs airport when the aircraft lands at the airport; or

(iii)departing from a customs airport when the aircraft takes off from the airport;

(d)a cross-border train or a railway carriage attached to a cross-border train, or goods or persons on board a cross-border train or such a railway carriage, must be regarded as—

(i)arriving in the Republic when the train crosses the border into the Republic;

(ii)arriving at a railway station when the train stops for the first time at a railway terminal at that railway station; or

(iii)departing from a railway station when the train starts to move out of the railway station;

(e)a vehicle, or persons on board a vehicle, must be regarded as—

(i)arriving in the Republic when the vehicle crosses the border into the Republic; or

(ii)departing from the Republic when the vehicle crosses the border out of the Republic; or

(f)a person on foot, must be regarded as—

(i)arriving in the Republic when the person crosses the border into the Republic; or

(ii)departing from the Republic when the person crosses the border out of the Republic.

Part 2 – Purpose and application of this Act

3. Purpose of this Act

The purpose of this Act is—

(a)to provide systems and procedures for customs control of all goods and persons entering or leaving the Republic;

(b)to enable the effective collection of import and export tax on such goods; and

(c)to facilitate the implementation of—

(i)the tax levying Acts; and

(ii)other legislation applicable to such goods or persons.

4. Goods and persons to which this Act applies

This Act applies to all goods and persons that are subject to customs control in terms of Chapter 2.

5. Territorial application of this Act

(1)This Act applies in the whole of the Republic.²⁶²⁶Although the Prince Edward Islands form part of the Republic, this Act does not apply to those islands. See the Prince Edward Islands Act, 1948 (Act No. 43 of 1948).

(2)For the purpose of subsection (1)—

(a)the continental shelf referred to in section 8 of the Maritime Zones Act, 1994 (Act No. 15 of 1994), must be regarded as being part of the Republic;

(b)any installation or device of any kind whatsoever, including any floating or submersible drilling or production platform, constructed or being operated upon, beneath or above the continental shelf for the purpose of exploring it or exploiting its natural resources, must be regarded as having been constructed or as being operated within the Republic; and

(c)any goods mined or produced in the operation of such installation or device and transported to the shore, whether by vessel, pipeline or otherwise, and any person or any other goods being transported by any means to and from such installation or device must be regarded as being transported within the Republic.

(3)Customs officers may perform their enforcement functions in terms of this Act in the contiguous and exclusive economic zones of the Republic referred to in sections 5 and 7 of the Maritime Zones Act, 1994 (Act No. 15 of 1994), to the extent necessary to enforce, or to prevent a breach of this Act, a tax levying Act or any legislation referred to in Chapter 35 or 36.

6. Application of this Act in relation to SACU member states

(1)This Act applies subject to any rules that may be prescribed in terms of subsection (2) to—

(a)all goods imported into the Republic from a SACU member state; and

(b)all goods in the process of being exported from the Republic to a SACU member state.

(2)The Commissioner may make rules as may be necessary for the effective implementation of the SACU Agreement in the Republic, including rules modifying, qualifying or deviating from provisions of this Act or a tax levying Act as may be necessary for such implementation.

7. Application of this Act in relation to SADC member states

(1)This Act applies subject to any rules as may be prescribed in terms of subsection (2) to—

(a)all goods imported into the Republic from a SADC member state; and

(b)all goods in the process of being exported from the Republic to a SADC member state.

(2)The Commissioner may make rules to facilitate the implementation of the SADC Agreement in the Republic.

8. Application of this Act in relation to tax levying Acts and legislation regulating goods and persons entering or leaving Republic

This Act must be interpreted and applied to facilitate the implementation of—

(a)the tax levying Acts; and

(b)other legislation²⁷ to the extent that such other legislation applies—²⁷The Customs Control Act provides a “platform” for the implementation of the tax levying Acts and other legislation applicable to goods and persons entering or leaving the Republic, especially legislation regulating the import or export of prohibited, restricted and sectorally controlled goods.

(i)to goods or persons entering or leaving the Republic or to any matter relating to such goods or persons; or

(ii)in any areas which are customs controlled areas in terms of this Act or to any matter relating to such areas.

Part 3 – Administration of this Act

9. Commissioner to administer this Act

The Commissioner must—

(a)administer this Act subject to the control and directions of the Minister; and

(b)establish and maintain administrative, financial, technological, electronic, communicative and other systems and procedures necessary for the implementation and enforcement of this Act.

10. Designation of customs officers

(1)The Commissioner—

(a)must designate any number of SARS officials as customs officers necessary for the proper implementation and enforcement of—

(i)this Act;

(ii)the Customs Duty Act and the Excise Duty Act; and

(iii)the other tax levying Acts to the extent that those Acts apply to goods imported into, or exported from, the Republic;

(b)may with the concurrence of an organ of state or other institution with whom the Commissioner has concluded an agreement in terms of section 15 designate persons in the service of that organ of state or institution as customs officers; and

(c)may in a special case designate any competent person to act as a customs officer for a specific purpose during a specific period.

(2)No person may be designated in terms of subsection (1) as a customs officer—

(a)unless that person—

(i)has filed with the Commissioner a declaration of interest determined by the Commissioner; and

(ii)complies with other requirements as may be prescribed by rule; or

(b)if that person has a direct material financial interest in, or stands to benefit materially from, any business activity consisting of or relating to—

(i)the clearance of goods for home use or a customs procedure;

(ii)the import into or export from the Republic of goods; or

(iii)the production, processing, sale, handling or transport of, or the trade in, goods to which this Act or the Excise Duty Act applies.

(3)A customs officer must inform the Commissioner immediately if that officer acquires any interest referred to in subsection (2)(b).

(4)The Commissioner may at any time withdraw or suspend the designation of a person as a customs officer.

(5)A person designated as a customs officer in terms of this section may, without detraction from that person’s powers as a customs officer in terms of section 11, be called an excise officer if the work of the officer relates mainly to the implementation of the Excise Duty Act.

11. Powers and duties of customs officers

(1)A customs officer—

(a)may exercise the powers and must perform the duties—

(i)assigned to customs officers generally by this Act²⁸ and the tax levying Acts, subject to subsections (2) and (3); or²⁸These are powers and duties conferred on customs officers directly by the Act or the rules otherwise than through delegation by the Commissioner.

(ii)delegated or sub-delegated in terms of section 19 to customs officers generally or to that customs officer specifically; and

(b)must assist the Commissioner, as the Commissioner may require, in the implementation and enforcement of—

(i)this Act;

(ii)the Customs Duty Act and the Excise Duty Act; and

(iii)the other tax levying Acts to the extent that those Acts apply to goods imported into, or exported from, the Republic.

(2)Customs officers must perform their functions in accordance with an appropriate hierarchical system of customs management as may be determined by the Commissioner and whereby customs officers—

(a)are entrusted with managerial, supervisory, operational or other responsibilities according to rank or on any other selective basis; and

(b)perform those functions in a manner commensurate with their respective responsibilities.

(3)The Commissioner may, for the purpose of subsection (2), determine that a power or duty assigned generally to customs officers as contemplated in subsection (1)(a), may be exercised only by customs officers—

(a)of at least a specific rank; or

(b)selected in any other way.

12. General requirements for performing enforcement functions²⁹

²⁹See definition of “enforcement function” in section 1.

(1)Customs officers must perform their enforcement functions—

(a)in accordance with any instructions issued by the Commissioner; and

(b)subject to any limitations and in accordance with any procedures as may be prescribed by rule or determined by the Commissioner.

(2)A customs officer may, subject to subsection (1), perform an enforcement function at any time and place and, except where provided otherwise in this Act, without a warrant or previous notice.

(3)When performing an enforcement function, a customs officer may—

(a)be accompanied and assisted by any interpreters, technicians, workers, police officers or any other persons whose assistance may reasonably be required for the performance of that function; or

(b)use any aids such as a dog, or chemical substances, or imaging equipment, or any other mechanical, electrical or electronic devices, subject to compliance with any legislation applicable to the use of such aids.

(4)A person assisting a customs officer in terms of subsection (3)(a) must, whilst and for the purpose of assisting, be regarded to be a customs officer under the supervision of the customs officer that person is assisting.

13. Identification of customs officers and equipment

(1)The Commissioner must issue an identity card to each person designated as a customs officer.

(2)When performing an enforcement function a customs officer must, on demand by a member of the public affected by the performance of the function, produce the identity card issued to that officer in terms of subsection (1).

(3)The Commissioner must design a distinctive customs flag and ensign for display on customs vehicles, aircraft, boats and other equipment which require public identification.

14. Customs Offices

(1)The Commissioner must—

(a)establish in the Republic or, if necessary, outside the Republic, any number of SARS offices, or designate any existing SARS offices, as Customs Offices for purposes of—

(i)this Act;

(ii)the Customs Duty Act and the Excise Duty Act; and

(iii)the other tax levying Acts to the extent that those Acts apply to goods imported into, or exported from, the Republic;

(b)determine the purpose and functions of each Customs Office; and

(c)determine—

(i)the office hours of each Customs Office; and

(ii)the outside hours of attendance by customs officers.

(2)An Office referred to in subsection (1) may be called an Excise Office if the work of the Office relates solely to the implementation of the Excise Duty Act.

15. Agreements for assistance in administration of this Act and tax levying Acts

The Commissioner may by agreement with another organ of state or other institution inside or outside the Republic, including a railway, seaport, airport or postal authority, obtain the assistance of that organ of state or institution to perform such support services in the implementation or enforcement of this Act or any tax levying Act, as may be agreed between the Commissioner and that organ of state or institution.³⁰³⁰See also section 35.

16. Customs co-operation with other countries

(1)The Commissioner may if authorised by the national executive, enter into an agreement with the customs administration of another country—

(a)to provide for customs co-operation, including the exchange of customs information between the Commissioner and that customs administration;

(b)to facilitate the customs processing of goods—

(i)exported to the Republic from that country; and

(ii)exported from the Republic to that country; and

(c)to allow—

(i)customs personnel of that customs administration to perform functions in the Republic necessary for the enforcement of the customs legislation of that country in respect of goods to be exported from the Republic to that country; and

(ii)customs officers of the Republic to perform functions in that country necessary for the enforcement of this Act, a tax levying Act or any legislation referred to in Chapters 35 and 36 in respect of goods to be exported to the Republic from that country.

(2)The Commissioner may make rules to give effect to any agreement in terms of subsection (1), including rules providing for customs officials of that country to perform the functions referred to in subsection (1)(c)(i) in the Republic.

17. Provision of special customs services

(1)The Commissioner may by rule—

(a)provide for the provision of special services to persons to assist them in complying with—

(i)this Act;

(ii)the Customs Duty Act or the Excise Duty Act; or

(iii)any other tax levying Act to the extent that such tax levying Act applies to goods imported into or exported from the Republic; and

(b)determine the fees payable for such services.

(2)Section 12(3) and (4) applies when customs officers perform services referred to in subsection (1).

Part 4 – Delegations

18. Delegation by Minister

(1)The Minister may delegate to a Deputy Minister appointed to assist the Minister any of the powers or duties assigned to the Minister in terms of this Act or a tax levying Act.

(2)A delegation in terms of subsection (1)—

(a)must be in writing;

(b)is subject to such limitations and conditions as the Minister may determine;

(c)does not divest the Minister of the responsibility concerning the exercise of the delegated power or the performance of the delegated duty; and

(d)may at any time be amended or repealed by the Minister.

(3)The Minister may at any time confirm, alter or repeal any decision taken in consequence of a delegation in terms of this section, but no such alteration or repeal may detract from any rights that have accrued as a result of the decision.

19. Delegation by Commissioner

(1)The Commissioner—

(a)must for the proper implementation of this Act and the tax levying Acts develop an appropriate system of delegation to maximise managerial, administrative and operational efficiency; and

(b)may, in accordance with that system, delegate to a customs officer, including any SARS official who is not a customs officer—

(i)any power or duty assigned by this Act or a tax levying Act to the Commissioner or the customs authority, excluding the power to make or amend rules; or

(ii)any part or aspect of any such power or duty.

(2)A delegation in terms of subsection (1)—

(a)must be in writing;

(b)is subject to such limitations and conditions as the Commissioner may determine generally or in a specific case;

(c)may either be to—

(i)a specific individual; or

(ii)the incumbent of a specific post;

(d)may, in the case of a delegation to a supervising customs officer, authorise the officer to sub-delegate the delegated power or duty, or part or aspect of such power or duty, in writing to—

(i)a customs officer under that supervising customs officer’s control; or

(ii)the incumbent of a specific post under that supervising customs officer’s control;

(e)does not divest the Commissioner of the responsibility concerning the exercise of the delegated power or the performance of the delegated duty; and

(f)may at any time be amended or repealed by the Commissioner.³¹³¹See section 833 and other provisions of Chapter 37 for the reconsideration of decisions taken in terms of delegated powers.

(3)If a customs officer or SARS official takes a decision or any action that would have been valid had the power or duty authorising that decision or action been delegated to that person in terms of subsection (1)(b), that decision or action is valid despite the absence of such delegation if the decision or action—

(a)was taken in the course of that person’s ordinary duties;

(b)was necessary for the enforcement of this Act or a tax levying Act; and

(c)is ratified by the Commissioner.

(4)The Commissioner may authorise any SARS official who is not a customs officer to exercise a power assigned to a customs officer in terms of this Act or a tax levying Act.

Part 5 – Confidentiality

20. Definition

In this Part—"authorised recipient" means—(a)the Statistician-General contemplated in the Statistics Act, 1999 (Act No. 6 of 1999);(b)the Director-General of the National Treasury;(c)the South African Police Service referred to in section 6(1) of the South African Police Service Act, 1995 (Act No. 68 of 1995);(d)the National Director of Public Prosecutions referred to in section 5(2)(a) of the National Prosecuting Authority Act, 1998 (Act No. 32 of 1998);(e)the Governor of the South African Reserve Bank;(f)the Director of the Financial Intelligence Centre;(g)the Auditor-General;(h)the Director-General of the Department of Trade and Industry;(i)the Chief Commissioner of the International Trade Administration Commission; or(j)any organ of state administering legislation regulating the movement of goods or persons into or out of the Republic.

21. Confidentiality

No SARS official, customs officer or person referred to in section 12(3)(a), and no person who was such an official, officer or person, may disclose any information acquired by him or her in the exercise of powers or duties in terms of this Act, the Customs Duty Act or the Excise Duty Act concerning the private or confidential matters of any person,³² except—³²Such official, customs officer or person may be obliged to disclose such information in terms of other legislation e.g. the Financial Intelligence Centre Act, 2001 (Act No. 38 of 2001).

(a)to the extent that such disclosure is necessary for, and made in, the exercise of those powers or duties, including for the purpose of any proceedings referred to in Chapter 37;

(b)if that official, officer or person is—

(i)summoned to give evidence as a witness before a court or tribunal and the Commissioner has authorised that official, officer or person to disclose the information; or

(ii)required to do so by a court;

(c)if the person that will be affected by the disclosure has consented to the disclosure;

(d)if there is a serious and imminent risk to public health or safety or the environment and the public’s interest in the disclosure outweighs the official, officer or person’s duty of confidentiality;

(e)to an authorised recipient, subject to section 22; or

(f)in accordance with—

(i)an international agreement in respect of customs cooperation to which the Republic is a party, subject to section 23(1); or

(ii)any other international agreement to which the Republic is a party, subject to section 23(2).

22. Disclosures to authorised recipients

(1)Any disclosure in terms of section 21(e) to—

(a)the Statistician-General, must be confined to information necessary for statistical purposes;

(b)the Director-General of the National Treasury, must be confined to information—

(i)relating to foreign transactions under the Exchange Control Regulations; or

(ii)necessary for the development of tax policy or the estimation of revenue;

(c)the South African Police Service or the National Director of Public Prosecutions, must be confined to information relating to the alleged commission of offences;

(d)the Governor of the South African Reserve Bank, must be confined to information required for the performance of the Governor’s functions in terms of the South African Reserve Bank Act, 1994 (Act No. 29 of 1994);

(e)the Director of the Financial Intelligence Centre, must be confined to information required for the performance of the Centre’s functions in terms of the Financial Intelligence Centre Act, 2001 (Act No. 38 of 2001);

(f)the Auditor-General, must be confined to information required for the performance of the Auditor-General’s functions in terms of section 4 of the Public Audit Act, 2004 (Act No. 25 of 2004);

(g)the Director-General of the Department of Trade and Industry, must be confined to information necessary for—

(i)enforcing the legislation administered by the Department of Trade and Industry regulating the movement of goods or persons into or out of the Republic; or

(ii)the development of industrial or trade policy;

(h)the Chief Commissioner of the International Trade Administration Commission, must be confined to information required for the performance of the Commission’s functions in terms of the International Trade Administration Act, 2002 (Act No. 71 of 2002); or

(i)an organ of state referred to in section 20(j) must be confined to information necessary for enforcing the legislation administered by that organ of state regulating the movement of goods or persons into or out of the Republic.

(2)An authorised recipient may use the information disclosed in terms of subsection (1) only for the purpose for which the information was disclosed.

(3)Information disclosed in terms of subsection (1)(c) may be used only—

(a)for the purpose of investigating the alleged commission of an offence; and

(b)as evidence in prosecuting a person for an offence.

23. Disclosures in terms of international agreements

(1)A disclosure in terms of section 21(f)(i) may be made only—

(a)if authorised by the Commissioner; and

(b)for a purpose and on conditions as may be specified by the Commissioner.

(2)A disclosure in terms of section 21(f)(ii) may be made only—

(a)in circumstances where the international, regional or national interest in disclosure outweighs any potential harm to the person affected by the disclosure; and

(b)for a purpose and on conditions as may be specified by the Commissioner.

(3)A disclosure referred to in subsection (1) or (2) may be made only to a person authorised to act on behalf of—

(a)a party to the relevant international agreement; or

(b)an international agency, institution or organisation established or recognised in terms of that agreement.

Part 6 – Other matters

24. Requests for information

(1)The customs authority may by written notice request a person in possession of information required for the administration of this Act or a tax levying Act, or any other legislation in the administration of which the Commissioner assists other organs of state, and which is sufficiently identified in the notice, to submit that information to the customs authority within a period specified in the notice.

(2)

(a)The customs authority may upon written request by any person and payment of a fee as may be prescribed by rule, provide to that person any information acquired by the customs authority in the ordinary course of administering this Act or a tax levying Act.

(b)Information provided in terms of paragraph (a)—

(i)may not specify the identity of the person to whom the information relates or any particulars from which the identity of such a person may be deduced; and

(ii)must be in the public interest.

25. Rules to facilitate implementation of this Chapter

Rules made in terms of section 903 to facilitate the implementation of this Chapter may include rules prescribing—

(a)matters relating to the manner, time and place of performing enforcement functions by customs officers;

(b)limitations and conditions relating to the performance of enforcement functions by customs officers;

(c)standards of conduct for customs officers when performing their enforcement functions; and

(d)measures to prevent abuse of power by customs officers, including criminal sanctions.

26. Offences in terms of this Chapter

(1)A candidate customs officer is guilty of an offence if that person files in terms of section 10(2)(a) with the Commissioner a declaration of interest which contains false or misleading information or omits information with the intention to mislead.

(2)A customs officer is guilty of an offence if that officer—

(a)fails to comply with section 10(3);

(b)demands or receives, otherwise than from or through his or her employer, any reward for performing or not performing an enforcement function; or

(c)wilfully does or permits or agrees to do or permit anything in breach of this Act or a tax levying Act.

(3)A SARS official, a customs officer who is not a SARS official or a person referred to in section 12(3) or a person who was such an official, officer or person is guilty of an offence if that official or person contravenes section 21.

(4)A person is guilty of an offence if that person fails to comply with a request issued in terms of section 24(1).

(5)An offence referred to in subsection (1) or (2) is a Category 1 offence.

Chapter 2
Customs control, places of entry and exit and customs controlled areas

27. Purpose of this Chapter

The purpose of this Chapter is—

(a)to determine the goods and persons that are subject to customs control;

(b)to provide for the designation of places as places of entry and places of exit through which vessels, aircraft, trains, railway carriages, vehicles, goods and persons may enter or leave the Republic;

(c)to regulate and enforce the entry into and the exit from the Republic of vessels, aircraft, trains, railway carriages, vehicles, goods and persons only through such places of entry or exit; and

(d)to designate and to provide for the designation of places, areas, premises and facilities as customs controlled areas to ensure effective customs control of goods and persons referred to in paragraph (a).

Part 1 – Customs control

28. Customs control of goods

(1)The following goods are for purposes of this Act and the tax levying Acts subject to customs control:

(a)All goods imported, or suspected on reasonable grounds to have been imported, into the Republic;

(b)all goods in the process of being exported or suspected on reasonable grounds to be in the process of being exported from the Republic;

(c)all compensating products under a customs procedure or goods suspected on reasonable grounds to be compensating products under a customs procedure;

(d)all goods manufactured, or on reasonable grounds suspected to have been manufactured, in an excise warehouse or in circumstances to which the Excise Duty Act applies;

(e)all foreign-going vessels and aircraft, and all vessels or aircraft suspected on reasonable grounds to be foreign-going vessels or aircraft;

(f)all domestic vessels;

(g)all cross-border trains and railway carriages, and all trains or railway carriages suspected on reasonable grounds to be cross-border trains or railway carriages;

(h)all vehicles entering or in the process of leaving the Republic, or suspected on reasonable grounds of having entered or being in the process of leaving the Republic;

(i)all goods on board any vessel, aircraft, train, railway carriage or vehicle referred to in paragraph (e), (f), (g) or (h);

(j)all vessels, aircraft, trains, railway carriages and vehicles transporting, or suspected on reasonable grounds to be transporting, goods referred to in paragraph (a), (b), (c) or (d);

(k)all cross-border transmission lines, and electricity being transmitted through a cross-border transmission line;

(l)all cross-border pipelines, cable-cars and conveyor belts, and all goods in the process of being conveyed by way of a cross-border pipeline, cable-car or conveyor belt;

(m)all goods, including vessels, aircraft, trains, locomotives, railway carriages and vehicles within a customs controlled area;

(n)all goods in the process of being conveyed by means of pipelines or conveyor belts used for loading goods onto or off from foreign-going vessels or aircraft or cross-border railway carriages;

(o)all goods that persons that are subject to customs control in terms of section 29(1) have with them, including all accompanied and unaccompanied baggage of persons referred to in section 29(1)(a) or (b); and

(p)any other goods not covered above but in relation to which—

(i)a tax imposed in terms of the Customs Duty Act or the Excise Duty Act is payable or on reasonable grounds suspected of being payable; or

(ii)the customs authority may exercise a power in terms of a provision of this Act, the Customs Duty Act or the Excise Duty Act.

(2)

(a)Imported goods remain subject to customs control contemplated in subsection (1) until this Act, the Customs Duty Act and the Excise Duty Act cease to apply to the goods.

(b)The occurrences which cause this Act to cease to apply to imported goods include the following:

(i)If goods cleared for home use are unconditionally released for home use or, in the case of a conditional release for home use, when the release becomes unconditional;

(ii)if the goods are in terms of a provision of this Act allowed into free circulation otherwise than in terms of a clearance and release of the goods for home use;³³³³For instance, certain categories of imported goods are exempted in terms of section 91 from clearance requirements. See also section 596(6).

(iii)if the goods are permanently exported from the Republic;

(iv)if the goods are destroyed;

(v)if the goods are disposed of by the Commissioner in terms of this Act or by another organ of state in terms of other applicable legislation; and

(vi)if compensating products obtained from the processing of goods under a customs procedure are allowed into free circulation or permanently exported under that procedure.³⁴³⁴Home use processing and inward processing procedures.

(3)

(a)Goods destined for export or exported from the Republic (other than imported goods destined for export or exported from the Republic) remain subject to customs control contemplated in subsection (1) until this Act, the Customs Duty Act and the Excise Duty Act cease to apply to the goods.

(b)The occurrences which cause this Act to cease to apply to such goods include the following:

(i)If the goods are cleared and released for outright export or another customs procedure that allows the permanent export of goods under that procedure³⁵ and permanently exported from the Republic;³⁵For instance, goods cleared and released for international transit, transhipment, stores, etc.

(ii)if the goods are exported under a customs procedure that contemplates the return of the goods or compensating products obtained from those goods and those goods or compensating products are re-imported into the Republic and cleared and released for home use under that procedure;³⁶³⁶For instance, goods cleared and released for temporary export or outward processing.

(iii)if the goods are in terms of a provision of this Act allowed to be exported otherwise than in terms of a clearance and release of the goods for export;³⁷³⁷For instance, certain categories of goods in free circulation destined for export are exempted in terms of section 95 from export clearance requirements.

(iv)if the goods revert to free circulation in terms of a provision of this Act;

(v)if the goods are destroyed; or

(vi)if the goods are disposed of by the Commissioner in terms of this Act or by another organ of state in terms of other applicable legislation.

(4)Compensating products obtained from imported goods under a customs procedure remain subject to customs control contemplated in subsection (1) until the compensating products are allowed into free circulation or exported under that procedure.

(5)Goods manufactured in an excise warehouse remain subject to customs control contemplated in subsection (1) until those goods are allowed into free circulation or permanently exported under the export or another customs procedure.

(6)Subsections (2), (3), (4) and (5) do not affect the implementation of a provision of this Act or a tax levying Act in respect of matters related to goods after those goods have ceased to be subject to customs control contemplated in subsection (1).³⁸³⁸Some provisions such as the assessment and collection of tax on goods may be implemented long after customs have relinquished their control of the goods.

29. Customs control of persons

(1)The following persons are for purposes of this Act subject to customs control:

(a)All persons who have entered or are suspected on reasonable grounds of having entered the Republic, whether on board a vessel, aircraft, train or vehicle or on foot;

(b)all persons in the process of leaving or suspected on reasonable grounds to be in the process of leaving the Republic, whether on board a vessel, aircraft, train or vehicle or on foot;

(c)all persons on board any vessel, aircraft, train, railway carriage or vehicle referred to in section 28(1);

(d)all persons within a customs controlled area;

(e)all persons in any capacity connected with goods that are subject to customs control in terms of section 28(1); and

(f)any other persons not covered above but in relation to whom the customs authority may exercise a power in terms of a provision of this Act.

(2)Persons entering the Republic remain subject to customs control contemplated in subsection (1) until the person is customs processed at a place of entry and allowed to proceed into the Republic.

(3)Persons in the process of leaving the Republic remain subject to customs control contemplated in subsection (1) until the person leaves the Republic.

(4)Despite subsections (2) and (3) those subsections do not affect the implementation of a provision of this Act or a tax levying Act applicable to the relevant persons after they have ceased to be subject to customs control contemplated in subsection (1).

30. Foreign-going vessels and aircraft passing through Republic without calling or landing

(1)Foreign-going vessels or aircraft that enter and pass through the territorial water or airspace of the Republic without calling or landing at a place in the Republic, including any goods and persons on board such vessels or aircraft, are subject to customs control until they leave the territorial water or airspace of the Republic.

(2)When leaving the territorial water or airspace of the Republic—

(a)vessels, aircraft and goods referred to in subsection (1) must for the purpose of this Act be regarded as not having been imported into or exported from the Republic; and

(b)any persons on board those vessels and aircraft must for the purposes of this Act be regarded as not having entered or leaving the Republic.

(3)Subsection (2) does not apply to goods or persons that do not remain on board, or are taken on board, the vessel or aircraft during its voyage across the territorial water or airspace of the Republic.

Part 2 – Places of entry and exit

31. Designation of places of entry and exit

(1)The Commissioner must for the proper exercise of customs control, and consistent with any applicable Acts of Parliament and decisions of the national executive, by rule designate any number of—

(a)seaports in the Republic as places where foreign-going vessels may call or from where such vessels may depart;

(b)airports in the Republic as places where foreign-going aircraft may land or from where such aircraft may depart;

(c)rail border crossings as places where cross-border trains may enter or leave the Republic;

(d)road border crossings as places where vehicles may enter or leave the Republic; and

(e)road or other border crossings as places where persons may enter or leave the Republic on foot.

(2)Places designated in terms of subsection (1), read with section 34(1)(a) and (b), are places of entry or exit for the Republic.

32. Purposes for which places of entry or exit may be used

(1)A seaport or airport designated as a place of entry or exit in terms of section 31(1)(a) or (b) may be used as a place where—

(a)foreign-going vessels or foreign-going aircraft may respectively call or land;

(b)goods—

(i)imported into the Republic may be off-loaded from foreign-going vessels or aircraft; or

(ii)may be loaded on board foreign-going vessels or aircraft for export from the Republic; and

(c)persons—

(i)entering the Republic may disembark from foreign-going vessels or aircraft; or

(ii)leaving the Republic may board foreign-going vessels or aircraft.

(2)A rail border crossing designated as a place of entry or exit in terms of section 31(1)(c) may be used as a place through which—

(a)cross-border trains may enter or leave the Republic;

(b)goods may be imported into or exported from the Republic on board cross-border trains; and

(c)persons may enter or leave the Republic on board cross-border trains.

(3)A road border crossing designated as a place of entry or exit in terms of section 31(1)(d) may be used as a place through which—

(a)vehicles may enter or leave the Republic;

(b)goods may be imported into or exported from the Republic on board vehicles; and

(c)persons may enter or leave the Republic on board vehicles.

(4)A road or other border crossing designated as a place of entry or exit in terms of section 31(1)(e) may be used as a place where persons may enter or leave the Republic on foot together with any goods they may have with them.

33. Restrictions on use of places of entry or exit

The Commissioner must, if required to do so in terms of an Act of Parliament or a decision of the national executive or, in the absence of any such Act or decision, after consultation with any relevant organs of state, may, by rule—

(a)restrict the use of any specific place of entry or exit to a purpose determined by the Commissioner;

(b)restrict the use of any specific customs seaport or airport to—

(i)the off-loading of goods of a specific type or in a specific manner from vessels or aircraft in which the goods were imported into the Republic;

(ii)the loading of goods of a specific type or in a specific manner on board vessels or aircraft in which the goods are to be exported from the Republic; or

(iii)the taking in of fuel or other stores;

(c)determine that only a specific customs seaport or airport may be used as a place where—

(i)imported goods of a specific type may be off-loaded from foreign-going vessels or aircraft;

(ii)goods of a specific type may be loaded on board foreign-going vessels in which the goods are to be exported from the Republic; or

(iii)goods, or goods of a specific type, may be off-loaded, loaded or handled for international transit or transhipment; or

(d)impose conditions as to the use of any specific place as a place of entry or exit including the days on which and the hours of the day during which it may be so used.

34. Places of entry or exit in terms of international agreements with adjoining countries

(1)The national executive of the Republic may enter into an agreement with the government of a SACU member state or other adjoining country to provide for—

(a)joint, one-stop or side by side places of entry or exit for the Republic and that adjoining country;

(b)a place of entry or exit for the Republic alone at a location in that country; or

(c)a place of entry or exit for that country alone at a location in the Republic.

(2)The Commissioner must make rules to give effect to any agreement in terms of subsection (1)(a) or (b) where the agreed place of entry or exit is at a location in the other country, including rules—

(a)designating that place as a place of entry or exit for the Republic in terms of section 31(1)(c), (d) or (e);

(b)determining—

(i)the purposes for which that place may be used as a place of entry or exit for the Republic; and

(ii)the days on which and the hours of the day during which it may be so used;

(c)determining the circumstances in and conditions on which, the location where and the time when—

(i)persons arriving at that place for the Republic must for purposes of this Act and a tax levying Act be regarded as having entered the Republic; and

(ii)goods arriving at that place for the Republic must for purposes of this Act and a tax levying Act be regarded as having entered, or been imported into, the Republic; and

(d)prescribing procedures and conditions to be complied with, and the documents to be used, or any other matter necessary or useful, for—

(i)the implementation of the agreement; or

(ii)the use of that place as a place of entry or exit for the Republic.

(3)The Commissioner must make rules to give effect to any agreement in terms of subsection (1)(a) or (c) where the agreed place of entry or exit is at a location in the Republic, including rules providing for—

(a)that place to be used by the adjoining country as a place of entry or exit in accordance with the legislation of that country—

(i)through which trains or vehicles may pass from or to that country;

(ii)through which goods may pass from or to that country;

(iii)where goods may be declared and processed for that country’s customs purposes; and

(iv)through which persons may pass from or to that country; and

(b)customs officials of that country at that place—

(i)to process for customs purposes goods and persons in accordance with the legislation of that country; and

(ii)to apply and enforce the legislation of that country.³⁹³⁹In the case of section 34(1)(b) where the place of entry or exit for the Republic is at a location in that country, the adjoining country must have provisions similar to section 34(3) to allow SA Customs to operate in that country.

(4)To the extent that an agreed place of entry or exit referred to in subsection (1)(a) is at a location partially in the Republic and partially in the adjoining country, this section may not be read as affecting the application of this Act in or in relation to that part that falls in the Republic.

35. Information sharing agreements

(1)The Commissioner and the port authority or other organ of state operating at a place of entry or exit may enter into an information sharing agreement for the proper and effective administration of that place as a place of entry or exit.⁴⁰⁴⁰See also section 15.

(2)An information sharing agreement may provide for—

(a)the sharing of non-confidential information between the parties relevant to the administration of that place of entry or exit;

(b)the specific information that must or may be shared between the parties;

(c)the manner in which and the time within which information must be passed to the other party;

(d)the combination of reports, notifications, declarations, statements, returns or other documents that must be submitted by third persons respectively to the customs authority in terms of this Act and to the other party in terms of the legislation administered by the other party;

(e)the exemption of third persons from the obligation to submit to each party separate overlapping reports, notifications, declarations, statements, returns or other documents containing substantially the same information; and

(f)the submission by third persons of such reports, notifications, declarations, statements, returns or other documents to only one of the parties.

(3)The Commissioner may by rule—

(a)give effect to an information sharing agreement in terms of subsection (1); or

(b)exempt a person from a requirement in terms of this Act to submit a report, notification, declaration, statement, return or other document, provided that the exempted person submits substantially the same information that must be contained in that report, notification, declaration, statement, return or other document to the other party.

36. Places of entry for foreign-going vessels and aircraft

(1)No foreign-going vessel—

(a)after entering the Republic may call at any port or place along the coastline of the Republic other than a customs seaport; and

(b)when leaving the Republic, may depart from a place other than a customs seaport.

(2)After departing from a customs seaport—

(a)to another place within the Republic, no foreign-going vessel may call at any port or place along the coastline of the Republic other than a customs seaport; or

(b)to a destination outside the Republic, no foreign-going vessel may call at any port or place along the coastline of the Republic.

(3)No foreign-going aircraft—

(a)after entering the Republic, may land at any place other than a customs airport; or

(b)when leaving the Republic, may depart from any place other than a customs airport.

(4)After departing from a customs airport—

(a)to another place within the Republic, no foreign-going aircraft may land at any place in the Republic other than a customs airport; or

(b)to a destination outside the Republic, no foreign-going aircraft may land at any place in the Republic.

(5)Subsections (1) to (4) do not apply to—⁴¹⁴¹Section 44 makes provision for additional exclusions and exemptions.

(a)naval ships and naval or military aircraft to the extent that they fall within the definition of "foreign-going vessel" or "foreign-going aircraft"; and

(b)foreign-going aircraft of an unconventional nature, such as helicopters, aircraft landing on water, gliders or balloons.

(6)The Commissioner may, in accordance with any applicable Acts of Parliament and decisions of the national executive, by rule prescribe—

(a)places at which or the conditions on which aircraft referred to in subsection (5)(b) may call or land in the Republic;

(b)places from where or the conditions on which such aircraft may depart from the Republic;

(c)reporting requirements for such aircraft; and

(d)the granting of exemptions from rules prescribed in terms of paragraph (a), (b) or (c).

37. Calls or landings resulting from forced circumstances⁴²

⁴²See section 557 for wreck.

(1)Section 36(1), (2), (3) or (4) does not apply if a foreign-going vessel or aircraft is forced by stress of weather, accident or other circumstances beyond the control of the on-board operator to call or land at a place which is not a customs seaport or airport.

(2)If a foreign-going vessel or aircraft makes a forced call or landing, the incident, and the circumstances of the incident, must promptly be reported—

(a)by the on-board operator to the Customs Office—

(i)nearest to the place where the vessel called or the aircraft landed; or

(ii)at the first customs seaport or airport at which the vessel or aircraft next arrives; or

(b)if the vessel or aircraft is operated by a carrier, by the carrier to the customs authority electronically in accordance with section 913.

(3)The on-board operator of a foreign-going vessel or aircraft which makes a forced call or landing, and if the vessel or aircraft is operated by a carrier, also the carrier, must at the place where the vessel calls or the aircraft lands take all precautions reasonable in the circumstances to prevent a breach of this Act or a tax levying Act in respect of any goods or persons—

(a)on board the vessel or aircraft;

(b)off-loaded or disembarking from the vessel or aircraft at that place; or

(c)loaded on board or boarding the vessel or aircraft at that place.

(4)The Commissioner may prescribe by rule the procedures that must be complied with after a vessel or aircraft has made a forced call or landing.

38. Places of entry or exit for cross-border trains

No cross-border train may enter or leave the Republic at a rail border crossing other than a rail border crossing designated in terms of section 31(1)(c) as a place of entry or exit.

39. Places of entry or exit for vehicles

(1)No vehicle may enter⁴³ or leave⁴⁴ the Republic at a place other than a land border-post for vehicles.⁴³When an inbound vehicle arrives at a land border-post the requirements of this Act relating to the vehicle, and goods and persons on board the vehicle, must be complied with. These requirements include declaring goods that must be declared in terms of section 478, and clearing the vehicle and any goods on board the vehicle for home use or a customs procedure in terms of section 89 excluding goods exempted from clearance in terms of section 91.⁴⁴When an outbound vehicle arrives at a land border-post the requirements of this Act relating to the vehicle and the goods and persons on board the vehicle must be complied with. These requirements include declaring goods that must be declared in terms of section 483 and clearing the vehicle and any goods on board the vehicle in terms of section 93 for export, excluding goods exempted from clearance in terms of section 95.

(2)Subsection (1) does not apply to vehicles imported into or exported from the Republic on board foreign-going vessels or aircraft or cross-border trains.⁴⁵⁴⁵Section 44 makes provision for additional exclusions and exemptions.

40. Places of entry or exit for persons

(1)A person entering or leaving the Republic on board—

(a)a foreign-going vessel may not disembark from or board that vessel at any place other than at a customs seaport; or

(b)a foreign-going aircraft may not disembark from or board that aircraft at any place other than at a customs airport.

(2)Subsection (1)(a) or (b) does not apply if a vessel or aircraft is forced by stress of weather, accident or other circumstances beyond the control of the on-board operator to call or land at a place which is not a customs seaport or a customs airport.

(3)No person may enter or leave the Republic—

(a)on board a cross-border train otherwise than at a rail border crossing designated as a place of entry or exit in terms of section 31(1)(c);

(b)on board a vehicle otherwise than at a land border-post for vehicles; or

(c)on foot otherwise than at a land border-post for persons on foot.

41. Places of entry or exit for goods

(1)No goods imported into or destined for export from the Republic on board—

(a)a foreign-going vessel may be off-loaded from or loaded on board the vessel other than at a customs seaport and, more specifically, at a place within the customs seaport licensed as a sea cargo terminal or sea travellers terminal;

(b)a foreign-going aircraft may be off-loaded from or loaded on board the aircraft other than at a customs airport and, more specifically, at a place within a customs airport licensed as an air cargo terminal or air travellers terminal; or

(c)a cross-border railway carriage may be off-loaded from or loaded on board the railway carriage other than at a place within a railway station licensed as a rail terminal.

(2)Goods off-loaded at a sea or air travellers terminal must be moved to a sea or air cargo terminal except in circumstances prescribed by rule or where the customs authority determines otherwise in a specific case.

(3)No goods may be imported into or exported from the Republic—

(a)on board a cross-border train otherwise than through a rail border crossing designated as a place of entry or exit in terms of section 31(1)(c);

(b)on board a vehicle otherwise than through a land border-post for vehicles;

(c)by persons on foot otherwise than through a land border-post for persons on foot;

(d)through a pipeline other than a licensed cross-border pipeline; or

(e)by way of a cable-car or conveyor belt other than a licensed cross-border cable-car or conveyor belt.

(4)No electricity may be imported into or exported from the Republic otherwise than through a licensed cross-border transmission line.

(5)Subsection (2) does not apply to accompanied or unaccompanied baggage.

42. Consequences in event of contravention of entry or exit requirements

(1)If section 36 is contravened in relation to any foreign-going vessel or aircraft, or if section 38 is contravened in relation to any cross-border train, or if section 39 is contravened in relation to any vehicle, or if section 41 is contravened in relation to any goods, the customs authority may apply subsection (2) or (3), as may be appropriate, with regard to—

(a)the vessel or aircraft, or any goods on board the vessel or aircraft when the offence was committed, in the case of a section 36 contravention;

(b)the train or any railway carriage that was attached to the train when the offence was committed, in the case of a section 38 contravention;

(c)the vehicle, in the case of a section 39 contravention; or

(d)the goods, in the case of a section 41 contravention.

(2)The customs authority may for import tax purposes regard—

(a)a vessel or aircraft, or any goods referred to in subsection (1)(a), to be cleared for home use under Chapter 8⁴⁶ if the contravention was committed when the vessel or aircraft was on an inbound voyage;⁴⁶For tax implications if goods are regarded to be cleared for home use, see section 152.

(b)a train, or any railway carriage referred to in subsection (1)(b), to be cleared for home use under Chapter 8 if the contravention was committed in relation to a train entering the Republic;

(c)a vehicle to be cleared for home use under Chapter 8 if the contravention was committed in relation to a vehicle entering the Republic; or

(d)goods imported into the Republic to be cleared for home use under Chapter 8 if the goods—

(i)in the case of goods referred to in section 41(1), were off-loaded from a vessel, aircraft or railway carriage in contravention of that section; or

(ii)in the case of goods referred to in section 41(3), were imported otherwise than through a place of entry in contravention of that section.

(3)The customs authority may for tax purposes regard—

(a)a vessel or aircraft, or any goods referred to in subsection (1)(a), that have not been cleared for outright export, to be cleared for outright export⁴⁷ if the contravention was committed when the vessel or aircraft was on an outbound voyage;⁴⁷For tax implications if goods are regarded to be cleared for outright export under Chapter 8, see section 157.

(b)a train, or any railway carriage referred to in subsection (1)(b), to be cleared for outright export if the contravention was committed in relation to a train leaving the Republic;

(c)a vehicle to be cleared for outright export if the contravention was committed in relation to a vehicle leaving the Republic; or

(d)goods that are in the process of being exported or that have been exported from the Republic to be cleared for outright export if the goods—

(i)in the case of goods referred to in section 41(1), were loaded on board a vessel, aircraft or railway carriage in contravention of that section; or

(ii)in the case of goods referred to in section 41(3), are being or were exported from the Republic in contravention of that section.

(4)Subsection (3) may not be read as affecting the application of section 112 or 113 in relation to goods that were at the time of the contravention under a customs procedure.

(5)This section applies apart from any criminal proceedings that may be instituted, administrative penalty that may be imposed or any other step that may be taken by the customs authority in terms of this Act for a breach of an entry or exit requirement, which may include, where not inconsistent with this Act or other applicable legislation or otherwise inappropriate—

(a)applying section 570(2), read with section 580, to—

(i)the vessel, aircraft or any goods referred to in subsection (1)(a);

(ii)the train or railway carriage referred to in subsection (1)(b);

(iii)the vehicle referred to in subsection (1)(c); or

(iv)any goods referred to in subsection (1)(d);

(b)seizing any such vessel, aircraft, train, railway carriage, vehicle or goods in terms of Chapter 34;

(c)allowing the carrier operating, or the owner or on-board operator of, such vessel, aircraft, train, railway carriage or vehicle, or the importer or exporter of any such goods, to abandon the vessel, aircraft, train, railway carriage, vehicle or goods to the Commissioner in accordance with Chapter 26; or

(d)allowing or directing the carrier operating, or the owner or on-board operator of, such vessel, aircraft, train, railway carriage or vehicle, or the importer or exporter of any such goods—

(i)to remove the vessel, aircraft, train, railway carriage or vehicle or goods from the Republic; or

(ii)to destroy the goods under supervision of the customs authority or an organ of state designated by the customs authority.

Part 3 – Customs controlled areas

43. List of customs controlled areas

(1)The following places, areas, premises or facilities are customs controlled areas for the purpose of this Act and the tax levying Acts:

(a)All licensed—

(i)general sea cargo terminals;

(ii)special sea cargo terminals;

(iii)bulk sea cargo terminals;

(iv)container terminals;

(v)combination sea cargo terminals;

(vi)multi-purpose sea cargo terminals;

(vii)sea travellers terminals;

(viii)air cargo terminals;

(ix)air travellers terminals;

(x)air cargo depots;

(xi)rail cargo terminals;

(xii)rail travellers terminals;

(xiii)container depots;

(xiv)international postal clearance depots;

(xv)storage warehouses and excise warehouses;

(xvi)tax free shops;

(xvii)premises of SEZ enterprises;

(xviii)inward processing premises;

(xix)home use processing premises;

(xx)state warehouses contemplated in section 569(b);

(xxi)cross border pipelines;

(xxii)cross-border transmission lines;

(xxiii)cross border cable-cars; or

(xxiv)cross border conveyor belts;

(b)state warehouses contemplated in section 569(a); and

(c)any other premises referred to in section 629(g).

(2)The Commissioner may by rule designate as a customs controlled area—

(a)the whole area comprising a customs seaport or airport or other place of entry or exit;

(b)any part of an area comprising a customs seaport or airport or other place of entry or exit;

(c)a special economic zone or any part of a special economic zone; or

(d)any general or special entrance to or exit from—

(i)a customs seaport or airport or other place of entry or exit; or

(ii)an area designated as a customs controlled area in terms of paragraph (b) or (c).

(3)The customs authority may after consultation with any person or authority administering any activity in a customs controlled area, determine the manner in which the area—

(a)must be secured; and

(b)must be signposted so as to give persons present in the area a clear indication that it is a customs controlled area.

(4)The port authority of a customs sea or airport and the licensee of a customs controlled area must free of charge provide space and facilities at the sea or airport or customs controlled area, as may be determined by rule, for customs officers to exercise their enforcement functions in relation to goods and persons at or in that sea or airport or customs controlled area.

Part 4 – Other matters

44. Exclusions and exemptions

(1)The Commissioner may in accordance with any applicable decisions of the national executive—

(a)by rule exclude from the application of a provision of Part 2 of this Chapter—

(i)any category of vessels, aircraft, trains, railway carriages or vehicles;

(ii)any category of persons, travellers or crew; or

(iii)any category of goods;

(b)by rule prescribe the extent to which, the circumstances in which and the conditions on which any exclusion referred to in paragraph (a) applies; or

(c)in justifiable circumstances exempt⁴⁸—⁴⁸See section 918 for conditional exemptions.

(i)a specific vessel, aircraft, train, railway carriage; vehicle or goods from the application of a provision of Part 2 of this Chapter; or

(ii)a specific person from complying with a provision of Part 2 of this Chapter.

(2)In order to give effect to the Special Economic Zones Act, 2014, the Commissioner may by rule limit or modify the customs control of goods, or any specific category of goods, to which that Act applies, and may for that purpose—

(a)determine the extent to which, the circumstances in which and the conditions on which customs control of such goods is limited or modified;

(b)exempt such goods from specific requirements of this or a tax levying Act;

(c)provide for simplified and expedited processes for the clearance and release of such goods;

(d)provide for the submission and customs processing of documents in accordance with simplified and expedited processes;

(e)provide for simplified tax payment methods;

(f)provide for the deferment of tax on goods;

(g)align customs processes and requirements in terms of this Act with the concept of a single point of contact contemplated in that Act;

(h)prescribe measures to prevent—

(i)illegal diversions; and

(ii)undue risks to the payment or collection of tax should tax become payable on such goods;

(i)allocate liability for the payment of tax should tax become payable on such goods; and

(j)prescribe any other matter necessary to facilitate the implementation of that Act.

45. Rules to facilitate implementation of this Chapter

Rules made in terms of section 903 to facilitate the implementation of this Chapter may include rules prescribing measures aimed at—

(a)facilitating the use of areas, premises or facilities referred to in section 43(1) or (2) as customs controlled areas;

(b)regulating the entry or exit of goods and persons to or from a customs controlled area;

(c)regulating the movement of goods within a customs controlled area; and

(d)the identification of persons entering, present in or leaving a customs controlled area.

46. Offences in terms of this Chapter⁴⁹

⁴⁹See section 893(1) for criminal liability of registered agents of carriers in the case of carriers not located in the Republic.

(1)The on-board operator of a foreign-going vessel, and if the vessel is operated by a carrier, also the carrier, is guilty of an offence if—

(a)section 36(1) or (2) is contravened with regard to that vessel;

(b)that on-board operator or carrier fails to comply with section 37(2) or (3); or

(c)section 41(1)(a) is contravened with regard to goods off-loaded from or loaded on board that vessel.

(2)The on-board operator of a foreign-going aircraft, and if the aircraft is operated by a carrier, also the carrier, is guilty of an offence if—

(a)section 36(3) or (4) is contravened with regard to that aircraft;

(b)that on-board operator or carrier fails to comply with section 37(2) or (3); or

(c)section 41(1)(b) is contravened with regard to goods off-loaded from or loaded on board that aircraft.

(3)The carrier operating a cross-border train or railway carriage is guilty of an offence if—

(a)section 38 is contravened with regard to that train;

(b)section 41(1)(c) is contravened with regard to goods off-loaded from or loaded on board that railway carriage; or

(c)section 41(3)(a) is contravened with regard to goods on board that train.

(4)The on-board operator of a vehicle, and if the vehicle is operated by a carrier, also the carrier, is guilty of an offence if—

(a)section 39(1) is contravened with regard to that vehicle; or

(b)section 41(3)(b) is contravened with regard to goods on board that vehicle.

(5)A person entering or leaving the Republic is guilty of an offence if that person contravenes section 40(1) or (3) or 41(3)(c).

(6)A person operating a cross-border pipeline, cable-car, conveyor belt or transmission line is guilty of an offence if that person contravenes section 41(3)(d) or (e) or (4).

(7)The following offences are Category 1 offences:

(a)The offences referred to in subsections (1)(c), (2)(c) and (3)(b); and

(b)the offences referred to in subsection (4)(a) or (b) committed with regard to a vehicle, or goods on board a vehicle, operated by a carrier.

Chapter 3
Reporting requirements for inbound and outbound vessels, aircraft, trains, buses, trucks, persons and cargo⁵⁰

⁵⁰Non-compliance with the reporting and other requirements of this Chapter is not a criminal offence but may as non-prosecutable breaches of this Act attract fixed amount penalties in terms of Chapter 39.

47. Purpose and application of this Chapter

(1)The purpose of this Chapter is to establish reporting requirements concerning—

(a)all vessels, aircraft, trains, buses and trucks arriving in or leaving the Republic;

(b)all persons and cargo on board vessels, aircraft, trains, buses and trucks arriving in the Republic, whether or not such persons disembark or such cargo is off-loaded in the Republic;

(c)all persons and cargo on board vessels, aircraft, trains, buses and trucks leaving the Republic; and

(d)all such cargo loaded, off-loaded, packed, unpacked, consolidated, degrouped, received at or removed from terminals, depots and other prescribed places, including packed and empty containers.

(2)This Chapter does not apply to—

(a)vessels or aircraft which cross into the territorial waters or airspace of the Republic without calling or landing at a place in the Republic; and

(b)persons and cargo on board such vessels and aircraft.

(3)A timeframe prescribed by rule in terms of this Chapter for the submission of a notice, report or other document is subject to any extension or shortening of that timeframe in terms of section 908 or 909.

Part 1 – Reporting requirements for arriving and departing foreign-going vessels

48. Application of this Part

This Part—

(a)applies, subject to section 86, to all foreign-going vessels to the extent indicated in the provisions of this Part; and

(b)does not apply to naval ships to the extent that they fall within the definition of "foreign-going vessel".

49. Advance loading and arrival notices

(1)

(a)The carrier operating a foreign-going vessel to the Republic must give advance notice to the customs authority—

(i)of containerised cargo to be loaded on board the vessel at a foreign port that will be on board the vessel when the vessel enters the Republic;

(ii)of the scheduled arrival of the vessel and crew in the Republic; and

(iii)if the vessel is transporting travellers, of the scheduled arrival of those incoming travellers in the Republic.

(b)An advance containerised cargo loading notice referred to in paragraph (a)(i) must be submitted before the containers are loaded, within a timeframe as may be prescribed by rule.

(c)Advance arrival notices referred to in paragraph (a)(ii) and (iii) must be submitted—

(i)within a timeframe as may be prescribed by rule; and

(ii)either separately, simultaneously or as a combined notice, as may be prescribed by rule.

(2)

(a)Each cargo reporter responsible for cargo on board a foreign-going vessel referred to in subsection (1) must give advance notice to the customs authority of the scheduled arrival of that incoming cargo in the Republic.

(b)An advance cargo arrival notice referred to in paragraph (a) must be submitted within a timeframe as may be prescribed by rule.

(3)

(a)If on receipt of an advance cargo loading notice it appears that any of the cargo to which the notice relates are goods referred to in paragraph (b), the customs authority may by notice to the reporting carrier or that carrier’s registered agent in the Republic, warn the carrier—

(i)not to load those goods on board the vessel or to transport the goods to the Republic; and

(ii)that should the goods be loaded or transported, the goods on arrival in the Republic will be detained and dealt with in accordance with the applicable provisions of this Act, including Chapter 35.

(b)Paragraph (a) may be applied to goods that on arrival in the Republic are likely to be—

(i)prohibited goods;

(ii)restricted goods in respect of which the legislation regulating the import of those goods has not been complied with; or

(iii)goods of a class or kind or falling within any other category as may be prescribed by rule.

(c)A carrier commits a Category 1 offence if goods in respect of which a warning has been issued in terms of paragraph (a)(i) is on board the vessel when it enters the Republic.

(4)This section applies only to foreign-going vessels operated by carriers.

50. Arrival reports

(1)The arrival of a foreign-going vessel at a customs seaport must be reported to the customs authority—

(a)by the port authority managing that seaport; and

(b)if the vessel—

(i)is operated by a carrier, by the carrier unless the customs authority permits otherwise; or

(ii)is not operated by a carrier, by the on-board operator of the vessel unless the customs authority permits otherwise.

(2)A vessel arrival report referred to in subsection (1) must be submitted within a timeframe as may be prescribed by rule after the arrival of the vessel at the customs seaport.

51. Advance departure notices

(1)

(a)The carrier operating a foreign-going vessel must give advance notice to the customs authority—

(i)of the scheduled departure of the vessel and crew from a customs seaport; and

(ii)if the vessel is to transport travellers out of the Republic, of all those outgoing travellers who boarded or are scheduled to board the vessel at that seaport.

(b)Advance departure notices referred to in paragraph (a)(i) and (ii) must be submitted—

(i)within a timeframe as may be prescribed by rule before the scheduled departure of the vessel from that customs seaport, whether to another customs seaport or to a destination outside the Republic; and

(ii)either separately, simultaneously or as a combined notice, as may be prescribed by rule.

(2)

(a)Each cargo reporter responsible for cargo loaded or to be loaded on board a foreign-going vessel at a customs seaport for export from the Republic must give advance notice to the customs authority of that outgoing cargo.

(b)An advance cargo departure notice referred to in paragraph (a) must be submitted within a timeframe as may be prescribed by rule before the scheduled departure of that vessel from that customs seaport, whether to another customs seaport or to a destination outside the Republic.

(c)Paragraphs (a) and (b) do not apply in respect of goods to be transhipped in accordance with Chapter 11 onto the vessel at that seaport. In such a case the transhipment clearance declaration or document regarded to be a transhipment clearance declaration in terms of section 251 must for purposes of paragraphs (a) and (b) be regarded to be the advance cargo departure notice for those goods.

(3)This section applies only to foreign-going vessels operated by carriers.

52. Permission to depart

(1)No foreign-going vessel may depart from a customs seaport without a permission to depart issued by the customs authority.

(2)An application for a permission to depart must be—

(a)submitted to the customs authority in the manner as may be prescribed by rule; and

(b)accompanied or supported by such documents as may be required by rule or in terms of a tax levying Act or other legislation applicable to the departure of vessels from a customs seaport.⁵¹⁵¹These documents include safety certificates, departure clearances by the port authority, Home Affairs certificates, Post Office certificates, income tax forms, etc.

(3)No permission to depart may be issued—

(a)unless section 51 has been complied with, in the case of a vessel operated by a carrier; or

(b)if the vessel has been detained, seized or confiscated, or if the vessel has on board goods that have been detained, seized or confiscated, in terms of—

(i)this Act or a tax levying Act; or

(ii)other legislation or a court order and the customs authority has been informed of the detention, seizure or confiscation.

(4)If a vessel in respect of which a permission to depart has been issued in terms of subsection (1) does not depart within a timeframe as may be prescribed by rule after the permission was issued, the permission lapses and a new permission to depart must be obtained before the vessel may depart.

(5)This section applies to all foreign-going vessels.

53. Departure reports

(1)The departure of a foreign-going vessel from a customs seaport to another customs seaport or to a destination outside the Republic must be reported to the customs authority—

(a)by the port authority managing that seaport; and

(b)if the vessel—

(i)is operated by a carrier, by the carrier unless the customs authority permits otherwise; or

(ii)is not operated by a carrier, by the on-board operator of the vessel unless the customs authority permits otherwise.

(2)A vessel departure report referred to in subsection (1) must be submitted within a timeframe as may be prescribed by rule after the departure of the vessel from that seaport.

(3)This section applies to all foreign-going vessels.

Part 2 – Reporting requirements for arriving and departing foreign-going aircraft

54. Application of this Part

This Part—

(a)applies, subject to section 86, to all foreign-going aircraft to the extent indicated in the provisions of this Part; and

(b)does not apply to naval or military aircraft to the extent that they fall within the definition of "foreign-going aircraft".

55. Advance arrival notices

(1)

(a)The carrier operating a foreign-going aircraft to the Republic must give advance notice to the customs authority—

(i)of the scheduled arrival of the aircraft and crew in the Republic; and

(ii)if the aircraft is transporting travellers, of the scheduled arrival of those incoming travellers in the Republic.

(b)Advance arrival notices referred to in paragraph (a)(i) and (ii) must be submitted—

(i)within a timeframe as may be prescribed by rule; and

(ii)either separately, simultaneously or as a combined notice, as may be prescribed by rule.

(2)

(a)Each cargo reporter responsible for cargo on board a foreign-going aircraft referred to in subsection (1) must give advance notice to the customs authority of the scheduled arrival of that incoming cargo in the Republic.

(b)An advance cargo arrival notice referred to in paragraph (a) must be submitted within a timeframe as may be prescribed by rule.

(3)This section applies only to foreign-going aircraft operated by carriers.

56. Arrival reports

(1)The arrival of a foreign-going aircraft at a customs airport must be reported to the customs authority—

(a)by the port authority managing that airport; and

(b)if the aircraft—

(i)is operated by a carrier, by the carrier unless the customs authority permits otherwise; or

(ii)is not operated by a carrier, by the on-board operator of the aircraft unless the customs authority permits otherwise.

(2)An aircraft arrival report referred to in subsection (1) must be submitted within a timeframe as may be prescribed by rule after the arrival of the aircraft at a customs airport.

57. Advance departure notices

(1)

(a)The carrier operating a foreign-going aircraft must give advance notice to the customs authority of—

(i)the scheduled departure of the aircraft and crew from a customs airport; and

(ii)if the aircraft is to transport travellers out of the Republic, of all those outgoing travellers who boarded or are scheduled to board the aircraft at that airport.

(b)Advance departure notices referred to in paragraph (a)(i) and (ii) must be submitted—

(i)within a timeframe as may be prescribed by rule before the scheduled departure of the aircraft from a customs airport, whether to another customs airport or to a destination outside the Republic; and

(ii)either separately, simultaneously or as a combined notice, as may be prescribed by rule.

(2)

(a)Each cargo reporter responsible for cargo loaded or to be loaded on board a foreign-going aircraft at a customs airport for export from the Republic must give advance notice to the customs authority of that outgoing cargo.

(b)An advance cargo departure notice referred to in paragraph (a) must be submitted within a timeframe as may be prescribed by rule before the scheduled departure of that aircraft from that customs airport, whether to another customs airport or to a destination outside the Republic.

(c)Paragraphs (a) and (b) do not apply in respect of goods transhipped in accordance with Chapter 11 onto the aircraft at that airport.

(d)In the case of goods referred to in paragraph (c) the transhipment clearance declaration or document regarded to be a transhipment clearance declaration in terms of section 251 must for purposes of paragraphs (a) and (b) be regarded to be the advance cargo departure notice for those goods.

(3)This section applies only to foreign-going aircraft operated by carriers.

58. Permission to depart

(1)No foreign-going aircraft may depart from a customs airport without a permission to depart issued by the customs authority.

(2)An application for a permission to depart must be—

(a)submitted to the customs authority in the manner as may be prescribed by rule; and

(b)accompanied or supported by such documents as may be required by rule or in terms of a tax levying Act or other legislation applicable to the departure of aircraft from a customs airport.⁵²⁵²These documents include safety certificates, departure clearances by the airport authority, Home Affairs certificates, Post Office certificates, income tax forms, etc.

(3)No permission to depart may be issued—

(a)unless section 57 has been complied with, in the case of an aircraft operated by a carrier; or

(b)if the aircraft has been detained, seized or confiscated, or if the aircraft has on board goods that have been detained, seized or confiscated, in terms of—

(i)this Act or a tax levying Act; or

(ii)other legislation or a court order and the customs authority has been informed of the detention, seizure or confiscation.

(4)If an aircraft in respect of which a permission to depart has been issued in terms of subsection (1) does not depart within a timeframe as may be prescribed by rule after the permission was issued, the permission lapses and a new permission to depart must be obtained before the aircraft may depart.

(5)This section applies to all foreign-going aircraft.

59. Departure reports

(1)The departure of a foreign-going aircraft from a customs airport to another customs airport or a destination outside the Republic must be reported to the customs authority—

(a)by the port authority managing that airport; and

(b)if the aircraft—

(i)is operated by a carrier, by the carrier unless the customs authority permits otherwise; or

(ii)is not operated by a carrier, by the on-board operator of the aircraft unless the customs authority permits otherwise.

(2)An aircraft departure report referred to in subsection (1) must be submitted within a timeframe as may be prescribed by rule after the departure of the aircraft from that airport.

(3)This section applies to all foreign-going aircraft.

Part 3 – Reporting requirements for arriving and departing cross-border trains

60. Advance arrival notices

(1)The carrier of a cross-border train scheduled for the Republic who will be operating the train on the Republic’s side of the border, must give advance notice to the customs authority—

(a)of the scheduled arrival of the train and crew in the Republic;

(b)if the train is transporting travellers, of the scheduled arrival of those incoming travellers in the Republic; and

(c)if the train is transporting cargo, of the scheduled arrival of that incoming cargo in the Republic.

(2)Advance arrival notices referred to in subsection (1)(a), (b) and (c) must be submitted—

(a)within a timeframe as may be prescribed by rule; and

(b)either separately, simultaneously or as a combined notice, as may be prescribed by rule.

61. Arrival reports

(1)The carrier operating a cross-border train that has entered the Republic must report to the customs authority the arrival of the train at each railway station after it entered the Republic where—

(a)travellers or crew will disembark;

(b)cargo will be off-loaded; or

(c)a railway carriage will be detached.

(2)A train arrival report referred to in subsection (1) must be submitted within a timeframe as may be prescribed by rule after the arrival of the train at a railway station referred to in that subsection.

62. Advance departure notices

(1)The carrier of a cross-border train scheduled for a destination outside the Republic who will be operating the train on the Republic’s side of the border, must give—

(a)advance notice to the customs authority—

(i)of the scheduled departure of the train and crew to a destination outside the Republic;

(ii)if the train is to transport travellers to a destination outside the Republic, of all travellers scheduled to be on board the train when the train crosses the border out of the Republic; and

(iii)if the train is to transport cargo to a destination outside the Republic, of all cargo scheduled to be on board the train when the train crosses the border out of the Republic; and

(b)such updates as may be prescribed by rule of its advance traveller departure notice referred to in paragraph (a)(ii) and of its advance cargo departure notice referred to in paragraph (a)(iii) as the train progresses on its voyage to the border.

(2)Advance departure notices referred to in subsection (1)(a)(i), (ii) and (iii), and any updates of such notices referred to in subsection (1)(b), must be submitted—

(a)at such times as may be prescribed by rule for such notices and updates; and

(b)either separately, simultaneously or as a combined notice or update, as may be prescribed by rule.

63. Departure reports

(1)The carrier operating a cross-border train in the Republic to a destination outside the Republic must report to the customs authority the departure of the train from each railway station where—

(a)travellers or crew or cargo bound for a destination outside the Republic are taken on board that train; or

(b)a cross-border railway carriage transporting such travellers or crew or cargo is attached to that train.

(2)A train departure report must be submitted within a timeframe as may be prescribed by rule after the departure of the train from a railway station referred to in subsection (1).

Part 4 – Reporting requirements for arriving and departing buses⁵³

⁵³See section 86 for exclusions and exemptions from this Part.

64. Advance arrival notices

(1)The carrier operating a bus to the Republic must give advance notice to the customs authority of the scheduled arrival in the Republic of the bus and of all travellers and crew on board the bus.

(2)An advance arrival notice referred to in subsection (1) must be submitted within a timeframe as may be prescribed by rule.

(3)This section applies only to buses operated by carriers.

65. Arrival reports

(1)The on-board operator of a bus entering the Republic must, upon arrival at the land border-post where the bus enters the Republic, submit to the customs authority at that border-post an arrival report in respect of the bus and of all travellers and crew on board the bus.

(2)This section applies to all buses whether or not operated by carriers.

66. Advance departure notices

(1)The carrier operating a bus to a destination outside the Republic, must give advance notice to the customs authority of the scheduled departure from the Republic of the bus and of all travellers and crew on board the bus.

(2)An advance departure notice referred to in subsection (1) must be submitted within a timeframe as may be prescribed by rule before the bus reaches the land border-post where it will leave the Republic.

(3)This section applies only to buses operated by carriers.

67. Departure reports

(1)The on-board operator of a bus leaving the Republic must upon arrival at the land border-post where the bus will leave the Republic submit to the customs authority at that land border-post a departure report in respect of the bus and of all travellers and crew on board the bus.

(2)This section applies to all buses whether or not operated by carriers.

Part 5 – Reporting requirements for trucks entering or leaving Republic⁵⁴

⁵⁴See section 86 for exclusions and exemptions from this Part.

68. Advance arrival notices

(1)The carrier operating a truck to the Republic must give advance notice to the customs authority of the scheduled arrival in the Republic of the truck and of all cargo and crew on board the truck.

(2)An advance arrival notice referred to in subsection (1) must be submitted within a timeframe as may be prescribed by rule.

(3)This section applies only to trucks operated by carriers.

69. Arrival reports and manifests of incoming cargo

(1)The on-board operator of a truck entering the Republic must upon arrival at the land border-post where the truck enters the Republic submit to the customs authority at that land border-post—

(a)an arrival report in respect of the truck and crew; and

(b)a manifest of all cargo on board the truck.

(2)This section applies to all trucks whether or not operated by carriers.

70. Advance departure notices

(1)The carrier operating a truck to a destination outside the Republic must give advance notice to the customs authority of the scheduled departure from the Republic of the truck and of all cargo and crew on board the truck within a timeframe as may be prescribed by rule before that truck reaches the land border-post where it will leave the Republic.

(2)This section applies only to trucks operated by carriers.

71. Departure reports and manifests of outgoing cargo

(1)The on-board operator of a truck due to leave the Republic with cargo on board must upon arrival at the land border-post where the truck will leave the Republic submit to the customs authority at that land border-post—

(a)a departure report in respect of the truck and crew; and

(b)a manifest of all cargo on board the truck.

(2)This section applies to all trucks whether or not operated by carriers.

Part 6 – Cargo outturn reports by licensees

72. Definition

In this Part "vessel" means—

(a)a foreign-going vessel; or

(b)a coasting vessel transporting goods under a customs procedure.

73. Outturn reports of containers off-loaded from or loaded on board vessels at sea cargo terminals

(1)The licensee of a sea cargo terminal must submit to the customs authority outturn reports in respect of all containers, including empty containers, off-loaded from each vessel at that terminal.

(2)The licensee of a sea cargo terminal must submit to the customs authority outturn reports in respect of all containers, including empty containers, loaded on board each vessel at that terminal.

74. Outturn reports of break bulk cargo and bulk cargo off-loaded from or loaded on board vessels at sea cargo terminals

(1)The licensee of a sea cargo terminal must submit to the customs authority outturn reports in respect of all break bulk cargo and all bulk cargo off-loaded from each vessel at that terminal.

(2)The licensee of a sea cargo terminal must submit to the customs authority outturn reports in respect of all break bulk cargo and all bulk cargo loaded on board each vessel at that terminal.

75. Outturn reports of containers removed from or received at sea cargo terminals and container depots

(1)The licensee of a sea cargo terminal must submit to the customs authority outturn reports in respect of—

(a)all containers containing imported goods removed from that terminal; and

(b)all containers containing goods destined for export received at that terminal.

(2)The licensee of a container depot must submit to the customs authority outturn reports in respect of—

(a)all containers containing imported goods received at that depot; and

(b)all containers containing goods destined for export removed from that depot.

76. Outturn reports of cargo unpacked from or packed into containers at container depots

(1)The licensee of a container depot must submit to the customs authority outturn reports in respect of—

(a)all imported cargo unpacked from a container at that depot; and

(b)all cargo destined for export packed into a container at that depot.

(2)An outturn report referred to in subsection (1)(a) or (b) must include details of any discrepant packages found—

(a)when unpacking the container; or

(b)when packing the container.

(3)The licensee of a container depot must notify the customs authority of any cargo remaining at the depot for more than a prescribed period after its delivery to the depot for export.

77. Outturn reports of cargo unloaded from or loaded on board aircraft at air cargo terminals

The licensee of an air cargo terminal must submit to the customs authority outturn reports in respect of—

(a)all cargo unloaded from each aircraft at that terminal; and

(b)all cargo loaded on board each aircraft at that terminal.

78. Outturn reports of cargo unpacked or packed at air cargo depots

(1)The licensee of an air cargo depot must submit to the customs authority outturn reports in respect of—

(a)all imported cargo received and deconsolidated or unpacked at that depot; and

(b)all cargo destined for export packed or consolidated at that depot.

(2)An outturn report referred to in subsection (1)(a) or (b) must include details of any discrepant packages found.

(3)The licensee of an air cargo depot must notify the customs authority of any cargo remaining at the depot for more than a prescribed period after their delivery to the depot for export.

79. Outturn reports of cargo with no transport documents

The licensee of a sea cargo terminal, air cargo terminal, container depot or air cargo depot must submit to the customs authority separate outturn reports in respect of any cargo referred to in sections 74, 76, 77 or 78 for which that licensee has not received a transport document.

80. Reporting of short or excess cargo

The licensee of a sea cargo terminal, container depot, air cargo terminal or air cargo depot that off-loads, unpacks or deconsolidates any imported goods as contemplated in sections 74, 75, 77 and 78 must submit to the customs authority outturn reports in respect of any goods found to be short or in excess of the quantities specified in the relevant transport document against which the goods were examined, unpacked or deconsolidated.

81. Reporting of cargo in other circumstances

The Commissioner may by rule prescribe any additional outturn reports as may be necessary for the effective customs control of cargo imported into or destined for export from the Republic, including outturn reports in respect of—

(a)cargo imported or destined for export—

(i)on board cross-border railway carriages;

(ii)on board trucks; or

(iii)by means of cross-border pipelines, cable cars or conveyor belts;

(b)electricity imported or exported through cross-border transmission lines; and

(c)the packing, unpacking, consolidation or deconsolidation of goods in customs controlled areas as may be specified in the rules.

82. Disclosure of advance cargo arrival notice information to licensees of cargo terminals and depots

The customs authority may disclose to the licensee of a sea or air cargo terminal, container depot or air cargo depot the following information in an advance cargo arrival notice submitted to it in relation to any cargo, to enable that licensee to submit outturn reports contemplated in this Part in relation to that cargo:

(a)The transport document number issued by the cargo reporter;

(b)the transport document number issued by the cargo reporter with whom the cargo has been co-loaded;

(c)a description of the cargo;

(d)the marks and numbers of the cargo;

(e)the total number of containers or packages;

(f)the gross weight of the cargo; and

(g)other information, including any manifest information, as may be prescribed by rule.

83. Unpacking of cargo

The licensee of an air cargo terminal, container depot or air cargo depot where cargo is deconsolidated and unpacked, must for purposes of effectively complying with this Part ensure that—

(a)cargo is unpacked against—

(i)a transport document issued in respect of that cargo and provided to the licensee by the cargo reporter; or

(ii)the information in the advance cargo arrival notice relating to that cargo and provided to the licensee in terms of section 82;

(b)consolidated cargo is unpacked to the lowest consignee level;

(c)any outturn report submitted in respect of that cargo reflects all the cargo with reference to the transport document issued in respect of that cargo; and

(d)the transport document number on the release notification received by the licensee in respect of that cargo—

(i)correlates with the number of the transport document against which the cargo was unpacked; and

(ii)is the same as the transport document number reflected on any outturn report submitted in respect of that cargo.

Part 7 – Other matters

84. Submission of notices, reports and manifests in terms of this Chapter

(1)An advance arrival or departure notice, an arrival or departure report or a manifest referred to in Parts 1 to 5, and any update of an advance notice, must—

(a)be in the form and format as may be prescribed by rule and contain the information required on the prescribed form or otherwise prescribed by rule;

(b)be accompanied or supported by any documents as may be required in terms of this Act, a tax levying Act or other legislation, or as may be prescribed by rule; and

(c)be submitted electronically in accordance with section 913 unless the person required to submit the notice, report, manifest or update falls within a category of persons authorised by rule to submit documents manually in paper format to the Customs Office serving the relevant place of entry or exit.

(2)An outturn report referred to in Part 6 must—

(a)be in the form and format as may be prescribed by rule and contain the information required on the prescribed form or otherwise prescribed by rule; and

(b)be submitted electronically in accordance with section 913 within such timeframes as may be prescribed by rule.

85. Reporting obligations of carriers not located in Republic

An obligation placed in terms of this Chapter on a carrier to submit to the customs authority an advance loading, arrival or departure notice, arrival or departure report, manifest or update of an advance notice, or any other information, must, in the case of a carrier who is not located in the Republic,⁵⁵ be complied with either by the carrier or that carrier’s registered agent in the Republic.⁵⁵See section 1(3)(a).

86. Exclusions and exemptions

The Commissioner may—

(a)by rule exclude from the application of any of or all the provisions of this Chapter—

(i)any category of vessels, aircraft, trains, railway carriages, buses or trucks;

(ii)any category of persons, travellers or crew; or

(iii)any category of goods or cargo; or

(b)on justifiable grounds exempt⁵⁶—⁵⁶See section 918 for conditional exemptions.

(i)a specific vessel, aircraft, train, railway carriage, bus or truck from the application of any of or all the provisions of this Chapter;

(ii)a specific person from complying with any of or all the provisions of this Chapter; or

(iii)the carrier operating a specific vessel, aircraft, train, railway carriage, bus or truck, or the on-board operator of a specific vessel, aircraft, bus or truck, from complying with any of or all the provisions of This Chapter.

87. Rules to facilitate implementation of this Chapter

Rules made in terms of section 903 to facilitate the implementation of this Chapter may include rules prescribing—

(a)the form and format of—

(i)advance loading, arrival and departure notices;

(ii)arrival and departure reports;

(iii)manifests of inbound and outbound cargo;

(iv)updates of advance notices; and

(v)outturn reports;

(b)the information to be furnished on those forms, including—

(i)manifest information, in the case of advance cargo loading notices; and

(ii)manifest, traveller and crew information, in the case of advance arrival and departure notices;

(c)the reporting periods for which outturn reports must be submitted;

(d)procedures, time limits and conditions for the amendment or replacement of such advance notices, arrival and departure reports, manifests, updates and outturn reports;

(e)an advance arrival and departure reporting system for foreign-going vessels or aircraft not operated by carriers;

(f)a cargo reporting verification and acquittal system;

(g)methods of determining quantities of cargo for reporting purposes;

(h)any general conditions applicable to an exclusion or exemption referred to in section 86, the circumstances in which any such exclusion or exemption applicable to a specific vessel, aircraft, train, railway carriage, bus or truck may be withdrawn and procedures for the withdrawal of any such exclusion or exemption; and

(i)reporting requirements for domestic vessels, or any category of domestic vessels, arriving at or departing from customs seaports.

Chapter 4
General principles governing clearance and release of goods and customs procedures

88. Purpose and application of this Chapter

(1)The purpose of this Chapter is to determine general principles governing—

(a)the clearance and release of goods for home use or a customs procedure; and

(b)goods under a customs procedure.

(2)This Chapter applies to—

(a)all goods imported into the Republic, irrespective of the purpose for which those goods were imported;

(b)all goods destined for export from the Republic, irrespective of the purpose for which those goods are to be exported; and

(c)all compensating products obtained from goods under a customs procedure.

(3)This Chapter applies subject to any other provision of this Act applicable specifically to the clearance or release of goods for home use or a particular customs procedure, and in the event of any inconsistency between a provision of this Chapter and such other provision of this Act that other provision prevails.

Part 1 – General principles governing clearance of goods for home use or customs procedures

89. Clearance of imported goods

(1)When goods are imported into the Republic the goods must, subject to sections 91, 775 and 784, be cleared for—

(a)home use in terms of Chapter 8;

(b)home use under a customs procedure that provides for goods to be cleared for home use under that customs procedure;⁵⁷ or⁵⁷The following customs procedures provide for goods to be cleared for home use under that procedure:1.The temporary export procedure which in Parts 3 and 4 of Chapter 17 provides for re-imported unaltered goods to be cleared for home use under that procedure; and2.the outward processing procedure which in Chapter 20 provides for outward processed compensating products when imported to be cleared for home use under that procedure.

(c)a permissible customs procedure.

(2)Goods referred to in—

(a)subsection (1)(a) must be cleared for home use in accordance with Chapter 8 and the other provisions of this Act applicable to the clearance of goods for home use in terms of that Chapter;

(b)subsection (1)(b) must be cleared for home use under the relevant customs procedure in accordance with the provisions of this Act applicable to the clearance of goods for home use under that procedure; or

(c)subsection (1)(c) must be cleared for the required customs procedure in accordance with the provisions of this Act applicable to the clearance of goods for that specific procedure.

90. When clearance declarations for goods imported through places of entry must be submitted⁵⁸

⁵⁸Note that the prescribed timeframes for submission of clearance declarations may on good grounds shown be extended in specific cases in terms of section 908.

(1)For the purpose of clearing imported goods that are in terms of section 89 required to be cleared for home use or a customs procedure, a clearance declaration meeting the requirements of section 171(1)(a) to (d) must, subject to subsections (2) and (3) and section 908, be submitted to the customs authority—

(a)if the goods were imported on board a foreign-going vessel, within three working days of arrival⁵⁹ of the goods at the customs seaport where the goods are to be off-loaded from the vessel;⁵⁹Section 2 determines when goods “arrive”.

(b)if the goods were imported on board a foreign-going aircraft, within three working days of arrival of the goods at the customs airport where the goods are to be off-loaded from the aircraft;

(c)if the goods were imported on board a cross-border railway carriage, within three working days of arrival of the goods at the licensed rail cargo terminal where the goods are to be off-loaded from the railway carriage;

(d)if the goods were imported on board a vehicle, when the vehicle arrives at the land border-post where the goods will enter the Republic on board the vehicle;

(e)if the goods were imported through a cross-border pipeline or by means of a cross-border cable car or conveyor belt, within such period as may be prescribed by rule;

(f)if the goods were electricity imported through a cross-border transmission line, within such period as may be prescribed by rule; or

(g)if the goods consist of—

(i)a vessel which entered the Republic under its own power, within three working days of arrival of the vessel at the first customs seaport where it called;

(ii)an aircraft which entered the Republic under its own power, within three working days of arrival of the aircraft at the first customs airport where it landed;

(iii)a locomotive or railway carriage which entered the Republic under its own power or on its own wheels, within three working days of arrival of the locomotive or railway carriage at the rail-border crossing where it entered the Republic; or

(iv)a vehicle which entered the Republic under its own power or on its own wheels, when the vehicle arrives at the land border post where the vehicle enters the Republic.

(2)Subsection (1) may not be read as affecting the clearance of goods that must be cleared in advance in terms of subsection (4) or that may be cleared in advance in terms of section 170.

(3)Subsection (1) does not apply to items in a person’s accompanied or unaccompanied baggage that are in terms of section 89 required to be cleared for home use or a customs procedure, and for clearing such items a clearance declaration meeting the requirements of section 171(1)(a) to (d) must be submitted to the customs authority in accordance with section 480.

(4)

(a)Containerised goods consigned for delivery to a licensed container terminal or depot situated outside the area of jurisdiction of the Customs Office serving the customs seaport where the goods are to be off-loaded from the vessel transporting the goods to the Republic must, despite subsection (1)(a), in accordance with paragraph (b) be cleared in advance for home use or a permissible customs procedure before the arrival of the goods at that customs seaport.

(b)A clearance declaration meeting the requirements of section 171(1)(a) to (d) must, subject to section 909, be submitted to the customs authority at least three calendar days before the arrival of the goods at the customs seaport referred to in paragraph (a).

(c)The customs authority may proceed with processing and validating a clearance declaration submitted in accordance with this subsection despite the fact that the goods have not yet arrived at the relevant customs seaport.

(d)The goods may provisionally be released for home use or the required customs procedure before the arrival of the goods at the relevant customs seaport pending release of the goods upon arrival at that seaport, but such provisional release falls away if the goods are detained upon arrival.

(e)If the goods are detained upon arrival at the relevant customs seaport, the customs authority may, in a notice of detention referred to in section 757, determine that the goods must be removed to a licensed terminal or depot.

(f)If a clearance declaration referred to in paragraph (b) is not submitted to the customs authority within the timeframe applicable to the goods in terms of that paragraph—

(i)the other provisions of this subsection cease to apply;

(ii)subsection (2) with reference to subsection (4) ceases to apply to the goods; and

(iii)subsection (1)(a) becomes applicable to the goods and a clearance declaration must be submitted in respect of the goods in accordance with the requirements of that subsection.

91. Certain categories of imported goods excluded from clearance requirements

(1)The following categories of imported goods are excluded from sections 89 and 90 and goods falling within those categories are not required to be cleared in accordance with those sections, subject to subsection (4):⁶⁰⁶⁰Exclusion of the goods listed in section 91 from clearance requirements does not have the effect of exempting the goods from customs control. The goods remain subject to customs control for as long as a condition stated in section 28 applies to the goods.

(a)Goods which were on board a foreign-going vessel or aircraft or a cross-border railway carriage when the vessel, aircraft or railway carriage entered the Republic and which—

(i)are not off-loaded or taken off the vessel, aircraft or railway carriage whilst the vessel, aircraft or railway carriage is in the Republic;

(ii)are not used on board the vessel, aircraft or railway carriage whilst the vessel, aircraft or railway carriage is in the Republic; and

(iii)remain on board the vessel, aircraft or railway carriage until the vessel, aircraft or railway carriage leaves the Republic;

(b)vessels, aircraft, locomotives and railway carriages which—

(i)upon entering the Republic automatically come under the temporary admission procedure in terms of section 289;⁶¹ or⁶¹Foreign trucks, buses and taxis entering the Republic are not excluded from clearance requirements, but may in terms of sections 270 and 271 be cleared for temporary admission in accordance with simplified clearance requirements.

(ii)left the Republic under the temporary export procedure in terms of section 402 and re-enter the Republic on the inbound leg of the procedure;⁶²⁶²South African trucks, buses and taxis re-entering the Republic on the return leg of the temporary export procedure are not excluded from clearance requirements, but may in terms of sections 389 and 390 be cleared in accordance with simplified clearance requirements.

(c)reusable transport equipment which—

(i)upon entering the Republic automatically come under the temporary admission procedure in terms of section 290; or

(ii)left the Republic under the temporary export procedure in terms of section 403 and re-enters the Republic on the inbound leg of that procedure;

(d)goods entering the Republic on board—

(i)foreign-going vessels or aircraft or cross border trains referred to in section 334(2) as stores reasonably needed for that vessel, aircraft or train on its current voyage; or

(ii)foreign-going naval vessels or foreign-going naval or military aircraft as stores reasonably needed for that vessel or aircraft on its current voyage;

(e)accompanied and unaccompanied baggage items of persons referred to in section 477(2)(a) entering the Republic, other than those items that must in terms of section 480(1) be cleared for home use or a customs procedure;

(f)accompanied and unaccompanied baggage of persons referred to in section 477(3)(a) entering the Republic, provided the baggage—

(i)remain on board the vessel or aircraft which brought it into the Republic until the vessel or aircraft leaves the Republic; or

(ii)are transferred under customs supervision to another foreign-going vessel or aircraft in which the baggage will leave the Republic;

(g)goods in a single consignment with a customs value not exceeding R500, subject to subsection (2);

(h)goods, including trade samples, which have no commercial value;

(i)international postal articles of the following kinds imported into the Republic for delivery in the Republic by the South African Post Office:⁶³⁶³International postal articles imported by private couriers must be dealt with as ordinary imported goods, but may be cleared in accordance with expedited clearance requirements in terms of Chapter 24.

(i)Letters, postcards, greeting cards, telegrams and other similar communications containing personal messages only;

(ii)printed papers not subject to any import taxes; and

(iii)literature for the blind;

(j)human remains; or

(k)any other category of goods as may be determined by rule.

(2)

(a)If goods are imported in more than one consignment for delivery to the same addressee in the same calendar year, the exemption contained in subsection (1)(g) applies only to the extent that the combined customs value of the goods contained in those consignments does not exceed R500.

(b)The exemption contained in subsection (1)(g) does not apply to accompanied and unaccompanied baggage of persons entering the Republic.

(3)The customs authority may—

(a)inspect or detain goods claimed to fall within an excluded category listed in subsection (1);⁶⁴ and⁶⁴See also section 754 for detention of such goods.

(b)require proof that the goods do fall within such an excluded category.

(4)This section does not apply to prohibited, restricted, sectorally controlled and counterfeit goods, and such goods must be dealt with in accordance with Chapters 35 and 36.

92. Consequences in event of failure to clear goods imported through places of entry⁶⁵

⁶⁵For consequences when goods are imported otherwise than through places of entry, see section 42.

(1)If no clearance declaration is submitted in terms of section 90(1) or (3) in respect of imported goods to which section 89 applies within the period or at the time applicable to those goods, or if such goods were diverted for home use before the period for submitting the clearance declaration has elapsed, the goods must—

(a)be dealt with in accordance with section 570(1)(a), read with section 580;⁶⁶ or⁶⁶Removal of the goods to a state warehouse.

(b)for tax purposes be regarded to be cleared for home use under Chapter 8⁶⁷ if the goods were—⁶⁷For tax implications if goods are regarded to be cleared for home use under Chapter 8, see section 153.

(i)diverted for home use; or

(ii)damaged, destroyed, lost or unaccounted for and it is not proved in accordance with Chapter 25—

(aa)that the goods were damaged, destroyed, lost or unaccounted for due to a recognised cause;⁶⁸ and⁶⁸See definition of “recognised cause” in section 1.

(bb)in the case of goods lost due to a recognised cause, that the goods, after having been lost, have not gone into home use in any way.

(2)The burden to prove for purposes of this section that a clearance declaration to clear goods for home use or a customs procedure has been submitted to the customs authority within the period or at the time applicable to the goods, rests on the person who alleges this fact.

(3)Subsection (1) applies apart from any criminal proceedings that may be instituted, administrative penalty that may be imposed or other step that may be taken by the customs authority in terms of this Act for any breach of section 89 or 90(1) or (3), which may include, where not inconsistent with this Act or other applicable legislation or otherwise inappropriate—

(a)seizing the goods in terms of Chapter 34;

(b)allowing the importer of the goods to abandon the goods to the Commissioner in accordance with Chapter 26; and

(c)allowing or directing the importer—

(i)to remove the goods from the Republic; or

(ii)to destroy the goods under supervision of the customs authority or an organ of state designated by the customs authority.

93. Clearance of goods destined for export

(1)All goods destined for export from the Republic must, subject to sections 95, 775 and 784, be cleared for export.

(2)Goods may in terms of subsection (1) be cleared for—

(a)outright export in terms of the export procedure;⁶⁹⁶⁹Chapter 16 provides for the export of goods under the export procedure. The export procedure covers the export of goods for outright export and various other customs procedures. See section 361(2).

(b)export under a customs procedure that allows goods to be cleared for export under that procedure in terms of the export procedure;⁷⁰ or⁷⁰The following customs procedures provide for the export of goods under that procedure subject to clearance for export in terms of the export procedure:1.The temporary admission procedure in terms of Chapter 12, in relation to goods cleared and released for that procedure in terms of Part 2 of that Chapter;2.the temporary export procedure in terms of Chapter 17, in relation to goods cleared and released for that procedure in terms of Part 2 of that Chapter;3.goods exported as compensating products under the inward processing procedure in terms of Chapter 18; and4.goods exported under the outward processing procedure in terms of Chapter 20

(c)export under a customs procedure that allows goods to be cleared for export under that procedure in accordance with an international clearance arrangement.⁷¹⁷¹The temporary admission and temporary export procedures provide on the outbound leg of the procedure for the clearance of certain goods for export under a carnet issued in terms of an international customs arrangement.

(3)Goods referred to in—

(a)subsection (2)(a) must be cleared for outright export in accordance with the provisions of this Act applicable to the clearance of goods for outright export;

(b)subsection (2)(b) must be cleared for export in accordance with the provisions of this Act applicable to the clearance of goods for export under the relevant customs procedure; or

(c)subsection (2)(c) must be cleared for export in accordance with the provisions of this Act giving effect to the relevant international arrangement.

94. When export clearance declarations for goods exported through places of exit must be submitted⁷²

⁷²Note that the prescribed minimum time periods for submission of export clearance declarations may on good grounds shown be shortened in specific cases in terms of section 909. It should also be noted that while the submission of export declarations may meet the time frames stated above, it may be advisable to submit declarations earlier in order to ensure that a customs documentary inspection of the goods will not prevent the goods from being exported at the intended time.

(1)For the purpose of clearing goods that are in terms of section 93 required to be cleared for export, a clearance declaration meeting the requirements of section 171(1)(a) to (d) must, subject to subsections (2), (3) and (4) and section 909, be submitted to the customs authority—

(a)if the goods are to be exported by sea, not later than two hours before the goods are delivered to—

(i)a container depot, in the case of goods to be containerised for export by sea at a container depot; or

(ii)the sea cargo terminal where the goods will be loaded on board the foreign-going vessel in which the goods are to be exported, in the case of all other goods, including goods containerised for export by sea otherwise than at a container depot;

(b)if the goods are to be exported by air, not later than one hour before the goods are delivered to—

(i)an air cargo depot, in the case of goods to be packed for export by air at an air cargo depot; or

(ii)the air cargo terminal where the goods will be loaded on board the foreign-going aircraft in which the goods are to be exported, in the case of all other goods, including goods packed for export by air otherwise than at an air cargo depot;

(c)if the goods are to be exported by rail, not later than one hour before the goods are delivered to the rail cargo terminal where the goods will be loaded on board a cross-border railway carriage in which the goods are to be exported;

(d)if the goods are to be exported by road on board a truck, at any time after the goods have been loaded on board the truck but not later than the time the truck reaches the land border-post where the goods will be exported;

(e)if the goods are to be exported through a cross-border pipeline or by means of a cross-border cable car or conveyor belt, within such period as may be prescribed by rule;

(f)if the goods are electricity to be exported through a cross-border transmission line, within such period as may be prescribed by rule; or

(g)if the goods consist of—

(i)a vessel leaving the Republic under its own power, before the vessel departs from a customs seaport to its destination outside the Republic;

(ii)an aircraft leaving the Republic under its own power, before the aircraft departs from a customs airport to a destination outside the Republic;

(iii)a locomotive or railway carriage leaving the Republic under its own power or on its own wheels, before the locomotive or railway carriage reaches the rail border crossing where the locomotive or railway carriage will cross the border out of the Republic; or

(iv)a vehicle leaving the Republic under its own power or on its own wheels, before the vehicle leaves the land border post where the vehicle will cross the border out of the Republic.

(2)In the case of goods containerised—

(a)at a container depot and to which subsection (1)(a)(i) applies, an incomplete clearance declaration meeting the requirements of section 171(1)(a) to (d), but without indicating the container number, may be submitted, provided that a supplementary declaration which includes the container number is submitted within a timeframe as may be prescribed by rule before the container reaches the sea cargo terminal where the goods will be loaded for export; or

(b)other than at a container depot and to which subsection (1)(a)(ii) applies, a clearance declaration meeting the requirements of section 171(1)(a) to (d) may only be submitted after the container has been sealed.

(3)The timeframes in subsection (1)(a) to (d) do not apply to goods of a specific class or kind or falling within a specific category as may be determined by rule that are in terms of section 93 required to be cleared for export, and for clearing such goods a clearance declaration meeting the requirements of section 171(1)(a) to (d) must be submitted to the customs authority within such other timeframe as may be prescribed by rule read with sections 908 and 909.

(4)Subsection (1) does not apply to items in a person’s accompanied or unaccompanied baggage that are in terms of section 93 required to be cleared for export, and for clearing such items a clearance declaration meeting the requirements of section 171(1)(a) to (d) must be submitted to the customs authority in accordance with section 485.

95. Certain categories of goods destined for export excluded from export clearance requirements

(1)The following categories of goods destined for export from the Republic are excluded from sections 93 and 94, and such goods may, subject to subsection (4), be exported without submission of an export clearance declaration:⁷³⁷³Exclusion of the goods listed in section 95 from export clearance requirements does not have the effect of exempting the goods from customs control. The goods remain subject to customs control for as long as a condition stated in section 28 applies to the goods.

(a)Goods which were on board a foreign-going vessel or aircraft or a cross-border railway carriage when the vessel, aircraft or railway carriage entered the Republic and which—

(i)are not off-loaded or taken off the vessel, aircraft or railway carriage whilst the vessel, aircraft or railway carriage is in the Republic; and

(ii)remain on board the vessel, aircraft or railway carriage until the vessel, aircraft or railway carriage leaves the Republic;

(b)vessels, aircraft, locomotives and railway carriages which—

(i)upon leaving the Republic automatically come under the temporary export procedure in terms of section 402;⁷⁴ or⁷⁴South African trucks, buses and taxis temporarily leaving the Republic are not excluded from export clearance requirements, but may in terms of sections 381 and 382 be cleared for temporary export in accordance with simplified clearance requirements.

(ii)entered the Republic under the temporary admission procedure in terms of section 289 and leave the Republic on the outbound leg of the procedure;⁷⁵⁷⁵Foreign trucks, buses and taxis leaving the Republic on the outbound leg of the temporary admission procedure are not excluded from export clearance requirements, but may in terms of sections 276 and 277 be cleared in accordance with simplified clearance requirements.

(c)reusable transport equipment which—

(i)upon leaving the Republic automatically come under the temporary export procedure in terms of section 403; or

(ii)entered the Republic under the temporary admission procedure in terms of section 290 and leaves the Republic on the outbound leg of the procedure;

(d)goods under any of the following customs procedures to be exported under such procedure:

(i)The international transit procedure in terms of Chapter 9;

(ii)the transhipment procedure in terms of Chapter 11;

(iii)the tax free shop procedure in terms of Chapter 14; or

(iv)the stores procedure in terms of Chapter 15;

(e)goods which a foreign-going naval vessel or foreign-going naval or military aircraft takes on board in the Republic as stores reasonably needed for that vessel or aircraft on a voyage to a destination outside the Republic;

(f)accompanied and unaccompanied baggage items of persons referred to in section 477(2)(a) leaving the Republic, other than those items that must in terms of section 485(1) be cleared for outright export or for export under a customs procedure applicable to the items;

(g)accompanied and unaccompanied baggage of persons referred to in section 477(3)(a) leaving the Republic, provided the baggage—

(i)is leaving the Republic on board the same vessel or aircraft which brought it into the Republic; or

(ii)was transferred under customs supervision from the vessel or aircraft in which the baggage entered the Republic to another foreign-going vessel or aircraft in which the baggage is to leave the Republic;

(h)goods in a single consignment of a customs value not exceeding R500, subject to subsection (2);

(i)goods, including trade samples, which have no commercial value;

(j)international postal articles of the following kinds posted in the Republic and exported from the Republic through the South African Post Office:

(i)Letters, postcards, greeting cards, telegrams and other similar communications containing personal messages only;

(ii)printed papers not subject to any import taxes; and

(iii)literature for the blind;⁷⁶⁷⁶International postal articles to be exported by private couriers must be dealt with as if ordinary exported goods. See Part 1 of Chapter 24 for clearance of express delivery goods.

(k)human remains; or

(l)any other category of goods as may be determined by rule.

(2)

(a)If goods are destined for export in more than one consignment by the same exporter in the same calendar year, the exclusion contained in subsection (1)(h) applies only to the extent that the combined customs value of the goods contained in those consignments does not exceed R500.

(b)The exemption contained in subsection (1)(h) does not apply to accompanied and unaccompanied baggage of persons leaving the Republic.

(3)The customs authority may—

(a)inspect or detain goods claimed to fall within an excluded category listed in subsection (1);⁷⁷ and⁷⁷See also section 754 for detention of such goods.

(b)require proof that the goods do fall within such an excluded category.

(4)This section does not apply to prohibited, restricted, sectorally controlled and counterfeit goods and such goods must be dealt with in accordance with Chapters 35 and 36.

96. Consequences in event of failure to clear for export goods in free circulation⁷⁸ through places of exit⁷⁹

⁷⁸This section is confined to goods in free circulation as the consequences for goods exported under a customs procedure otherwise than in accordance with that procedure, are dealt with in sections 114 and 115.⁷⁹For consequences when goods are exported otherwise than through places of exit see section 42.

(1)If goods in free circulation to which section 93 applies are—

(a)delivered to a cargo terminal referred to in section 94(1)(a), (b) or (c) without any clearance declaration having been submitted in terms of that section to clear the goods for export, the goods must be dealt with in accordance with section 570(1)(b), read with section 580;⁸⁰ or⁸⁰Removal of the goods to a state warehouse.

(b)exported from the Republic without any clearance declaration having been submitted in terms of section 94 to clear the goods for export, the goods must for tax purposes be regarded to have been cleared for outright export.⁸¹⁸¹For tax implications if goods in free circulation are regarded to be cleared for outright export, see section 158.

(2)The burden to prove for purposes of this section that a clearance declaration to clear goods for export has been submitted to the customs authority, rests on the person who alleges this fact.

(3)Subsection (1)(b) may not be read as affecting the application of section 112 or 113 in relation to goods under a customs procedure referred to 93(2)(b) or (c) that were exported without an export clearance.

(4)Subsection (1) applies apart from any criminal proceedings that may be instituted, administrative penalty that may be imposed or other step that may be taken by the customs authority in terms of this Act for any breach of section 93 or 94, which may include, where not inconsistent with this Act or other applicable legislation or otherwise inappropriate—

(a)seizing the goods in terms of Chapter 34;

(b)allowing the exporter of the goods to abandon the goods to the Commissioner in accordance with Chapter 26; or

(c)allowing or directing the exporter to destroy the goods under supervision of the customs authority or an organ of state designated by the customs authority.

97. Clearance substitutions before release of goods⁸²

⁸²This section applies only to clearance substitutions before release of the goods. For clearance substitutions of goods already released for home use, see section 107, and for clearance of goods under a customs procedure for another customs procedure, see section 110.

(1)Goods that are cleared for home use may at any time before the release of the goods for home use be cleared for a permissible customs procedure.

(2)Goods that are cleared for a customs procedure may at any time before the release of the goods for that customs procedure be cleared for any other customs procedure or for home use, as may be permissible⁸³ in the circumstances.⁸³See definition of “permissible” in relation to a customs procedure and in relation to home use.

(3)A clearance declaration to clear the goods for home use or a customs procedure in terms of subsection (1) or (2) submitted to and accepted by the customs authority in terms of section 171(1) replaces the previous clearance declaration with effect from the time the previous clearance declaration was originally accepted by the customs authority in terms of that section.⁸⁴⁸⁴If the goods are only partially cleared for another customs procedure or for home use, the existing clearance declaration must be amended in terms of section 174(2) to apply to that part of the goods that remain cleared for the existing procedure or for home use.

(4)If a clearance of goods for—

(a)home use is replaced in terms of subsection (3), the person who paid any import tax on the goods as a consequence of that clearance for home use is entitled to a refund of that tax subject to the applicable tax levying Act; or

(b)outright export is replaced in terms of that subsection, the person who received any refund of domestic tax on the goods as a consequence of that clearance for outright export must repay that refund to the Commissioner subject to the applicable tax levying Act.

Part 2 – General principles governing release of goods for home use or customs procedures

98. Clearance of goods precondition for release of goods

No goods may be released for home use or a customs procedure without the goods having been cleared for home use or that customs procedure, except where provided otherwise in this Act.⁸⁵⁸⁵Exceptions to this principle contained in Chapter 24 which provides for expedited release of goods.

99. When release of goods must be refused⁸⁶

⁸⁶For consequences if release of goods is refused, see section 106.

(1)The customs authority must refuse the release of goods cleared for home use or a customs procedure—

(a)if the clearance of the goods for home use or that customs procedure was not permissible in terms of this Act or a tax levying Act;

(b)if the release of the goods for home use or that customs procedure—

(i)is not permissible in terms of this Act or a tax levying Act;

(ii)would result in a breach of this Act or a tax levying Act; or

(iii)would defeat the objects of any other legislation applicable to the goods;

(c)if the goods are in terms of section 570(1) or (2), read with section 580, to be removed to a state warehouse in order to be dealt with in accordance with Chapter 27; or

(d)if the goods were seized or confiscated in terms of—

(i)this Act⁸⁷ or a tax levying Act; or⁸⁷See Chapters 34, 35 and 36 for the seizure and confiscation of goods in terms of this Act, including the conditions for terminating seizures and confiscations.

(ii)any other legislation or an order of court and the customs authority has been informed of the seizure or confiscation.

(2)

(a)The customs authority may, despite anything to the contrary in subsection (1) but subject to section 105, release goods on an assumption that facts and circumstances presented by the person clearing the goods are correct.⁸⁸⁸⁸Release of goods on the assumption that the self-assessment of tax payable on goods is correct does not affect the customs authority’s power to do an assessment after the release. See Chapter 5 of the Customs Duty Act.

(b)Goods may not be released in terms of paragraph (a) if the customs authority is aware of the fact that the presentation of facts and circumstances is incorrect.

(3)A refusal to release goods in terms of subsection (1)(a), (b) or (c) is a ground for the detention of the goods in terms of section 754 if the goods are not already detained on any other ground.

100. When release of goods may be refused⁸⁹

⁸⁹For consequences of refusal to release goods, see section 106.

(1)The customs authority may refuse the release of goods for home use or a customs procedure if such refusal is necessary for—

(a)effectively implementing this Act or a tax levying Act;

(b)preventing abuse of any systems and procedures of this Act or a tax levying Act; or

(c)giving effect to national legislation or policy on—

(i)international trade;

(ii)the protection of public health;

(iii)the protection of the environment; or

(iv)public safety.

(2)A refusal to release goods in terms of subsection (1) is a ground for the detention of the goods in terms of section 754 if the goods are not already detained on any other ground.

101. When release of goods may or must be withheld

(1)The customs authority may withhold the release of goods for home use or a customs procedure until—

(a)a requirement of this Act, a tax levying Act or any other legislation applicable to the goods or the clearance of the goods has been complied with;

(b)any pre-condition imposed in terms of section 103 for the release of the goods has been met;

(c)any tax or any other money payable to the Commissioner in respect of those goods has been paid to the Commissioner; or

(d)any security required for the payment of any such tax or other money in respect of the goods has been provided to the Commissioner.

(2)The customs authority must withhold the release of goods for home use or a customs procedure whilst the goods are detained in terms of—

(a)this Act⁹⁰ or a tax levying Act; or⁹⁰See Chapters 34, 35 and 36 for the detention of goods in terms of this Act, including the conditions for terminating seizures and confiscations.

(b)any other legislation or an order of court and the customs authority has been informed of the detention.

(3)Withholding of the release of goods in terms of subsection (1) is a ground for the detention of the goods in terms of section 754 if the goods are not already detained on any other ground.

102. Release of goods pending technical analysis, expert advice or civil or criminal proceedings

(1)The customs authority may not delay the release of goods cleared for home use or a customs procedure by reason only that—

(a)an inspection of the goods require a technical analysis of, or expert advice on, the goods or any matter relating to the goods;

(b)civil proceedings relating to the goods between the Commissioner and any other person are pending;

(c)an offence involving those goods has allegedly been committed and criminal investigations or proceedings relating to those goods are pending; or

(d)the goods are the subject of proceedings in terms of Chapter 37.

(2)Subsection (1) may not be read as affecting or preventing the implementation of section 99, 100 or 101.

103. Preconditions for release of goods

The customs authority may impose such preconditions for the release of goods for home use or a customs procedure as may be necessary to ensure—

(a)that a provision of this Act, a tax levying Act or any other applicable legislation is complied with;

(b)that any import or export tax payable or that may become payable on the goods is or will be paid; or

(c)the payment of any security that may be required.

104. Conditional release of goods

The release of goods for home use or a customs procedure is subject to such conditions—

(a)as the customs authority may in a specific case impose to ensure compliance with a provision of this Act, a tax levying Act or any other applicable legislation; or

(b)as may be prescribed by rule.

105. When release of goods must or may be withdrawn⁹¹

⁹¹For consequences of withdrawal of a release, see section 106.

(1)The customs authority must withdraw the release of goods for home use or a customs procedure—

(a)if the release given was impermissible in terms of section 99;

(b)if, in the case of a release for a customs procedure, the goods are diverted for home use;

(c)if the goods are seized or confiscated in terms of—

(i)this Act or a tax levying Act; or

(ii)any other legislation or an order of court and the customs authority is informed of the seizure or confiscation; or

(d)in any other circumstances specifically provided for in this Act or a tax levying Act.

(2)The customs authority may withdraw the release of goods for home use or a customs procedure—

(a)if any condition subject to which the goods were released is breached;

(b)if, in the case of a release for a customs procedure, a provision of this Act or a tax levying Act applicable to that procedure is breached;

(c)if withdrawal of the release is necessary for—

(i)effectively implementing this Act or a tax levying Act in relation to those goods;⁹²⁹²Included here are the conditions and requirements contained in the tax levying Acts subject to which goods may be cleared and released for specific customs procedures.

(ii)stopping in relation to those goods any abuse of a system or procedure of this Act or a tax levying Act; or

(iii)giving effect to national legislation or policy on—

(aa)international trade;

(bb)the protection of public health;

(cc)the protection of the environment; or

(dd)public safety;

(d)if the goods are detained in terms of this Act, a tax levying Act, any other legislation or an order of court; or

(e)in any other circumstances specifically provided for in this Act or a tax levying Act.

(3)The release of goods may not be withdrawn in terms of subsection (2) on account of a clearance declaration that is invalid in terms of section 172 if the clearance declaration can be and is validated by an amendment in terms of section 174.

(4)A withdrawal of a release of goods is a ground for the detention of the goods in terms of section 754 if the goods are not already detained on any other ground.

106. Consequences of refusal to release or withdrawal of release of goods

(1)If the customs authority refuses to release goods for home use or a customs procedure in terms of section 99 or 100 or withdraws the release of goods for home use or a customs procedure in terms of section 105, it may, depending on the circumstances, allow the person clearing the goods—⁹³⁹³For person clearing goods, see section 166.

(a)to clear the goods in terms of section 97(1) or (2) for home use or a specific customs procedure that will not render release of the goods subject to a refusal; or

(b)to amend the clearance declaration in terms of section 174 if release of the goods was refused or withdrawn because of a rectifiable error on the clearance declaration.

(2)When allowing a person to clear goods or to amend a clearance declaration in terms of subsection (1), the customs authority may require the goods to be cleared or a clearance declaration to be amended within a period determined by it.

(3)

(a)Any import or export tax paid on the goods as a consequence of a clearance that is replaced in terms of subsection (1)(a) may in accordance with the tax levying Act regulating that tax be refunded to the person who paid that tax if the customs authority in terms of that subsection allows the goods to be cleared for a customs procedure that has a tax free status in relation to such import or export tax.⁹⁴⁹⁴For tax status of goods under the various customs procedures, see Chapter 6.

(b)Paragraph (a) does not apply if the tax levying Act regulating the relevant tax provides otherwise.

(4)This section applies apart from any criminal proceedings that may be instituted, administrative penalty that may be imposed or other step that may be taken by the customs authority in terms of this Act or a tax levying Act if the release was refused or withdrawn because of a breach of this Act or a tax levying Act committed in connection with the goods, which step may include, where not inconsistent with this Act or other applicable legislation or otherwise inappropriate—

(a)applying section 570(2), read with section 580, to the goods;

(b)seizing the goods in terms of Chapter 34;

(c)allowing the person who cleared the goods to abandon the goods to the Commissioner in accordance with Chapter 26;

(d)allowing or directing the person who cleared the goods—

(i)to remove the goods from the Republic, in the case of imported goods; or

(ii)to destroy the goods under supervision of the customs authority or an organ of state designated by the customs authority.

107. Clearance and release substitutions for goods released for home use⁹⁵

⁹⁵See section 97 for clearance substitutions of goods cleared for home use or a customs procedure before release of the goods, and section 174 for amendments to clearance declarations.

(1)Goods that have been released for home use may, despite such release, be cleared and, subject to sections 99 and 100, released for a permissible customs procedure.

(2)Goods that have been released for home use may be cleared and released for a customs procedure in terms of subsection (1) only if the clearance declaration is submitted to and accepted by the customs authority in terms of section 171(1) within 90 calendar days from the date of release of the goods for home use.

(3)A clearance declaration to clear the goods for a customs procedure submitted to and accepted by the customs authority in terms of section 171(1) replaces the home use clearance declaration with effect from the time the home use clearance declaration was originally accepted by the customs authority in terms of that section.⁹⁶⁹⁶If the goods are only partially cleared for a customs procedure, the existing clearance declaration must be amended in terms of section 174(2) to apply to that part of the goods that remain cleared for home use.

(4)If the clearance and release of goods for home use is replaced in terms of subsection (1) the person who paid any import tax on the goods as a consequence of the previous clearance is entitled to a refund subject to the applicable tax levying Act.

108. Effect of release of goods for home use or customs procedures

(1)

(a)Goods unconditionally released for home use become, upon their release, goods in free circulation.

(b)Goods conditionally released for home use become, upon compliance with the condition, goods in free circulation.

(2)Goods released for a customs procedure remain subject to this Act despite the release and may not be dealt with otherwise than in accordance with—

(a)the provisions of this Act or a tax levying Act⁹⁷ applicable to that customs procedure; and⁹⁷For instance, the Customs Tariff prescribes conditions and requirements for certain customs procedures.

(b)any conditions as may be applicable to the goods in terms of section 104.

Part 3 – General principles governing goods under customs procedures

109. Commencement and ending of customs procedures

(1)A customs procedure in relation to goods—

(a)commences when the goods come under that customs procedure; and

(b)ends when that customs procedure is completed,⁹⁸ unless that procedure is interrupted by an occurrence referred to in subsection (2).⁹⁸The time when goods come under a customs procedure and when a customs procedure ends is stated in the Chapter dealing with the specific customs procedure.

(2)A customs procedure in relation to goods ends before its completion if—

(a)the release of the goods for that customs procedure is refused or withdrawn;

(b)the goods are for tax purposes regarded to be cleared for home use in terms of Chapter 8 or for outright export;

(c)the goods revert or are for tax purposes regarded to have reverted to free circulation;

(d)the goods are—

(i)abandoned to the Commissioner;⁹⁹ or⁹⁹See Chapter 26.

(ii)to be destroyed under supervision of the customs authority or an organ of state designated by the customs authority;

(e)the goods are seized or confiscated in terms of this Act, a tax levying Act, any other legislation or an order of court; or

(f)the goods are damaged, destroyed, lost or unaccounted for and the clearance declaration for the goods is withdrawn in terms of Chapter 25.

110. Clearance and release of goods under customs procedures

(1)Goods under a customs procedure may at any time during, or at the completion of, the procedure be cleared for another customs procedure or for home use, as may be permissible in the circumstances.¹⁰⁰¹⁰⁰If the goods are only partially cleared for another customs procedure or for home use, the existing clearance declaration must be amended in terms of section 174(2) to apply to that part of the goods that remain under the existing procedure.

(2)Goods that are cleared in terms of subsection (1) for another customs procedure or for home use acquire a tax status applicable to goods cleared for that customs procedure or for home use, as the case may be.¹⁰¹¹⁰¹For tax status of goods cleared for home use or a customs procedure, see Chapter 6.

(3)Imported goods may not remain under consecutive customs procedures for longer than three years from the date of import or for longer than an extension of that period in terms of section 908.¹⁰²¹⁰²The implication is that imported goods must ultimately be cleared for home use or otherwise dealt with within the three year period.

111. Transfer of ownership of goods under customs procedures

(1)Ownership of goods under a customs procedure may not without the approval of the customs authority be transferred to another person whilst those goods are under that procedure.

(2)An agreement entered into in contravention of subsection (1) is null and void.

(3)Application for approval in terms of subsection (1) must be made to the customs authority—

(a)before the goods are transferred; and

(b)in the form and format as may be prescribed by rule containing the information required on the prescribed form or otherwise prescribed by rule.

(4)The customs authority may not without good reason withhold approval in terms of subsection (1).

(5)If ownership of goods under a customs procedure is transferred with the approval of the customs authority in accordance with subsection (1)—

(a)the transfer does not—

(i)interrupt the continuation of that procedure; or

(ii)affect the tax status conferred on the goods by virtue of that procedure; and

(b)the new owner of the goods or, if only a share in the ownership of the goods has been transferred, the person to whom that share has been transferred—

(i)must be regarded to have cleared the goods or that share for that procedure;

(ii)assumes the obligations of the previous owner or holder of that share;

(iii)must comply with any requirements and conditions applicable to the goods in terms of that procedure; and

(iv)must comply with any conditions imposed by the customs authority in respect of the transfer.

(6)Subsection (5) does not affect the liability of the previous owner or holder of the transferred share of the goods for any import or export tax, penalties or other money owed to the Commissioner on the goods up to the time of transfer of ownership or of the share in ownership.

112. Tax consequences for imported goods under customs procedures in event of non-compliance

(1)Imported goods under a customs procedure must for tax purposes be regarded to be cleared for home use under Chapter 8—¹⁰³¹⁰³For tax implications if goods under a customs procedure are regarded to be cleared for home use under Chapter 8, see section 154.

(a)if the goods are diverted for home use;

(b)if the goods whilst under that procedure are damaged, destroyed, lost or unaccounted for and it is not proved in accordance with Chapter 25—

(i)that the goods were damaged, destroyed, lost or unaccounted for due to a recognised cause;¹⁰⁴ or¹⁰⁴See definition of “recognised cause” in section 1.

(ii)in the case of goods lost due to a recognised cause, that the goods, after having been lost, have not gone into home use in any way; or

(c)in any other circumstances specifically provided for in this Act or a tax levying Act.

(2)The customs authority may direct that imported goods under a customs procedure must for tax purposes be regarded to be cleared for home use under Chapter 8—

(a)if a provision of this Act or a tax levying Act applicable to customs procedures generally or to that specific customs procedure is breached in respect of those goods; or

(b)if a condition of the licence of any premises used for the purpose of carrying out that customs procedure is breached in respect of those goods.

(3)When applying subsection (1) or (2) to imported goods under a customs procedure in circumstances where the ground for regarding the imported goods to be cleared for home use under Chapter 8 pertains only to a part of those imported goods, only that part of the imported goods must in terms of that subsection be regarded to be cleared for home use.¹⁰⁵¹⁰⁵For the equivalent provision in relation to compensating products obtained from imported goods under inward processing, see section 430(3).

113. Tax consequences for free circulation goods under customs procedures in event of non-compliance

(1)Goods under a customs procedure that were in free circulation when the goods came under that procedure must for tax purposes be regarded to have reverted to free circulation—¹⁰⁶¹⁰⁶For tax implications if goods are regarded as having reverted to free circulation, see section 161.

(a)if the goods are diverted for home use;

(b)if the goods whilst under that procedure are damaged, destroyed, lost or unaccounted for and it is not proved in accordance with Chapter 25—

(i)that the goods were damaged, destroyed, lost or unaccounted for due to a recognised cause;¹⁰⁷ or¹⁰⁷See definition of “recognised cause” in section 1.

(ii)in the case of goods lost due to a recognised cause, that the goods, after having been lost, have not gone into home use in any way; or

(c)in any other circumstances specifically provided for in this Act or a tax levying Act.

(2)The customs authority may direct that goods under a customs procedure that were in free circulation when the goods came under that procedure must for tax purposes be regarded to have reverted to free circulation—

(a)if a provision of this Act or a tax levying Act applicable to customs procedures generally or to that specific customs procedure is breached in respect of those goods; or

(b)if a condition of the licence of any premises used for the purpose of carrying out that customs procedure is breached in respect of those goods.

(3)When applying subsection (1) or (2) to goods under a customs procedure in circumstances where the ground for regarding the goods to have reverted to free circulation pertains only to a part of those goods, only that part of the goods must in terms of that subsection be regarded to have reverted to free circulation.

114. Tax consequences for goods exported under customs procedures in event of non-compliance

(1)The customs authority may direct that goods exported under a customs procedure must for tax purposes be regarded to be cleared for outright export¹⁰⁸ if a provision of this Act or a tax levying Act applicable to customs procedures generally or to that specific customs procedure is breached in respect of those goods.¹⁰⁸For tax implications if goods are regarded to be cleared for outright export, see section 159.

(2)When applying subsection (1) to goods exported under a customs procedure in circumstances where the ground for regarding the exported goods to be cleared for outright export pertains only to a part of those exported goods, only that part of the exported goods must in terms of that subsection be regarded to be cleared for outright export.¹⁰⁹¹⁰⁹For the equivalent provision in relation to compensating products obtained from goods exported under outward processing procedure, see section 472.

(3)This section may not be read as affecting the application of section 112 or 113 in relation to goods under a customs procedure.

115. Other consequences of non-compliance with provisions applicable to customs procedures

Section 112, 113 or 114 applies apart from any criminal proceedings that may be instituted, administrative penalty that may be imposed or any other step that may be taken by the customs authority in terms of this Act for a breach of a provision applicable to customs procedures generally or to the relevant customs procedure, which may include, where not inconsistent with this Act or other applicable legislation or otherwise inappropriate—

(a)withdrawing the release of the goods for the relevant customs procedure in terms of section 105;

(b)demanding that the goods immediately be cleared for home use under Chapter 8, in the case of imported goods;

(c)applying section 570(2), read with section 580, to the goods;

(d)seizing the goods in terms of Chapter 35;

(e)allowing the person who cleared the goods to abandon the goods to the Commissioner in accordance with Chapter 26; or

(f)allowing or directing the person who cleared the goods to—

(i)continue applying the relevant customs procedure to the goods but subject to such conditions as the customs authority may determine;

(ii)remove the goods from the Republic, in the case of imported goods; or

(iii)destroy the goods under supervision of the customs authority or an organ of state designated by the customs authority.

Part 4 – Other matters

116. Keeping of records

(1)A person carrying on a business in the Republic as may be specified by rule must for purposes of this Act and any tax levying Act keep such records relating to that business and transactions and in such form, as may be prescribed by rule or as the customs authority may require in a specific case.

(2)A person referred to in subsection (1) must on request by a customs officer produce, in a manner and form as may be prescribed by rule, any records referred to in subsection (1), or any information contained in such records, which the customs officer may require for enforcing this Act or a tax levying Act.

117. Rules to facilitate implementation of this Chapter

Rules made in terms of section 903 to facilitate the implementation of this Chapter may include rules prescribing—

(a)any general conditions applicable to an exclusion referred to in section 91 or 95, the circumstances in which the customs authority may withdraw any such exclusion in the case of specific goods or goods imported or to be exported by a specific person, and procedures for the withdrawal of any such exclusion;

(b)the circumstances in and the conditions on which section 97, 107 or 110 may be applied;

(c)measures aimed at ensuring the expeditious customs processing of clearance declarations;

(d)notification procedures when the release of goods for home use or a customs procedure has been refused or withdrawn;

(e)documents and other methods to prove that goods fall within an excluded category listed in section 91 or 95; and

(f)documents on authority of which goods that fall within an excluded category listed in section 91 or 95 may be claimed and removed.

118. Offences in terms of this Chapter

(1)An importer of goods to which section 89 applies, or, if the importer is not located in the Republic, the importer’s agent in the Republic, is guilty of an offence if—

(a)no clearance declaration to clear the goods for home use or a customs procedure in compliance with that section is submitted to the customs authority; or

(b)a clearance declaration is submitted but not within the timeframes or at the time required by section 90(1) or (3).

(2)An exporter of goods to which section 93 applies, or, if the exporter is not located in the Republic, the exporter’s agent in the Republic, is guilty of an offence if—

(a)no clearance declaration to clear the goods for export in compliance with that section is submitted to the customs authority; or

(b)a clearance declaration is submitted but not within the timeframes or at the time required by section 94.

(3)A person is guilty of an offence if that person—

(a)contravenes section 111(1) or fails to comply with section 116(1);

(b)contravenes or fails to comply with a condition imposed in terms of section 104; or

(c)fails to comply with a request issued in terms of section 116(2) or a direction issued in terms of section 115(f).

(4)The offences referred to in subsections (1)(a) and (2)(a) are Category 1 offences.

Chapter 5
General principles governing transport, sealing and loading of goods

119. Purpose and application of this Chapter

(1)The purpose of this Chapter is to determine general principles governing—

(a)the transport of goods not in free circulation;

(b)the sealing of containers, vehicles and packages;

(c)the loading and off-loading of goods destined for export; and

(d)the transfer of goods—

(i)between vessels;

(ii)between vehicles; and

(iii)between containers.

(2)This Chapter applies subject to any other provision of this Act applicable specifically to the transport, sealing, loading, off-loading or transfer of goods under a particular customs procedure, and in the event of any inconsistency between a provision of this Chapter and such other provision of this Act that other provision prevails.

Part 1 – Transport of goods not in free circulation

120. Application of this Part

(1)This Part applies to the transport of all goods not in free circulation except the following categories of goods:

(a)Goods transported on board a foreign-going vessel or aircraft from—

(i)the place where the vessel or aircraft entered the Republic to the customs seaport or airport where the goods are off-loaded;

(ii)the place where the vessel or aircraft entered the Republic to the place where the vessel or aircraft leaves the Republic, if the goods are not off-loaded in the Republic; or

(iii)the customs seaport or airport where the goods were loaded on board the vessel or aircraft for export from the Republic to the place where the vessel or aircraft leaves the Republic;

(b)goods transported on board a cross-border railway carriage from—

(i)the place of entry where the railway carriage entered the Republic to the rail cargo terminal where the goods are off-loaded;

(ii)the rail cargo terminal where the goods were loaded on board the railway carriage for export from the Republic to the place of exit where the railway carriage leaves the Republic; or

(iii)the place of entry where the railway carriage entered the Republic to the place of exit where the railway carriage leaves the Republic, if the goods were not off-loaded in the Republic;

(c)goods transported between terminals and depots served by the same Customs Office;

(d)goods transported in accordance with a direction issued or permission granted by the customs authority in terms of a provision of this Act or a tax levying Act and the goods are transported in accordance with the requirements and conditions of the direction or permission; or¹¹⁰¹¹⁰For issuing directions and permissions subject to conditions, see section 918.

(e)goods transported in accordance with an obligatory provision of this Act or a tax levying Act.¹¹¹¹¹¹See for instance section 570(1).

(2)Subsection (1) may not be read as affecting the cargo reporting requirements contained in Chapter 3.

121. Goods not in free circulation to be transported only under customs procedures

Goods not in free circulation may be transported in or through the Republic only—

(a)under a customs procedure that provides for or allows the transport of goods under that procedure; and

(b)in accordance with the provisions of this Act applicable to such transport.

122. Persons permitted to transport goods not in free circulation

Goods not in free circulation may be transported only by—

(a)a licensed carrier;

(b)a carrier represented in the Republic by a registered agent, if the carrier is not located in the Republic; or

(c)any other person permitted in terms of the customs procedure under which the goods are transported, to transport goods under that procedure.

123. Measures to ensure integrity of transport of goods not in free circulation

(1)The customs authority may in addition to its other enforcement functions,¹¹² take any steps or issue any directions necessary to guard against any unauthorised interference when goods not in free circulation are transported, including by—¹¹²See Chapter 33.

(a)pre-approving the vehicle or container in which the goods are to be transported;

(b)marking or sealing the holding compartment of the vehicle or the container;

(c)stipulating the mode of transport;

(d)stipulating the route to be followed;

(e)stipulating the specific place to which the goods must be delivered;

(f)requiring the provision of security in terms of Chapter 31 or any security additional to security already given in terms of that Chapter;

(g)shortening any applicable time limits within which the transport of the goods must commence and be completed; or

(h)requiring that the goods be transported under supervision of a customs escort.

(2)Any steps taken or directions issued by the customs authority in terms of subsection (1) are subject to such conditions or requirements as—

(a)may be prescribed by rule; or

(b)the customs authority may determine in a specific case.

124. Transport of goods not in free circulation with other goods in same vehicle

Goods not in free circulation may be transported on the same vehicle with goods in free circulation only in accordance with any requirements as may be prescribed by rule or as the customs authority may permit in a specific case.

125. Accidents and other unforeseen events

(1)The carrier or other person transporting goods not in free circulation must promptly report to the customs authority electronically in accordance with section 913 any breakdown, accident or other unforeseen event occurring in the course of transporting the goods which compromises the integrity of the goods or the transport of the goods.

(2)If the integrity of the goods or the transport of the goods is compromised by an event referred to in subsection (1), the carrier or other person transporting the goods must comply with any directions issued by the customs authority.¹¹³¹¹³If goods are damaged, destroyed or lost due to an accident or other occurrence, Chapter 25 becomes applicable.

Part 2 – Sealing, loading, off-loading and transfer of goods

126. Seals and sealing of containers, vehicles and packages

(1)A container, the holding compartment of a vehicle capable of being closed, a road tanker and any package as may be specified by rule, which contains goods not in free circulation, must have such security seals affixed thereto or be otherwise secured by such fastenings and in such manner and in compliance with such standards or other specifications, as may be prescribed by rule.

(2)Such seals or fastenings must be supplied and affixed by and at the risk and expense of a person as may be prescribed by rule.

127. Loading of goods destined for export on foreign-going vessels and aircraft and cross-border railway carriages¹¹⁴

¹¹⁴Section 39 applies to vehicles and goods on board vehicles passing through land border-posts out of the Republic.

(1)No goods destined for export from the Republic may be loaded on board a foreign-going vessel, foreign-going aircraft or cross-border railway carriage in which the goods are to be exported unless the goods are—

(a)cleared and released for export in terms of the export procedure; or

(b)to be exported under a customs procedure that allows the export of goods under that procedure without any separate export clearance.¹¹⁵¹¹⁵The following customs procedures allow the export of goods under that procedure without separate export clearance:(a)the international transit procedure in terms of Chapter 9;(b)the transhipment procedure in terms of Chapter 11;(c)the tax free shop procedure in terms of Chapter 14; and(d)the stores procedure in terms of Chapter 15.

(2)Subsection (1) does not apply to goods falling within a category of goods excluded in terms of section 95 from export clearance requirements.

128. Off-loading of goods destined for export from foreign-going vessels and aircraft, cross-border railway carriages and trucks before export

(1)Goods cleared and released for export in terms of the export procedure or that are to be exported under a customs procedure that allows the export of goods under that procedure without any separate export clearance, may, once loaded on board a foreign-going vessel or aircraft, cross-border railway carriage or truck in which the goods are to be exported from the Republic, not be off-loaded or transferred to another mode of transport in the Republic except—

(a)in accordance with the provisions regulating that customs procedure; or

(b)with the permission of the customs authority.

(2)Subsection (1) does not apply to—

(a)a class or kind or other category of goods as may be excluded by rule from subsection (1); or

(b)goods as may be exempted by the customs authority from that subsection in a specific case.

129. Transfer of goods between vessels

(1)No goods may be transferred from a foreign-going vessel to another foreign-going vessel or to a domestic vessel except—

(a)under a customs procedure that allows such transfer,¹¹⁶ if the goods are not in free circulation; or¹¹⁶Eg. Transhipment.

(b)with the permission of the customs authority, if the goods are in free circulation.

(2)No goods may be transferred from a domestic vessel to a foreign-going vessel except—

(a)under a customs procedure that allows such transfer,¹¹⁷ if the goods are not in free circulation; or¹¹⁷Eg. Coastwise carriage and delivery of goods under international transit.

(b)with the permission of the customs authority, if the goods are in free circulation.

(3)Subsections (1) and (2) do not apply to—

(a)any class or kind or other category of goods as may be excluded by rule from subsection (1) or (2); or

(b)any specific goods as may be exempted by the customs authority from subsection (1) or (2) in a specific case.

130. Transfer of goods between vehicles or containers

(1)Once the transport of goods that are not in free circulation has commenced the goods may only with the permission of the customs authority and only in accordance with any requirements or conditions as may be prescribed by rule be transferred from the vehicle or container in which the goods are transported to another vehicle or container.

(2)Permission in terms of subsection (1) may be given only in the case of a breakdown, accident or other circumstances as may be prescribed by rule.

Part 3 – Other matters

131. Rules to facilitate implementation of this Chapter

Rules made in terms of section 903 to facilitate the implementation of this Chapter may include rules—

(a)regarding—

(i)the keeping and affixing of security seals to goods, containers, packages, vehicles or any part of a vehicle, or the securing of goods by other fastenings; and

(ii)the recording of seal numbers; and

(b)specifying records to be kept of the inspection of seals or fastenings, and the circumstances in which, and the requirements that must be met when seals or fastenings are replaced.

132. Offences in terms of this Chapter

(1)A person is guilty of an offence—

(a)if that person contravenes section 121, 122, 127(1), 128(1) or 129(1) or (2);

(b)if section 124 is contravened or not complied with in respect of the transport of goods not in free circulation; or

(c)if a direction issued or a condition imposed in terms of section 123(1) is contravened or not complied with in respect of the transport of goods not in free circulation.

(2)A person transporting goods not in free circulation is guilty of an offence if the goods are not transported in accordance with any steps taken or directions issued by the customs authority in terms of section 123.

(3)A person referred to in section 126(2) is guilty of an offence if that person fails to comply with subsection (1) of that section.

(4)The offence referred to in subsection (1)(c) or (2) is a Category 1 offence.

Chapter 6
Tax status of goods

133. Purpose and application of this Chapter

(1)The purpose of this Chapter is to confer for purposes of any applicable tax levying Act a tax status on goods—

(a)when the goods—

(i)are cleared for home use; or

(ii)are cleared for a customs procedure or otherwise come under a customs procedure;

(b)whilst the goods are under a customs procedure; or

(c)if the goods are regarded to be cleared for home use or outright export.

(2)

(a)A tax status conferred on goods in terms of this Chapter applies to the goods only if, or to the extent, not provided otherwise in a tax levying Act regulating any relevant tax on those goods.

(b)If a tax levying Act in relation to the tax regulated by that Act limits or qualifies the extent of the tax status conferred on goods in terms of this Chapter, the tax status conferred in this Chapter applies to the goods in relation to that tax only to the extent as so limited or qualified in that tax levying Act.

(c)In the event of any inconsistency between this Chapter and a provision of a tax levying Act, the provision of the tax levying Act prevails.

134. Legal effect of tax status

(1)A tax due status conferred in terms of this Chapter on goods in relation to import or export tax indicates that import or export tax—

(a)is payable on the goods if the goods are of a class or kind on which import or export tax has been imposed in terms of a tax levying Act; or

(b)will become payable on the goods if import or export tax is imposed in terms of a tax levying Act on goods of that class or kind.

(2)A tax free status conferred in terms of this Chapter on goods in relation to import tax, export tax or domestic tax indicates that whilst the goods have such a tax free status no import, export or domestic tax—

(a)that have been imposed in terms of a tax levying Act on goods of that type or kind is payable on the goods; or

(b)that may be imposed in terms of a tax levying Act on goods of that type or kind will be payable on the goods.

(3)A tax refundable status conferred in terms of this Chapter on goods in relation to domestic tax¹¹⁸ indicates that domestic tax paid on the goods may be refundable subject to and in accordance with the applicable tax levying Act.¹¹⁸For instance tax such as VAT and excise duty paid on goods whilst in free circulation.

Part 1 – Goods formally cleared

135. Tax status of goods cleared for home use under Chapter 8¹¹⁹

¹¹⁹This section only applies to goods cleared for home use under Chapter 8. Goods cleared for home use under a customs procedure, such as re-imported unaltered goods under the temporary export procedure, have a tax status applicable to the relevant customs procedure. See section 187(2).

(1)Goods imported into the Republic acquire, subject to section 133(2), a tax due status in relation to import tax if, and from the time, the goods are cleared for home use under Chapter 8.¹²⁰¹²⁰See section 173 for time when goods are cleared.

(2)Any import tax on imported goods that acquire a tax due status in terms of subsection (1) becomes payable at such time and by such person or persons as determined in terms of the tax levying Act regulating the relevant import tax.

136. Tax status of goods in free circulation cleared for outright export

(1)Goods in free circulation destined for outright export acquire, subject to section 133(2), a tax due status in relation to export tax and a tax refundable status in relation to any domestic tax paid on the goods, as from the time the goods are cleared for outright export.¹²¹¹²¹See section 173 for time when goods are cleared.

(2)Any export tax on goods that acquire a tax due status in terms of subsection (1) becomes payable at such time and by such person or persons as determined in terms of the tax levying Act regulating the relevant export tax.

(3)Any domestic tax paid on goods before the goods acquired a tax refundable status in terms of subsection (1) may be recovered from the Commissioner subject to and in accordance with the tax levying Act regulating the relevant domestic tax.

137. Tax status of imported goods not in free circulation cleared for outright export

(1)Imported goods not in free circulation destined for outright export¹²² acquire, subject to section 133(2), as from the time the goods are cleared for outright export¹²³—¹²²Definition of “outright export” excludes goods exported under specific customs procedures such as temporary export, exports under the stores procedure, etc. This section will accordingly apply to goods such as warehoused goods that are outright exported, or where goods are exported on instruction of the customs authority, etc.¹²³See section 173 for time when goods are cleared.

(a)a tax due status in relation to export tax; and

(b)a tax refundable status in relation to import tax.

(2)

(a)Any export tax on goods that acquire a tax due status in terms of subsection (1)(a) becomes payable at such time and by such person or persons as determined in terms of the tax levying Act regulating the relevant export tax.

(b)Any import tax paid on the imported goods before the goods acquired a tax refundable status in terms of subsection (1)(b) may be recovered from the Commissioner subject to and in accordance with the tax levying Act regulating the relevant import tax.

138. Tax status of goods manufactured in excise warehouses cleared for outright export

(1)Manufactured products destined for outright export which were obtained from manufacturing processes in excise warehouses in which imported goods were used or in which both such imported goods and goods that were in free circulation before they were delivered to the warehouse were used, acquire, subject to section 133(2), as from the time the goods are cleared for outright export¹²⁴—¹²⁴See section 173 for time when goods are cleared.

(a)a tax due status in relation to export tax;

(b)a tax refundable status in relation to any import tax paid on those imported goods; and

(c)if applicable, a tax refundable status in relation to any domestic tax paid on those other goods that were in free circulation before they were delivered to the warehouse.

(2)

(a)Any export tax on manufactured products that acquire a tax due status in terms of subsection (1)(a) becomes payable at such time and by such person or persons as determined in terms of the tax levying Act regulating the relevant export tax.

(b)Any import tax paid on the imported goods referred to in subsection (1)(b) before the manufactured products acquired a tax refundable status in terms of that subsection in relation to import tax, may be recovered from the Commissioner subject to and in accordance with the tax levying Act regulating the relevant import tax.

(c)Any domestic tax paid on the goods referred to in subsection (1)(c) before the manufactured products acquired a tax refundable status in terms of that subsection in relation to domestic tax, may be recovered from the Commissioner subject to and in accordance with the tax levying Act regulating the relevant domestic tax.

(3)Manufactured products destined for outright export which were obtained from manufacturing processes in excise warehouses in which no imported goods were used, acquire, subject to section 133(2), as from the time the goods are cleared for outright export—

(a)a tax due status in relation to export tax; and

(b)a tax refundable status in relation to any domestic tax paid on the goods used in the manufacture of those products.

(4)

(a)Any export tax on manufactured products that acquire a tax due status in terms of subsection (3)(a) becomes payable at such time and by such person or persons as determined in terms of the tax levying Act regulating the relevant export tax.

(b)Any domestic tax paid on goods used in the manufacture of the manufactured products before those products acquired a tax refundable status in terms of subsection (3)(b) may be recovered from the Commissioner subject to and in accordance with the tax levying Act regulating the relevant domestic tax.

139. Tax status of goods under national transit procedure

The national transit procedure confers, subject to section 133(2), a tax free status in relation to import tax on goods under that procedure and no import tax is payable on goods when cleared for¹²⁵ and whilst under that procedure.¹²⁵See section 173 for time when goods are cleared.

140. Tax status of goods under international transit procedure

(1)The international transit procedure confers, subject to section 133(2), a tax free status in relation to import tax and export tax on goods under that procedure.

(2)In terms of such tax free status—

(a)no import tax is payable on goods when cleared for¹²⁶ and whilst under the international transit procedure; and¹²⁶See section 173 for time when goods are cleared.

(b)no export tax is payable on goods when exported under that procedure.

141. Tax status of goods under excise warehouse transit procedure

(1)The excise warehouse transit procedure confers, subject to section 133(2)—

(a)a tax free status in relation to a duty or levy in terms of the Excise Duty Act on goods under that procedure; and

(b)a tax due status in relation to any other import tax on goods under that procedure.

(2)Any import tax on imported goods that acquire a tax due status in terms of subsection (1)(b) becomes payable at such time and by such person or persons as determined in terms of the tax levying Act regulating the relevant import tax.

142. Tax status of goods under transhipment procedure

(1)The transhipment procedure confers, subject to section 133(2), a tax free status in relation to import tax and export tax on goods under that procedure.

(2)In terms of such tax free status—

(a)no import tax is payable on goods when cleared for¹²⁷ and whilst under the transhipment procedure; and¹²⁷See section 173 for time when goods are cleared.

(b)no export tax is payable on goods when exported under that procedure.

143. Tax status of goods under temporary admission procedure

(1)The temporary admission procedure confers, subject to section 133(2), a tax free status in relation to import tax and export tax on goods under that procedure.

(2)In terms of the tax free status referred to in subsection (1)—

(a)no import tax is payable on goods—

(i)when cleared for¹²⁸ the temporary admission procedure;¹²⁸See section 173 for time when goods are cleared.

(ii)which automatically come under that procedure when entering the Republic; and

(iii)whilst the goods are under that procedure; and

(b)no export tax is payable on goods referred to in—

(i)paragraph (a)(i) when cleared for export under the outbound leg of that procedure; or

(ii)paragraph (a)(ii) when those goods leave the Republic under the outbound leg of that procedure.

144. Tax status of imported goods under warehousing procedure

The warehousing procedure confers, subject to section 133(2), a tax free status in relation to import tax on goods under that procedure, and no import tax is payable on goods when cleared for¹²⁹ and whilst under that procedure.¹²⁹See section 173 for time when goods are cleared.

145. Tax status of goods under tax free shop procedure

(1)The tax free shop procedure confers, subject to section 133(2)—

(a)a tax free status in relation to import tax, export tax and domestic tax; and

(b)a tax refundable status in relation to domestic tax paid on goods that were in free circulation before the goods came under that procedure.

(2)In terms of the tax free status referred to in subsection (1)—

(a)no import tax is payable on imported goods when cleared for¹³⁰ and whilst under the tax free shop procedure;¹³⁰See section 173 for time when goods are cleared.

(b)no domestic tax is payable on goods referred to in paragraph (a) or that were in free circulation before they came under that procedure, when those goods are sold whilst under and in accordance with that procedure; and

(c)no export tax is payable on goods referred to in paragraph (b) when exported under that procedure.

(3)In terms of the tax refundable status referred to in subsection (1) any domestic tax paid on goods that were in free circulation before they came under the tax free shop procedure may be recovered from the Commissioner subject to and in accordance with the tax levying Act regulating the relevant domestic tax.¹³¹¹³¹Goods in free circulation can be supplied to a tax free shop without any clearance and release requirements, but once supplied come under the tax free shop procedure and acquire a tax free status.

146. Tax status of goods under stores procedure

(1)The stores procedure confers, subject to section 133(2)—

(a)a tax free status in relation to import tax, domestic tax and export tax; and

(b)a tax refundable status in relation to domestic tax paid on goods that were in free circulation before the goods came under that procedure.

(2)In terms of the tax free status referred to in subsection (1), except where provided otherwise in this Act¹³²—¹³²See for instance section 349.

(a)no import tax is payable on imported goods—

(i)when cleared for¹³³ the stores procedure;¹³³See section 173 for time when goods are cleared.

(ii)which automatically come under that procedure when entering the Republic; and

(iii)whilst under that procedure; and

(b)no export tax is payable on goods exported under that procedure.

(3)In terms of the tax refundable status referred to in subsection (1) any domestic tax paid on goods that were in free circulation before they came under the stores procedure may be recovered from the Commissioner subject to and in accordance with the tax levying Act regulating the relevant domestic tax.

147. Tax status of goods under temporary export procedure

(1)Goods under the temporary export procedure acquire, subject to section 133(2), a tax free status in relation to export tax and import tax as from the time the goods are cleared for that procedure¹³⁴ or otherwise come under that procedure.¹³⁴See section 173 for time when goods are cleared.

(2)In terms of the tax free status referred to in subsection (1)—

(a)no export tax is payable on goods—

(i)when cleared for and whilst under the temporary export procedure; or

(ii)which automatically come under that procedure when the goods leave the Republic;

(b)no import tax is payable on goods referred to in—

(i)paragraph (a)(i) when those goods are cleared under the inbound leg of that procedure as re-imported unaltered goods for home use subject to subsection (3); or

(ii)paragraph (a)(ii) when those goods return to the Republic under the inbound leg of that procedure;¹³⁵ and¹³⁵This applies to means of transport and reusable transport equipment in free circulation before leaving the Republic on the outbound leg of the procedure. See Part 5 of Chapter 17.

(c)any export tax paid on exported goods cleared for outright export may be recovered from the Commissioner if those goods are returned to the Republic and cleared and released under the temporary export procedure as re-imported unaltered goods for home use

(3)Subsection (2)(b) does not affect liability for unpaid import tax on imported goods exported under the temporary export procedure or exported under the export procedure and subsequently cleared for temporary export, When such goods are returned to the Republic on the inbound leg of that procedure, any unpaid import tax on the initial import of the goods becomes payable when the goods are cleared as unaltered goods for home use.

148. Tax status of goods under inward processing procedure

(1)

(a)Imported goods destined for inward processing acquire, subject to section 133(2), a tax due status in relation to import tax as from the time the goods are cleared for the inward processing procedure.¹³⁶¹³⁶See section 173 for time when goods are cleared.

(b)Any import tax on imported goods that acquire a tax due status in terms of paragraph (a) becomes payable at such time and by such person or persons as determined in terms of the tax levying Act regulating the relevant import tax.

(2)Inward processed compensating products obtained from the processing of imported goods under the inward processing procedure have a tax free status in relation to export tax, and no export tax is payable on such products when cleared for export under the inward processing procedure as inward processed compensating products.

149. Tax status of goods under home use processing procedure

(1)

(a)Imported goods destined for home use processing acquire, subject to section 133(2), a tax due status in relation to import tax as from the time the goods are cleared for the home use processing procedure.¹³⁷¹³⁷See section 173 for time when goods are cleared.

(2)Home use compensating products obtained from the processing of imported goods under home use processing have a tax status applicable to goods in free circulation when becoming goods in free circulation in terms of section 445.

150. Tax status of goods under outward processing procedure

(1)

(a)Goods in free circulation destined for export under the outward processing procedure acquire, subject to section 133(2), a tax due status in relation to export tax as from the time the goods are cleared for the outward processing procedure.¹³⁸¹³⁸See section 173 for time when goods are cleared

(b)Any export tax on goods in free circulation that are cleared for outward processing becomes payable at such time and by such person or persons as determined in terms of the tax levying Act regulating the relevant export tax.

(2)

(a)Outward processed compensating products obtained from the processing of goods under the outward processing procedure acquire, subject to section 133(2), a tax due status in relation to import tax as from the time the goods are cleared for home use under the outward processing procedure as outward processed compensating products.¹³⁹¹³⁹See section 173 for time when goods are cleared.

(b)Any import tax on imported goods that are cleared for home use under the outward processing procedure as outward processed compensating products becomes payable at such time and by such person or persons as determined in terms of the tax levying Act regulating the relevant import tax.

151. Duration of tax status conferred by customs procedures

(1)The tax status conferred on goods by a customs procedure applies for as long as the goods are under that customs procedure.

(2)When goods under a specific customs procedure are—

(a)cleared and released for another customs procedure, the goods acquire a tax status applicable to that other customs procedure as from the time the goods are cleared for that other procedure; or

(b)cleared for home use under Chapter 8, the goods acquire a tax status applicable to home use under that Chapter as from the time the goods are cleared for home use.

Part 2 – Goods regarded to be cleared for home use

152. Tax status of goods imported or off-loaded otherwise than through or at places of entry

(1)If goods imported into the Republic, including any foreign-going vessel or aircraft, cross-border train or railway carriage or vehicle entering the Republic, are in terms of section 42 regarded for tax purposes to be cleared for home use under Chapter 8, those goods acquire a tax due status in relation to import tax as from—

(a)the date of import; or

(b)a date determined by the customs authority if the date of import for any reason cannot be determined.

(2)Any import tax¹⁴⁰ that would have been payable on the goods referred to in subsection (1) had the goods actually been cleared for home use under Chapter 8 on the date applied to the goods in terms of that subsection, becomes payable in respect of those goods at such rate,¹⁴¹ at such time and by such person or persons as may be determined in terms of the applicable tax levying Act.¹⁴²¹⁴⁰See for instance section 84 of the Customs Duty Act for assessment of duties on goods regarded to be cleared for home use¹⁴¹See for instance section 81(1)(b) of the Customs Duty Act.¹⁴²See for instance section 28 of the Customs Duty Act for persons liable for duties on goods in these circumstances.

153. Tax status of non-cleared imported goods

(1)If goods imported into the Republic are in terms of section 92(1) regarded for tax purposes to be cleared for home use under Chapter 8, those goods acquire a tax due status in relation to import tax as from—

(a)the date on which the applicable period for submission of a clearance declaration in respect of the goods expired in terms of section 90(1) or (3) or on which the clearance declaration had to be submitted in terms of that section; or

(b)a date determined by the customs authority if the date referred to in paragraph (a) for any reason cannot be determined.

(2)Any import tax¹⁴³ that would have been payable on the goods referred to in subsection (1) had the goods actually been cleared for home use under Chapter 8 on the date applied to the goods in terms of that subsection, becomes payable in respect of those goods at such rate,¹⁴⁴ at such time and by such person or persons as may be determined in terms of the applicable tax levying Act.¹⁴⁵¹⁴³See for instance section 84 of the Customs Duty Act for assessment of duties on goods regarded to be cleared for home use.¹⁴⁴See for instance section 81(1)(b) of the Customs Duty Act¹⁴⁵See for instance section 31 of the Customs Duty Act for persons liable for duties on goods in these circumstances.

154. Tax status of goods under customs procedures regarded to be cleared for home use

(1)If goods under a customs procedure are in terms of section 112 regarded for tax purposes to be cleared for home use under Chapter 8 those goods lose the tax status they had under that customs procedure and acquire a tax due status in relation to import tax as from the date on which those goods were cleared for, or otherwise came under, that customs procedure.

(2)Any import tax¹⁴⁶ that would have been payable on the goods referred to in subsection (1) had the goods actually been cleared for home use under Chapter 8 on the date referred to in that subsection, becomes payable in respect of those goods at such rate,¹⁴⁷ at such time and by such person or persons as may be determined in terms of the applicable tax levying Act.¹⁴⁸¹⁴⁶See for instance section 84 of the Customs Duty Act for assessment of duties on goods regarded to be cleared for home use.¹⁴⁷See for instance section 81(1)(b) of the Customs Duty Act.¹⁴⁸See for instance sections 30 and 31 of the Customs Duty Act for persons liable for duties on goods in these circumstances.

155. Tax status of samples drawn from imported goods

(1)Samples drawn from imported goods to which section 89 applies and which are in terms of section 514 regarded for tax purposes to be cleared for home use under Chapter 8, acquire a tax due status in relation to import tax as from the date when those samples are taken.

(2)Any import tax that would have been payable on samples drawn from goods referred to in subsection (1) had the samples actually been cleared for home use under Chapter 8 on the date referred to in that subsection, must be paid—

(a)on demand; and

(b)by the person who took the samples.

156. Goods regarded for tax purposes to be cleared for home use not to be treated as goods cleared for home use

(1)If any goods are in terms of a provision of this Act regarded for tax purposes to be cleared for home use under Chapter 8, the goods may not be dealt with or released as if the goods were actually cleared for home use, but the customs authority may allow or direct the importer of the goods to formally clear the goods for home use within a period determined by the customs authority.

(2)The customs authority may not in terms of subsection (1) allow or direct goods to be cleared for home use where such clearance will be inconsistent with this Act¹⁴⁹ or other applicable legislation.¹⁵⁰¹⁴⁹For instance where the goods have been seized or abandoned to the Commissioner or where section 570(1) or (2), read with section 580, is applied to the goods.¹⁵⁰For instance legislation applicable to prohibited, restricted or sectorally controlled goods.

Part 3 – Goods regarded to be cleared for outright export

157. Tax status of goods exported or loaded for export otherwise than through or at places of exit

(1)If goods in the process of being exported, or exported, from the Republic, including any foreign-going vessel or aircraft, cross-border train or railway carriage or vehicle leaving or which has left the Republic, are in terms of section 42 regarded for tax purposes to be cleared for outright export, those goods acquire a tax due status in relation to export tax as from—

(a)a date five calendar days before the date of export of the goods, if the goods have been exported; or

(b)a date determined by the customs authority—

(i)if the date referred to in paragraph (a) for any reason cannot be determined; or

(ii)if the goods are still in the process of being exported.

(2)Any export tax¹⁵¹ that would have been payable on the goods referred to in subsection (1) had the goods actually been cleared for outright export on the date applied to the goods in terms of that subsection, becomes payable in respect of those goods at such rate,¹⁵² at such time and by such person or persons as may be determined in terms of the applicable tax levying Act.¹⁵³¹⁵¹See for instance section 84 of the Customs Duty Act for assessment of duties on goods regarded to be cleared for outright export.¹⁵²See for instance section 81(2)(b) of the Customs Duty Act.¹⁵³See for instance section 33 of the Customs Duty Act for persons liable for duties on goods in these circumstances.

158. Tax status of goods exported without clearance

(1)If goods exported, or in the process of being exported, from the Republic are in terms of section 96(1) regarded for tax purposes to be cleared for outright export, those goods acquire a tax due status in relation to export tax as from a date determined by the customs authority.

(2)Any export tax¹⁵⁴ that would have been payable on the goods referred to in subsection (1) had the goods actually been cleared for outright export on the date applied to the goods in terms of that subsection, becomes payable in respect of those goods at such rate,¹⁵⁵ at such time and by such person or persons as may be determined in terms of the applicable tax levying Act.¹⁵⁶¹⁵⁴See for instance section 84 of the Customs Duty Act for assessment of duties on goods regarded to be cleared for outright export.¹⁵⁵See for instance section 81(2)(b) of the Customs Duty Act.¹⁵⁶See for instance section 34 of the Customs Duty Act for persons liable for duties on goods in these circumstances.

159. Tax status of goods under customs procedures regarded to be cleared for outright export

(1)If goods were, or are being exported, from the Republic under a customs procedure other than outright export and those goods are in terms of section 114 regarded for tax purposes to be cleared for outright export, those goods lose the tax status they had under that customs procedure in relation to export tax and acquire a tax due status in relation to export tax as from the date on which those goods came under that customs procedure.¹⁵⁷¹⁵⁷If goods exported under a customs procedure are regarded to be cleared for outright export, only export tax is affected and the goods retain their tax refundable status in relation to domestic tax paid on the goods. In other words, if VAT paid on the goods was refunded because of the export of the goods, the refund is not affected by the fact that the goods were regarded to be cleared for outright export.

(2)Any export tax that would have been payable on the goods referred to in subsection (1) had the goods actually been cleared for outright export on the date referred to in that subsection, becomes payable in respect of those goods at such rate,¹⁵⁸ at such time and by such person or persons as may be determined in terms of the applicable tax levying Act.¹⁵⁹¹⁵⁸See for instance section 81(2)(b) of the Customs Duty Act.¹⁵⁹See for instance section 35 of the Customs Duty Act for persons liable for duties on goods in these circumstances.

160. Goods regarded for tax purposes to be cleared for outright export not to be treated as goods cleared for outright export

(1)If any goods are in terms of a provision of this Act regarded for tax purposes to be cleared for outright export, the goods may not be dealt with or released as if the goods were actually cleared for outright export, but the customs authority may allow or direct the exporter of the goods to formally clear the goods for outright export within a period determined by the customs authority.

(2)The customs authority may not in terms of subsection (1) allow or direct goods to be cleared for outright export where such clearance will be inconsistent with this Act¹⁶⁰or other applicable legislation.¹⁶¹¹⁶⁰For instance where the goods have been seized or abandoned to the Commissioner or where section 570(1) or (2), read with section 580, is applied to the goods.¹⁶¹For instance legislation applicable to prohibited, restricted or sectorally controlled goods.

(3)If goods in free circulation are in terms of a provision of this Act regarded for tax purposes to be cleared for outright export, no domestic tax paid on such goods that would have been refundable in terms of a tax levying Act regulating that tax had the goods actually been cleared for outright export is recoverable from the Commissioner.¹⁶²¹⁶²This provision affects tax such as VAT and excise duty paid on goods in free circulation that would have been refundable upon actual clearance of the goods for outright export.

161. Tax status of goods under customs procedures that revert to free circulation

(1)If goods under a customs procedure revert in terms of section 353(b) or 515, or are in terms of section 113 regarded to have reverted, to free circulation—

(a)those goods lose any tax refundable status in relation to domestic tax they had under that customs procedure as from the date on which those goods came under that customs procedure;

(b)those goods no longer qualify for a refund of any domestic tax paid on the goods that arose from their tax refundable status; and

(c)the person who received any refund in respect of the goods because of the tax refundable status of the goods must in accordance with any applicable tax levying Act—

(i)pay the refund back to the Commissioner; and

(ii)pay to the Commissioner any interest on the amount of that refund from the date on which the refund was paid to that person.

(2)Any recovery of a refund and of any interest on the amount of the refund in terms of subsection (1)(c) is payable on demand.

Chapter 7
Standard processes and requirements for clearance and release of goods¹⁶³

¹⁶³This Chapter sets standard processes and requirements applying generally to the clearance and release of all goods imported into or destined for export from the Republic, mainly to avoid repeating the same requirements for the different customs procedures in the Chapters dealing with the specific procedures. The standard procedures provide the default position and apply unless the Chapters dealing with the specific procedures provide otherwise.

162. Purpose and application of this Chapter

(1)The purpose of this Chapter is to determine standard processes and requirements applying generally to the clearance and release of goods for home use and the customs procedures.

(2)This Chapter applies to—

(a)all imported goods that must in terms of this Act be cleared for home use or a customs procedure; and

(b)all goods destined for export from the Republic that must in terms of this Act be cleared for export.

Part 1 – Standard clearance processes and requirements

163. Submission of clearance declarations

In order to clear goods for home use or a customs procedure, a clearance declaration in respect of those goods stating the purpose of the clearance and the other information required in connection with those goods in terms of this Act and any applicable tax levying Act must be submitted to the customs authority.

164. Types of clearance declarations

(1)A clearance declaration must either be—

(a)a regular clearance declaration;

(b)an incomplete clearance declaration;

(c)a provisional clearance declaration;

(d)a supplementary clearance declaration;

(e)a simplified clearance declaration; or

(f)another document that may in specific circumstances set out in this Act be used as a clearance declaration.

(2)A regular clearance declaration must be submitted except in circumstances where another type of clearance declaration is specifically allowed in terms of this Act.

(3)A document referred to in subsection (1)(f) must, as may be appropriate, for the purposes of this Act and a tax levying Act, be regarded to be a clearance declaration.

165. Persons entitled to submit clearance declarations

(1)A clearance declaration to clear goods for home use or a customs procedure may be submitted only by—

(a)a person who in terms of a provision of this Act is entitled to submit clearance declarations for home use or that customs procedure;¹⁶⁴ or¹⁶⁴The registered persons and licensees entitled to submit clearance declarations for home use or a specific customs procedure are specified in the Chapter on home use or that specific customs procedure.

(b)a licensed customs broker duly authorised to submit a clearance declaration on behalf of a person referred to in paragraph (a).

(2)A person referred to in subsection (1)(a) may submit a clearance declaration only if that person is a registered person or a licensee.

(3)If a clearance declaration is submitted by a customs broker on behalf of a person referred to in subsection (1)(a) the customs broker must, on request by the customs authority, submit a certified copy of the authorisation in terms of which that customs broker submits the clearance declaration on behalf of that person.

166. Persons by whom goods are cleared

(1)A person who submits a clearance declaration in terms of section 165 to clear goods for home use or a customs procedure must for purposes of this Act and a tax levying Act be regarded to be the person clearing the goods, except where provided otherwise in this Act or a tax levying Act.

(2)If a clearance declaration is submitted by a customs broker on behalf of a person referred to in section 165(1)(a), that person and not the customs broker must for purposes of this Act and a tax levying Act be regarded to be the person clearing the goods.¹⁶⁵¹⁶⁵See also sections 201(2).

167. Contents of clearance declarations

(1)A regular clearance declaration must state—

(a)the nature and quantity of the goods, and, in the case of goods imported into or destined for export from the Republic by sea, the cargo status of the goods;

(b)the number of the transport document issued in respect of the goods;

(c)the container number, in the case of containerised goods;

(d)the date and time of actual or expected arrival of the goods, as may be applicable, at a place referred to in—

(i)section 90, in the case of imported goods; or

(ii)section 94, in the case of goods to be exported from the Republic;

(e)the tariff classification ascribed to the goods by the person clearing the goods in terms of a requirement of each applicable tax levying Act, and the reference number of—

(i)any tariff determination or re-determination that may be applicable to the goods in terms of each of those Acts; or

(ii)any advance tariff ruling that may be applicable to the goods in terms of each of those Acts;

(f)the customs value ascribed to the goods in terms of section 116(1) of the Customs Duty Act,¹⁶⁶ and the reference number of—¹⁶⁶The customs value of imported goods determined for purposes of the Customs Duty Act must in terms of the Excise Duty Act and the VAT Act also be used as the value of the goods to determine the amount of excise duty and VAT payable on those goods.

(i)any customs ruling on a valuation criterion that may be applicable to the goods in terms of section 123(2) of that Act; or

(ii)any advance ruling on a valuation criterion that may be applicable to the goods in terms of section 190(1) of that Act;

(g)the origin ascribed to the goods in terms of section 152(1) of the Customs Duty Act, and the reference number of—

(i)any origin determination or re-determination that may be applicable to the goods in terms of section 159(1)(b) of that Act; or

(ii)any advance origin ruling that may be applicable to the goods in terms of section 190(1) of that Act;

(h)whether any import or export tax is payable on the goods in terms of any tax levying Act, and if so—

(i)the kind of tax payable; and

(ii)the amount of the tax determined in accordance with a self-assessment in terms of the applicable tax levying Act;

(i)the customs code and name of the person submitting the declaration, and, if submitted by a customs broker, carrier or registered agent acting in accordance with this Act on behalf of another, also the customs code and name of the principal on whose behalf the declaration is submitted;

(j)in the case of goods under a customs procedure that are to be cleared for another customs procedure or for home use, the reference number of the clearance declaration submitted for clearing the goods for that customs procedure; and

(k)such additional information as may be required on the prescribed form or by this Act or a tax levying Act.

(2)Any other type of clearance declaration must contain the information—

(a)required for a regular clearance declaration in terms of subsection (1) except—

(i)as provided otherwise in this Act; or

(ii)to the extent exempted by rule; or

(b)required for that type of clearance declaration in terms of this Act or as may be prescribed by rule.

(3)Clearance declarations of the different types must be in a form and format as may be prescribed by rule,¹⁶⁷ except where determined otherwise in terms of this Act for the specific type of clearance declaration.¹⁶⁷See section 906.

168. How and where to submit clearance declarations

(1)A clearance declaration must be submitted to the customs authority electronically in accordance with section 913 unless the person submitting the declaration is authorised in terms of that section, or falls within a category of persons authorised by rule, to submit a document manually in paper format.

(2)A clearance declaration submitted in paper format must—

(a)be completed, signed and certified by the person who submits the clearance declaration;

(b)consist of the signed original and a number of copies as may be prescribed by rule; and

(c)be submitted to the customs authority—

(i)at the Customs Office serving the customs controlled area where the goods are to be released for home use or a customs procedure; or

(ii)at any other Customs Office designated in terms of section 14 to receive clearance declarations.

169. Time of day when clearance declarations may be submitted

A clearance declaration—

(a)transmitted electronically in accordance with section 913, may be transmitted at any time; or

(b)submitted in paper format may be submitted to the customs authority at the Customs Office referred to in section 168(2)(c) only during that Office’s hours of business.

170. Submission of clearance declarations before arrival of goods at place of entry

(1)A clearance declaration in relation to goods imported or to be imported into the Republic may be submitted to the customs authority before the arrival of the goods at the place referred to in section 90, provided that the goods have already been loaded on board the vessel, aircraft, railway carriage or vehicle transporting those goods to the Republic.

(2)If a clearance declaration is received before the goods arrive at the place referred to in section 90, the customs authority may proceed with processing and validating the declaration despite the fact that the goods have not yet arrived at that place but may not release the goods before their arrival at that place.

171. Acceptance of clearance declarations by customs authority

(1)The customs authority must accept a clearance declaration submitted to it and issue a receipt to the person who submitted the declaration if—

(a)the declaration is in the form and format prescribed for the specific type of clearance declaration;¹⁶⁸¹⁶⁸See section 913 for electronic submission of clearance declarations.

(b)all the information required on the form or otherwise prescribed for the specific type of clearance declaration is furnished;¹⁶⁹¹⁶⁹The official form should require at least all the information referred to in section 167.

(c)the declaration is signed by or on behalf of the person submitting the declaration, if required for the specific type of clearance declaration; and

(d)the declaration is submitted by a person entitled to submit the declaration.¹⁷⁰¹⁷⁰See section 165 and other relevant sections specifying the persons who are entitled to submit clearance declarations.

(2)The customs authority must refuse acceptance of a clearance declaration if the declaration does not comply with subsection (1).

(3)Acceptance of a clearance declaration in terms of subsection (1) may not be regarded as release of the goods for home use or the required customs procedure.

172. Validity of clearance declarations

(1)A clearance declaration accepted in terms of section 171(1) is despite such acceptance invalid if any of the information required on the form or otherwise prescribed for the specific type of clearance declaration¹⁷¹ is incorrect but the declaration may be validated by an amendment in terms of section 174.¹⁷¹For information required on the official form for clearance declarations, see section 167.

(2)An amendment of a clearance declaration validates the declaration from the date of submission of the original declaration, but such validation of the declaration does not affect any criminal proceedings that may be instituted, any administrative penalty that may be imposed or any other steps that may be taken as a result of the submission of an incorrect declaration.

173. Determination of time of clearance of goods

(1)For the purposes of this Act or a tax levying Act, the time of clearance of goods for home use or a customs procedure must be taken as the time when a clearance declaration in respect of the goods which complies with the requirements set out in section 171(1) is accepted by the customs authority in terms of that section.

(2)The time of clearance in terms of subsection (1) is not affected if the clearance declaration is amended in terms of section 174.

(3)If the clearance of goods is substituted in terms of section 97 or 107 the time of clearance of the goods must be taken as the time applicable to the goods in terms of section 97(3) or 107(3).

174. Amendment of clearance declarations

(1)

(a)If a person clearing goods for home use or a customs procedure becomes aware, whether before or after the release of the goods, of any incorrect or incomplete information or other error on the declaration, that person must promptly submit to the customs authority an amended version of the clearance declaration to replace the version of the declaration containing the error.¹⁷²¹⁷²The submission of an amended declaration does not affect the time of clearance. See section 173(2).

(b)The customs authority may accept or refuse to accept an amended clearance declaration submitted to it in terms of paragraph (a) but may not refuse such acceptance if it has not yet commenced with either the verification of the information on the clearance declaration that is to be amended or the inspection of the goods to which that clearance declaration relates.

(2)If any of the circumstances pertaining to goods cleared for home use or a customs procedure change, the person clearing the goods must update any information on the clearance declaration to reflect the changed circumstances by promptly submitting to the customs authority an amended version of the clearance declaration reflecting the change to replace the existing version of the declaration.¹⁷³¹⁷³For instance if part of the goods were destroyed or lost, or if part of the goods are cleared for another customs procedure or for home use, or if part of the goods are abandoned.

(3)If the customs authority becomes aware, whether before or after the release of any goods, of any incorrect or incomplete information or other error, or any out-dated information, on the clearance declaration submitted in respect of the goods, it may direct the person clearing the goods to correct the error or to update the information by submitting to it, within a period specified in the direction, an amended version of the clearance declaration to replace the version of the declaration containing the error or the out-dated information.

(4)An amended version of a clearance declaration of goods that—

(a)have not yet been released replaces the existing version of the declaration when the customs authority releases the goods; or

(b)have already been released replaces the existing version of the declaration when the customs authority issues a new release notification replacing the previous release notification.

(5)This section—

(a)may be applied for amending—

(i)clearance declarations accepted by the customs authority in terms of section 171(1); or

(ii)amended clearance declarations submitted in terms of this section; and

(b)may not be applied for replacing—

(i)a clearance for home use with a clearance for a customs procedure; or

(ii)a clearance for a customs procedure with a clearance for another customs procedure or for home use. ¹⁷⁴¹⁷⁴Clearance substitutions cannot be effected through mere amendment of the existing clearance declaration. In such cases the clearance declaration must be replaced by a new clearance declaration reflecting the new clearance. See section 97 for clearance substitutions of goods before release of the goods, section 107 for clearance substitutions of goods after release of the goods, and section 110 for clearance of goods under a customs procedure.

175. Withdrawal of clearance declarations

(1)A person clearing goods for home use or a customs procedure may withdraw a clearance declaration submitted in respect of the goods if—

(a)the goods are cleared in terms of section 90(4) or 170 and the goods do not arrive at the place of entry referred to in that section;

(b)that clearance declaration is a duplicate clearance declaration that was erroneously submitted in respect of the same goods;

(c)in the case of goods under a customs procedure, the goods are intended to remain under the customs procedure for which the goods are currently released;

(d)this Act provides for the withdrawal of a clearance declaration in any specific circumstances; or

(e)the customs authority on any other justifiable grounds gives permission to that person to withdraw the clearance declaration.

(2)The customs authority may in any of the circumstances referred to in subsection (1)(a) to (d) direct the person clearing the goods to withdraw the clearance declaration.

176. Supporting documents

(1)No person may clear goods for home use or a customs procedure unless the clearance is supported by—¹⁷⁵¹⁷⁵Supporting documents are not submitted to customs unless required in terms of section 179.

(a)an invoice issued in respect of the goods by the person who—

(i)exports the goods to or from the Republic; or

(ii)supplied the goods that are exported to or from the Republic;

(b)a transport document that has been issued in respect of the goods;

(c)in the case of a clearance through a customs broker, the clearance instruction of the principal; and

(d)any other documents as may be required in terms of another provision of this Act or the rules, a tax levying Act or other applicable legislation for the clearance of goods generally or for the specific purpose for which the goods are cleared.

(2)No document referred to in subsection (1) may be used as a document to support the clearance of goods for home use or a customs procedure as required by that subsection unless it contains the information required by this Act or a tax levying Act or as may be prescribed by rule.

(3)Subsection (1) applies subject to any exemption applicable in terms of a provision of this Act or granted by rule in respect of goods cleared for home use or a customs procedure in circumstances referred to in such provision or rule.

177. Invoices

(1)An invoice referred to in section 176(1)(a) must—

(a)be a true reflection of the transaction which is the cause for the goods to be exported to or from the Republic, as the case may be, including of—

(i)the nature of the transaction;

(ii)the goods to which the transaction relates; and

(iii)the amount paid or payable in terms of the transaction;

(b)describe the goods to which it relates, which must include a distinctive and permanent identification number, code, description, character or other mark allocated in respect of the goods by the person who issued the invoice;

(c)be the last invoice issued in respect of those goods, if more than one invoice was issued in respect of those goods as at the time of clearance¹⁷⁶ or, in the case of a clearance in terms of section 90(4) or 170, as at the time of arrival of the goods at the place of entry referred to in that section; and¹⁷⁶For time of clearance, see section 173.

(d)show—

(i)the date of issue;

(ii)the name and physical address of the issuer;

(iii)the name of the person to whom the invoice is issued, and the name of the consignee if the person to whom the invoice is issued is not the consignee;

(iv)the price paid or payable;

(v)any commission, discount, cost, charge, expense, royalty, freight, tax, drawback, refund, rebate, remission or other information whatsoever that affects the price paid or payable; and

(vi)any other information as may be prescribed by rule.

(2)The particulars on an invoice must describe the goods as they are or will be at the time when imported into the Republic or exported from the Republic, as the case may be.

(3)For the purposes of this Act and a tax levying Act no change in the condition of the goods may be regarded as having occurred between the time when imported into the Republic and the time of any examination or analysis of the goods by the customs authority unless the person who submitted the clearance declaration provides proof of a change in the condition of the goods and the extent thereof.

(4)A person clearing goods must in a manner and within a timeframe as may be prescribed by rule notify the customs authority of—

(a)any change in—

(i)the particulars reflected on an invoice; or

(ii)circumstances affecting any of the matters referred to in subsection (1); or

(b)any refund or additional amount or any deferred or secret discount, commission or any other credit or debit of whatever nature paid or received in connection with the goods and which is not disclosed on the invoice, whether paid or received directly or indirectly, in money or in kind or in any other way.

178. Amendment of invoices

(1)An invoice supporting the clearance of goods for home use or a customs procedure must be amended—

(a)if the amount paid or payable in terms of the transaction as reflected by the invoice is affected by any changed circumstance, including by—

(i)an amount credited or debited on the transaction by the issuer of the invoice;

(ii)a refund on the transaction made by or to or payable by or to the issuer of the invoice; and

(iii)a payment in money or in kind, other than the amount payable in terms of the transaction, made by or to or payable by or to the issuer of the invoice, whether directly or indirectly;

(b)if the amendment is necessary to correct any incorrect information on the invoice; or

(c)if the customs authority requests that the invoice for purposes of compliance with this Act or a tax levying Act be amended in a manner set out in the request.

(2)An invoice supporting the clearance of goods for home use or a customs procedure may be amended—

(a)if the invoice needs to be split for any reason, including for purposes of facilitating tax administration; or

(b)in any other circumstances as may be prescribed by rule or as the customs authority may allow in a specific case.

(3)An invoice may be amended by the issuing of—

(a)an amended invoice replacing the previous one; or

(b)a debit or credit note, if an amount reflected on the invoice is amended.

(4)Any such amended invoice or debit or credit note must be supported by a statement setting out the reasons for the amendment and any documentary proof substantiating those reasons.

(5)A person clearing goods must in a manner and within a timeframe as may be prescribed by rule—

(a)notify the customs authority of—

(i)any amendment to an invoice; or

(ii)the receipt of an amended invoice or debit or credit note; and

(b)submit any amended invoice or debit or credit note to the customs authority if requested to do so.

(6)No amendment to an invoice is effective for the purposes of this Act or a tax levying Act—

(a)unless subsection (5) has been complied with; or

(b)if the customs authority refuses to accept the amendment.

179. Keeping of information in respect of clearance declarations

A person clearing goods must—

(a)keep, in a manner and for a period as may be prescribed by rule—

(i)the documents referred to in section 176 supporting the clearance of the goods, including any amended documents; and

(ii)any other documents and records relating to information given in respect of that clearance or on the clearance declaration; and

(b)produce or submit those documents or records to the customs authority when requested to do so.¹⁷⁷¹⁷⁷For methods of submission of documents to customs authority see section 912(2). For timeframe within which documents must be submitted, see section 911.

Part 2 – Standard release processes and requirements¹⁷⁸

¹⁷⁸The provisions of this Part may be deviated from in terms of rules issued under section 538 if such deviation is necessary for expedited clearance and release of goods.

180. Release notifications

(1)Goods are released by the customs authority for home use or a customs procedure by transmitting electronically a message that the goods have been released to—

(a)the person clearing the goods or who submitted the clearance declaration; and

(b)the release agent.

(2)The customs authority may instead of electronically transmitting a release notification to a person referred to in subsection (1)(a), issue to that person a computer printout of the notification.

(3)A release notification must indicate—

(a)whether the goods have been released for home use or a customs procedure, and if for a customs procedure, which procedure; and

(b)whether the release is conditional, and if so the conditions.¹⁷⁹¹⁷⁹See section 104 for conditional release of goods.

181. Delivery of released goods

(1)

(a)A release agent may not deliver goods to any person—

(i)unless the goods are under the physical control of the release agent; and

(ii)otherwise than on authority of a release notification.

(b)No person may take delivery of any goods from a release agent otherwise than on authority of a release notification.

(2)If a release agent delivers goods otherwise than on authority of a release notification—

(a)the goods must, at the expense of the release agent, be returned to the release agent or be delivered to such other place as the customs authority may determine; and

(b)the customs authority may hold the release agent liable for any tax payable on those goods.

(3)Goods released in terms of section 180 for a customs procedure must be removed from the place where the goods were released within the period applicable to the goods in terms of the provisions of this Act regulating that procedure.

182. Return messages

The release agent in control of goods released in terms of section 180 must promptly notify the customs authority electronically in accordance with section 913 of—

(a)receipt of the release notification in respect of the goods;

(b)delivery of the goods to the person entitled to collect or receive the goods and removal of the goods from the place where they were released; and

(c)any failure by such person to take delivery of or to remove the goods within the period referred to in section 181(3), in the case of goods released for a customs procedure.

183. Withdrawal, substitution or amendment of release notifications

(1)The customs authority—

(a)must withdraw a release notification if—

(i)the release notification was issued erroneously; or

(ii)the release of the goods to which the notification relates has been withdrawn in terms of section 105;

(b)must replace a release notification releasing goods for home use if that release is in terms of section 107 replaced by a release for a customs procedure; and

(c)may amend a release notification to correct any error on the notification.

(2)If the customs authority withdraws, replaces or amends a release notification in terms of subsection (1)(a), (b) or (c), as may be applicable, it must transmit electronically to the person clearing the goods or who submitted the clearance declaration and to the release agent—

(a)a message stating that the release has been withdrawn;

(b)a new release notification stating that it replaces the previous release of the goods for home use with a release for a customs procedure; or

(c)an amended release notification containing the amended particulars.

(3)When giving effect to subsection (2) the customs authority—

(a)may, instead of electronically transmitting a withdrawal message or a new or amended release notification to the person clearing the goods or who submitted the clearance declaration, issue to that person a computer printout of the message or notification; or

(b)is, in the case of subsection (2)(b), not obliged to transmit a new release notification referred to in that subsection to a release agent who is not in physical possession of the goods to which the notification relates.

Part 3 – Other matters

184. Destruction, loss or theft of clearance and release documentation

The customs authority may, at the request of a person entitled to a document relating to the clearance or release of goods, issue to that person a certified copy of the document if—

(a)the document is destroyed, lost or stolen; and

(b)a copy of the document is in the possession of the Commissioner.

185. Rules to facilitate implementation of this Chapter

Rules made in terms of section 903 to facilitate the implementation of this Chapter may include rules as to—

(a)the issuing, and use for clearance purposes, of invoices, transport documents and other supporting documents;

(b)the combating of tax evasion and other malpractices relating to the issue and use of invoices, transport documents and other supporting documents;

(c)the amendment and replacement of supporting documents;

(d)the allocation of distinctive and permanent identification numbers, codes, descriptions, characters or other marks in respect of goods, and the persons by whom and the circumstances in which such identification numbers, codes, descriptions, characters or other marks must be allocated; and

(e)the use of such identification numbers, codes, descriptions, characters or other marks allocated in respect of goods, in invoices, transport documents and other supporting documents relating to such goods.

186. Offences in terms of this Chapter

(1)A person is guilty of an offence if that person—

(a)contravenes section 165(1); or

(b)takes delivery of goods in contravention of section 181(1)(b).

(2)A person clearing goods is guilty of an offence if that person—

(a)submits a clearance declaration in accordance with section 170(1) before the goods have been loaded on board the vessel, aircraft, railway carriage or vehicle transporting those goods to the Republic;

(b)contravenes section 176(1) or (2);

(c)fails to comply with section 174(1)(a) or (2), 177(4)(a) or (b) or 178(5)(a) or 179(a); or

(d)fails to comply with—

(i)a direction issued to that person in terms of section 174(3) or 175(2); or

(ii)a request in terms of—

(aa)section 178(5)(b); or

(bb)section 179(b).

(3)A customs broker is guilty of an offence if that person fails to comply with a request in terms of section 165(3).

(4)A release agent is guilty of an offence if that person contravenes section 181(1)(a).

(5)A person who issued an invoice, amended invoice, debit or credit note or other document which is used to support the clearance of goods is guilty of an offence if that document—

(a)contains a false statement or incorrect information which that person knows is not true or could not reasonably have believed to be true;

(b)states, or omits to state, information which is stated or omitted with the intention to mislead;

(c)omits to state information or states incorrect information which that person knows or reasonably ought to have known would, if stated or stated correctly—

(i)have caused the goods to which the document relates to be subject to a tax or to a higher amount of tax; or

(ii)have disqualified the goods from a rebate, refund, drawback or other entitlement in terms of this Act or a tax levying Act; or

(d)was issued to conceal the true nature or particulars of the transaction between that person and the person to whom it was issued.

(6)A person who submits to the customs authority a document in terms of this Act or who makes use of a document for purposes of this Act is guilty of an offence if that document—

(a)omits to state information or states incorrect information which that person knows or reasonably ought to have known would, if stated or stated correctly—

(i)have caused the goods to which the document relates to be subject to a tax or to a higher amount of tax; or

(ii)have disqualified the goods from a refund, drawback or other entitlement in terms of this Act or a tax levying Act; or

(b)is not the authentic document issued for, or conceals the true nature or particulars of, a transaction between that person and the issuer of the document.

(7)The offences referred to in subsection (1)(b), (2)(a) or (d)(ii)(bb), (5) or (6) are Category 1 offences.

Chapter 8
Home use of goods

187. Purpose and application of this Chapter

(1)The purpose of this Chapter is to regulate the clearance and release of imported goods for home use.¹⁸⁰¹⁸⁰For tax status of imported goods cleared for home use in terms of this Chapter, see section 135.

(2)This Chapter applies to imported goods intended for home use excluding goods that are—

(a)cleared for home use as—

(i)re-imported unaltered goods under the temporary export procedure in terms of Chapter 17; or

(ii)outward processed compensating products under the outward processing procedure in terms of Chapter 20; or

(b)exempted in terms of section 91 from clearance requirements.

188. Clearance and release of goods for home use

(1)Chapters 4 and 7 apply to the clearance and release of goods for home use under this Chapter except insofar as a provision of Chapter 4 or 7 is modified, qualified or deviated from in this Chapter.¹⁸¹¹⁸¹In the case of an inconsistency between a provision of this Chapter and a general provision contained in Chapter 4 or 7 the provision of this Chapter prevails. See sections 88(3) and 162(3).

(2)Goods to be cleared for home use under this Chapter must be cleared in accordance with subsection (1).

189. Persons entitled to submit home use clearance declarations

Only the following persons may subject to section 165(2), submit clearance declarations to clear imported goods under this Chapter for home use:¹⁸²¹⁸²See section 165(1)(a).

(a)The importer of the goods, if the importer is located in the Republic;

(b)the agent in the Republic of the importer, if the importer is not located in the Republic;

(c)the owner of the goods, if ownership in the goods has been transferred after the goods have been imported and that owner is located in the Republic;¹⁸³¹⁸³See section 124.

(d)the agent in the Republic of the owner referred to in paragraph (c), if that owner is not located in the Republic; or

(e)a customs broker referred to in section 165(1)(b).

190. Contents of home use clearance declarations

A home use clearance declaration must, in addition to the information required in terms of section 167, state that the goods are cleared for home use under this Chapter.

191. Clearance of goods imported through cross-border transmission lines, pipelines, cable-cars or conveyor belts

The Commissioner may by rule—

(a)prescribe special processes and requirements for the clearance and release for home use under this Chapter of electricity imported through licensed cross-border transmission lines and other goods imported through licensed cross-border pipelines or by means of licensed cross-border cable cars or conveyor belts; and

(b)exempt such electricity or other goods from any provision of this Act relating to the clearance or release of goods.

192. Rules to facilitate implementation of this Chapter

Rules made in terms of section 903 to facilitate the implementation of this Chapter may include rules prescribing—

(a)additional processes or requirements for or relating to the clearance or release of goods for home use under this Chapter; and

(b)special processes and requirements for the submission of clearance declarations if goods are in terms of this Act for tax purposes regarded to be cleared for home in terms of this Chapter.

Chapter 9
National and international transit

Part 1 – Introductory provisions

193. Purpose and application of this Chapter

(1)The purpose of this Chapter is to regulate the national and international transit procedures.

(2)This Chapter applies to the transport of imported goods not in free circulation, excluding goods transported—

(a)in any of the circumstances referred to in section 120(1); or

(b)under a customs procedure other than national or international transit that provides for the transport of goods under that procedure.¹⁸⁴¹⁸⁴For instance the excise warehouse transit procedure, warehousing procedure, the inward processing procedure, etc.

194. National and international transit¹⁸⁵

¹⁸⁵For tax status of goods under the national or international transit procedure, see sections 139 and 140. For consequences of non-compliance with the transit procedures, see sections 112 and 115.

(1)National transit is a customs procedure that allows goods to which this Chapter applies, to be transported in the Republic from one customs controlled area to another customs controlled area not served by the same Customs Office.

(2)International transit is a customs procedure that allows goods to which this Chapter applies imported on board—

(a)a foreign-going vessel or aircraft or a cross-border railway carriage—

(i)to be transported through the Republic from the place in the Republic where the goods were off-loaded from the vessel, aircraft or railway carriage to a place of exit from where the goods are to be exported from the Republic;¹⁸⁶ and¹⁸⁶International transit does not include a situation where goods are not off-loaded from and remain on board a foreign-going vessel or aircraft or cross-border railway carriage until the vessel, aircraft or railway carriage again leaves the Republic. In such a case the goods are in terms of section 91 exempted from the obligation to be cleared.

(ii)to be exported from the Republic without complying with any export clearing formalities;¹⁸⁷ or¹⁸⁷Chapter 16 regulating the clearance of goods for export from the Republic does not apply to the export from the Republic of goods that are cleared and released for international transit. See section 361(3).

(b)a vehicle—

(i)to be transported through the Republic from the land border-post where the vehicle entered the Republic to a place of exit from where the goods are to be exported from the Republic, irrespective of whether the transport through the Republic takes place in the same or another vehicle or any other means of transport; and

(ii)to be exported from the Republic without complying with any export clearing formalities.

(3)The international transit procedure is not available for imported goods of a class or kind or falling within a category as may be prescribed by rule.

195. Commencement and completion of national transit procedure

(1)

(a)Goods come under the national transit procedure when the goods are cleared for national transit.

(b)The national transit procedure is, subject to subsection (2), completed when the goods are cleared and released for another permissible customs procedure or for home use.

(2)The national transit procedure, in relation to any goods, ends before its completion if completion of the procedure is interrupted by an occurrence referred to in section 109(2).

196. Commencement and completion of international transit procedure

(1)

(a)Goods come under the international transit procedure when the goods are cleared for international transit.

(b)The international transit procedure is, subject to subsection (2), completed when the goods are exported from the Republic.

(2)The international transit procedure, in relation to any goods, ends before its completion if—

(a)the goods before completion of the procedure are cleared and released for another customs procedure or for home use as may be permissible in the circumstances; or

(b)completion of the procedure is interrupted by an occurrence referred to in section 109(2).

197. Extent to which Chapters 4, 5 and 7 apply

Chapters 4, 5 and 7, except insofar as a provision of those Chapters is modified, qualified or deviated from in this Chapter,¹⁸⁸ apply to goods under the national or international transit procedure, including to the clearance and release of goods for national or international transit.¹⁸⁸In the case of an inconsistency between a provision of this Chapter and a general provision contained in Chapter 4 or 7 the provision of this Chapter prevails. See sections 88(3) and 162(3).

198. Limiting customs seaports and airports for international transit purposes

(1)The Commissioner may, subject to subsection (3), by rule limit the customs seaports and airports where goods may be—

(a)off-loaded from foreign-going vessels or aircraft for international transit; or

(b)loaded on board foreign-going vessels or aircraft for export from the Republic under the international transit procedure.

(2)If the customs seaports and airports for international transits have been limited in terms of subsection (1) no person may—

(a)off-load goods from foreign-going vessels or aircraft for international transit other than at a customs seaport or airport determined in terms of subsection (1)(a); or

(b)load goods on board foreign-going vessels or aircraft for export from the Republic under the international transit procedure other than at a customs seaport or airport determined in terms of subsection (1)(b).

(3)When limiting the customs seaports and airports in terms of subsection (1) for the international transit procedure, the Commissioner must act in accordance with the directions of the Minister acting in consultation with the Cabinet members responsible for transport, trade and industry and home affairs.

199. Application of other legislation to goods under international transit

(1)Legislation, other than this Act or the Counterfeit Goods Act, regulating the import into, or the possession in, the Republic of goods for the purpose of protecting South African goods for economic reasons, does not apply to imported goods that are cleared and released for international transit.

(2)Subsection (1) ceases to apply if—

(a)the release of the goods for international transit is withdrawn in terms of section 105;¹⁸⁹ or¹⁸⁹For consequences when release of goods is withdrawn, see section 106.

(b)the goods are cleared and released for another customs procedure or home use as may be permissible in the circumstances.

Part 2 – Clearance and release of goods for national or international transit

200. Clearance of goods for transit

Goods to be cleared for national or international transit must be cleared in accordance with section 197.

201. Persons entitled to submit transit clearance declarations

(1)Only the following persons may subject to section 165(2), submit clearance declarations to clear goods for national or international transit:¹⁹⁰¹⁹⁰See section 165(1)(a).

(a)The importer of the goods, if the importer is located in the Republic;¹⁹¹¹⁹¹See section 1(3)(a).

(b)the agent in the Republic of the importer, if the importer is not located in the Republic;

(c)the owner of the goods, if ownership in the goods has been transferred after the goods have been imported and that owner is located in the Republic;¹⁹²¹⁹²See section 111.

(d)the agent in the Republic of the owner referred to in paragraph (c), if that owner is not located in the Republic;

(e)the carrier who is to carry out the transit operation, if that carrier is located in the Republic;

(f)the agent in the Republic of the carrier who is to carry out the transit operation, if that carrier is not located in the Republic; or

(g)a customs broker referred to in section 165(1)(b).

(2)If a clearance declaration is submitted by a carrier or a carrier’s agent on behalf of a person referred to in subsection (1)(a), (b), (c) or (d) that person and not the carrier or a carrier’s agent must for purposes of this Act and a tax levying Act be regarded to be the person clearing the goods.¹⁹³¹⁹³See also section 166.

202. Contents of transit clearance declarations

A transit clearance declaration must, in addition to the information required in terms of section 167, state—

(a)that the goods are cleared for national or international transit;

(b)the starting point of the transit operation contemplated in section 205(1) and the delivery point of the transit operation contemplated in section 205(2) or (3);

(c)the customs code of the carrier who will carry out the transit operation, if the transit operation is to be carried out by a licensed carrier;

(d)the customs code of the agent of the carrier who is to carry out the transit operation, if the transit operation is to be carried out by a carrier not located in the Republic; and

(e)the mode of transport, and if multi-modal transport, particulars of such transport.

203. Use of other documents as transit clearance declarations for postal articles

A South African Post Office transport document or another document issued in respect of postal articles handled by the South African Post Office as may be prescribed by rule, may serve or be submitted as a transit clearance declaration to clear postal articles for national or international transit by or on behalf of the South African Post Office, provided that such transport document or other document reflects the minimum information concerning those postal articles as may be prescribed by rule for purposes of this section.

Part 3 – National or international transit operations

204. General

(1)A national or international transit operation may not commence unless the goods are cleared and released for the transit procedure.¹⁹⁴¹⁹⁴Goods released by the customs authority for transit remain in terms of section 28 subject to customs control despite such release.

(2)This Part and Chapter 5, except insofar as a provision of that Chapter is modified, qualified or deviated from in this Chapter,¹⁹⁵ apply to the transport of goods under the transit procedure.¹⁹⁵In the case of an inconsistency between a provision of this Chapter and a general provision contained in Chapter 5 the provision of this Chapter prevails. See section 119(2).

205. Starting and delivery points of transit operations

(1)The starting point of a transit operation must be, as may be appropriate—

(a)the customs seaport or airport where the goods were off-loaded from the foreign-going vessel or aircraft on board of which the goods were imported into the Republic;

(b)the rail cargo terminal where the goods were off-loaded from the cross-border railway carriage in which the goods were imported into the Republic;

(c)the land border-post where the vehicle on board of which the goods were imported entered the Republic; or

(d)another customs controlled area where the goods are in temporary storage.

(2)In the case of a national transit, the delivery point of a transit operation must be the licensed premises to which the goods are consigned or from where the goods are to be delivered.

(3)In the case of an international transit, the delivery point of a transit operation, must be—

(a)if the goods are to be exported by sea, any licensed premises at the customs seaport where the goods are to be loaded on board the foreign-going vessel in which the goods are to be exported;

(b)if the goods are to be exported by air, any licensed premises at the customs airport where the goods are to be loaded on board the foreign-going aircraft in which the goods are to be exported;

(c)if the goods are to be exported by rail, any licensed premises at the railway station where the goods are to be loaded on board the cross-border railway carriage in which the goods are to be exported; or

(d)if the goods are to be exported by road, the land border-post where the goods are to be exported.

(4)Despite subsection (1), (2) or (3), the customs authority may in a specific case allow or direct¹⁹⁶ that any other place must be the starting or delivery point of a transit operation.¹⁹⁶Such permission or direction may be issued subject to conditions. See section 918.

206. Commencement and completion periods for transit operations¹⁹⁷

¹⁹⁷Commencement and completion of a transit operation must be distinguished from the commencement and completion of the transit procedure in terms of sections 195 and 196.

(1)A transit operation must, subject to section 123(1)(g), commence at the starting point of the operation indicated in the transit clearance declaration within such period from release of the goods for transit, as may be prescribed by rule read with sections 908 and 909.

(2)Goods under national transit must, subject to section 123(1)(g), reach the delivery point indicated in the transit clearance declaration within such period from commencement of the transit operation as may be prescribed by rule read with sections 908 and 909.

(3)Goods under international transit must, subject to section 123(1)(g), reach the delivery point indicated in the transit clearance declaration within a period from commencement of the transit operation as may be prescribed by rule read with sections 908 and 909.

(4)The licensee of a customs controlled area where a transit operation commences or ends, must immediately notify the customs authority of any failure in relation to the transit goods to comply with subsection (1), (2) or (3).

(5)If subsection (2) or (3) is not complied with in relation to the transit goods, the goods must in terms of section 112(1) for tax purposes be regarded to be cleared for home use under Chapter 8.¹⁹⁸¹⁹⁸For tax consequences if goods are regarded to be cleared for home use, see section 154.

207. Limitations on route for transit

(1)The routes over which goods may for transit operations be transported by road or railway line may be limited to routes as may be prescribed by rule or as the customs authority may determine in a specific case.

(2)If the route for a transit operation by road or railway line between any specific places has been limited in terms of subsection (1) no carrier may carry out a transit operation between those places over a road or railway route other than the route prescribed or determined in terms of that subsection.

208. Redirection of goods from starting or to delivery points

No person may redirect goods from the starting point or to the delivery point of a transit operation as indicated in the transit clearance declaration to another destination without the prior written permission of the customs authority.

209. Only carriers permitted to carry out transit operations

(1)A transit operation may be carried out only by—

(a)a licensed carrier; or

(b)a carrier represented in the Republic by a registered agent, if the carrier is not located in the Republic.

(2)The carrier carrying out a transit operation must be—

(a)the person mentioned in the transit clearance declaration as the carrier of the goods; or

(b)a carrier subcontracted by the carrier referred to in paragraph (a).

(3)Goods in transit may be transported only in accordance with this Act, including—

(a)any conditions subject to which the carrier was licensed;

(b)any directions issued by the customs authority in terms of section 123 or 213; and

(c)any rules as may be prescribed.

210. Technical requirements of vehicles or containers used in transit of goods

(1)A vehicle or container used in the transit of goods must comply with such requirements as may be prescribed by rule to secure the goods during the transit operation.

(2)If a vehicle or container does not comply with the prescribed requirements, the customs authority may withhold release of the goods for transit in that vehicle or container.

211. Transfer of goods in transit to other vehicle or container

If goods in transit are transferred in terms of section 130 from the vehicle or container in which the goods are transported to another vehicle or container operated by another carrier, the new carrier must—

(a)give notice to the customs authority that the goods were transferred to another vehicle or container; and

(b)endorse that carrier’s transport document or road manifest with—

(i)details of the previous vehicle or container in which the goods were transported, as may be prescribed by rule;

(ii)the container number, if applicable, in which the goods were transported;

(iii)the name of the previous carrier; and

(iv)the number of the previous carrier’s transport document or road manifest, as may be applicable.

212. Multi-modal transit of goods

If a transit is carried out by means of multi-modal transport of the transit goods, the goods may be transferred from one means of transport to another only—

(a)within a customs controlled area; and

(b)in accordance with any other requirements as may be prescribed by rule.

213. Interruptions in transit operations

(1)The customs authority may permit or direct that a transit operation of goods be interrupted for a specific purpose, including for—

(a)re-packing of the goods;

(b)tallying the goods;

(c)sorting the goods;

(d)cleaning the goods;

(e)carrying out activities aimed at preserving the condition of, or maintaining, the goods;

(f)inspecting the goods; and

(g)sealing the goods or the holding compartment of the vehicle or the container.

(2)The conditions subject to which a permission or direction referred to in subsection (1) may be issued in terms of section 918 may include conditions specifying—

(a)the place where the activities referred to in subsection (1) must be carried out; and

(b)the time when those activities must be carried out and within which those activities must be completed.

214. Transit goods transported by road carriers

(1)A road carrier transporting goods in transit must keep a road manifest of all the cargo transported on board the vehicle.

(2)A road manifest referred to in subsection (1) must—

(a)be in the form and format and contain the information as may be prescribed by rule;

(b)identify the goods in transit; and

(c)distinguish the transit goods from any other goods on board the vehicle.

(3)Until the transit of the goods is completed, the carrier transporting the goods must keep in the vehicle—

(a)the road manifest; and

(b)a copy of the release notification issued in respect of the transit goods.

215. Completion of transit operations

A transit operation is completed when the transit goods are delivered at the delivery point indicated in the transit clearance declaration.¹⁹⁹¹⁹⁹Note the distinction between completion of an international transit operation which ends upon delivery of the goods at the delivery point and completion of the international transit procedure which ends upon export of the goods.

216. Completion procedures

(1)Upon completion of a transit operation, the carrier who has carried out the transit operation or the person clearing the goods for transit must—

(a)submit to the customs authority proof that the transit operation has been completed, if the customs authority requests such proof from the carrier or person clearing the goods; and

(b)comply with such other requirements as may be prescribed by rule for such carrier or person.

(2)Proof requested in terms of subsection (1) must be—

(a)in the form and format and contain the information as may be prescribed by rule;

(b)submitted within such period as may be prescribed by rule; and

(c)be submitted electronically in accordance with section 913, but may in the case of a person clearing the goods for transit be submitted in paper format.

(3)A carrier is relieved of compliance with subsection (1) if the person clearing the goods for transit complies with that subsection.

Part 4 – Other matters

217. Responsibility for ensuring compliance with transit requirements

(1)

(a)The responsibility for ensuring that a national or international transit operation is carried out and completed in accordance with this Act and any steps taken or directions issued by the customs authority in terms of section 123 rests with the carrier who carries out the transit operation.

(b)If the carrier who carries out the transit operation is not the person who submitted the clearance declaration or has subcontracted the transport of the goods to another carrier, the responsibility referred to in paragraph (a) rests jointly and severally with the carrier and the person clearing the goods or that other carrier, as the case may be.

(2)The responsibility for ensuring that goods under international transit are exported rests with the person clearing the goods for international transit. If the goods are not exported within a timeframe from commencement of the transit operation as may be prescribed by rule read with sections 908 and 909—

(a)the person clearing the goods must immediately notify the customs authority of—

(i)the failure to export the goods;²⁰⁰ and²⁰⁰Failure to load goods for export will appear from outturn reports to be submitted by terminal operators.

(ii)the reasons for the failure; and

(b)the customs authority may whether a notification in terms of paragraph (a) has been given or not—

(i)secure the goods or require the goods to be secured in such manner as the customs authority may determine pending the export of the goods in terms of the release;

(ii)withdraw in terms of section 105 the release given in respect of the goods;²⁰¹ or²⁰¹For consequences of a withdrawal of a release, see section 106.

(iii)issue a direction in terms of section 112(2) whether or not the release has been withdrawn.

(3)

(a)A person who cleared goods for international transit must on request by the customs authority provide proof to the customs authority that the goods were exported, as may be prescribed by rule.

(b)The burden to prove that goods released for international transit have been exported rests on the person clearing the goods.

(4)The responsibilities conferred in terms of subsections (1), (2) and (3) do not absolve any other person from complying with this Act or any steps or directions referred to in that subsection in connection with the transit of the goods.

218. Rules to facilitate implementation of this Chapter

Rules made in terms of section 903 to facilitate the implementation of this Chapter may include rules—

(a)prescribing additional requirements—

(i)for the clearance or release of goods for national or international transit; or

(ii)relating to goods under the national or international transit procedure; and

(b)regulating the application of this Chapter to the coastwise carriage of imported goods under national or international transit, including conditions that must be complied with if imported goods under transit are transported in coasting vessels also carrying goods in free circulation.

219. Offences in terms of this Chapter

(1)A person is guilty of an offence if that person contravenes—

(a)section 198(2)(a) or (b), or 209(1); or

(b)section 208.

(2)A carrier carrying out a transit operation in respect of any goods is guilty of an offence—

(a)if that carrier fails to comply with—

(i)section 214(1) or (3), or 216(1)(b);

(ii)a request issued in terms of section 216(1)(a); or

(iii)a direction issued in terms of section 213(1);

(b)if 204, 206(1), (2) or (3)(a) or (b), 207(2), 209(2) or (3), 210(1), 211 or 212 is contravened or not complied with in respect of those goods; or

(c)if a direction issued or a condition imposed in terms of section 213 is contravened or not complied with in respect of those goods.

(3)The carrier carrying out a transit operation or, if section 217(1)(b) applies, that carrier and any other person or other carrier referred to in that section, is guilty of an offence if the transit operation is not carried out and completed in accordance with this Act.

(4)The licensee of a customs controlled area where a transit operation commences or ends, is guilty of an offence if that person fails to comply with section 206(4).

(5)A person clearing goods for international transit is guilty of an offence if that person fails to comply with—

(a)section 217(2)(a); or

(b)a request issued in terms of section 217(3)(a).

(6)An offence referred to in subsection (1)(b) is a Category 1 offence.

Chapter 10
Excise warehouse transit procedure

Part 1 – Introductory provisions

220. Purpose and application of this Chapter

(1)The purpose of this Chapter is to regulate the excise warehouse transit procedure.

(2)This Chapter applies to the transport to excise manufacturing warehouse of imported goods referred to in section 224(1) that are not in free circulation, excluding the transport of such goods between excise warehouses.

221. Excise warehouse transit procedure²⁰²

²⁰²For tax status of goods under the excise warehouse transit procedure, see section 141. For consequences of non-compliance with the excise warehouse transit procedure, see sections 112 and 115.Excise warehouse transit is a customs procedure that allows goods to which this Chapter applies, to be transported, without first clearing the goods for home use under Chapter 8, from a place in the Republic²⁰³ to a licensed excise manufacturing warehouse for a purpose that will render the goods upon delivery to the excise warehouse subject to the Excise Duty Act.²⁰³This includes transport of the goods from the place of entry or from a storage warehouse to the excise warehouse.

222. Commencement and completion of excise warehouse transit procedure

(1)

(a)Goods come under the excise warehouse transit procedure when the goods are cleared for transit to a licensed excise manufacturing warehouse.

(b)The procedure is, subject to subsection (2), completed when the goods are delivered to the licensed excise manufacturing warehouse.

(2)The excise warehouse transit procedure, in relation to any goods, ends before its completion if completion of the procedure is interrupted by an occurrence referred to in section 109(2).

(3)

(a)Upon completion of the excise warehouse transit procedure as contemplated in subsection (1), the Excise Duty Act becomes applicable to the goods and that Act applies to any manufacturing and other processes in which the goods are used, including the storage, handling and transport of the goods and other actions taken in respect of the goods for purposes of those processes.

(b)If the excise warehouse transit procedure ends before its completion as contemplated in subsection (2), the goods must be dealt with in accordance with this Act.

223. Extent to which Chapters 4, 5 and 7 apply

Chapters 4, 5 and 7, except insofar as a provision of those Chapters is modified, qualified or deviated from in this Chapter,²⁰⁴ apply to goods under the excise warehouse transit procedure, including to the clearance and release of goods for the excise warehouse transit procedure.²⁰⁴In the case of an inconsistency between a provision of this Chapter and a general provision contained in Chapter 4 or 7 the provision of this Chapter prevails. See sections 88(3) and 162(3).

Part 2 – Clearance and release of goods for excise warehouse transit

224. Clearance of goods for excise warehouse transit

(1)Imported goods may be cleared for the excise warehouse transit procedure only if those goods are of a class or kind authorised in the Excise Duty Act as goods that may be cleared for excise warehouse transit.

(2)Goods to be cleared for excise warehouse transit must be cleared in accordance with section 223.

225. Persons entitled to submit excise warehouse transit clearance declarations

Only the following persons may subject to section 165(2), submit clearance declarations to clear goods for excise warehouse transit:²⁰⁵²⁰⁵See section 165(1)(a).

(a)The licensee of the licensed excise manufacturing warehouse to which the goods are to be delivered; or

(b)a customs broker referred to in section 165(1)(b).

226. Contents of excise warehouse transit clearance declarations

An excise warehouse transit clearance declaration must, in addition to the information required in terms of section 167, state—

(a)that the goods are cleared for excise warehouse transit;

(b)the starting point of the excise warehouse transit operation contemplated in section 228;

(c)the customs code and address of the licensed excise manufacturing warehouse to which the goods are to be delivered;

(d)the customs code of the carrier who will carry out the excise warehouse transit operation, if the transit operation is to be carried out by a carrier; and

(e)the mode of transport, and if multi-modal transport, particulars of such transport.

Part 3 – Excise warehouse transit operations

227. General

(1)An excise warehouse transit operation may not commence unless the goods are cleared and released for excise warehouse transit.²⁰⁶²⁰⁶Goods released by the customs authority for excise warehouse transit remain in terms of section 28 subject to customs control despite such release.

(2)

(a)The provisions of this Part and of Chapter 5, except insofar as a provision of that Chapter is modified, qualified or deviated from in this Chapter,²⁰⁷ apply to the transport of goods under the excise warehouse transit procedure, subject to paragraph (b).²⁰⁷In the case of an inconsistency between a provision of this Chapter and a general provision contained in Chapter 5 the provision of this Chapter prevails. See section 119(2).

(b)Sections 231 to 235 do not apply to the transport under the excise warehouse transit procedure of liquid goods through a pipeline, and such a transit operation must be carried out in accordance with any requirements and conditions as may be prescribed by rule.

228. Starting and delivery points of excise warehouse transit operations

(1)The starting point of an excise warehouse transit operation must be, as may be appropriate—

(a)the customs seaport or airport where the goods were off-loaded from the foreign-going vessel or aircraft on board of which the goods were imported into the Republic;

(b)the rail cargo terminal where the goods were off-loaded from the cross-border railway carriage in which the goods were imported into the Republic;

(c)the land border-post where the vehicle on board of which the goods were imported entered the Republic; or

(d)another customs controlled area where the goods are in storage, including temporary storage.

(2)The delivery point of an excise warehouse transit operation must be the licensed excise warehouse to which the goods are to be delivered.

(3)Despite subsection (1), the customs authority may in a specific case allow or direct²⁰⁸ that any other place must be the starting point of an excise warehouse transit operation.²⁰⁸Such permission or direction may be issued subject to conditions. See section 918.

229. Commencement and completion periods for excise warehouse transit operations²⁰⁹

²⁰⁹Commencement and completion of an excise warehouse transit operation must be distinguished from the commencement and completion of the excise warehouse transit procedure in terms of sections 195 and 196.

(1)An excise warehouse transit operation must, subject to section 123(1)(g), commence at the starting point of the operation indicated in the excise warehouse transit clearance declaration, within such period from release of the goods for transit as may be prescribed by rule read with sections 908 and 909.

(2)Goods under excise warehouse transit must, subject to section 123(1)(g), reach the delivery point indicated in the excise warehouse transit clearance declaration within such period from commencement of the transit operation as may be prescribed by rule read with sections 908 and 909.

(3)The licensee of a customs controlled area where a transit operation commences or of the excise warehouse where a transit operation ends, must immediately notify the customs authority of any failure in relation to the transit goods to comply with subsection (1) or (2) of this section.

(4)If subsection (2) is not complied with in relation to the transit goods, the goods must in terms of section 112(1) for tax purposes be regarded to be cleared for home use under Chapter 8.²¹⁰²¹⁰For tax consequences if goods are regarded to be cleared for home use, see section 154.

230. Redirection of goods from starting or to delivery points

No person may redirect goods from the starting point or to the delivery point of an excise warehouse transit operation as indicated in the excise warehouse transit clearance declaration to another destination without the prior written permission of the customs authority.

231. Only carriers permitted to carry out excise warehouse transit operations

(1)An excise warehouse transit operation may be carried out only by a licensed carrier.

(2)The carrier carrying out an excise warehouse transit operation must be the person mentioned in the excise warehouse transit clearance declaration as the carrier of the goods.

(3)Goods in transit to a licensed excise warehouse may be transported only in accordance with this Act, including—

(a)any conditions subject to which the carrier was licensed;

(b)any directions issued by the customs authority in terms of section 123; and

(c)any rules as may be prescribed.

232. Technical requirements of vehicles or containers used in excise warehouse transit operations

(1)A vehicle or container used in an excise warehouse transit operation must comply with such requirements as may be prescribed by rule to secure the goods during the operation.

(2)If a vehicle or container does not comply with the prescribed requirements, the customs authority may withhold release of the goods for excise warehouse transit in that vehicle or container.

233. Transfer of goods in excise warehouse transit to other vehicle or container

(1)If goods in an excise warehouse transit operation are transferred in terms of section 130 to another vehicle or container operated by another carrier the new carrier must—

(a)give notice to the customs authority that the goods were transferred to another vehicle or container; and

(b)endorse that carrier’s transport document or road manifest with—

(i)details of the previous vehicle or container in which the goods were transported, as may be prescribed by rule;

(ii)the container number, if applicable, in which the goods were transported;

(iii)the name of the previous carrier; and

(iv)the number of the previous carrier’s transport document or road manifest, as may be applicable.

(2)This section does not apply to the multi-modal transport of goods in transit.

234. Multi-modal excise warehouse transit of goods

If an excise warehouse transit operation is carried out by means of multi-modal transport of the goods, the goods may be transferred from one means of transport to another only—

(a)within a customs controlled area; and

(b)in accordance with any other requirements as may be prescribed by rule.

235. Excise warehouse transit operations carried out by road carriers

(1)A road carrier carrying out an excise warehouse transit operation must keep a road manifest of all the cargo transported on board the vehicle.

(2)A road manifest referred to in subsection (1) must—

(a)be in the form and format and contain the information as may be prescribed by rule;

(b)identify the goods transported under the excise warehouse transit operation; and

(c)distinguish those goods from any other goods on board the vehicle.

(3)Until the excise warehouse transit operation is completed, the carrier transporting the goods must keep in the vehicle—

(a)the road manifest; and

(b)a copy of the release notification issued in respect of the excise warehouse transit goods.

236. Completion of excise warehouse transit operations

An excise warehouse transit operation is completed when the transit goods are delivered at the delivery point indicated in the excise warehouse transit clearance declaration.

237. Completion procedures

(1)Upon completion of an excise warehouse transit operation, the carrier who has carried out the excise warehouse transit operation or the person clearing the goods for transit must—

(a)submit to the customs authority proof that the excise warehouse transit operation has been completed, if the customs authority requests such proof from the carrier or person clearing the goods; and

(b)comply with such other requirements as may be prescribed by rule for such carrier or person.

(2)Proof requested in terms of subsection (1) must be—

(a)in the form and format and contain the information as may be prescribed by rule;

(b)submitted within such period as may be prescribed by rule; and

(c)be submitted electronically in accordance with section 913, but may in the case of a person clearing the goods for transit be submitted in paper format.

(3)A carrier is relieved of compliance with subsection (1) if the person clearing the goods for excise warehouse transit complies with that subsection.

Part 4 – Other matters

238. Responsibility for ensuring compliance with excise warehouse transit requirements

(1)The responsibility for ensuring that an excise warehouse transit operation is carried out and completed in accordance with this Act and any steps taken or directions issued by the customs authority in terms of section 123 rests jointly and severally with the carrier who carries out the excise warehouse transit operation and the licensee of the excise manufacturing warehouse where the goods are to be delivered.

(2)The responsibilities conferred in terms of subsection (1) do not absolve any other person from complying with this Act or any steps or directions referred to in that subsection in connection with the excise warehouse transit of the goods.

239. Rules to facilitate implementation of this Chapter

Rules made in terms of section 903 to facilitate the implementation of this Chapter may include rules—

(a)prescribing additional requirements—

(i)for the clearance or release of goods for excise warehouse transit; or

(ii)relating to goods under the excise warehouse transit procedure; and

(b)providing for persons other than carriers to carry out an excise warehouse transit operation, and for the circumstances in which and the requirements and conditions subject to and accordance with which such persons may carry out such transit operations.

240. Offences in terms of this Chapter

(1)A person is guilty of an offence if that person contravenes—

(a)section 231(1); or

(b)section 230.

(2)A carrier carrying out an excise warehouse transit operation in respect of any goods is guilty of an offence—

(a)if that carrier fails to comply with—

(i)section 235(1) or (3), or 237(1)(b); or

(ii)a request issued in terms of section 237(1)(a); or

(b)if section 227(1), 229(1) or (2), 231(2) or (3), 232(1), 233(1) or 235 is contravened or not complied with in respect of those goods.

(3)The carrier carrying out a transit operation is guilty of an offence if the transit operation is not carried out and completed in accordance with this Act.

(4)The licensee of the customs controlled area where a transit operation commences or of the excise warehouse where a transit operation ends, is guilty of an offence—

(a)if that person fails to comply with section 229(3); or

(b)if the transit operation is not carried out and completed in accordance with this Act.

(5)An offence referred to in subsection (1)(b) is a Category 1 offence.

Chapter 11
Transhipment procedure

Part 1 – Introductory provisions

241. Purpose and application of this Chapter

(1)The purpose of this Chapter is to regulate the transhipment procedure.

(2)This Chapter applies to the transfer of imported goods at a customs seaport or airport from one foreign-going vessel or aircraft to another.

242. Transhipment²¹¹

²¹¹For tax status of goods under the transhipment procedure, see section 142. For consequences of non-compliance with transhipment procedure, see sections 112 and 115.

(1)Transhipment is a customs procedure that allows imported goods—

(a)to be transferred at a customs seaport or airport from the foreign-going vessel or aircraft on which those goods were imported to another foreign-going vessel or aircraft at that seaport or airport on which those goods are to be exported from the Republic; and

(b)to be exported from the Republic without complying with any export clearing formalities.²¹²²¹²Chapter 16 regulating the clearance of goods for export from the Republic does not apply to the export from the Republic of goods cleared and released for transhipment. See section 361(3).

(2)The transhipment procedure is not available for goods of a class or kind or falling within a category as may be prescribed by rule.

243. Commencement and completion of transhipment procedure

(1)

(a)Goods come under the transhipment procedure when the goods are cleared for transhipment.

(b)The transhipment procedure is, subject to subsection (2), completed when the goods are exported from the Republic.

(2)The transhipment procedure ends before its completion if—

(a)the goods before completion of the procedure are cleared and released for another customs procedure or for home use as may be permissible in the circumstances; or

(b)completion of the procedure is interrupted by an occurrence referred to in section 109(2).

244. Extent to which Chapters 4, 5 and 7 apply

Chapters 4, 5 and 7, except insofar as a provision of those Chapters is modified, qualified or deviated from in this Chapter,²¹³ apply to goods under the transhipment procedure, including to the clearance and release of goods for transhipment.²¹³In the case of an inconsistency between a provision of this Chapter and a general provision contained in Chapter 4 or 7 the provision of this Chapter prevails. See sections 88(3) and 162(3).

245. Limitation of customs seaports and airports for transhipment purposes

(1)The Commissioner may by rule limit the customs seaports and airports where goods may be transhipped under the transhipment procedure.

(2)If the customs seaports or airports where goods may be transhipped have been limited in terms of subsection (1), no person may tranship goods under the transhipment procedure at a customs seaport or airport other than a seaport or airport determined in terms of that subsection.

(3)When limiting the customs seaports and airports in terms of subsection (1) for the transhipment procedure, the Commissioner must act in accordance with the directions of the Minister acting in consultation with the Cabinet members responsible for transport, trade and industry and home affairs.

246. Application of other legislation to goods under transhipment

(2)Subsection (1) ceases to apply if—

(a)the release of the goods for transhipment is withdrawn in terms of section 105;²¹⁴ or²¹⁴For consequences when release of goods is withdrawn, see section 106.

(b)the goods are cleared and released for another customs procedure or home use as may be permissible in the circumstances.

Part 2 – Clearance and release of goods for transhipment

247. Clearance of goods for transhipment

(1)No goods may subject to sections 91(1)(f) and 95(1)(g), be transferred at a customs seaport or airport from one foreign-going vessel or aircraft to another unless the goods are cleared and released for transhipment.

(2)Goods to be cleared for transhipment must be cleared in accordance with section 244.

248. Persons entitled to submit transhipment clearance declarations

(1)Only the following persons may subject to section 165(2), submit a clearance declaration to clear goods for transhipment:²¹⁵²¹⁵See section 165(1)(a)

(a)The cargo reporter referred to in section 49(2) or 55(2) who is responsible for the transhipment goods, if that cargo reporter is located in the Republic;

(b)the registered agent in the Republic of that cargo reporter, if that cargo reporter is not located in the Republic; or

(c)a customs broker referred to in section 165(1)(b).

(2)A transhipment clearance declaration must be submitted—

(a)before the goods arrive in the Republic; and

(b)within a timeframe as may be prescribed by rule.

249. Contents of transhipment clearance declarations

(1)A transhipment clearance declaration must, in addition to the information required in terms of section 167, state—

(a)that the goods are cleared for transhipment;

(b)that the goods will be off-loaded in the Republic for purposes of transhipment;

(c)the date and time when the goods are due to arrive in the Republic;

(d)the customs seaport or airport where the transhipment operation will be carried out;

(e)particulars of the vessel or aircraft on board of which the goods are to be transported out of the Republic; and

(f)any other information as may be prescribed by rule.

(2)If the particulars referred to in subsection (1)(e) are not available to the person clearing the goods at the time when the transhipment clearance declaration is submitted, those particulars may be submitted separately at any later stage but before the goods are loaded on board the vessel or aircraft that will transport the goods out of the Republic.

250. Supporting documents

Section 176(1) does not apply in respect of the transhipment of goods.

251. Use of other documents as transhipment clearance declarations

A transport document or other document as may be prescribed by rule, issued or submitted in respect of the goods to be transhipped, may serve as a transhipment clearance declaration, provided that such transport document or other document reflects the minimum information concerning those goods as may be prescribed by rule for purposes of this section.

Part 3 – Transhipment operations

252. Transhipment operation not to commence before release of goods

A transhipment operation may not commence before the goods are released for transhipment.²¹⁶²¹⁶Goods released by the customs authority for transhipment remain in terms of section 28 subject to customs control despite such release.

253. Commencement and completion of transhipment operations

A transhipment operation—

(a)commences when the transhipment goods are off-loaded from the vessel or aircraft on board of which the goods were imported into the Republic; and

(b)is completed when the transhipment goods are loaded on board the vessel or aircraft that will transport the goods out of the Republic.

254. Transhipment goods to be secured on licensed premises

(1)Transhipment goods off-loaded from a vessel or aircraft referred to in section 253 (a) at a customs seaport or airport where the transhipment operation is carried out must—

(a)be secured at the terminal where the goods are off-loaded or on premises licensed for the receipt, storage and handling of transhipment goods; and

(b)if secured on premises referred to in paragraph (a), be kept on those premises until the goods are moved to a terminal at that seaport or airport where the goods are to be loaded on board the vessel or aircraft referred to in section 253(b).

(2)No transhipment goods may be moved from one customs controlled area to another customs controlled area at the customs seaport or airport where the transhipment operation is carried out without giving notice to the customs authority as may be prescribed by rule.

(3)The licensee of premises where transhipment goods are secured in terms of subsection (1) must keep such records of the receipt, handling, storage and delivery of the goods as may be prescribed by rule or as the customs authority may require in a specific case.

255. Commencement and completion periods for transhipment operation²¹⁷ and export of transhipment goods

²¹⁷Commencement and completion of transhipment operation must be distinguished from the commencement and completion of the transhipment procedure in terms of section 243.

(1)A transhipment operation must, subject to section 258(1)(c), commence within such period from release of the goods for transhipment as may be prescribed by rule read with sections 908 and 909.

(2)A transhipment operation must, subject to section 258(1)(c), be completed within such period from commencement of the transhipment operation as may be prescribed by rule read with sections 908 and 909.

(3)If subsection (2) is not complied with in respect of transhipment goods, the goods must in terms of section 112(1) for tax purposes be regarded to be cleared for home use under Chapter 8.²¹⁸²¹⁸For tax consequences if goods are regarded to be cleared for home use, see section 154.

256. Non-compliance with completion period

(1)If a transhipment operation is unlikely to commence within the period applicable to the goods in terms of section 255(1), the person clearing the goods for transhipment must—

(a)immediately notify the customs authority of the delay, and the reasons for the delay; and

(b)thereafter, if the period within which the transhipment operation must commence has been extended in terms of section 908, notify the customs authority regularly as may be prescribed by rule, of the situation with regard to the commencement of the transhipment operation.

(2)If a transhipment operation is not completed within the period applicable to the goods in terms of section 255(2), the licensee of the customs controlled area where the transhipment goods are temporarily stored or handled must immediately notify the customs authority of the delay, and the reasons for the delay.

257. Delivery of transhipment goods for loading on board outgoing vessels or aircraft

(1)The person clearing the transhipment goods must ensure that the goods are delivered to the terminal at the customs seaport or airport where the goods are to be loaded on board the vessel or aircraft that will transport the goods out of the Republic.

(2)If transhipment goods are to be transported by public road from the customs controlled area where the goods are secured in terms of section 254 to the terminal where the goods are to be loaded on board the vessel or aircraft that will transport the goods out of the Republic—

(a)those goods may not be transported by a person other than a carrier licensed for that purpose;

(b)the licensee of the premises where those goods are secured may not give delivery of the goods to anyone other than such a licensed carrier; and

(c)the carrier transporting the goods may not give delivery of the goods to anyone other than the licensee of the terminal from where the goods are to be loaded on board the vessel or aircraft that will transport the goods out of the Republic.

258. Measures to ensure integrity of transhipment operations

(1)The customs authority may in addition to its other enforcement functions,²¹⁹ take any steps or issue any directions necessary to identify transhipment goods and to guard against any unauthorised interference with the goods whilst in the Republic or during the transportation thereof out of the Republic, including by—²¹⁹See Chapter 33.

(a)stipulating the specific customs controlled area to which the goods must be delivered;

(b)requiring security in terms of Chapter 31 or any security additional to security already given in terms of that Chapter;

(c)shortening the time limit within which the transhipment operation must in terms of section 255(1) commence or in terms of section 255(2) be completed or the goods be exported from the Republic; and

(d)requiring that the goods be transhipped and exported from the Republic under customs escort.

(2)Any steps taken or directions issued by the customs authority in terms of subsection (1) are subject to such conditions or specifications as—

(a)may be prescribed by rule; or

(b)the customs authority may determine in a specific case.

Part 4 – Other matters

259. Responsibilities for ensuring compliance with transhipment requirements

(1)The licensee of a terminal where transhipment goods are to be loaded on board a vessel or aircraft that will transport the goods out of the Republic must immediately notify the customs authority if the goods are removed from the terminal for a purpose other than the loading of the goods on board that vessel or aircraft.

(2)An outturn report submitted in respect of transhipment goods by a licensee in terms of Part 6 of Chapter 3 must—

(a)declare that the goods to which it relates are transhipment goods; and

(b)reflect all the information as may be prescribed by rule for such goods.

(3)If transhipment goods loaded on board the vessel or aircraft that will transport the goods out of the Republic, are not exported from the Republic within a timeframe from commencement of the transhipment operation as may be prescribed by rule read with sections 908 and 909, the person clearing the goods for transhipment must—

(a)immediately notify the customs authority of the delay, and the reasons for the delay; and

(b)thereafter notify the customs authority regularly as may be prescribed by rule, of the situation with regard to the export of the goods from the Republic.

(4)

(a)A person who cleared goods for transhipment must on request by the customs authority provide proof to the customs authority that the goods were exported, as may be prescribed by rule.

(b)The burden to prove that goods released for transhipment have been exported rests on the person clearing the goods.

260. Rules to facilitate implementation of this Chapter

Rules made in terms of section 903 to facilitate the implementation of this Chapter may include rules prescribing additional requirements for the clearance or release of goods for transhipment or relating to goods under the transhipment procedure.

261. Offences in terms of this Chapter

(1)A person is guilty of an offence if that person—

(a)contravenes section 245(2);

(b)contravenes—

(i)section 247(1) or 254(2); or

(ii)section 257(2)(b); or

(c)fails to comply with a direction issued in terms of section 258(1) applicable to that person.

(2)A person clearing goods for transhipment is guilty of an offence—

(a)if section 252 is contravened with regard to those goods; or

(b)if that person fails to comply with section 256(1), 257(1) or 259(3).

(3)The licensee of a customs controlled area is guilty of an offence if that person contravenes or fails to comply with section 254(1) or (3), 256(2), 257(2)(b) or 259(1).

(4)A carrier is guilty of an offence if that carrier contravenes section 257(2)(c).

(5)The offences referred to in subsection (1)(a) and (b)(i) are Category 1 offences.

Chapter 12
Temporary admission procedure

Part 1 – Introductory provisions

262. Purpose and application of this Chapter

(1)The purpose of this Chapter is to regulate the temporary admission procedure.

(2)This Chapter applies to goods imported into the Republic temporarily.

263. Temporary admission²²⁰

²²⁰For tax status of goods under the temporary admission procedure, see section 143. For consequences of non-compliance with the temporary admission procedure, see sections 112 and 115.

(1)Temporary admission is a customs procedure that allows imported goods not in free circulation—

(a)to be used in the Republic temporarily for a specific purpose and for a specific period on condition that the goods are re-exported within that period without having undergone any change except for maintenance and normal wear and tear due to the use made of the goods whilst in the Republic;

(b)to be moved freely in the Republic under that procedure; and

(c)to be re-exported under that procedure in accordance with the export procedure.

(2)The temporary admission procedure is available only for imported goods which—

(a)fall within a category of goods to which Part 2, 4 or 5 applies; and

(b)are of a nature that will make them, when re-exported, likely to be identified as the same goods.

264. Commencement and completion of temporary admission procedure

(1)Goods come under the temporary admission procedure—

(a)when cleared for temporary admission in terms of Part 2;

(b)when cleared for temporary admission in terms of international clearance arrangements referred to in Part 4; or

(c)upon entering the Republic, in the case of goods that automatically come under the temporary admission procedure in terms of Part 5.

(2)The temporary admission procedure is, subject to subsection (3), completed when the goods are re-exported from the Republic.

(3)The temporary admission procedure, in relation to any goods, ends before its completion—

(a)if the goods before completion of the temporary admission procedure are cleared and released for another customs procedure or for home use as may be permissible in the circumstances; or

(b)if completion of the temporary admission procedure is interrupted by an occurrence referred to in section 109(2).

265. Extent to which Chapters 4 and 7 apply

Chapters 4 and 7, except insofar as a provision of those Chapters is modified, qualified or deviated from in this Chapter, apply to all goods under the temporary admission procedure,²²¹ including to the clearance and release of goods for—²²¹In the case of an inconsistency between a provision of this Chapter and a general provision contained in Chapter 4 or 7 the provision of this Chapter prevails. See sections 88(3) and 162(3).

(a)temporary admission in terms of Part 2 or 4; and

(b)export under the temporary admission procedure in terms of Part 3 or 4.

Part 2 – Temporary admission of goods in terms of regular clearance and release procedures

266. Application of this Part

(1)This Part—

(a)applies to goods of a class or kind that may in terms of any of the tax levying Acts be cleared for temporary admission under this Part; and

(b)does not apply to goods—

(i)cleared in accordance with the international clearance arrangements referred to in Part 4; or

(ii)that automatically come under the temporary admission procedure in terms of Part 5.

(2)Goods to be cleared for temporary admission under this Part must be cleared in accordance with section 265(a).

267. Persons entitled to submit temporary admission clearance declarations

(1)Only the following persons may subject to section 165(2), submit clearance declarations to clear goods for temporary admission:²²²²²²See section 165(1)(a).

(a)The importer of the goods, if the importer is located in the Republic;

(b)the agent in the Republic of the importer, if the importer is not located in the Republic; or

(c)a customs broker referred to in section 165(1)(b).

(2)The provisions of Chapter 7 relating to supporting documents apply to goods that are cleared for temporary admission only to the extent as may be prescribed by rule.

268. Contents of temporary admission clearance declarations

A temporary admission clearance declaration must, in addition to the information required in terms of section 167, state—

(a)that the goods are cleared for temporary admission under this Part;

(b)the purpose for which the goods are cleared for temporary admission; and

(c)the period for which the goods are expected to remain in the Republic.

269. Release notifications to state period of temporary admission

(1)If goods are released for temporary admission, the release notification must state the period for which the goods may remain in the Republic under temporary admission.

(2)A period determined in terms of subsection (1) may not exceed—

(a)a maximum period as may be prescribed for the relevant class or kind of goods—

(i)in a tax levying Act referred to in section 266(1)(a) or, if two or more tax levying Acts permit goods of the same class or kind to be cleared for temporary admission, a maximum period prescribed uniformly in those tax levying Acts for that class or kind of goods; or

(ii)by rule, if no period is in terms of subparagraph (i) prescribed for that class or kind of goods; or

(b)one year from the date of clearance of the goods, if no period is in terms of paragraph (a)(i) or (ii) prescribed for that class or kind of goods.

(3)The period mentioned in a release notification may be extended in terms of section 908 only once except if good cause is shown for an additional extension.

270. Simplified clearance and release for commercial trucks entering Republic temporarily

Trucks entering the Republic as a means of transport currently in use for the transport of goods in the ordinary course of international trade may, despite the other provisions of this Part, be cleared and released for temporary admission in accordance with simplified clearance and release processes and requirements provided for in Part 3 of Chapter 24 if the truck—

(a)did not enter the Republic on the return leg of the temporary export procedure;²²³ and²²³See section 389.

(b)is destined to leave the Republic without any interruption in its current use as a means of transport for goods in the ordinary course of international trade.

271. Simplified clearance and release for buses and taxis entering Republic temporarily

Buses or taxis entering the Republic as a means of transport currently in use for travellers visiting or returning to the Republic may, despite the other provisions of this Part, be cleared and released for temporary admission in accordance with simplified clearance and release processes and requirements provided for in Part 3 of Chapter 24 if—

(a)the bus or taxi did not enter the Republic on the return leg of the temporary export procedure;²²⁴²²⁴See section 390.

(b)no international clearance arrangements referred to in Part 4 are available for the entry of the bus or taxi into the Republic; and

(c)the bus or taxi is destined to leave the Republic without any interruption in its current use as a means of transport for such travellers.

272. Simplified clearance and release for private vehicles, small vessels and fight aircraft entering Republic temporarily

Vehicles, small vessels or light aircraft entering the Republic as a private means of transport for a traveller visiting the Republic²²⁵ may, despite the other provisions of this Part, be cleared and released for temporary admission in accordance with simplified clearance and release processes and requirements provided for in Part 3 of Chapter 24 if—²²⁵For determining when a vessel, aircraft or vehicle qualifies as a small vessel, light aircraft or vehicle used as a private means of transport, see section 903(1)(n).

(a)the vehicle, vessel or light aircraft did not enter the Republic on the return leg of the temporary export procedure;²²⁶²²⁶See section 391.

(b)no international clearance arrangements referred to in Part 4 are available for the vehicle, vessel or light aircraft; and

(c)the vehicle, vessel or light aircraft is destined to leave the Republic without any interruption in its current use as a private means of transport for that traveller.

Part 3 – Re-export of goods under temporary admission in terms of Part 2

273. Goods under temporary admission in terms of Part 2 to be cleared for export and re-exported within applicable timeframes

(1)Goods cleared and released for temporary admission in terms of Part 2 must before the expiry of the period applicable to the goods in terms of section 269—

(a)be cleared for export in accordance with Chapter 16,²²⁷ read with section 265(b): and²²⁷See also section 361(2)(b)(i) which states that Chapter 16 applies to goods destined for re-export under the temporary admission procedure.

(b)upon release for export be re-exported from the Republic.

(2)Subsection (1) does not apply if the goods are cleared and released for another customs procedure or for home use as may be permissible in the circumstances.²²⁸²²⁸See section 110.

274. Persons entitled to submit export clearance declarations for goods under temporary admission

Only the following persons may subject to section 165(2), submit clearance declarations to clear for export goods under temporary admission in terms of Part 2:²²⁹²²⁹See section 165(1)(a).

(a)The person who originally cleared the goods in terms of Part 2 for temporary admission;²³⁰²³⁰For person who cleared goods, see section 166.

(b)the owner of the goods, if ownership in the goods has been transferred whilst under temporary admission and the new owner is located in the Republic;

(c)the agent in the Republic of the owner referred to in paragraph (b), if that owner is not located in the Republic; or

(d)a customs broker referred to in section 165(1)(b).

275. Contents of export clearance declarations

A clearance declaration submitted in terms of Part 2 of Chapter 16 for the export of goods cleared for temporary admission in terms of Part 2 must, in addition to the information required in terms of sections 167 and 367, state—

(a)that the goods are cleared for export under the temporary admission procedure;

(b)the number and date of the clearance declaration in terms of which the goods were cleared for temporary admission; and

(c)the period for which the goods remained in the Republic.

276. Simplified export clearance and release for commercial trucks leaving Republic

Trucks cleared as a means of transport for temporary admission in terms of section 270 may despite the other provisions of this Part, be cleared and released for export under the temporary admission procedure in accordance with simplified clearance and release processes and requirements provided for in Part 3 of Chapter 24.

277. Simplified export clearance and release for buses and taxis leaving Republic

Buses or taxis cleared as a means of transport for temporary admission in terms of section 271 may despite the other provisions of this Part, be cleared and released for export under the temporary admission procedure in accordance with simplified clearance and release processes and requirements provided for in Part 3 of Chapter 24.

278. Simplified export clearance and release for private vehicles, small vessels and light aircraft leaving Republic

Vehicles, vessels or light aircraft cleared for temporary admission in terms of section 272 as a private means of transport for a traveller visiting the Republic may despite the other provisions of this Part, be cleared and released for export under the temporary admission procedure in accordance with simplified clearance and release processes and requirements provided for in Part 3 of Chapter 24.

279. Proof of re-export of goods under temporary admission in terms of Part 2

The burden to prove that goods cleared and released for temporary admission under Part 2 were loaded for re-export, or re-exported from the Republic, in accordance with the export procedure, or were re-exported from the Republic within the period applicable to the goods in terms of section 269, rests on the person who cleared the goods for temporary admission.

Part 4 – Temporary admission of goods under international clearance arrangements

280. Application of this Part

(1)This Part—

(a)gives effect to—

(i)the Convention on Temporary Admission; and

(ii)any agreement between the Republic and another country regulating the temporary admission of goods from that other country into the Republic in accordance with agreed customs arrangements; and

(b)applies to goods—

(i)described in the Convention or agreement and imported into the Republic; and

(ii)that may in terms of the Convention or agreement be cleared for temporary admission in the Republic on authority of CPD or ATA carnets which guarantee in accordance with the Convention or agreement the payment of any tax that may be or become payable on those goods.

(2)Goods to be cleared for temporary admission under this Part must be cleared in accordance with section 265(a), read with section 281.

281. Clearance and release of goods for temporary admission on authority of CPD and ATA carnets

(1)Goods to which this Part applies may be cleared and released for temporary admission on authority of a CPD or ATA carnet.

(2)Goods may be cleared for temporary admission on authority of a CPD or ATA carnet only if the CPD or ATA carnet—

(a)was issued by an issuing association;

(b)is guaranteed by a guaranteeing association approved in terms of section 282; and

(c)has been accepted by the customs authority.

(3)A CPD or ATA carnet must be produced to the customs authority at the Customs Office serving the customs controlled area where the goods are to be released for temporary admission.

282. Guaranteeing associations to be approved

(1)No CPD or ATA carnet may be accepted by the customs authority unless the guaranteeing association guaranteeing the carnet—

(a)has submitted an application to the customs authority for its approval, in the form and format as may be prescribed by rule; and

(b)has been approved by the customs authority for the purposes of this Part.

(2)No guaranteeing association may be approved unless the association—

(a)is located in the Republic; and

(b)has given security for the payment of any tax that may become payable on any goods imported into the Republic cleared for temporary admission on authority of a CPD or ATA carnet guaranteed by that guaranteeing association.

(3)The conditions subject to which an approval in terms of subsection (1) may be granted in terms of section 918 may include conditions requiring the association to assist the Commissioner in combating fraud and contravention or abuse of this Part.

283. Formats of CPD and ATA carnets

CPD or ATA carnets must conform to the models set out in the Convention on Temporary Admission or relevant international agreement referred to in section 280(1)(d)(ii).

284. Validity period of CPD and ATA carnets

(1)A CPD or ATA carnet remains valid for the period for which it was issued in terms of the Convention or agreement referred to in section 280(1)(a)(ii).

(2)The validity period of a CPD or ATA carnet may be extended only in accordance with rules as may be prescribed for the category in which the goods fall.²³¹²³¹Section 908 does not apply to the extension of the validity periods of CPD or ATA carnets. See section 908(3).

285. Amendment of CPD and ATA carnets

(1)A CPD or ATA carnet may subject to subsection (2), be amended only by or with the approval of the guaranteeing association which guaranteed the carnet.

(2)Once a CPD or ATA carnet has been accepted by the customs authority no amendment may be made to the carnet without the approval of the customs authority.

286. Replacement of CPD and ATA carnets

(1)If a CPD or ATA carnet has been destroyed, lost or stolen whilst the goods to which the carnet relates are still in the Republic, the issuing association which issued the carnet may with the approval of the customs authority,²³² issue a replacement carnet.²³²See section 918 for granting of approval subject to conditions.

(2)A replacement CPD or ATA carnet expires on the same date as the date on which the original CPD or ATA carnet would have expired.

287. Re-export of goods under temporary admission in terms of this Part

(1)The person to whom a CPD or ATA carnet was issued must ensure that the goods to which the carnet relates are re-exported from the Republic before the expiry of the validity period applicable to the carnet.

(2)If a replacement CPD or ATA carnet was issued in terms of section 286, the person to whom the new carnet was issued must ensure that the goods to which the new carnet relates are re-exported from the Republic before the expiry of the validity period applicable to that carnet.

288. Clearance for export of goods under temporary admission in terms of this Part

(1)Goods under the temporary admission procedure in terms of this Part must be cleared for export in accordance with section 265(b).

(2)Goods under the temporary admission procedure in terms of this Part may be cleared and released for export on authority of the CPD or ATA carnet issued in respect of the goods, provided the validity period applicable to the carnet has not expired.

(3)A CPD or ATA carnet must be produced to the customs authority at the Customs Office serving the place of exit where the goods are to be re-exported from the Republic.

(4)The burden to prove that goods under temporary admission in terms of this Part, were re-exported from the Republic, or were re-exported from the Republic within the validity period applicable to the relevant CPD or ATA carnet, rests on the person to whom the carnet on authority of which the goods were imported into Republic was issued.

Part 5 – Goods that automatically come under temporary admission procedure

289. Foreign-going vessels, aircraft, locomotives and railway carriages entering Republic

(1)A vessel, aircraft, locomotive or railway carriage entering the Republic as a means of transport currently in use for the transport of goods in the ordinary course of international trade or for the transport of travellers for reward between countries, comes under the temporary admission procedure without any formal clearance or release for that procedure if the vessel, aircraft, locomotive or railway carriage—

(a)is not re-entering the Republic on the inbound leg of the temporary export procedure;²³³ and²³³See section 402.

(b)is destined to leave the Republic without any interruption in its current use as a means of transport for goods in the ordinary course of international trade or for the transport of travellers for reward between countries.²³⁴²³⁴The arrival and departure requirements set out in Chapter 3 are not affected by this provision and those requirements must be complied with when vessels, aircraft, locomotives or railway carriages that automatically come under the temporary admission procedure enter or leave the Republic.

(2)If the current use of a vessel, aircraft, locomotive or railway carriage that automatically came under the temporary admission procedure in terms of subsection (1) as a means of transport for goods in the ordinary course of international trade or for the transport of travellers for reward between countries, is for any reason interrupted or discontinued whilst the vessel, aircraft, locomotive or railway carriage is under that procedure, the carrier operating that vessel, aircraft, locomotive or railway carriage or, if that carrier is not located in the Republic, that carrier’s registered agent, must immediately report the interruption or discontinuation to the customs authority, as may be prescribed by rule.

(3)Parts 2, 3 and 4 of this Chapter do not apply to vessels, aircraft, locomotives or railway carriages referred to in subsection (1).

290. Reusable transport equipment entering Republic

(1)Transport equipment entering the Republic as reusable transport equipment currently in use as transport equipment for goods in the ordinary course of international trade, comes under the temporary admission procedure without any formal clearance or release for that procedure if—

(a)that transport equipment is not re-entering the Republic on the inbound leg of the temporary export procedure;²³⁵²³⁵See section 403.

(b)that transport equipment is destined to leave the Republic without any interruption in its current use as reusable transport equipment for goods in the ordinary course of international trade; and

(c)the carrier who brought the transport equipment into the Republic or, if that carrier is not located in the Republic, that carrier’s registered agent, keeps record of that transport equipment, as may be prescribed by rule.

(2)If the current use of transport equipment that automatically came under the temporary admission procedure in terms of subsection (1) as reusable transport equipment currently in use as transport equipment for goods in the ordinary course of international trade, is for any reason interrupted or discontinued whilst the transport equipment is under that procedure, the carrier or, if that carrier is not located in the Republic, that carrier’s registered agent, must immediately report the interruption or discontinuation to the customs authority, as may be prescribed by rule.

(3)Parts 2, 3 and 4 of this Chapter do not apply to reusable transport equipment referred to in subsection (1).

Part 6 – Provisions applicable to all goods under temporary admission

291. General provisions

Goods under the temporary admission procedure—

(a)may not be disposed of in the Republic—

(i)unless the goods are cleared and released for home use under Chapter 8; or

(ii)otherwise than in accordance with section 544, in the case of damaged goods to which that section applies;

(b)must be dealt with in accordance with this Act and any conditions that may be prescribed by rule; and

(c)may when re-exported in terms of the procedure, be exported—

(i)through a place of exit other than the place of entry through which the goods were imported into the Republic; and

(ii)in one or more consignments.

292. Goods not re-exported within applicable period regarded for tax purposes to be cleared for home use

Goods under the temporary admission procedure must in terms of section 112(1) for tax purposes be regarded to be cleared for home use under Chapter 8²³⁶ if the goods are not re-exported from the Republic within the period applicable to the goods.²³⁶For tax consequences if goods are regarded to be cleared for home use, see section 154; for other consequences of non-compliance with customs procedures, see section 115.

Part 7 – Other matters

293. Rules to facilitate implementation of this Chapter

Rules made in terms of section 903 to facilitate the implementation of this Chapter may include rules prescribing—

(a)additional requirements for the clearance or release of goods for temporary admission;

(b)the tax and other consequences if means of transport referred to in section 289 or transport equipment referred to in section 290 does not leave the Republic within a period as may be prescribed by rule read with sections 908 and 909;

(c)the records that must be kept of reusable transport equipment referred to in section 290, including records of—

(i)the type of transport equipment and number of each type that entered or left the Republic;

(ii)the places of entry or exit through which, and the dates on which, such transport equipment entered or left the Republic;

(iii)the movement of such transport equipment in the Republic; and

(iv)the persons by whom, and the period for which, such records must be kept;

(d)the measures to be taken to ensure accurate identification of goods under temporary admission upon their re-exportation from the Republic;

(e)any additional requirements necessary to give effect to—

(i)the Convention on Temporary Admission; or

(ii)any agreement between the Republic and another country regulating the temporary admission of goods from that other country into the Republic; and

(f)any additional requirements relating to goods under the temporary admission procedure.

294. Offences in terms of this Chapter

(1)A person is guilty of an offence if that person contravenes section 291(a) or (b).

(2)A person clearing goods for temporary admission in terms of Part 2 is guilty of an offence if that person fails to comply with section 273(1).

(3)A person to whom a CPD or ATA carnet was issued is guilty of an offence if that person fails to comply with section 287(1) or (2).

(4)A carrier operating a vessel, aircraft, locomotive or railway carriage referred to in section 289(1) or who brought transport equipment referred to in section 290(1) into the Republic or, if that carrier is not located in the Republic, that carrier’s registered agent, is guilty of an offence if that carrier or carrier’s agent fails to comply with section 289(2) or 290(2).

(5)The offences referred to in subsection (1), (2) and (3) are Category 1 offences.

Chapter 13
Warehousing procedure

Part 1 – Introductory provisions

295. Purpose and application of this Chapter

(1)The purpose of this Chapter is to regulate the warehousing procedure.

(2)This Chapter applies to the storage of goods not in free circulation, excluding—

(a)the temporary storage²³⁷ of goods;²³⁷See definition of “temporary storage” in section 1.

(b)the storage of goods under a customs procedure that provides for the storage of goods under that procedure;²³⁸²³⁸For instance the inward processing procedure (section 408) or the home use processing procedure (section 435).

(c)the storage of goods in state warehouses or premises regarded in terms of section 580 to be state warehouses;

(d)the storage of goods in a special economic zone or part of a special economic zone designated in terms of section 43(2)(c) as a customs controlled area except when the goods are stored in a storage warehouse within such a designated special economic zone or part of a special economic zone; and

(e)the storage of goods in excise warehouses.

296. Warehousing procedure²³⁹

²³⁹For tax status of goods under the warehousing procedure, see section 144. For consequences of non-compliance with warehousing procedure, see sections 112 and 115The warehousing procedure is a customs procedure that allows goods to which this Chapter applies—

(a)to be stored in a specific storage warehouse; and

(b)for the purpose of such storage to be transported to that warehouse without clearing the goods for national transit.

297. Commencement and completion of warehousing procedure

(1)

(a)Goods come under the warehousing procedure when the goods are cleared for warehousing.

(b)The warehousing procedure is, subject to subsection (2), completed when the goods are cleared and released for another customs procedure or for home use, as may be permissible in the circumstances.

(2)The warehousing procedure, in relation to any goods, ends before its completion if completion of the procedure is interrupted by an occurrence referred to in section 109(2).

298. Extent to which Chapters 4, 5 and 7 apply

Chapters 4, 5 and 7, except insofar as a provision of those Chapters is modified, qualified or deviated from in this Chapter,²⁴⁰ apply to goods under the warehousing procedure, including to the clearance and release of goods for warehousing.²⁴⁰In the case of an inconsistency between a provision of this Chapter and a general provision contained in Chapter 4 or 7 the provision of this Chapter prevails. See sections 88(3) and 162(3).

Part 2 – Clearance and release of goods for warehousing

299. Warehousing of goods

(1)Goods not in free circulation to which this Chapter applies may be stored in a storage warehouse only if the goods are cleared and released for warehousing in that specific warehouse.²⁴¹²⁴¹Goods released by the customs authority for warehousing remain in terms of section 28 subject to customs control despite such release.

(2)Goods in free circulation may without clearance for warehousing be stored in a storage warehouse subject to any limitations and in accordance with any rules as may be prescribed for such goods.

(3)No goods referred to in subsection (1) may be cleared or released for warehousing—

(a)in a facility other than a storage warehouse;

(b)for a purpose other than a purpose referred to in section 300 or 301, as may be applicable;

(c)in a storage warehouse which is not licensed for the purpose for which the goods are to be warehoused; and

(d)unless the licensee of the storage warehouse, in the case of a public storage warehouse—

(i)has granted permission for the warehousing of the goods in that warehouse; and

(ii)has advised the customs authority electronically in accordance with section 913 of such permission.

(4)Goods to be cleared for warehousing must be cleared in accordance with section 298.

300. Purposes for which goods may be cleared for warehousing in public storage warehouses

(1)Goods may be cleared for warehousing in a public storage warehouse for the following purposes only:

(a)To secure and store imported goods on behalf of clients pending clearance and release of the goods for—

(i)home use;

(ii)warehousing in another storage warehouse; or

(iii)another permissible customs procedure;²⁴²²⁴²For instance goods warehoused for later clearance as supplies to vessels and aircraft under the stores procedure, for removal to an excise warehouse under the excise warehouse transit procedure, etc.

(b)to store, consolidate and de-consolidate on behalf of clients goods destined for export from the Republic pending their clearance or release for export;

(c)to store goods for any reason on behalf of clients to ensure that the goods remain under customs control for a specific period; or

(d)in the case of restricted goods imported without prior compliance with legislation restricting the import or possession of the goods, to secure the goods on behalf of a client in terms of section 784(2)(a) pending—

(i)compliance by the client with such legislation; or

(ii)export of the goods, subject to the legislation restricting the import or possession of the goods.

(2)Goods may be secured in terms of subsection (1)(a) in a public storage warehouse to delay the clearance and release of the goods as contemplated in that subsection—

(a)in order to utilise the tax free status in relation to import tax conferred on warehoused goods in terms of section 144; or

(b)for any other purpose determined by the customs authority as consistent with the warehouse procedure.

301. Purposes for which goods may be cleared for warehousing in private storage warehouses

(1)Goods may be cleared for warehousing in a private storage warehouse for the following purposes only:²⁴³²⁴³It is to be noted that goods under a customs procedure that provides for the storage of goods, such as the inward processing procedure (section 408) or the home use processing procedure (section 435), need not be cleared for warehousing and may be stored in terms of that procedure in private storage facilities at the premises where the goods are processed.

(a)To secure imported goods owned by the licensee of the warehouse or in which the licensee has a material interest, pending clearance and release of the goods for—

(i)home use;

(ii)warehousing in another storage warehouse; or

(iii)another permissible customs procedure;²⁴⁴ or²⁴⁴For instance goods warehoused for later clearance as supplies to vessels and aircraft under the stores procedure.

(b)in the case of restricted goods imported by the licensee of a storage warehouse without prior compliance with legislation restricting the import or possession of such goods, to secure the goods in terms of section 784(2)(a) pending—

(i)compliance by the licensee with such legislation; or

(ii)export of the goods, subject to the legislation restricting the import or possession of the goods.

(2)Goods may be secured in terms of subsection (1)(a) in a private storage warehouse to delay the clearance and release of the goods as contemplated in that subsection—

(a)in order to utilise the tax free status in relation to import tax conferred on warehoused goods in terms of section 144; or

(b)for any other purpose determined by the customs authority as consistent with the warehouse procedure.

302. Persons entitled to submit warehousing clearance declarations

(1)Only the following persons may subject to section 165(2), submit clearance declarations to clear goods for warehousing in a public storage warehouse:²⁴⁵²⁴⁵See section 165(1)(a).

(a)The importer or exporter of the goods, if that importer or exporter is located in the Republic;

(b)the registered agent in the Republic of the importer or exporter of the goods, if the importer or exporter is not located in the Republic;

(c)the owner of the goods, if ownership in the case of imported goods has been transferred after the goods were imported and that owner is located in the Republic;²⁴⁶²⁴⁶See section 111.

(d)the registered agent in the Republic of the owner referred to in paragraph (c), if that owner is not located in the Republic; or

(e)a customs broker referred to in section 165(1)(b).

(2)Only the following persons may subject to section 165(2), submit clearance declarations to clear goods for warehousing in a private storage warehouse:

(a)The importer or exporter of the goods, provided that the importer or exporter is the licensee of the private storage warehouse;

(b)the owner of the goods, if ownership in the case of imported goods has been transferred after the goods were imported and that owner is the licensee of the private storage warehouse; or

(c)a customs broker referred to in section 165(1)(b).

303. Contents of warehousing clearance declarations

A warehousing clearance declaration must, in addition to the information required in terms of section 167, state—

(a)that the goods are cleared for warehousing;

(b)the purpose for which the goods will be warehoused, taking into account section 300 or 301;

(c)the customs code and address of the storage warehouse where the goods will be warehoused; and

(d)that the storage warehouse where the goods will be warehoused is licensed for the purpose for which the goods are to be warehoused.

304. Redirection of goods

(1)Goods that are cleared and released for warehousing must be delivered to the storage warehouse indicated in the clearance declaration, and no person may without the permission of the customs authority, redirect goods that are cleared for warehousing to any place other than that warehouse

(2)When goods cleared and released for warehousing are delivered to the storage warehouse indicated in the clearance declaration—

(a)the carrier that transported the goods to that warehouse must notify the customs authority of the delivery; and

(b)the licensee of that warehouse must notify the customs authority of the receipt of the goods.

Part 3 – Warehousing of goods in storage warehouses

305. Maximum warehousing period

(1)Goods other than goods referred to in subsection (4) may not be warehoused in a storage warehouse for longer than two years from the date the goods are for the first time cleared for warehousing in any storage warehouse, whether public or private.

(2)The period referred to in subsection (1) may not be extended in terms of section 908 longer than—

(a)180 calendar days; or

(b)in the case of a specific class or kind or other category of goods as may be prescribed by rule, 180 calendar days or such other period as may be prescribed by rule.

(3)If subsection (1) is contravened in respect of warehoused goods, the goods must in terms of section 112(1) for tax purposes be regarded to be cleared for home use under Chapter 8.²⁴⁷²⁴⁷For tax consequences if goods are regarded to be cleared for home use, see section 154.

(4)Restricted goods imported into the Republic and warehoused in a public or private storage warehouse in terms of section 784(2)(a) pending compliance with the legislation restricting the import or possession of such goods, may not be warehoused for longer than a period as may be prescribed by rule read with sections 908 and 909.

306. Warehousing of dangerous or hazardous goods

Dangerous or hazardous goods—

(a)may be warehoused in a storage warehouse only in accordance with any applicable legislation and requirements; and

(b)must immediately be removed from a warehouse to another place if the customs authority in the public interest so directs.

307. Records to be kept of warehoused goods

The licensee of a storage warehouse must keep record of all warehoused goods in a manner and format and containing the information as may be prescribed by rule or as the customs authority may require in a specific case,²⁴⁸ including information concerning—²⁴⁸See section 919 for computerised record keeping systems.

(a)all goods received in the warehouse, and the date of receipt;

(b)the purpose for which, and, in the case of a public storage warehouse, the client on whose behalf, the goods are warehoused;

(c)any warehoused goods that are damaged, destroyed, lost or unaccounted for;

(d)all goods removed from the warehouse, and the date of removal;

(e)the person by whom the goods were removed; and

(f)whether the goods were removed—

(i)in terms of a clearance for home use or a customs procedure and, if for a customs procedure, the specific customs procedure under which the goods were removed; or

(ii)for any other purpose, taking into account section 310.

308. Reports to be submitted in connection with warehoused goods

(1)The licensee of a storage warehouse must submit to the customs authority regular reports for such periods as may be prescribed by rule or as the customs authority may require in a specific case.

(2)A report in terms of subsection (1) must contain such information as may be prescribed by rule or as the customs authority may require in a specific case, including information concerning—

(a)all goods received in the warehouse during the reporting period;

(b)all goods removed from the warehouse during the reporting period;

(c)any surpluses or shortfalls on goods in the warehouse, as at the end of the reporting period; and

(d)any goods in the warehouse damaged, destroyed, lost or unaccounted for during the reporting period.

309. Sorting, packing and other actions in relation to goods warehoused in storage warehouses

Goods warehoused in a storage warehouse may be sorted, separated, graded, packed, repacked, labelled or relabelled only with the permission of the customs authority or otherwise dealt with as may be prescribed by rule.

310. Removal of goods from storage warehouses

Warehoused goods may be removed from a storage warehouse in the following circumstances only:

(a)When the goods are cleared and released for home use, warehousing in another storage warehouse or another customs procedure permissible in the circumstances;

(b)for carrying out repair or preservation operations in connection with the goods as approved by the customs authority, provided that the goods are returned to the warehouse within a period as may be prescribed by rule or determined by the customs authority in a specific case;

(c)for any other purpose as may be prescribed by rule or as the customs authority may approve in a specific case, provided that the goods are within a period as may be prescribed by rule or determined by the customs authority in a specific case—

(i)returned to the warehouse; or

(ii)cleared and released as contemplated in paragraph (a);

(d)if any steps referred to in section 115 are taken in respect of the goods and such steps require removal of the goods from the warehouse; or

(e)if the goods are detained, seized or confiscated and the customs authority directs in terms of Chapter 34, 35 or 36 that the goods be removed to another place.

311. Removal of restricted goods stored in storage warehouses pending compliance with legislation restricting import or possession

(1)Restricted goods imported into the Republic and warehoused in a storage warehouse in terms of section 784(2)(a) pending compliance with the legislation restricting the import or possession of such goods, may not be removed from the warehouse unless proof of compliance with that legislation is submitted to the customs authority.

(2)If such proof of compliance is not submitted to the customs authority within the period applicable to the goods in terms of section 305(4), section 785(1) and the other provisions of Chapter 35 become applicable.

Part 4 – Other matters

312. Notification of closure of public storage warehouse

When closing a public storage warehouse in terms of sections 662 and 663, the Commissioner must take all reasonable steps to ensure that written notice of the closure of the warehouse is given to every person who has cleared goods for warehousing in that warehouse.

313. Rules to facilitate implementation of this Chapter

Rules made in terms of section 903 to facilitate the implementation of this Chapter may include rules prescribing—

(a)the form and format of record keeping, the manner in which records must be secured and the information of which record must be kept for purposes of this Chapter;

(b)measures to distinguish warehoused goods from goods in free circulation in a warehouse and to guard against the diversion for home use of warehoused goods;

(c)measures to ensure effective customs control—

(i)when goods are transported to a warehouse under the warehousing procedure; or

(ii)during the temporary removal of warehoused goods from a storage warehouse in terms of section 310;

(e)the responsibilities of persons clearing goods²⁴⁹ for warehousing in a storage warehouse;²⁴⁹If ownership of goods under a customs procedure is transferred, the new owner is in terms of section 111(5)(b)(i) regarded to have cleared the goods and assumes the responsibilities of the previous owner.[Please note: numbering as in original.]

(f)for purposes of section 122(c), any persons, other than carriers, permitted to transport goods to a warehouse under the warehousing procedure; and

(g)the periods for and the timeframes within which reports must be submitted to the customs authority in terms of section 308.

314. Offences in terms of this Chapter

(1)A person is guilty of an offence if that person contravenes section 304(1), 310 or 311(1).

(2)A person clearing goods for warehousing is guilty of an offence—

(a)if that person contravenes section 300(1) or 301(1);

(b)if that person fails to comply with a direction in terms of section 306(b); or

(c)if section 305(1) or (4) is contravened with respect to those goods.

(3)The licensee of a storage warehouse is guilty of an offence—

(a)if that licensee fails to comply with section 302 or 308(1) or contravenes section 309; or

(b)if section 299(1) or (2) is contravened with respect to goods stored in that warehouse.

(4)An offence referred to in subsection (1) is a Category 1 offence.

Chapter 14
Tax free shop procedure

Part 1 – Introductory provisions

315. Purpose and application of this Chapter

(1)The purpose of this Chapter is to regulate the tax free shop procedure.

(2)This Chapter applies to all goods supplied to or received in a tax free shop for sale in or from that shop.

316. Tax free shop procedure²⁵⁰

²⁵⁰For tax status of goods under the tax free shop procedure, see section 145. For consequences of non-compliance with the tax free shop procedure, see sections 112, 113, 114 and 115The tax free shop procedure is a customs procedure that allows—

(a)goods whether in free circulation or not in free circulation to be sold tax free in retail quantities on premises situated within a sea, air or rail travellers terminal or land border-post and licensed as a tax free shop to persons entering or leaving the Republic;

(b)goods not in free circulation supplied to a tax free shop for the purpose of such sale to be transported to the shop without clearing the goods for national transit; and

(c)the goods so sold to be treated as accompanied or unaccompanied baggage of such persons.

317. Commencement and completion of tax free shop procedure

(1)

(a)Goods not in free circulation come under the tax free shop procedure when the goods are cleared for supply to a tax free shop in accordance with Part 2, and goods in free circulation automatically come under the tax free shop procedure when the goods are received in a tax free shop in accordance with Part 3.

(b)The tax free shop procedure is, subject to subsection (2), completed when the goods are sold from the shop and—

(i)if sold to a person in the process of leaving the Republic, exported from the Republic; or

(ii)if sold to a person having entered the Republic, declared in terms of section 478(1)(b) to the customs authority.

(2)The tax free shop procedure, in relation to any goods, ends before its completion if—

(a)the goods before completion of the procedure are cleared and released for another customs procedure or for home use as may be permissible in the circumstances; or

(b)completion of the procedure is interrupted by an occurrence referred to in section 109(2).

318. Extent to which Chapters 4 and 7 apply

Chapters 4 and 7, except insofar as a provision of those Chapters is modified, qualified or deviated from in this Chapter,²⁵¹ apply to goods under the tax free shop procedure, including to the clearance and release of goods for the tax free shop procedure.²⁵¹In the case of an inconsistency between a provision of this Chapter and a general provision contained in Chapter 4 or 7 the provision of this Chapter prevails. See sections 88(3) and 162(3).

Part 2 – Clearance and release of goods not in free circulation for supply to tax free shops

319. Clearance and release of goods for tax free shop procedure

(1)Goods not in free circulation may not be received in a tax free shop unless those goods are cleared and released under the tax free shop procedure for supply to that tax free shop.²⁵²²⁵²Goods not in free circulation which have been released by the customs authority for supply to a tax free shop remain in terms of section 28 subject to customs control despite such release.

(2)Goods not in free circulation to be cleared for supply to a tax free shop must be cleared in accordance with section 318.

320. Persons entitled to submit tax free shop clearance declarations

Only the following persons may subject to section 165(2), submit clearance declarations to clear goods for supply to a tax free shop:²⁵³²⁵³See section 165(1)(a).

(a)The licensee of the tax free shop; or

(b)a customs broker referred to in section 165(1)(b).

321. Contents of tax free shop clearance declarations

A tax free shop clearance declaration must, in addition to the information required in terms of section 167, state—

(a)that the goods are cleared under the tax free shop procedure for supply to a tax free shop;

(b)the customs code of that tax free shop; and

(c)the name of the licensee of the shop.

322. Redirection of goods

Goods that are cleared and released for supply to a tax free shop must be delivered to the tax free shop indicated in the clearance declaration, and no person may, without the permission of the customs authority, redirect goods that are cleared for supply to a tax free shop to any place other than that tax free shop.

Part 3 – Receipt, sale and removal of goods in tax free shops

323. Goods that may be sold in tax free shops

(1)Any goods as may be prescribed by rule may be kept, displayed for sale or sold in a tax free shop, provided that Part 2 is complied with in relation to the supply of goods not in free circulation to a tax free shop.

(2)No restricted or sectorally controlled goods may be sold in a tax free shop except in accordance with the legislation regulating the import, possession or export of the goods.

324. Persons to whom goods may be sold in tax free shops²⁵⁴

²⁵⁴Rules under section 6 regulate the sale of goods to BLNS travellers.Goods may be sold in a tax free shop only to—

(a)travellers and crew—

(i)about to depart from the sea, air or rail travellers terminal or land border-post where the tax free shop is situated on board a foreign-going vessel or aircraft, cross-border railway carriage or vehicle to a destination outside the Republic; and

(ii)holding valid boarding passes or other documents indicating that they are about to undertake the voyage to such destination, as may be prescribed by rule;²⁵⁵ or²⁵⁵Goods sold in a tax free shop to persons referred to in section 324 are accompanied or unaccompanied baggage to which Chapter 21 applies. Chapter 16 regulating the clearance of goods for export from the Republic does not apply to such baggage which persons have with them when leaving the Republic. See section 361(3).

(b)travellers and crew—

(i)having arrived at the sea, air or rail travellers terminal or land border-post where the tax free shop is situated on board a foreign-going vessel or aircraft, cross-border train or vehicle from a place outside the Republic; and

(ii)holding valid boarding passes or other documents indicating that they arrived at that terminal or land border-post from a place outside the Republic, as may be prescribed by rule.

325. Issuing of sales invoices

No goods may be sold from a tax free shop unless a sales invoice containing such information as may be prescribed by rule has been issued to the purchaser in respect of the sale.

326. Off-site outlets

(1)The licensee of a tax free shop may with the approval of the customs authority, for the purpose of promoting sales establish retail outlets for the tax free shop in other locations outside the sea, air or rail travellers terminal or land border-post in which the shop is situated and transfer goods in the shop to such outlets for display purposes: Provided that—

(a)the customs authority may limit the number of off-site outlets that a tax free shop may establish;

(b)the outlet is only used for the purpose of taking orders;

(c)the delivery or pick-up of goods ordered from an off-site outlet may only take place at the tax free shop;

(d)the outlet is located within the area served by the same Customs Office as the tax free shop;

(e)the outlet is secure and meets the standards as may be prescribed by rule;

(f)the transfer of goods for display purposes between the tax free shop and the outlet takes place in accordance with such processes and requirements as may be prescribed by rule; and

(g)the liability for the payment of any tax on goods in the tax free shop and in the outlet remain with the licensee of the tax free shop.

(2)Goods transferred for display purposes in terms of subsection (1)(f) must be regarded as forming part of the goods in the tax free shop.

327. Maximum period for which goods may remain in tax free shops

No goods supplied to a tax free shop for sale in the shop may remain in the shop for longer than—

(a)two years from the time of receipt of the goods in the shop, or in the case of goods cleared in terms of Part 2, from the time of clearance of the goods;²⁵⁶ or²⁵⁶For time of clearance of goods, see section 173

(b)any extension or shortening of that period in terms of section 908 or 909.

328. Removal of goods from tax free shops

(1)Goods may be removed from a tax free shop in the following circumstances only:

(a)When the goods are sold to a traveller or crew member referred to in section 324;

(b)if goods not sold as contemplated in paragraph (a) are cleared and released for another customs procedure or for home use as may be permissible in the circumstances;

(c)if the goods are to be transferred—

(i)to another tax free shop covered by the same tax free shop licence; or

(ii)to an off-site outlet established in terms of section 326 for that tax free shop;

(d)if any steps referred to in section 115 are taken in respect of the goods and such steps require removal of the goods from the tax free shop;

(e)if the goods are detained, seized or confiscated and the customs authority directs in terms of Chapter 34, 35 or 36 that the goods be removed to another place; or

(f)any other circumstance as may be prescribed by rule or approved by the customs authority in a specific case.

(2)Goods removed from a tax free shop in contravention of subsection (1) or used or sold as samples, perfume testers or other items used for promoting sales in the shop must in terms of—

(a)section 112(1) for tax purposes be regarded to be cleared for home use under Chapter 8,²⁵⁷ in the case of goods cleared for the tax free shop procedure in terms of Part 2; or²⁵⁷For tax consequences if goods are regarded to be cleared for home use, see section 154; for other consequences of non-compliance with customs procedures, see sections 115.

(b)section 113(1) for tax purposes be regarded to have reverted to free circulation,²⁵⁸ in the case of goods that were in free circulation when supplied to the shop.²⁵⁸For tax consequences if goods are regarded as having reverted to free circulation, see section 161; for other consequences of non-compliance with customs procedures, see sections 115.

329. Manipulation, alteration or combination of goods in tax free shops

No goods in a tax free shop may for the purpose of display or sale be manipulated, altered or combined with another article to form a new or different product except as provided by rule or as the customs authority may approve in a specific case.

Part 4 – Accountability for goods in tax free shops

330. Inventory control of goods in tax free shops

The licensee of a tax free shop must establish and maintain an inventory control system²⁵⁹ complying with any requirements as may be prescribed by rule or approved by the customs authority in a specific case to reflect—²⁵⁹See section 919 for computerised systems.

(a)the weekly, monthly and annual quantities of goods—

(i)received in the tax free shop, distinguishing between—

(aa)goods that are cleared and released for supply to the shop in terms of Part 2; and

(bb)goods that were in free circulation for which no clearance and release were necessary;

(ii)sold from the tax free shop; and

(iii)removed from the tax free shop for each of the purposes listed in section 328;

(b)the date of receipt of the goods in the tax free shop, the date of sale (if any) and the date of removal;

(c)monthly and year-end balances of all unsold goods in the tax free shop;

(d)any goods to which section 112 or 113 was applied; and

(e)any other matter as may be prescribed by rule.

331. Regular reports

(1)The licensee of a tax free shop must submit to the customs authority regular reports for such periods as may be prescribed by rule or as the customs authority may require in a specific case.

(2)A report in terms of subsection (1) must contain such information as may be prescribed by rule or as the customs authority may require in a specific case, including information concerning—

(a)all goods received in the tax free shop during the reporting period, distinguishing between—

(i)goods that are cleared and released for supply to the shop in terms of Part 2; and

(ii)goods that were in free circulation for which no clearance and release were necessary;

(b)any non-sellable goods received in or that have become non-sellable whilst in the tax free shop during the reporting period;

(c)all goods sold from the tax free shop during the reporting period;

(d)all goods removed from the tax free shop during the reporting period for each of the purposes listed in section 328;

(e)any goods damaged, destroyed, lost or unaccounted for during the reporting period; and

(f)any surpluses or shortfalls on goods in the tax free shop, as at the end of the reporting period.

Part 5 – Other matters

332. Rules to facilitate implementation of this Chapter

Rules made in terms of section 903 to facilitate the implementation of this Chapter may include rules prescribing—

(a)requirements for inbound and outbound tax free shops and combination inbound and outbound tax free shops;

(b)for purposes of section 122(c), any persons, other than carriers, permitted to transport goods not in free circulation to a tax free shop under the tax free shop procedure;

(c)measures to ensure effective customs control when goods not in free circulation are transported to a tax free shop under the tax free shop procedure;

(d)conditions and procedures for the sale of goods tax free to diplomats representing other countries in the Republic in special shops for diplomats;

(e)limits on the number of special shops for diplomats;

(f)the application of provisions of this Chapter to special shops for diplomats; and

(g)the places where special shops for diplomats may be established.

333. Offences in terms of this Chapter

(1)A person is guilty of an offence if that person contravenes section 322.

(2)The licensee of a tax free shop is guilty of an offence—

(a)if that licensee fails to comply with section 330 or 331;

(b)if goods not in free circulation are received in the shop in contravention of section 319(1);

(c)if section 323(2), 324, 325, 327, 328(1) or 329 is contravened with respect to goods in the shop; or

(d)if the licensee establishes or operates a retail outlet for the tax free shop otherwise than in accordance with section 326.

(3)The offences referred to in subsections (1) and (2)(b) are Category 1 offences.

Chapter 15
Stores procedure

Part 1 – Introductory provisions

334. Purpose and application of this Chapter

(1)The purpose of this Chapter is to regulate the stores procedure.

(2)This Chapter applies to goods that are to be or are used as stores for foreign-going vessels, foreign-going aircraft or cross-border trains—

(a)operated by a licensed carrier located in the Republic or, if not located in the Republic, represented in the Republic by a registered agent located in the Republic; and

(b)engaged in the transport of goods or travellers—

(i)to the Republic from a place outside the Republic; or

(ii)from the Republic to a place outside the Republic.

(3)Goods that are to be or are used as stores for other foreign-going vessels, foreign-going aircraft or cross-border trains or for vehicles entering or leaving the Republic, must be treated as goods ordinarily imported into or to be exported from the Republic. ²⁶⁰²⁶⁰This means that sections 89 and 93 must be applied to these goods

335. Stores procedure²⁶¹

²⁶¹For tax status of goods under the stores procedure, see section 146.The stores procedure is a customs procedure that allows stores for a foreign-going vessel, foreign-going aircraft or cross-border train referred to in section 334(2)—

(a)in the case of stores on board the vessel, aircraft or train when it enters the Republic—

(i)to be used as stores for that vessel, aircraft or train in the Republic without clearing those stores for home use;²⁶² or²⁶²Such goods are in terms of section 91 excluded from import clearance requirements

(ii)to be re-exported from the Republic on board that vessel, aircraft or train as stores for that vessel, aircraft or train without clearing those stores for export;²⁶³ or²⁶³Such goods are in terms of section 95 excluded from export clearance requirements.

(b)in the case of stores taken on board the vessel, aircraft or train in the Republic—

(i)to be transported to that vessel, aircraft or train under this procedure without clearing those stores for transit, if those stores consist of goods not in free circulation;

(ii)to be used as stores for that vessel, aircraft or train in the Republic without clearing those stores for home use, if those stores consist of imported goods; or

(iii)to be exported from the Republic on board that vessel, aircraft or train as stores for that vessel, aircraft or train without clearing those stores for export.²⁶⁴²⁶⁴Chapter 16 regulating the clearance of goods for export from the Republic does not apply to the export from the Republic of goods cleared and released for the stores procedure. See section 361(3).

336. Commencement and completion of stores procedure

(1)

(a)Stores for a foreign-going vessel, foreign-going aircraft or cross-border train referred to in section 334(2) that are on board the vessel, aircraft or train when it enters the Republic, come under the stores procedure automatically and without any formal clearance for the stores procedure when the vessel, aircraft or train enters the Republic.

(b)Stores taken on board such a vessel, aircraft or train in the Republic, come under the stores procedure when the stores are cleared in terms of Part 2 as stores for that vessel, aircraft or train.

(c)The stores procedure in relation to any goods is, subject to subsection (2), completed when the goods leave the Republic on board that vessel, aircraft or train as stores for the vessel, aircraft or train.

(2)The stores procedure, in relation to any goods, ends before its completion if—

(a)the goods are used in accordance with this Chapter as stores on that vessel, aircraft or train whilst in the Republic;

(b)the goods before completion of the procedure are cleared and released for another customs procedure or for home use as may be permissible in the circumstances; or

(c)completion of the procedure is interrupted by an occurrence referred to in section 109(2).

337. Extent to which Chapters 4, 5 and 7 apply

Chapters 4, 5 and 7, except insofar as a provision of those Chapters is modified, qualified or deviated from in this Chapter,²⁶⁵ apply to goods under the stores procedure, including to the clearance and release of goods for the stores procedure.²⁶⁵In the case of an inconsistency between a provision of this Chapter and a general provision contained in Chapter 4 or 7, the provision of this Chapter prevails. See sections 88(3) and 162(3).

Part 2 – Clearance and release of stores taken on board in Republic

338. Application of this Part

This Part applies to stores for a foreign-going vessel, foreign-going aircraft or cross-border train referred to in section 334(2) taken on board the vessel, aircraft or train in the Republic, excluding stores for such a vessel, aircraft or train taken on board the vessel, aircraft or train in the Republic in terms of a clearance and release for outright export.

339. Stores taken on board first to be cleared and released for stores procedure

(1)No goods may be taken on board a foreign-going vessel or aircraft or cross-border train as stores for that vessel, aircraft or train unless those goods are cleared and released under the stores procedure as stores for that vessel, aircraft or train.

(2)Goods to be cleared under the stores procedure as stores for a foreign-going vessel or aircraft or a cross-border train must be cleared in accordance with section 337.

340. Persons entitled to submit stores clearance declarations

Only the following persons²⁶⁶ may subject to section 165(2), submit clearance declarations to clear goods under the stores procedure as stores for foreign-going vessels or aircraft or cross-border trains:²⁶⁶See section 165(1)(a).

(a)The carrier operating the vessel, aircraft or train, if the carrier is located in the Republic;

(b)the registered agent in the Republic of the carrier, if the carrier is not located in the Republic;

(c)a stores supplier; or

(d)a customs broker referred to in section 165(1)(b).

341. Contents of stores clearance declarations

A stores clearance declaration must, in addition to the information required in terms of section 167, state—

(a)that the goods are stores cleared for the stores procedure; and

(b)particulars of—

(i)the vessel, aircraft or train for which the stores are needed;

(ii)the voyage schedule of the vessel, aircraft or train and expected duration of the voyage, if this information has not already been submitted to the customs authority; and

(iii)the quantity of unused stores of the class or kind in question on board the vessel, aircraft or train at the time of submission of the stores clearance declaration, if this information has not already been submitted to customs authority.

342. Release to be given only for quantities of stores actually needed for voyage

(1)The customs authority may, after consulting the carrier operating a foreign-going vessel or aircraft or cross-border train or the on-board operator of the vessel, aircraft or train, determine the quantity of goods reasonably needed to be taken on board the vessel, aircraft or train as stores for any intended voyage, taking into account all relevant factors including—

(a)the quantities needed for the provision of on board services;

(b)the functional needs of the vessel, aircraft or train;

(c)the operational needs of the vessel, aircraft or train;

(d)the length and duration of the voyage;

(e)the number of travellers and crew on board;

(f)the needs of travellers and crew; and

(g)the amount of unused stores on board the vessel, aircraft or train at the time of submission of the stores clearance declaration.

(2)Release may be given in terms of section 339 only for quantities as determined by the customs authority in terms of subsection (1).

343. Acknowledgement of receipt of stores taken on board

The on-board operator of a foreign-going vessel or aircraft or a cross-border train must acknowledge receipt of all stores taken on board the vessel, aircraft or train in the Republic in a manner as may be prescribed by rule or as the customs authority may require in a specific case.

344. Taking of prohibited, restricted and sectorally controlled goods on board vessels, aircraft or trains as stores

(1)No prohibited goods may be taken on board a foreign-going vessel or aircraft or a cross-border train as stores for that vessel, aircraft or train.

(2)

(a)Restricted goods may be taken on board a foreign-going vessel or aircraft or a cross-border train as stores for that vessel, aircraft or train only in accordance with Chapter 35 and the legislation referred to in section 783 restricting the possession or export of those goods.

(b)Sectorally controlled goods may be taken on board a foreign-going vessel or aircraft or a cross-border train as stores for that vessel, aircraft or train only in accordance with Chapter 35 and the legislation referred to in section 792 applicable to the goods.

Part 3 – Reporting and control of stores under stores procedure

345. Application of this Part

This Part applies to all stores under the stores procedure, whether the stores came under the stores procedure in terms of section 336(1)(a) or in terms of a clearance for the stores procedure under Part 2.

346. Stores arrival reports

(1)All stores that are under the stores procedure on board—

(a)a foreign-going vessel or aircraft when the vessel or aircraft arrives at a customs seaport or airport, including stores in the personal possession of a crew member, must be reported to the customs authority; or

(b)a cross-border train when the train arrives at a railway station as may be prescribed by rule, including stores in the personal possession of a crew member, must be reported to the customs authority.²⁶⁷²⁶⁷All stores on board foreign-going vessels, foreign-going aircraft or cross-border trains are in terms of section 28 subject to customs control whilst that vessel, aircraft or train is in the Republic. Unreported stores are subject to seizure in terms of section 762.

(2)A stores arrival report referred to in subsection (1) must be submitted to the customs authority together with or as part of the arrival report that must be submitted in respect of—

(a)the vessel in terms of section 50 when the vessel arrives at a customs seaport;

(b)the aircraft in terms of section 56 when the aircraft arrives at a customs airport; or

(c)the train in terms of section 61 when the train after entering the Republic arrives at a railway station as may be prescribed by rule.

347. Sealing or securing of stores

(1)When a foreign-going vessel or aircraft or a cross-border train arrives at a seaport, airport or railway station when a stores arrival report must be submitted in terms of section 346, a customs officer may seal or otherwise secure on board the vessel, aircraft or train any stores that are under the stores procedure, including any stores in the personal possession of a crew member on board the vessel, aircraft or train.

(2)Subsection (1) does not apply to stores in the personal possession of a crew member on board a vessel, insofar as the quantity of those stores does not exceed a quantity as may be prescribed by rule for the personal use of crew members on board vessels whilst in the Republic.

(3)No person may without the permission of the customs authority, break any seal placed in terms of subsection (1) on stores or interfere with stores otherwise secured in terms of that subsection before the vessel, aircraft or train has departed from the seaport, airport or railway station where the goods were sealed or secured and all physical contact with that seaport, airport or railway station has ceased.

(4)The on-board operator of a vessel, aircraft or train is responsible for ensuring that—

(a)no seal is broken or any stores otherwise secured are interfered with in contravention of subsection (3); or

(b)stores sealed or otherwise secured are not used or dealt with in any unauthorised way.

348. Issue of stores for use on vessels whilst in customs seaports

(1)The customs authority may give permission to the on-board operator of a foreign-going vessel to issue stores that are under the stores procedure, for use by travellers and crew on the vessel during its stay at a customs seaport, in such quantities as are reasonably required taking into account all relevant factors, including—

(a)the number of travellers and crew on board; and

(b)the length of time the vessel will stay in that seaport.

(2)The customs authority may give permission to the on-board operator of a foreign-going vessel to issue additional quantities of stores—

(a)for use on the vessel during its stay at a customs seaport—

(i)if departure of the vessel is delayed; or

(ii)if the vessel is to remain in the customs seaport for longer than a period as may be prescribed by rule read with section 908; or

(b)for the purpose of a function on the vessel during its stay at that seaport.

(3)Alcohol and tobacco products issued from the vessel’s stores in terms of subsection (1) or (2) for use on the vessel by travellers and crew may not exceed the standard quantities prescribed by rule.

(4)The on-board operator of a foreign-going vessel must keep record of all stores issued in terms of this section for use on the vessel at a customs seaport, in a manner as may be prescribed by rule.

349. Tax free items for sale on board to travellers and crew

Stores under the stores procedure on board a foreign-going vessel or aircraft or a cross-border train as items for sale on the vessel, aircraft or train to travellers and crew, have a tax free status in relation to import tax, domestic tax and export tax when sold to travellers and crew, but only if the vessel, aircraft or train falls within a category of vessels, aircraft or trains permitted by rule to carry tax-free items for sale to travellers and crew.²⁶⁸²⁶⁸See section 146 for tax status of goods under the stores procedure.

350. Removal of stores from vessels, aircraft or trains

(1)Stores under the stores procedure may not be removed from a foreign-going vessel or aircraft or a cross-border train—

(a)unless the goods—

(i)are cleared and released for another permissible customs procedure or, subject to subsection (2), for supply as stores to another foreign-going vessel or aircraft or a cross-border train;

(ii)are cleared and released for home use in the case of goods that were on board the vessel, aircraft or train when the vessel, aircraft or train entered the Republic or that were not in free circulation when cleared in terms of Part 2 as stores for the vessel, aircraft or train; or

(iii)revert to free circulation in terms of section 353(b), in the case of goods that were in free circulation when cleared in terms of Part 2 as stores for the vessel, aircraft or train; or

(b)except for—

(i)securing the goods in accordance with section 351;

(ii)reconditioning the goods or repairing any damaged goods;

(iii)disposal as waste under supervision of the customs authority; or

(iv)another purpose approved by the customs authority.

(2)Stores under the stores procedure on board a foreign-going vessel or aircraft may be cleared for transhipment or international transit in terms of subsection (1)(a)(i) only—

(a)to a foreign-going vessel or aircraft operated by a carrier and engaged in the transport of goods or travellers to the Republic from a place outside the Republic or from the Republic to a place outside the Republic, as stores for that vessel or aircraft; and

(b)in quantities determined by the customs authority in accordance with section 342.

(3)No clearance or release in terms of Part 2 is needed when stores are returned to the vessel, aircraft or train from which those goods were removed in terms of subsection (1)(b)(i), (ii) or (iv).

(4)Stores removed as contemplated in subsection (1)(b)(i), (ii) or (iv) must be returned to the vessel, aircraft or train within a timeframe as may be prescribed by rule read with sections 908 and 909.

351. Securing of stores by removal from vessels or aircraft

The customs authority may direct or allow that any stores under the stores procedure on board a foreign-going vessel or aircraft be removed from the vessel or aircraft for storage elsewhere until the vessel or aircraft is ready to depart, if—

(a)the vessel or aircraft for any reason is to remain at a specific location for a period longer than scheduled; and

(b)such storage is necessary to ensure that those stores are not dealt with in any unauthorised way.

352. Replacement of stores on vessels or aircraft

(1)The customs authority may direct or allow that stores under the stores procedure on board a foreign-going vessel or aircraft be removed from the vessel or aircraft and replaced by equivalent goods in free circulation, as may be prescribed by rule.

(2)If any stores under the stores procedure on board a foreign-going vessel or aircraft are replaced by equivalent goods in terms of subsection (1), those equivalent goods must for all purposes be regarded to be the replaced stores.

353. Unused stores on board vessel or aircraft no longer bound for foreign destinations

If the schedule for a foreign-going vessel or aircraft or a cross-border train is for any reason changed and the vessel, aircraft or train is no longer bound for a destination outside the Republic, any unused stores on board the vessel, aircraft or train under the stores procedure must—

(a)be cleared as stores for another vessel, aircraft or train or for another customs procedure or for home use if permissible in the circumstances, in the case of stores—

(i)that were on board the vessel, aircraft or train when the vessel, aircraft or train entered the Republic; or

(ii)that were not in free circulation when initially cleared in terms of Part 2 as stores for the vessel, aircraft or train; or

(b)be cleared as stores for another vessel, aircraft or train or revert to free circulation, in the case of stores that were in free circulation when initially cleared in terms of Part 2 as stores for the vessel, aircraft or train.²⁶⁹²⁶⁹If these goods revert to free circulation the clearance for the stores procedure must be withdrawn and section 161 becomes applicable to the goods.

354. Stores departure reports

(1)All stores that are under the stores procedure on board—

(a)a foreign-going vessel or aircraft when the vessel or aircraft departs from a customs seaport or airport, including stores in the personal possession of a crew member, must be reported to the customs authority; or

(b)a cross-border train when the train departs from a railway station referred to in section 346(1)(b), including stores in the personal possession of a crew member, must be reported to the customs authority.

(2)A stores departure report referred to in subsection (1) must be submitted to the customs authority together with or as part of the departure report that must be submitted in respect of—

(a)the vessel in terms of section 53 when the vessel departs from a customs seaport;

(b)the aircraft in terms of section 59 when the aircraft departs from a customs airport; or

(c)the train in terms of section 63 when the train departs from a railway station as may be prescribed by rule.

355. Submission of stores reports in terms of this Chapter

(1)A stores arrival or departure report must—

(a)be in the form and format as may be prescribed by rule and contain the information required on the prescribed form or otherwise prescribed by rule;

(b)be accompanied or supported by any documents as may be prescribed by rule; and

(c)be submitted electronically in accordance with section 913 by the carrier operating the vessel, aircraft or train.

(2)Subsection (1) must, in the case of a carrier who is not located in the Republic,²⁷⁰ be complied with either by the carrier or that carrier’s registered agent in the Republic.²⁷⁰See section 1(3)(a).

356. Aborted voyages²⁷¹

²⁷¹Section 353 applies if a vessel is no longer bound for a destination outside the Republic.

(1)If after having left the Republic for a destination outside the Republic, a foreign-going vessel or aircraft referred to in section 334(2) returns to the Republic, stores that were on board the vessel or aircraft under the stores procedure must be dealt with as follows:

(a)Stores that were on board the vessel or aircraft when the vessel or aircraft entered the Republic or that were not in free circulation when cleared in terms of Part 2 as stores for that vessel or aircraft, must for tax purposes be regarded to be cleared for home use under Chapter 8²⁷² to the extent that those stores—²⁷²For tax consequences if goods are regarded to be cleared for home use, see section 154

(i)if the vessel or aircraft returned to the Republic due to unavoidable circumstances—

(aa)were used or purportedly used during the aborted voyage in excess of a quantity which could reasonably have been used on the vessel or aircraft taking into account the duration and circumstances of the aborted voyage; or

(bb)are lost or unaccounted for; or

(ii)if the vessel or aircraft returned to the Republic due to avoidable circumstances—

(aa)were used or purportedly used during the aborted voyage; or

(bb)are lost or unaccounted for.

(b)Stores that were in free circulation when cleared in terms of Part 3 as stores for that vessel or aircraft, must for tax purposes be regarded as having reverted to free circulation²⁷³ to the extent that those stores—²⁷³For tax consequences if goods are regarded as having reverted to free circulation, see section 161.

(i)if the vessel or aircraft returned to the Republic due to unavoidable circumstances—

(bb)are lost or unaccounted for; or

(ii)if the vessel or aircraft returned to the Republic due to avoidable circumstances—

(aa)were used or purportedly used during the aborted voyage; or

(bb)are lost or unaccounted for.

(2)The carrier operating a foreign-going vessel or aircraft referred to in section 334(2) must notify the customs authority of any aborted voyage referred to in subsection (1).

Part 4 – Other matters

357. Additional grounds for regarding stores under stores procedure to be cleared for home use²⁷⁴

²⁷⁴See section 112 for general grounds on which goods under a customs procedure must or may be regarded to be cleared for home use.Goods that came under the stores procedure when a foreign-going vessel or aircraft or a cross-border train referred to in section 334(2) entered the Republic and goods that were not in free circulation when cleared in terms of Part 2 for supply as stores to such a vessel, aircraft or train, must in terms of section 112 for tax purposes be regarded to be cleared for home use under Chapter 8²⁷⁵—²⁷⁵For tax consequences if goods are regarded to be cleared for home use, see section 154; for other consequences of non-compliance with customs procedures, see section 115.

(a)insofar as those goods are used by—

(i)travellers and crew members travelling on board such a vessel, aircraft or train only between places within the Republic;

(ii)persons performing duties on board such a vessel, aircraft or train only whilst the vessel, aircraft or train is in a customs seaport or airport or a railway terminal; or

(iii)guests on board such a vessel whilst in a customs seaport;

(b)insofar as those goods are not used as stores for the vessel, aircraft or train; or

(c)if a seal placed on the goods in terms of section 347 is broken or if the goods otherwise secured in terms of that section are interfered with in any unauthorised way.

358. Additional grounds for regarding stores under stores procedure to have reverted to free circulation²⁷⁶

²⁷⁶See section 113 for general grounds on which goods under a customs procedure must or may be regarded to have reverted to free circulation.Goods that were in free circulation when cleared in terms of Part 2 for supply as stores to a foreign-going vessel or aircraft or cross-border train referred to in section 334(2), must in terms of section 113 for tax purposes be regarded to have reverted to free circulation²⁷⁷ insofar as the goods are used by—²⁷⁷For tax consequences if goods are regarded as having reverted to free circulation, see section 161; for other consequences of non-compliance with customs procedures, see section 115.

(a)travellers and crew members travelling on board such a vessel, aircraft or train only between places within the Republic;

(b)persons performing duties on board such a vessel, aircraft or train only whilst the vessel, aircraft or train is in a customs seaport or airport or a railway terminal; or

(c)guests on board such a vessel whilst in a customs seaport.

359. Rules to facilitate implementation of this Chapter

Rules made in terms of section 903 to facilitate the implementation of this Chapter may include rules—

(a)regulating the issue in terms of section 348 of stores on board foreign-going vessels whilst in customs seaports to travellers and crew on board the vessel;

(b)regulating the sale in terms of section 349 of stores on board foreign-going vessels or aircraft or cross-border trains to travellers and crew on board a vessel, aircraft or train free from import tax, domestic tax and export tax;

(c)listing the classes and kinds of goods to which this Chapter applies;

(d)listing kinds of stores that may be replaced by equivalent goods in terms of section 352; and

(e)prescribing—

(i)for purposes of section 122(c), any persons, other than carriers, permitted to transport goods not in free circulation to a vessel, aircraft or train under the stores procedure; and

(ii)measures to ensure effective customs control when goods not in free circulation are transported to a vessel, aircraft or train under the stores procedure.

360. Offences in terms of this Chapter

(1)A person is guilty of an offence if that person contravenes section 347(3) or 350(1).²⁷⁸²⁷⁸Section 360(1) is a Category 1 offence which applies to all persons illegally removing stores from a vessel, aircraft or train, and covers also the carrier or on-board operator if the carrier or on-board operator is the actual perpetrator. The offence in terms of this section must be distinguished from section 360(2) and (3) which creates Category (2) offences for carriers and on-board operators in circumstances where the carrier or on-board operator is not the actual perpetrator but fails to exercise proper control to prevent stores from being illegally removed.

(2)The carrier operating a foreign-going vessel or aircraft or cross-border train referred to in section 334(2) is guilty of an offence—

(a)if section 339(1) or 344(1) or (2)(a) or (b) is contravened with respect to that vessel, aircraft or train;

(b)if section 350(1) or 353(a) is contravened with respect to stores on board that vessel, aircraft or train; or

(c)if a direction in terms of section 351 is not complied with; or

(d)if that carrier fails to comply with section 356(2).

(3)The on-board operator of a foreign-going vessel or aircraft or cross-border train referred to in section 334(2) is guilty of an offence—

(a)if that person fails to comply with section 343 or 347(4);

(b)if section 339(1) or 344(1) or (2)(a) or (b) is contravened with respect to that vessel, aircraft or train;

(c)if section 350(1) is contravened with respect to stores on board that vessel, aircraft or train; or

(d)if a direction in terms of section 351 is not complied with.

(4)The on-board operator of a foreign-going vessel referred to in section 334(2) is guilty of an offence—

(a)if stores on board the vessel are issued or used otherwise than in accordance with section 348(1) or (2); or

(b)if that person fails to comply with section 348(4).

(5)An offence referred to in subsection (1) is a Category 1 offence.

Chapter 16
Export procedure

Part 1 – Introductory provisions

361. Purpose and application of this Chapter

(1)The purpose of this Chapter is to regulate the export procedure.

(2)This Chapter applies to goods destined for—

(a)outright export;

(b)export under—

(i)the outbound leg of the temporary admission procedure for goods cleared and released for that procedure in terms of Part 2 of Chapter 12;

(ii)outbound leg of the temporary export procedure for goods cleared and released for that procedure in terms of Part 2 of Chapter 17; or

(iii)the outward processing procedure in terms of Chapter 20; or

(c)export as inward processed compensating products under the inward processing procedure in terms of Part 3 of Chapter 18.

(3)This Chapter does not apply to goods exported under—

(a)the international transit procedure in terms of Chapter 9;

(b)the transhipment procedure in terms of Chapter 11;

(c)outbound leg of the temporary admission procedure in terms of Chapter 12, if the goods came under that procedure—

(i)in terms of international clearance arrangements referred to in Part 4 of that Chapter; or

(ii)automatically in terms of Part 5 of that Chapter;

(d)outbound leg of the temporary export procedure in terms of Chapter 17, if the goods come under that procedure—

(i)in terms of international clearance arrangements referred to in Part 4 of that Chapter; or

(ii)automatically in terms of Part 5 of that Chapter;

(e)the tax free shop procedure in terms of Chapter 14;

(f)the stores procedure in terms of Chapter 15; or

(g)any other exclusion in terms of section 95 from export clearance requirements.

362. Export procedure

The export procedure is a customs procedure that allows—

(a)the export of goods from the Republic; and

(b)the transport of goods under the export procedure to the place of exit where the goods are to be exported without clearing the goods for transit.²⁷⁹²⁷⁹This applies to all goods cleared for export, including locally manufactured excisable goods, fuel levy goods etc., transported from excise warehouses.

363. Commencement and completion of export procedure

(1)

(a)Goods come under the export procedure when the goods are in terms of this Chapter cleared for export.

(b)The export procedure is, subject to subsection (2), completed when the goods are exported from the Republic.

(2)The export procedure ends before its completion if—

(a)the goods before completion of the procedure are cleared and released for another customs procedure or for home use, as may be permissible in the circumstances; or

(b)completion of the procedure is interrupted by an occurrence referred to in section 109(2).

364. Extent to which Chapters 4, 5 and 7 apply

Chapters 4, 5 and 7, except insofar as a provision of those Chapters is modified, qualified or deviated from in this Chapter, apply to goods under the export procedure,²⁸⁰ including to the clearance and release of goods for the export procedure.²⁸⁰In the case of an inconsistency between a provision of this Chapter and a general provision contained in Chapter 4 or 7, the provision of this Chapter prevails. See sections 88(3) and 162(3).

Part 2 – Clearance and release of goods for export from Republic²⁸¹

²⁸¹For tax status of goods cleared for outright export, see section 136.

365. Clearance of goods for export

Goods to be cleared for export from the Republic must be cleared in accordance with section 364.

366. Persons entitled to submit export clearance declarations

Only the following persons may, subject to section 165(2), submit clearance declarations to clear goods for the export procedure:²⁸²²⁸²See section 165(1)(a).

(a)The exporter of the goods, if that exporter is located in the Republic;

(b)the registered agent in the Republic of the exporter, if the exporter is not located in the Republic; or

(c)a customs broker referred to in section 165(1)(b).

367. Contents of export clearance declarations

(1)An export clearance declaration must, in addition to the information required in terms of section 167, state the following:

(a)The amount of any tax and the kind of tax paid on the goods, if reclaimable on the export of the goods;

(b)the amount of any export tax payable on the goods, and the kind of export tax;

(c)in the case of goods to be exported from the Republic—

(i)by sea, air or rail, the customs code of the licensed terminal where the goods will be loaded on board the foreign-going vessel, foreign-going aircraft or cross-border railway carriage in which the goods are to be exported from the Republic; or

(ii)by road, the customs code of the land border-post through which the goods will be exported from the Republic;

(d)in the case of goods that will be transported by road from a licensed terminal or depot to a land border-post through which the goods will be exported from the Republic, the customs code of—

(i)that terminal or depot; and

(ii)the licensed carrier that will transport the goods by road from that terminal or depot to that land border-post; and

(e)whether any exchange control measures are applicable to the export of the relevant goods.

368. Timeous delivery of goods to depots and export terminals to allow for inspection²⁸³

²⁸³Goods should timeously be delivered to depots and export terminals to allow for inspections as Customs will not be liable for expenses caused by delays in the export of goods. See section 923.

(1)To enable the customs authority to carry out any necessary inspections of goods cleared for export in terms of the export procedure,²⁸⁴ the goods must, within such timeframes as may be prescribed by rule, be delivered to—²⁸⁴See section 94 for timeframes applicable to the clearance of goods under the export procedure.

(a)a container depot, in the case of goods to be containerised for export by sea at a container depot;

(b)an air cargo depot, in the case of goods to be packed for export by air at an air cargo depot; or

(c)the terminal where the goods will be loaded on board a foreign-going vessel, foreign-going aircraft or cross-border railway carriage in which the goods are to be exported, in the case of those and all other goods, including goods—

(i)containerised for export by sea elsewhere than at a container depot; or

(ii)packed for export by air elsewhere than at an air cargo depot.

(2)Subsection (1) does not apply to—

(a)accompanied or unaccompanied baggage of persons leaving the Republic;

(b)postal articles handled by the South African Post Office; or

(c)any other category of goods as may be determined by rule.

369. Time when goods may be released for export

(1)The customs authority may not release under the export procedure goods for export—

(a)by sea before the goods are delivered to—

(i)a container depot, in the case of goods to be containerised for export at that container depot; or

(ii)the sea cargo terminal where the goods are to be loaded on board a foreign-going vessel in which the goods are to be exported, in the case of all other goods including goods containerised for export by sea elsewhere than at a container depot;

(b)by air before the goods are delivered to—

(i)an air cargo depot, in the case of goods to be packed for export at that air cargo depot; or

(ii)the air cargo terminal where the goods are to be loaded on board a foreign-going aircraft in which the goods are to be exported, in the case of all other goods including goods packed for export by air elsewhere than at an air cargo depot;

(c)by rail before the goods are delivered to the rail cargo terminal where the goods are to be loaded on board a cross-border railway carriage in which the goods are to be exported; or

(d)by road before the vehicle that will transport the goods out of the Republic has reached the land border-post where the goods are to be exported.

(2)Subsection (1) does not apply to—

(a)goods under the warehousing procedure;²⁸⁵ or²⁸⁵See section 310(a).

(b)any category of goods as may be prescribed by rule.

(3)Goods referred to in subsection (2) may be released for export in terms of the export procedure otherwise than as provided in subsection (1), provided section 108 and any requirements and conditions as may be prescribed by rule are complied with.

370. Failure to export goods released for export

(1)If goods that are cleared and released for export under the export procedure, are not exported within a timeframe from release of the goods for export as may be prescribed by rule read with sections 908 and 909—

(a)the person clearing the goods for export must immediately notify the customs authority of—

(i)the failure to export the goods²⁸⁶; and²⁸⁶Failure to load goods for export will appear from outturn reports to be submitted by terminal operators.

(ii)the reasons for the failure; and

(b)the customs authority may whether a notification in terms of paragraph (a) has been given or not—

(i)secure the goods or require the goods to be secured in such manner as the customs authority may determine pending the export of the goods in terms of the release;

(ii)withdraw in terms of section 105 the release given in respect of the goods;²⁸⁷ or²⁸⁷For consequences of a withdrawal of a release, see section 106.

(iii)issue a direction in terms of section 112(2) or 113(2), as may be appropriate, whether or not the release has been withdrawn.

(2)A person who cleared goods for export under the export procedure must on request by the customs authority provide proof to the customs authority, as may be prescribed by rule, that the goods were exported.

(3)The burden to prove that goods released for export under the export procedure have been exported rests on the person clearing the goods.

371. Clearance of goods exported through cross-border transmission lines, pipelines, cable-cars or conveyor belts

The Commissioner may by rule—

(a)prescribe special processes and requirements for the clearance and release for outright export of—

(i)electricity to be exported through licensed cross-border transmission lines; and

(ii)other goods to be exported through licensed cross-border pipelines or by means of licensed cross-border cable cars or conveyor belts; and

(b)exempt such electricity or other goods from a provision of this Act that is not consistent with such special processes and requirements, including any provision relating to the clearance or release of goods.

Part 3 – Other matters

372. Rules to facilitate implementation of this Chapter

Rules made in terms of section 903 to facilitate the implementation of this Chapter may include rules prescribing—

(a)measures to ensure effective customs control when goods not in free circulation are transported under the export procedure to a place of exit from where the goods will be exported;

(b)for purposes of section 122(c), any persons, other than carriers, permitted to transport goods not in free circulation to a place of exit under the export procedure;

(c)documents that may be used to prove that goods were—

(i)loaded for export; and

(ii)exported from the Republic;

(d)notices that must be submitted to the customs authority and other persons by licensees of container depots, sea cargo terminals, air cargo depots, air cargo terminals and rail cargo terminals; and

(e)regulatory requirements and conditions for licensees to carry out activities in connection with export goods.

373. Offences in terms of this Chapter

(1)A person clearing goods for export is guilty of an offence if that person fails to comply with—

(a)section 368(1); or

(b)section 370(1)(a).

(2)An offence referred to in subsection (1)(b) is a Category 1 offence.

Chapter 17
Temporary export procedure

Part 1 – Introductory provisions

374. Purpose and application of this Chapter

(1)The purpose of this Chapter is to regulate the temporary export procedure.

(2)This Chapter applies to goods temporarily exported from the Republic.

375. Temporary export procedure²⁸⁸

²⁸⁸For tax status of goods under the temporary export procedure, see section 147.

(1)The temporary export procedure is a customs procedure that allows—

(a)goods—

(i)to be temporarily exported from the Republic with the intention to return the goods to the Republic; and

(ii)to be returned to the Republic as re-imported unaltered goods; or

(b)goods exported outright from the Republic to be returned to the Republic as re-imported unaltered goods.

(2)The temporary export procedure is available only for goods which—

(a)fall within a category of goods to which Part 2, 4 or 5 applies; and

(b)are of a nature that will make them, when eventually re-imported, likely to be identified as the same goods.

376. Commencement and completion of temporary export procedure

(1)Goods come under—

(a)the temporary export procedure contemplated in section 375(1)(a)—

(i)when cleared for temporary export in terms of Part 2, in the case of goods to which that Part applies;

(ii)when cleared for temporary export in terms of international clearance arrangements referred to in Part 4, in the case of goods to which that Part applies; or

(iii)upon leaving the Republic, in the case of goods that automatically come under the temporary export procedure in terms of Part 5; or

(b)the temporary export procedure contemplated in section 375(1)(b), retrospectively as from the time the goods are cleared and released in terms of Chapter 16 for outright export from the Republic.

(2)The temporary export procedure is, subject to subsection (3), completed—

(a)in the case of goods referred to in subsection (1)(a)(i) or (b), when the goods are returned to the Republic and cleared and released as re-imported unaltered goods for home use in terms of Part 3;

(b)in the case of goods referred to in subsection (1)(a)(ii), when the goods are returned to the Republic in accordance with the international clearance arrangements referred to in Part 4; or

(c)in the case of goods referred to in subsection (1)(a)(iii), when the goods re-enter the Republic.

(3)The temporary export procedure ends before its completion if completion of the procedure is interrupted by an occurrence referred to in section 109(2).

377. Extent to which Chapters 4, 5 and 7 apply

Chapters 4, 5 and 7, except insofar as a provision of those Chapters is modified, qualified or deviated from in this Chapter, apply to all goods under the temporary export procedure,²⁸⁹ including to the clearance and release of goods—²⁸⁹In the case of an inconsistency between a provision of this Chapter and a general provision contained in Chapter 4 or 7 the provision of this Chapter prevails. See sections 88(3) and 162(3).

(a)for temporary export in terms of Part 2 or 4; and

(b)as re-imported unaltered goods for home use in terms of Part 3 or 4.

Part 2 – Temporary export of goods under regular clearance and release procedures

378. Application of this Part

(1)This Part—

(a)applies to goods of a class or kind that may in terms of any of the tax levying Acts be cleared for temporary export under this Part; and

(b)does not apply to goods—

(i)cleared in accordance with the international clearance arrangements referred to in Part 4; or

(ii)that automatically come under the temporary export procedure in terms of Part 5.

(2)Goods to be cleared for temporary export under this Part must be cleared for export in accordance with Chapter 16,²⁹⁰ read with section 377(a).²⁹⁰See also section 361(2)(b)(ii) which states that Chapter 16 applies to goods destined for temporary export.

379. Clearing of goods for temporary export

(1)If a person clears goods for temporary export in terms of Chapter 16—

(a)the export clearance declaration referred to in section 367 must state—

(i)the intention to return the goods to the Republic as re-imported unaltered goods; and

(ii)the date before which the goods will be returned to the Republic; and

(b)that person must—

(i)either provide security for the payment of any export tax or pay the amount of any export tax that may become payable on the goods should the goods lose their tax free status in relation to export tax; and

(ii)comply with such further requirements as may be prescribed by rule or as the customs authority may determine in a specific case.

(2)The customs authority may exempt a person from compliance with subsection (1)(b)(i).

(3)Goods are cleared in terms of subsection (1) for temporary export on condition that the goods must be returned to the Republic in the same state they were when exported.

380. Release of goods for temporary export

(1)If goods are released for temporary export, the release notification must state the period within which the goods must be returned to the Republic.

(2)A period determined in terms of subsection (1) may not exceed—

(a)a maximum period as may be prescribed for the relevant class or kind of goods—

(i)in a tax levying Act referred to in section 378(1)(a) or, if two or more tax levying Acts permit goods of the same class or kind to be cleared for temporary export, a maximum period prescribed uniformly in those tax levying Acts for that class or kind of goods; or

(ii)by rule, if no period is in terms of subparagraph (i) prescribed for that class or kind of goods; or

(b)one year from the date of clearance of the goods, if no period is in terms of paragraph (a)(i) or (ii) prescribed for that class or kind of goods.

(3)The period mentioned in a release notification may be extended in terms of section 908 only once except if good cause is shown for an additional extension.

381. Simplified clearance and release for commercial trucks temporarily leaving Republic

Trucks leaving the Republic as a means of transport currently in use for the transport of goods in the ordinary course of international trade may, despite the other provisions of this Part, be cleared and released for the temporary export procedure in accordance with simplified clearance and release processes and requirements referred to in Part 3 of Chapter 24 if the truck—

(a)is not leaving the Republic on the return leg of the temporary admission procedure;²⁹¹ and²⁹¹See section 276.

(b)is destined to return to the Republic without any interruption in its current use as a means of transport for goods in the ordinary course of international trade.

382. Simplified clearance and release for buses and taxis temporarily leaving Republic

Buses or taxis leaving the Republic as a means of transport for travellers visiting abroad or returning home may, despite the other provisions of this Part, be cleared and released for the temporary export procedure in accordance with simplified clearance and release processes and requirements referred to in Part 3 of Chapter 24 if—

(a)the bus or taxi is not leaving the Republic on the return leg of the temporary admission procedure;²⁹²²⁹²See section 277.

(b)no international clearance arrangements referred to in Part 4 are available for the departure of the bus or taxi from the Republic; and

(c)the bus or taxi is destined to return to the Republic without any interruption in its current use as a means of transport for travellers.

383. Simplified clearance and release for private vehicles, small vessels and light aircraft temporarily leaving Republic

Vehicles, small vessels or light aircraft leaving the Republic as a private means of transport for a traveller visiting abroad²⁹³ may, despite the other provisions of this Part, be cleared and released for the temporary export procedure in accordance with simplified clearance and release processes and requirements referred to in Part 3 of Chapter 24 if—²⁹³For determining when a vessel, aircraft or vehicle qualifies as a small vessel, light aircraft or vehicle used as a private means of transport, see section 903(1)(n).

(a)the vehicle, vessel or light aircraft is not leaving the Republic on the return leg of the temporary admission procedure;²⁹⁴²⁹⁴See section 278.

(b)no international clearance arrangements referred to in Part 4 are available for the vehicle, vessel or light aircraft; and

(c)the vehicle, vessel or light aircraft is destined to return to the Republic without any interruption in its current use as a private means of transport for that traveller.

Part 3 – Clearance and release of re-imported unaltered goods for home use

384. Application of this Part

(1)This Part applies to the clearance and release of goods for home use as re-imported unaltered goods that were exported from the Republic in terms of a clearance and release for—

(a)temporary export in terms of Part 2; or

(b)outright export in terms of Chapter 16.

(2)This Part does not apply to goods returned to the Republic under the temporary export procedure—

(a)in accordance with the international clearance arrangements referred to in Part 4; or

(b)in terms of Part 5.

(3)Goods to which this Part applies must be cleared as re-imported unaltered goods for home use in accordance with section 377(b).

385. Conditions for clearance of goods as re-imported unaltered goods for home use

(1)Goods may be cleared in terms of this Part as re-imported unaltered goods for home use only if—

(a)the goods were previously exported from the Republic under the temporary export procedure or for outright export;

(b)the goods can be identified as the same goods originally exported from the Republic or the importer furnishes proof that the goods are the same goods originally exported;

(c)the importer provides sufficient information to the customs authority concerning—

(i)any export tax paid on the goods when exported from the Republic;

(ii)any benefit given in terms of an export incentive scheme to any person on the export of the goods, whether in the form of a tax reduction or relief, an export or other subsidy, a rebate or reward or other benefit;²⁹⁵²⁹⁵For instance where goods were outright exported and then returned under the temporary export procedure.

(iii)any import or other tax paid, or rebate or remission granted, on the goods before clearance of the goods for temporary export or outright export or, if no tax was paid, the tax status of the goods immediately before clearance of the goods for temporary export or outright export; and

(iv)any refund or drawback of import or other tax reclaimed on the export of the goods;

(d)the goods are returned to the Republic—

(i)in the case of temporarily exported goods referred to in section 375(1)(a), within the period stated in the release notification referred to in section 380(1) or as extended in accordance with section 380(3); or

(ii)in the case of outright exported goods referred to in section 375(1)(b), within a period of 90 calendar days of the date of export or as extended in accordance with subsection (3);

(e)the goods, whilst abroad, have not undergone any manufacturing, processing or repairs other than maintenance in connection with their use abroad; and

(f)any conditions subject to which the goods were released for export in terms of section 104 have been complied with.

(2)Goods may in terms of subsection (1) be cleared as re-imported unaltered goods for home use despite the fact that—

(a)only a part of the originally exported goods is re-imported;

(b)the goods are re-imported in separate consignments;

(c)the goods are re-imported by a person other than the person who exported the goods, provided that that other person—

(i)is authorised by the original exporter to re-import the goods; and

(ii)is able to provide the information required in terms of subsection (1); or

(d)the goods, whilst abroad—

(i)have been used whether or not to their full capacity;

(ii)have been damaged; or

(iii)have deteriorated.

(3)The period mentioned in subsection (1)(d)(ii) may be extended in terms of section 908 only once except if good cause is shown for an additional extension.

386. Persons entitled to submit re-importation clearance declarations

Only the following persons may subject to section 165(2), submit clearance declarations to clear goods in terms of this Part as re-imported unaltered goods for home use:²⁹⁶²⁹⁶See section 165(1)(a).

(a)The importer of the goods, if that importer is located in the Republic;

(b)the registered agent in the Republic of the importer, if that importer is not located in the Republic; or

(c)a customs broker referred to in section 165(1)(b).

387. Contents of re-importation clearance declarations

(1)A clearance declaration submitted to clear goods in terms of this Part as re-imported unaltered goods for home use must, in addition to the matters required in terms of section 167, state—

(a)that the goods were previously exported from the Republic;

(b)the date on which the goods were exported; and

(c)the amount of any export tax paid on those goods when the goods were exported, the kind of export tax paid and whether the tax is to be reclaimed.

(2)A re-importation clearance declaration must be accompanied by a statement stating—

(a)whether the goods, whilst abroad, have undergone—

(i)any manufacturing, processing or repairs other than maintenance in connection with their use abroad; or

(ii)any change of ownership;

(b)the information required in terms of section 385(1)(c);

(c)the number and date of the export clearance declaration submitted in respect of the goods at the time of export of the goods and, if those goods at the time of export were imported goods or goods produced from imported goods, also the number and date of the clearance declaration submitted to clear the imported goods for home use or a customs procedure; and

(d)in the case of outright exported goods referred to in section 375(1)(b)—

(i)the reason why the goods are returned to the Republic; and

(ii)whether the exporter or any other person were granted any benefit by any organ of state in respect of the export of the goods.

388. Repayment of export benefits

The person clearing outright exported goods referred to in section 375(1)(b) as re-imported unaltered goods for home use in terms of this Part forfeits any benefit referred to in section 387(2)(d)(ii) and must repay any benefit granted in respect of the export of the goods.

389. Simplified home use clearance and release for commercial trucks re-entering Republic

Trucks which left the Republic as a means of transport under a clearance and release for temporary export in terms of section 381 may on their return to the Republic, despite the other provisions of this Part, be cleared and released for home use as re-imported unaltered goods in accordance with simplified clearance and release processes and requirements referred to in Part 3 of Chapter 24.

390. Simplified home use clearance and release for buses and taxis re-entering Republic

Buses or taxis which left the Republic as a means of transport under a clearance and release for temporary export in terms of section 382 may on their return to the Republic, despite the other provisions of this Part, be cleared and released for home use as re-imported unaltered goods in accordance with simplified clearance and release processes and requirements referred to in Part 3 of Chapter 24.

391. Simplified home use clearance and release for private vehicles, small vessels and fight aircraft re-entering Republic

Vehicles, small vessels or light aircraft which left the Republic as a private means of transport for a traveller under a clearance and release for temporary export in terms of section 383 may on their return to the Republic, despite the other provisions of this Part, be cleared and released for home use as re-imported unaltered goods in accordance with simplified clearance and release processes and requirements referred to in Part 3 of Chapter 24.

392. Refusal to release goods as re-imported unaltered goods for home use

If the customs authority refuses to release goods as re-imported unaltered goods for home use which are cleared in terms of this Part, whether on the ground that a condition referred to in section 385(1) was not met or on any other ground,²⁹⁷ the clearance in terms of this Part lapses and those goods must within three working days of the date of refusal be cleared for—²⁹⁷See sections 99 and 100.

(a)home use in terms of Chapter 8; or

(b)a permissible customs procedure.

Part 4 – Temporary export of goods under international clearance arrangements

393. Application of this Part

(1)This Part—

(a)gives effect to—

(i)the Convention on Temporary Admission; and

(ii)any agreement between the Republic and another country regulating the temporary export of goods from the Republic for temporary admission into that other country in accordance with agreed customs arrangements; and

(b)applies to goods described in the Convention or agreement and temporarily exported from the Republic to another country that may in terms of the Convention or agreement be placed under temporary admission in that country on authority of CPD or ATA carnets.

(2)Goods to be cleared for temporary export under this Part must be cleared in accordance with section 377(a) read with section 394.

394. Temporary export of goods from Republic on authority of CPD and ATA carnets

(1)Goods referred to in section 393 may be cleared and released for temporary export to a country referred to in that section on authority of a CPD or ATA carnet—

(a)issued by an issuing association;

(b)guaranteed by a guaranteeing association approved in terms of section 396; and

(c)accepted by the customs authority.

(2)A CPD or ATA carnet must be produced to the customs authority at the Customs Office serving the place of exit where the goods are to be temporarily exported.

395. Issuing associations located in Republic to be approved

No CPD or ATA carnet issued by an issuing association located in the Republic may be accepted by the customs authority unless the issuing association has been approved by the customs authority for the purposes of this Part.

396. Guaranteeing associations to be approved

(1)No CPD or ATA carnet issued by an issuing association may be accepted by the customs authority unless the guaranteeing association guaranteeing the carnet has been approved by the customs authority for the purposes of this Part.

(2)No guaranteeing association may be approved unless the association—

(a)is located in the Republic; and

(b)has given security for the payment of any money that may become payable to the Commissioner on any goods that are cleared for temporary export on authority of a CPD or ATA carnet guaranteed by that guaranteeing association.

397. Format of CPD and ATA carnets

CPD and ATA carnets must conform to the models set out in the Convention on Temporary Admission or relevant international agreement referred to in section 393(1)(a).

398. Validity period of CPD and ATA carnets

(1)A CPD or ATA carnet remains valid for the period for which it was issued in terms of the Convention or agreement referred to in section 393(1)(a).

(2)The validity period of a CPD or ATA carnet may be extended only in accordance with roles as may be prescribed for the category in which the goods fall.²⁹⁸²⁹⁸Section 908 does not apply to the extension of the validity periods of CPD or ATA carnets. See section 908(3).

399. Amendment of CPD and ATA carnets

Once a CPD or ATA carnet has been accepted by the customs authority no amendment may be made to the carnet except with the approval of the customs authority.

400. Return of goods under temporary export procedure in terms of this Part

The person to whom a CPD or ATA carnet was issued must ensure that the goods to which the carnet relates are returned to the Republic before the expiry of the validity period applicable to the carnet.

401. Clearance of goods when returned to Republic

(1)Goods under the temporary export procedure in terms of this Part must be cleared as re-imported unaltered goods for home use in accordance with section 377(b) subject to subsection (2).

(2)Goods under the temporary export procedure in terms of this Part may when returned to the Republic be cleared and released for home use as re-imported unaltered goods on authority of a CPD or ATA carnet—

(a)issued by an issuing association;

(b)guaranteed by a guaranteeing association approved in terms of section 396; and

(c)accepted by the customs authority.

(3)A CPD or ATA carnet must be produced to the customs authority at the Customs Office serving the place of entry where the goods are re-imported into the Republic.

(4)The burden to prove that goods under the temporary export procedure in terms of this Part, were returned to the Republic, or were returned to the Republic within the required period, rests on the person to whom the CPD or ATA carnet on authority of which the goods were exported from the Republic was issued.

Part 5 – Goods which automatically come under temporary export procedure

402. Foreign-going vessels, aircraft, locomotives and railway carriages leaving Republic

(1)A vessel, aircraft, locomotive or railway carriage leaving the Republic as a means of transport currently in use for the transport of goods in the ordinary course of international trade or for the transport of travellers for reward between countries, comes under the temporary export procedure without any formal clearance or release for that procedure if the vessel, aircraft, locomotive or railway carriage—

(a)is not leaving the Republic on the outbound leg of the temporary admission procedure;²⁹⁹ and²⁹⁹See section 289.

(b)is destined to return to the Republic without any interruption in its current use as a means of transport for goods in the ordinary course of international trade or for the transport of travellers for reward between countries.³⁰⁰³⁰⁰The arrival and departure requirements set out in Chapter 3 are not affected by this provision and those requirements must be complied with when vessels, aircraft, locomotives or railway carriages that automatically come under the temporary export procedure leave or return to the Republic.

(2)If the current use of a vessel, aircraft, locomotive or railway carriage that automatically came under the temporary export procedure in terms of subsection (1) as a means of transport for goods in the ordinary course of international trade or for the transport of travellers for reward between countries, is for any reason interrupted or discontinued whilst the vessel, aircraft, locomotive or railway carriage is under that procedure, the carrier operating that vessel, aircraft, locomotive or railway carriage or, if that carrier is not located in the Republic, that carrier’s registered agent, must immediately report the interruption or discontinuation to the customs authority, as may be prescribed by rule.

(3)Parts 2, 3 and 4 of this Chapter do not apply to vessels, aircraft, locomotives or railway carriages referred to in subsection (1).

403. Reusable transport equipment leaving Republic

(1)Transport equipment leaving the Republic as reusable transport equipment currently in use as transport equipment for goods in the ordinary course of international trade, comes under the temporary export procedure without any formal clearance or release for that procedure if—

(a)that transport equipment is not leaving the Republic on the outbound leg of the temporary admission procedure;³⁰¹³⁰¹See section 290.

(b)that transport equipment is destined to be returned to the Republic without any interruption in its current use as reusable transport equipment for goods in the ordinary course of international trade; and

(c)the carrier who takes the transport equipment out of the Republic or, if that carrier is not located in the Republic, that carrier’s registered agent, keeps record of that transport equipment, as may be prescribed by rule.

(2)If the current use of transport equipment that automatically came under the temporary export procedure in terms of subsection (1) as reusable transport equipment currently in use as transport equipment for goods in the ordinary course of international trade, is for any reason interrupted or discontinued whilst the transport equipment is under that procedure, the carrier or, if that carrier is not located in the Republic, that carrier’s registered agent, must immediately report the interruption or discontinuation to the customs authority, as may be prescribed by rule.

(3)Parts 2, 3 and 4 of this Chapter do not apply to reusable transport equipment referred to in subsection (1).

Part 6 – Other matters

404. When goods under temporary export procedure must be regarded to be cleared for outright export

Goods exported under the temporary export procedure must in terms of section 114 for tax purposes be regarded to be cleared for outright export³⁰² if—³⁰²For tax implications if goods are regarded to be cleared for outright export, see section 159.

(a)the goods are not returned to the Republic within the period applicable to the goods;

(b)the exporter notifies the customs authority that the goods will not be returned to the Republic; or

(c)in the case of goods that are cleared for temporary export in terms of Part 2—

(i)the goods upon their return to the Republic are not cleared in terms of Part 3 as re-imported unaltered goods for home use; or

(ii)the customs authority refuses to release the goods in terms of section 392 as re-imported unaltered goods for home use.

405. Rules to facilitate implementation of this Chapter

Rules made in terms of section 903 to facilitate the implementation of this Chapter may include rules prescribing—

(a)a maximum period within which goods cleared and released for temporary export in terms of Part 2 must be returned to the Republic;

(b)the consequences if goods referred to in paragraph (a) are not returned or if means of transport referred to in section 402 or transport equipment referred to in section 403 does not return to the Republic within a period as may be prescribed by rule;

(c)the records that must be kept of reusable transport equipment referred to in section 403, including records of—

(i)the type of transport equipment and number of each type that leaves or is returned to the Republic;

(ii)the places of entry or exit through which, and the dates on which, such transport equipment left or was returned to the Republic; and

(iii)the movement of such transport equipment in the Republic;

(d)the persons by whom, and the periods for which, those records must be kept;

(e)the measures to be taken to ensure accurate identification of goods under temporary export upon their return to the Republic;

(f)the form and format, and manner and time in which issuing associations located in the Republic and guaranteeing associations must apply for approval for purposes of Part 4, and the information to be furnished for purposes of such applications; and

(g)any further requirements necessary to give effect to—

(i)the Convention on Temporary Admission; or

(ii)any agreement between the Republic and another country regulating the temporary export of goods from the Republic for temporary admission into that other country.

406. Offences in terms of this Chapter

(1)A person is guilty of an offence if that person—

(a)contravenes section 388; or

(b)clears goods as re-imported unaltered goods for home use in contravention of section 385(1)(a).

(2)A person clearing goods as re-imported unaltered goods for home use is guilty of an offence if release of the goods as re-imported unaltered goods for home use is refused and section 392 is not complied with.

(3)A person exporting goods under a CPD or ATA carnet is guilty of an offence if that person fails to comply with section 400.

(4)A carrier operating a vessel, aircraft, locomotive or railway carriage referred to in section 402(1) or that carrier’s registered agent is guilty of an offence if that carrier or carrier’s agent fails to comply with section 402(2).

(5)A carrier or a carrier’s registered agent keeping record of transport equipment in terms of section 403(1)(c) is guilty of an offence if that carrier or carrier’s agent fails to comply with section 403(2).

(6)An offence referred to in subsection (1)(b) is a Category 1 offence.

Chapter 18
Inward processing procedure

Part 1 – Introductory provisions

407. Purpose of this Chapter

The purpose of this Chapter is to regulate the inward processing procedure.

408. Inward processing procedure³⁰³

³⁰³For tax status of goods under the inward processing procedure, see section 148.

(1)Inward processing is a customs procedure that allows—

(a)imported goods—

(i)to be processed in the Republic without clearing the goods for home use under Chapter 8; and

(ii)for purposes of such processing to be—

(aa)transported without clearing the goods for national transit; and

(bb)stored without clearing the goods for warehousing; and

(b)products obtained from the processing of those goods—

(i)to be exported under this procedure as inward processed compensating products; and

(ii)for purposes of such export to be—

(aa)stored without clearing the products for warehousing; and

(bb)transported without clearing the products for national transit.

(2)The inward processing procedure is available only for imported goods referred to in section 412(a).

409. Commencement and completion of inward processing procedure

(1)

(a)Imported goods come under the inward processing procedure when the goods are cleared for inward processing.

(b)The inward processing procedure is, subject to subsection (2), completed when the products obtained from the processing of those goods are cleared and released for export as inward processed compensating products and exported from the Republic.

(2)The inward processing procedure ends before its completion if—

(a)the imported goods before completion of the procedure are cleared and released for another customs procedure or for home use as may be permissible in the circumstances; or

(b)completion of the procedure is interrupted by an occurrence referred to in section 109(2).

410. Extent to which Chapters 4, 5 and 7 apply

Chapters 4, 5 and 7, except insofar as a provision of those Chapters is modified, qualified or deviated from in this Chapter, apply to all goods under the inward processing procedure,³⁰⁴ including to the clearance and release of—³⁰⁴In the case of an inconsistency between a provision of this Chapter and a general provision contained in Chapter 4 or 7 the provision of this Chapter prevails. See sections 88(3) and 162(3).

(a)imported goods for inward processing; and

(b)goods to be exported as inward processed compensating products.

Part 2 – Clearance and release of imported goods for inward processing

411. Clearance of imported goods for inward processing

Imported goods to be cleared for inward processing must be cleared in accordance with section 410(a).

412. Conditions for clearance of imported goods for inward processing

Imported goods may be cleared for the inward processing procedure only if—

(a)those goods are of a class or kind authorised in any of the tax levying Acts as goods that may be cleared for inward processing;

(b)the requirements applicable to the clearance for inward processing of goods of that class or kind have been complied with, including any requirements and conditions as may be—

(i)prescribed by rule;

(ii)specified in a tax levying Act referred to in paragraph (a); or

(iii)determined in terms of any other applicable legislation;

(c)the premises where the inward processing of the goods is to be carried out are licensed as premises for inward processing;

(d)the licensee of those premises who is to carry out the inward processing of the goods—

(i)undertakes to comply with the requirements applicable to the inward processing of such goods, including any requirements and conditions as may be—

(aa)prescribed by rule;

(bb)specified in a tax levying Act referred to in paragraph (a); or

(cc)determined in terms of any other applicable legislation; and

(ii)has granted permission for the inward processing of the goods on those premises and has advised the customs authority electronically in accordance with section 913 of such permission, if that licensee is not the person who cleared the goods for inward processing;

(e)any import tax that may become payable on the goods is covered by security; and

(f)measures have been taken to ensure that when goods are cleared for export from the Republic in terms of Part 3 as inward processed compensating products obtained from the imported goods, those goods could be verified as compensating products obtained from those imported goods.

413. Persons entitled to submit inward processing clearance declarations

Only the following persons may subject to section 165(2), submit clearance declarations to clear imported goods for inward processing:³⁰⁵³⁰⁵See section 165(1)(a).

(a)The importer of the goods, provided that the importer is licensed in terms of Chapter 29 to import goods for inward processing;

(b)the licensee of the inward processing premises where the processing of the goods is to be carried out; or

(c)a customs broker referred to in section 165(1)(b).

414. Contents of inward processing clearance declarations

A clearance declaration for inward processing of imported goods must, in addition to the information required in terms of section 167, state—

(a)that the goods are cleared for the inward processing procedure;

(b)the item number in a tax levying Act referred to in section 412(a) authorising the clearance of goods of the relevant class or kind for inward processing;

(c)details of any permit, permission or authorisation granted in respect of the goods in terms of any condition—

(i)as may be prescribed by rule;

(ii)specified in a tax levying Act referred to in section 412(a); or

(iii)determined in terms of any other applicable legislation; and

(d)the customs code of the licensed inward processing premises where the goods will be processed under that procedure.

415. Release of imported goods for inward processing³⁰⁶

³⁰⁶If the release of goods for inward processing is refused, section 106 applies.

(1)

(a)When goods are released for the inward processing procedure, the goods must be delivered to the licensed inward processing premises where the goods will be processed under that procedure unless the customs authority authorises³⁰⁷ the goods to be taken to another location.³⁰⁷See section 918 for authorisations granted on conditions.

(b)When goods released for inward processing are delivered to the licensed premises where the goods will be processed or to that other location—

(i)the carrier that transported the goods must notify the customs authority of the delivery; and

(ii)the licensee must notify the customs authority of the receipt of the goods, if the goods were delivered to those licensed premises.

(c)No person may redirect goods that are cleared for inward processing to a place other than the licensed premises or that other location.

(2)The release of goods for the inward processing procedure is subject to compliance with any conditions or requirements—

(a)referred to in section 412(d);

(b)as may be prescribed by rule; and

(c)as may be determined by the customs authority in terms of section 104 in a specific case.

Part 3 – Clearance and release of goods for export as inward processed compensating products

416. Clearance of goods for export under inward processing procedure

Goods to be cleared for export as inward processed compensating products must be cleared for export in accordance with Chapter 16³⁰⁸ read with section 410(b).³⁰⁸See also section 361(2)(c) which states that Chapter 16 applies to goods destined for export as inward processed compensating products.

417. Conditions for clearance of goods for export as inward processed compensating products

Goods may be cleared for export as inward processed compensating products only if—

(a)this Act have been complied with in respect of the inward processing of the imported goods from which those compensating products were obtained; and

(b)any conditions subject to which those imported goods were released for inward processing in terms of section 415 have been complied with.

418. Time limits on clearance for export of inward processed compensating products

(1)Goods to be cleared for export as inward processed compensating products must be cleared—

(a)within a timeframe as may be determined in a tax levying Act referred to in section 412(a) for the class or kind of imported goods from which those products were obtained or, if two or more tax levying Acts authorise the same class or kind of imported goods to be cleared for inward processing, within a period determined uniformly in those tax levying Acts for that class or kind of goods; or

(b)if no period is in terms of paragraph (a) determined for the relevant class or kind of imported goods, within two years from the date of import of the first constituent goods from which the compensating products were obtained.

(2)A person who cleared goods for inward processing must immediately notify the customs authority of any failure to comply with subsection (1).

(3)A timeframe referred to in subsection (1)(a) or (b) is subject to extension or shortening in terms of section 908 or 909.

419. Export of inward processed compensating products

Goods may be cleared and released for export as inward processed compensating products despite the fact that—

(a)not all the compensating products obtained from the imported goods that are cleared and released for inward processing are to be exported, subject to section 423;

(b)the compensating products are exported in separate consignments, provided that a separate export clearance declaration is submitted in respect of each consignment; or

(c)the compensating products are exported at a place of exit other than the place of entry through which the goods from which the products were obtained were originally imported.

420. Persons entitled to submit export clearance declarations for inward processed compensating products

Only the following persons may, subject to section 165(2), submit clearance declarations to clear goods for export as inward processed compensating products:³⁰⁹³⁰⁹See section 165(1)(a).

(a)The person who originally cleared for inward processing the imported goods from which those products were obtained;

(b)the licensee of the inward processing premises where the processing of the goods had been carried out;

(c)the exporter of the inward processed compensating products, provided that the exporter is licensed in terms of Chapter 29 to export inward processed compensating products; and

(d)a customs broker referred to in section 165(1)(b).

421. Contents of export clearance declarations for inward processed compensating products

A clearance declaration submitted in terms of Part 2 of Chapter 16 for the export of goods as inward processed compensating products must, in addition to the information required in terms of sections 167 and 367, state—

(a)that the goods are exported as inward processed compensating products; and

(b)the reference number and date of the inward processing clearance declaration submitted in respect of the imported goods from which those compensating products were obtained.

Part 4 – Provisions regulating goods under inward processing procedure

422. Imported goods under inward processing procedure to be used only for production of inward processed compensating products

(1)Imported goods cleared and released for inward processing may be used only for the production of goods for export as inward processed compensating products, subject to subsection (2) and section 424.

(2)If goods under the inward processing procedure are for any reason no longer intended to be used, or are not used, for the purpose referred to subsection (1), the person clearing the goods must promptly clear those goods in terms of section 110 for another customs procedure or for home use if permissible in the circumstances.

(3)Section 106 applies if goods are cleared in terms of subsection (2) for another customs procedure or for home use and the release of the goods for that customs procedure or for home use is refused.³¹⁰³¹⁰See sections 99 and 100.

423. Compulsory export of inward processed compensating products

(1)Inward processed compensating products must be exported from the Republic unless the imported goods from which those compensating products were obtained are in terms of section 110, read with subsection (2), cleared and released for home use before the expiry of the timeframe applicable to those compensating products in terms of section 418.

(2)A clearance declaration to clear imported goods for home use as contemplated in subsection (1) may be submitted to the customs authority only if—

(a)the person who cleared those imported goods for inward processing has submitted to the customs authority a motivated application for permission to clear the goods for home use; and

(b)the customs authority has granted permission to that person to clear the goods for home use.

(3)If an application submitted to the customs authority in terms of subsection (2) is refused, the inward processed compensating products obtained from those imported goods must—

(a)before the expiry of the timeframe applicable to those products in terms of section 418 be cleared for export; and

(b)be exported from the Republic.

424. By-products and commercially valuable waste

(1)If by-products or commercially valuable waste is, in addition to compensating products, obtained from the processing of imported goods under the inward processing procedure, the by-products or waste must within the timeframe referred to in section 418 be cleared for export in terms of Part 3 as if the by-products or waste were inward processed compensating products.³¹¹³¹¹The effect of this provision is that by-products and waste must be cleared for export in accordance with the provisions applicable to the clearance of inward processed compensating products.

(2)By-products or commercially valuable waste may despite subsection (1), be allowed into free circulation provided—

(a)the clearance declaration submitted to clear the imported goods for inward processing is amended to exclude from that declaration a quantity of the imported goods which in accordance with a conversion rate determined in terms of section 425 equals the quantity of such by-products or waste; and

(b)the quantity of imported goods excluded from that clearance declaration in terms of paragraph (a) is cleared for home use under Chapter 8 within the timeframe applicable to the goods in terms of section 418.

(3)A clearance in terms of subsection (2)(b) takes effect from the time the goods were cleared for inward processing.³¹²³¹²For time of clearance of goods, see section 173.

425. Conversion rates

(1)The licensee of the inward processing premises where imported goods are processed under the inward processing procedure must determine a conversion rate, approved by the customs authority, that must for purposes of this Chapter be used for determining—

(a)the quantity of compensating products, and of by-products or waste, that should in the ordinary course of processing the imported goods for the relevant purpose be obtained from a specific quantity of those goods; or

(b)the quantity of those imported goods that, in the ordinary course of processing the goods for the relevant purpose, would have been used in order to obtain a specific quantity of compensating products, by-products or waste.

(2)Quantities may for purposes of subsection (1) be determined by number, weight, volume or any other measuring unit, as may be appropriate.

(3)In determining a conversion rate, account must be taken of any—

(a)evaporation;

(b)drying-out;

(c)any other losses that may result from the nature of the goods used; and

(d)any other relevant factors.

426. Identification measures

The customs authority may take such steps as are necessary for the identification of goods to be exported as inward processed compensating products, including by—

(a)recording any specific marks or numbers on the imported goods that are cleared for inward processing;

(b)affixing any seals, stamps or individual marks to such goods;

(c)taking any samples or making use of any illustrations or technical descriptions of such goods; and

(d)requesting any documentary evidence concerning the processing of the goods.

427. Records and stocktaking

(1)The licensee of inward processing premises where imported goods are processed under the inward processing procedure must keep such records and submit such reports to the customs authority in respect of the imported goods and the compensating products, by-products and commercially valuable waste obtained from the imported goods, as may be prescribed by rule or as the customs authority may require in a specific case.

(2)A customs officer may at any time during an inspection in terms of Chapter 33—

(a)examine records kept in terms of subsection (1); and

(b)take stock of—

(i)imported goods cleared and released for inward processing;

(ii)any compensating products, by-products and waste obtained from those goods; and

(iii)any other goods present on the licensed inward processing premises where the imported goods are processed.

(3)If during any stocktaking imported goods under the inward processing procedure are found to be—

(a)greater than the quantity, weight or volume that should be on hand on the inward processing premises where the goods are processed, the excess must be taken as stock on hand; or

(b)less than the quantity, weight or volume that should be on hand on the premises, the shortfall must be dealt with in terms of Chapter 25 as goods unaccounted for.

428. Subcontracting of inward processing operations

(1)

(a)The licensee of inward processing premises where imported goods are processed under the inward processing procedure may only with the approval of the customs authority³¹³ appoint a person as a subcontractor to undertake any aspect of such processing.³¹⁴³¹³See section 918 for granting of approvals on conditions³¹⁴Where a subcontractor undertakes any aspect of the inward processing of goods, the licensee appointing the subcontractor remains liable for the completion of the inward processing procedure.

(b)Paragraph (a) does not apply if the premises where the subcontracted processing is to be carried out are licensed inward processing premises and the subcontractor is the licensee of those premises.

(2)The premises on which the subcontracted processing is to be carried out must be licensed inward processing premises if the annual business turnover on those premises exceeds an amount as may be prescribed by rule.

(3)Application for an approval in terms of subsection (1)(a) must be made—

(a)to the customs authority before the goods are delivered to the subcontractor; and

(b)in the form and format, and in accordance with such requirements, as may be prescribed by rule.

429. Use of equivalent goods

(1)The customs authority may grant permission³¹⁵ to the licensee of the inward processing premises where goods are processed under the inward processing procedure to replace imported goods that are cleared and released for inward processing with goods in free circulation identical in description, quality, technical characteristics and quantity for use in the production of inward processed compensating products.³¹⁵See section 918 for granting of permissions on conditions.

(2)If the customs authority has granted permission in terms of subsection (1) for equivalent goods to be used, those equivalent goods must for all purposes be regarded to be the imported goods cleared and released for inward processing.

Part 5 – Other matters

430. Additional grounds for regarding goods under inward processing procedure to be cleared for home use³¹⁶

³¹⁶See section 112 for general grounds on which goods under a customs procedure must or may be regarded to be cleared for home use.

(1)Imported goods under the inward processing procedure must in terms of section 125(1) for tax purposes be regarded to be cleared for home use under Chapter 8—³¹⁷³¹⁷For tax consequences if goods are regarded to be cleared for home use, see section 154; for other consequences of non-compliance with customs procedures, see section 115.

(a)if the goods are in breach of section 422 used for a purpose other than the production of inward processed compensating products of the class or kind stated in the inward processing clearance declaration of the goods; or

(b)if compensating products obtained from the processing of those goods—

(i)are for any reason not cleared for export as inward processed compensating products within the timeframe applicable to those compensating products in terms of section 418, subject to section 423(1);

(ii)are diverted for home use;

(iii)are cleared and released for export as inward processed compensating products but not exported from the Republic within a timeframe prescribed by rule; or

(iv)are damaged, destroyed, lost or unaccounted for and it is not proved in accordance with Part 2 of Chapter 25—

(aa)that the compensating products were damaged, destroyed, lost or unaccounted for due to a recognised cause³¹⁸; or³¹⁸See definition of “recognised cause” in section 1.

(bb)in the case of compensating products lost due to a recognised cause, that the products, after having been lost, have not gone into home use in any way.

(2)Subsection (1)(b) applies to by-products and commercially valuable waste derived from the processing of imported goods under the inward processing procedure as if such by-products or waste were inward processed compensating products, except when such by-products or waste are dealt with in terms of section 424(2).

(3)

(a)When applying section 112(1) to any imported goods under the inward processing procedure in circumstances where the ground for regarding the imported goods to be cleared for home use pertains only to a part of the compensating products obtained from the imported goods, only a proportionate part of the imported goods must in terms of that section be regarded to be cleared for home use.

(b)In determining the proportionate part of the imported goods that must be regarded to be cleared for home use in terms of paragraph (a), a conversion rate determined in terms of section 425 must be used.

431. Effect on compensating products when goods under inward processing procedure regarded to be cleared for home use

(1)Compensating products obtained from imported goods under the inward processing procedure lose their tax free status³¹⁹ as inward processed compensating products if, and to the extent that, the imported goods are in terms of section 112 regarded to be cleared for home use.³¹⁹In relation to export tax, see section 148(2).

(2)In applying subsection (1) a conversion rate determined in terms of section 425 must be used.

432. Rules to facilitate implementation of this Chapter

Rules made in terms of section 903 to facilitate the implementation of this Chapter may include rules—

(a)regulating—

(i)the processing of goods under the inward processing procedure to prevent diversion of goods for home use or tax evasion;

(ii)the appointment of persons as subcontractors to undertake any aspect of the processing of goods on behalf of a person carrying out the processing of those goods under the inward processing procedure; and

(iii)the movement of the goods, and of inward processed compensating products, by-products and waste obtained from those goods, between different locations;

(b)prescribing the circumstances in which and the conditions on which—

(i)equivalent goods may be used in the production of inward processed compensating products; or

(ii)by-products or commercially valuable waste obtained from the processing of goods under the inward processing procedure may be allowed into free circulation;

(c)ensuring that inward processed compensating products obtained from the processing of goods under the inward processing procedure are exported within the applicable timeframes;

(d)prescribing reports to be submitted to the customs authority by licensees of inward processing premises concerning—

(i)all goods received, stored or processed for inward processing at or removed from those premises during a reporting period;

(ii)all inward processed compensating products, by-products or waste obtained from those goods or removed from those premises during a reporting period;

(iii)any surpluses or shortfalls on goods received for inward processing or on inward processed compensating products, by-products or waste obtained from those goods, as at the end of a reporting period; and

(iv)any goods or inward processed compensating products, by-products or waste damaged, destroyed, lost or unaccounted for during a reporting period;

(e)prescribing the periods for and the timeframes within which such reports must be submitted to the customs authority;

(f)prescribing for purposes of section 122(c), any persons, other than carriers, permitted to transport under the inward processing procedure imported goods or compensating products, by-products or waste obtained from the imported goods; and

(g)to ensure effective customs control when imported goods or compensating products, by-products or waste obtained from the imported goods are stored or transported under the inward processing procedure.

433. Offences in terms of this Chapter

(1)A person is guilty of an offence if that person contravenes section 415(1)(c).

(2)A person clearing goods for inward processing is guilty of an offence—

(a)if section 418(2), 422(1), 423(1) or (3) or 424(1) is contravened or not complied with; or

(b)if that person contravenes or fails to comply with—

(i)a condition or requirement referred to in section 415(2) applicable to that person; or

(ii)section 422(2).

(3)A licensee of inward processing premises is guilty of an offence if that person contravenes or fails to comply with—

(a)a condition or requirement referred to in section 415(2) applicable to that licensee; or

(b)section 415(1)(b)(ii), 425(1) or 427(1).

(4)A carrier transporting goods under the inward processing procedure is guilty of an offence if that carrier fails to comply with section 415(1)(b)(i).

(5)A contravention of or failure to comply with section 415(1)(c) or 422(1) or (2) is a Category 1 offence.

Chapter 19
Home use processing procedure

Part 1 – Introductory provisions

434. Purpose of this Chapter

The purpose of this Chapter is to regulate the home use processing procedure.

435. Home use processing procedure³²⁰

³²⁰For tax status of goods under the home use processing procedure, see section 149.

(1)Home use processing is a customs procedure that allows—

(a)imported goods—

(i)to be processed on home use processing premises³²¹ without clearing the goods for home use in terms of Chapter 8; and³²¹It is to be noted that the definition of “home use processing premises” excludes excise warehouses.

(ii)for purposes of such processing—

(aa)to be transported without clearing the goods for national transit; or

(bb)to be stored without clearing the goods for warehousing; and

(b)products obtained from the processing of those imported goods—

(i)upon fulfilment of the conditions subject to which the imported goods were released for that procedure, to become goods in free circulation without clearing those products for home use; or

(ii)before those products become goods in free circulation, to be stored without clearing the products for warehousing or to be transported without clearing the products for national transit.

(2)The home use processing procedure is available only for imported goods referred to in section 439(a).

436. Commencement and completion of home use processing procedure

(1)

(a)Imported goods come under the home use processing procedure when the goods are cleared for home use processing.

(b)The home use processing procedure is, subject to subsection (2), completed upon fulfilment of the conditions subject to which those goods were released for that procedure.

(2)The home use processing procedure ends before its completion if—

(a)the imported goods before completion of the procedure are cleared and released for another customs procedure or for home use as may be permissible in the circumstances; or

(b)completion of the procedure is interrupted by an occurrence referred to in section 109(2).

437. Extent to which Chapters 4, 5 and 7 apply

Chapters 4, 5 and 7, except insofar as a provision of those Chapters is modified, qualified or deviated from in this Chapter, apply to all goods under the home use processing procedure, including to the clearance and release of imported goods for home use processing.

Part 2 – Clearance and release of imported goods for home use processing

438. Clearance of imported goods for home use processing

Imported goods to be cleared for home use processing must be cleared in accordance with section 437.

439. Conditions for clearance of imported goods for home use processing

Imported goods may be cleared for home use processing only if—

(a)those goods are of a class or kind authorised in the Customs Tariff as goods that may be cleared for home use processing;

(b)the requirements applicable to the clearance for that procedure of goods of that class or kind have been complied with, including any requirements and conditions as may be—

(i)prescribed by rule;

(ii)specified in the Customs Tariff; or

(iii)determined in terms of any relevant tax levying Act or other applicable legislation;

(c)the premises where the home use processing of the goods is to be carried out are licensed as premises for home use processing;

(d)the licensee of those premises who is to carry out the home use processing of the goods—

(i)undertakes to comply with the requirements applicable to the home use processing of such goods, including—

(aa)any conditions subject to which the goods may be released for that procedure in terms of section 442; and

(bb)any requirements and conditions as may be prescribed by rule, specified in the Customs Tariff or determined in terms of the Customs Duty Act or other applicable legislation; and

(ii)has granted permission for the home use processing of the goods on those premises and has advised the customs authority electronically in accordance with section 913 of such permission, if that licensee is not the person who cleared the goods for home use processing; and

(e)any import tax that may become payable on the goods is covered by security.

440. Persons entitled to submit home use processing clearance declarations

Only the following persons may, subject to section 165(2), submit clearance declarations to clear imported goods for home use processing:³²²³²²See section 165(1)(a).

(a)The importer of the goods, provided that the importer is licensed in terms of Chapter 29 to import goods for home use processing;

(b)the licensee of the home use processing premises where the home use processing of the goods is to be carried out; and

(c)a customs broker referred to in section 165(1)(b).

441. Contents of home use processing clearance declarations

A clearance declaration for home use processing of imported goods must, in addition to the information required in terms of section 167, state—

(a)that the goods are cleared for the home use processing procedure;

(b)the customs code of the licensed home use processing premises where the home use processing of the goods is to be carried out;

(c)the item number in the Customs Tariff authorising the clearance of goods of the relevant class or kind for home use processing; and

(d)details of any permit, permission or authorisation granted in respect of the goods in terms of any condition prescribed by rule, specified in the Customs Tariff or determined in terms of any other applicable legislation.

442. Release of imported goods for home use processing

(1)Imported goods cleared for home use processing may only be released for that procedure on condition—

(a)that the requirements relating to home use processing are complied with, including any requirements and conditions as may be—

(i)prescribed by rule;

(ii)specified in the Customs Tariff or determined in terms of any other applicable legislation; or

(iii)determined by the customs authority in terms of section 104 in a specific case; and

(b)that compensating products obtained from those imported goods are dealt with in accordance with those requirements and conditions.

(2)

(a)When goods are released for the home use processing procedure the goods must be delivered to the licensed home use processing premises where the home use processing of the goods is to be carried out unless the customs authority authorises³²³ the goods to be taken to another location.³²³See section 918 for authorisations granted on conditions.

(b)When goods released for home use processing are delivered to the licensed premises where the home use processing of the goods is to be carried out or to that other location—

(i)the carrier that transported the goods must notify the customs authority of the delivery; and

(ii)the licensee must notify the customs authority of the receipt of the goods, if the goods were delivered to those licensed premises.

(c)No person may redirect goods that are cleared for home use processing to a place other than the licensed premises or that other location.

Part 3 – Provisions regulating home use processing procedure

443. Goods under home use processing procedure only to be used for production of home use compensating products

(1)Imported goods cleared and released for home use processing may be used only for the production of home use compensating products of the class or kind stated in the clearance declaration of the goods, subject to section 446.

(2)If imported goods under the home use processing procedure are for any reason no longer intended to be used for the purpose referred to subsection (1), the person clearing the goods must promptly clear those goods in terms of section 110 for another customs procedure or for home use as may be permissible in the circumstances.³²⁴³²⁴Failure to comply with this subsection may result in steps under section 115 or 92 which may include seizure of the goods.

444. Time limits on completion of home use processing of goods

(1)The processing of imported goods under the home use processing procedure into home use compensating products must be completed—

(a)within a timeframe as may be determined in the Customs Tariff for the specific class or kind of goods; or

(b)if not determined in the Customs Tariff, within two years from the date of import of the first constituent goods from which the compensating products were obtained.

(2)A person who cleared goods for home use processing must immediately notify the customs authority of any failure to comply with subsection (1).

(3)A timeframe referred to in subsection (1)(a) or (b) is subject to extension or shortening in terms of section 908 or 909.

445. Home use compensating products to be dealt with as goods in free circulation

(1)Unless otherwise specified in terms of a tax levying Act, compensating products obtained from the processing of imported goods under the home use processing procedure may, subject to subsection (2), be—

(a)dealt with as goods in free circulation without any clearance and release of the goods for home use; or

(b)be cleared and released for export as goods in free circulation, and exported from the Republic, in accordance with the export procedure.

(2)Subsection (1) applies to compensating products obtained from the processing of imported goods under the home use processing procedure only if the products were obtained in accordance with—

(a)the provisions of this Act relating to home use processing; and

(b)the conditions applicable to the goods in terms of section 442.

(3)This section may not be read as affecting any provisions of a tax levying Act providing for the imposition and collection of taxes on such imported goods or compensating products.

446. By-products and commercially valuable waste

(1)If by-products or commercially valuable waste is, in addition to compensating products, obtained from the processing of imported goods under the home use processing procedure, the by-products or waste may be allowed into free circulation, provided—

(a)the clearance declaration in terms of which the imported goods are cleared for home use processing is amended to exclude from that declaration a quantity of the imported goods which in accordance with a conversion rate determined in terms of section 447 equals the quantity of such by-products or waste; and

(b)the quantity of imported goods excluded from the original clearance in terms of paragraph (a) is cleared for home use in terms of Chapter 8 within the period applicable to the goods in terms of section 444.

(2)A clearance in terms of subsection (1)(b) it takes effect from the time of original clearance of the goods for home use processing.

447. Conversion rates

(1)The licensee of the home use processing premises where imported goods are processed under the home use processing procedure must determine a conversion rate, approved by the customs authority, that must for purposes of this Chapter be used for determining—

(2)Quantities may for purposes of subsection (1) be determined by number, weight, volume or any other measuring unit, as may be appropriate.

(3)In determining a conversion rate, account must be taken of any—

(a)evaporation;

(b)drying-out;

(c)any other losses that may result from the nature of the goods used; and

(d)any other relevant factors.

448. Records and stocktaking

(1)The licensee of the home use processing premises where imported goods are processed under the home use processing procedure must keep such records and submit such regular reports to the customs authority in respect of the goods and the compensating products, by-products and commercially valuable waste obtained from the goods, as may be prescribed by rule or as the customs authority may require in a specific case.

(2)A customs officer may at any time during an inspection in terms of Chapter 33—

(a)examine the records kept in terms of subsection (1); and

(b)take stock of—

(i)imported goods cleared and released for the home use processing procedure;

(ii)any compensating products, by-products and waste obtained from those goods; and

(iii)any other goods present on the licensed home use processing premises where the imported goods are processed.

(3)If during any stocktaking imported goods under the home use processing procedure are found to be—

(a)greater than the quantity, weight or volume that should be on hand on the home use processing premises where the goods are processed, the excess must be taken as stock on hand; or

(b)less than the quantity, weight or volume that should be on hand on the premises, the shortfall must be dealt with in terms of Chapter 25 as goods unaccounted for.

449. Sub-contracting of home use processing operations

(1)

(a)The licensee of home use processing premises where imported goods are processed under the home use processing procedure may only with the approval of the customs authority³²⁶ appoint a person as a subcontractor to undertake any aspect of such processing.³²⁷³²⁶See section 918 for granting of approvals on conditions.³²⁷Where a subcontractor undertakes any aspect of the home use processing of goods, the licensee appointing the subcontractor remains liable for the completion of the home use processing procedure.

(b)Paragraph (a) does not apply if the premises where the subcontracted processing is to be carried out are licensed home use processing premises and the subcontractor is the licensee of those premises.

(2)The premises where the subcontracted processing is to be carried out must be licensed home use processing premises if the annual business turnover on those premises exceeds an amount as may be prescribed by rule.

(3)Application for an approval in terms of subsection (1)(a) must be made—

(a)to the customs authority before the goods are delivered to the subcontractor; and

(b)in the form and format, and in accordance with such requirements, as may be prescribed by rule.

Part 4 – Other matters

450. Additional grounds for regarding goods under home use processing procedure to be cleared for home use³²⁸

³²⁸See section 112 for general grounds on which goods under a customs procedure must or may be regarded to be cleared for home use.Imported goods that are cleared and released for home use processing must in terms of section 112(1) for tax purposes be regarded to be cleared for home use under Chapter 8—³²⁹³²⁹For tax consequences if goods are regarded to be cleared for home use, see section 154; for other consequences of non-compliance with customs procedures, see section 115.

(a)if the goods are in breach of section 443 used for a purpose other than the production of home use compensating products of the class or kind stated in the home use processing clearance declaration of those goods; or

(b)if the processing of the imported goods into home use compensating products is not completed within the timeframe applicable to the goods in terms of section 444.

451. Rules to facilitate implementation of this Chapter

Rules made in terms of section 903 to facilitate the implementation of this Chapter may include rules—

(a)regulating—

(i)the processing of goods under the home use processing procedure to prevent diversion of goods for home use or tax evasion;

(ii)the appointment of persons as subcontractors to undertake any aspect of the processing of goods on behalf of a person carrying out the processing of those goods under the home use processing procedure, and the obligations of such subcontractors; and

(iii)the movement of the goods, and of home use compensating products, by-products and waste obtained from those goods, between different locations;

(b)prescribing reports to be submitted to the customs authority by licensees of home use processing premises concerning—

(i)all goods received, stored or processed for home use processing at or removed from those premises during a reporting period;

(ii)all home use compensating products, by-products or waste obtained from those goods or removed from those premises during a reporting period;

(iii)any surpluses or shortfalls on goods received for home use processing or on home use compensating products, by-products or waste obtained from those goods, as at the end of a reporting period; and

(iv)any goods or home use compensating products, by-products or waste damaged, destroyed, lost or unaccounted for during a reporting period;

(c)prescribing the periods for and the timeframes within which such reports must be submitted to the customs authority;

(d)prescribing for purposes of section 122(c), any persons, other than carriers, permitted to transport under the home use processing procedure imported goods or products obtained from the imported goods before those products become goods in free circulation; and

(e)to ensure effective customs control when imported goods, or products obtained from the imported goods before those products become goods in free circulation, are stored or transported under the home use processing procedure.

452. Offences in terms of this Chapter

(1)A person is guilty of an offence if that person contravenes section 442(2)(c).

(2)A person clearing goods for home use processing is guilty of an offence if that person contravenes or fails to comply with—

(a)a condition or requirement referred to in section 442(1)(a) or (b) applicable to that person; or

(b)section 443(1) or (2), 444(2), 446(1) or 447(1).

(3)A licensee of any home use processing premises is guilty of an offence if that person contravenes or fails to comply with—

(a)a condition or requirement referred to in section 442(1)(a) or (b) applicable to that licensee; or

(b)section 442(2)(6)(ii), 447(1) or 448(1).

(4)A carrier transporting goods under the home use processing procedure is guilty of an offence if that carrier fails to comply with section 442(2)(b)(i).

(5)A contravention or failure to comply with section 442(2)(c) or 443(2) is a Category 1 offence.

Chapter 20
Outward processing procedure

Part 1 – Introductory provisions

453. Purpose of this Chapter

The purpose of this Chapter is to regulate the outward processing procedure.

454. Outward processing procedure³³⁰

³³⁰For tax status of goods under the outward processing procedure, see section 150.

(1)Outward processing is a customs procedure that allows—

(a)goods to be exported from the Republic under this procedure for processing abroad; and

(b)products obtained from the processing of those goods to be imported into the Republic and cleared and released for home use under this procedure as outward processed compensating products.

(2)The outward processing procedure is available only for goods referred to in section 458(a).

455. Commencement and completion of outward processing procedure

(1)

(a)Goods come under the outward processing procedure when the goods are cleared for export under the outward processing procedure.

(b)The outward processing procedure is, subject to subsection (2), completed when products obtained from those goods are imported into the Republic and cleared and released for home use as outward processed compensating products.

(2)The outward processing procedure ends before its completion if completion of the procedure is interrupted by an occurrence referred to in section 109(2).

456. Extent to which Chapters 4, 5 and 7 apply

Chapters 4, 5 and 7, except insofar as a provision of those Chapters is modified, qualified or deviated from in this Chapter, apply to all goods under the outward processing procedure,³³¹ including to the clearance and release of—³³¹In the case of an inconsistency between a provision of this Chapter and a general provision contained in Chapter 4 or 7 the provision of this Chapter prevails. See sections 88(3) and 162(3).

(a)goods for export for outward processing; and

(b)imported goods for home use as outward processed compensating products.

Part 2 – Clearance and release of goods for outward processing

457. Clearance of goods for outward processing procedure

Goods to be cleared for outward processing must be cleared for export for outward processing in accordance with Chapter 16³³² read with section 456(a).³³²See also section 361(2)(b)(iii) which states that Chapter 16 applies to goods destined for export under the outward processing procedure.

458. Conditions for clearance of goods for outward processing

Goods may be cleared for outward processing only if—

(a)those goods are of a class or kind authorised in any of the tax levying Acts as goods that may be cleared for outward processing;

(b)the requirements applicable to the clearance for outward processing of goods of that class or kind have been complied with, including requirements and conditions as may be—

(i)prescribed by rule;

(ii)specified in a tax levying Act referred to in paragraph (a); or

(iii)determined in terms of any other applicable legislation;

(c)the person who clears the goods for outward processing—

(i)undertakes to comply with the requirements applicable to the outward processing of goods and the importation of outward processed compensating products obtained from those goods, including requirements and conditions as may be prescribed by rule, specified in a tax levying Act referred to in paragraph (a) or determined in terms of any other applicable legislation; and

(ii)gives security for the payment of any export tax that may become payable on the goods; and

(d)measures have been taken to ensure that when goods are cleared for home use as outward processed compensating products obtained from the exported goods, those goods could be verified as compensating products obtained from those goods.

459. Persons entitled to submit clearance declarations for export of goods for outward processing

Only the following persons may subject to section 165(2), submit clearance declarations to clear goods for export under the outward processing procedure:³³³³³³See section 165(1)(a).

(a)The exporter of the goods, if that exporter is located in the Republic;

(b)the registered agent in the Republic of the exporter, if that exporter is not located in the Republic; or

(c)a customs broker referred to in section 165(1)(b).

460. Contents of clearance declarations for export of goods for outward processing

An export clearance declaration submitted in terms of Part 2 of Chapter 16 for the export of goods for outward processing must, in addition to the information required in terms of section 167, state—

(a)that the goods are cleared for export for outward processing;

(b)the item number in a tax levying Act referred to in section 458(a) authorising the clearance of goods of the relevant class or kind for outward processing;

(c)details of any permit, permission or authorisation granted in respect of the goods in terms of any condition prescribed by rule or specified in a tax levying Act referred to in section 458(a) or determined in terms of any other applicable legislation;

(d)the name and street address of the person to whom any such permit, permission or authorisation was granted; and

(e)the kind of compensating products that will be obtained from the outward processing of those goods.

461. Release not to be limited to owners of goods

The customs authority may not limit the release of goods for export for outward processing to the owner of the goods, but may grant such release to any person complying with the requirements applicable to the outward processing of goods of that class or kind, including any requirements and conditions as may be prescribed by rule, specified in a tax levying Act referred to in section 458(a) or determined in terms of any other applicable legislation.

462. Release of goods for export under outward processing procedure

The release of the goods for export under the outward processing procedure is subject to compliance with any conditions or requirements—

(a)referred to in section 458(c);

(b)as may be prescribed by rule; or

(c)as may be determined by the customs authority in terms of section 104 in a specific case.

Part 3 – Clearance and release for home use of outward processed compensating products

463. Clearance of imported goods for home use as outward processed compensating products

Imported goods to be cleared for home use as outward processed compensating products must be cleared in accordance with section 456(b).

464. Conditions for clearance for home use of outward processed compensating products

Goods may be cleared for home use as outward processed compensating products only if—

(a)those goods were obtained from goods exported from the Republic under the outward processing procedure;

(b)the requirements applicable to the outward processing of the goods from which the compensating products were obtained have been complied with; and

(c)any conditions subject to which those goods were released for export under the outward processing procedure in terms of section 462 have been complied with.

465. Time limits on clearance for home use of outward processed compensating products

(1)Compensating products obtained from goods exported from the Republic under the outward processing procedure may be cleared for home use as outward processed compensating products only if those compensating products were imported into the Republic—

(a)within a timeframe as may be determined in a tax levying Act referred to in section 458(a) for the class or kind of goods from which those products were obtained or, if two or more tax levying Acts authorise the same class or kind of goods to be cleared for outward processing, within a period determined uniformly in those tax levying Acts for that class or kind of goods; or

(b)if no period is in terms of paragraph (a) determined for the relevant class or kind of goods, within two years from the time of clearance³³⁴ for outward processing of the goods from which those compensating products were obtained.³³⁴See section 173 for time of clearance.

(2)A timeframe referred to in subsection (1)(a) or (b) is subject to extension or shortening in terms of section 908 or 909.

466. Importation of outward processed compensating products

Goods may be cleared and released for home use as outward processed compensating products despite the fact that—

(a)only a part of the compensating products obtained from the goods exported for outward processing are imported;

(b)the compensating products are imported in separate consignments, provided that a separate clearance declaration must be submitted in respect of each consignment; or

(c)the compensating products are imported at a place of entry other than the place of exit from where the goods from which the products were obtained were originally exported.

467. Persons entitled to submit home use clearance declarations for outward processed compensating products

Only the following persons may subject to section 165(2), submit clearance declarations to clear goods for home use as outward processed compensating products:³³⁵³³⁵See section 165(1)(a).

(a)The person who originally cleared the goods from which the compensating products were obtained for outward processing; or

(b)a customs broker referred to in section 165(1)(b).

468. Contents of home use clearance declarations for outward processed compensating products

(1)A clearance declaration to clear goods for home use as outward processed compensating products must, in addition to the matters required in terms of section 167, state—

(a)that the goods are cleared for home use as outward processed compensating products;

(b)the reference number and date of the clearance declaration submitted in respect of the export for outward processing of the goods from which those compensating products were obtained;

(c)the street address of the person to whom the compensating products are consigned; and

(d)the date, number and particulars of any permit or other authorisation issued in terms of any legislation in respect of the import of the compensating products, if such a permit or authorisation is a requirement for the import of the products.

(2)The person clearing goods for home use as outward processed compensating products must on request by the customs authority submit a statement stating in relation to the exported goods from which those compensating products were obtained—

(a)whether the exporter or any other person reclaimed any import or domestic tax paid on the goods when exported, and if so—

(i)the kind of tax; and

(ii)the amount of tax reclaimed; and

(b)whether any benefit was paid to the exporter or other person under any export incentive scheme applicable to the goods, whether in the form of a tax reduction or relief, an export or other subsidy, a rebate or reward or other benefit.

Part 4 – Provisions regulating outward processing procedure

469. Conversion rates for goods to compensating products

(1)The customs authority may in respect of any goods exported under the outward processing procedure approve a conversion rate that must for purposes of this Chapter be used for determining—

(a)the quantity of compensating products that should in the ordinary course of processing the exported goods for the relevant purpose be obtained from those goods; or

(b)the quantity of those exported goods that, in the ordinary course of processing the goods for the relevant purpose, would have been used in order to obtain a specific quantity of compensating products.

(2)Quantities may for purposes of subsection (1) be determined by number, weight, volume or any other measuring unit, as may be appropriate.

(3)In determining a conversion rate, account must be taken of any—

(a)evaporation;

(b)drying-out;

(c)any other losses that may result from the nature of the goods used; or

(d)any other relevant factors.

470. Identification measures

The customs authority may take such steps as are necessary for the accurate identification of compensating products obtained from goods exported under the outward processing procedure when those products are cleared for home use as outward processed compensating products, including by—

(a)recording any specific marks or numbers on goods exported under the outward processing procedure before their export;

(b)taking any samples or making use of any illustrations or technical descriptions; and

(c)requesting any documentary evidence concerning the processing abroad of the exported goods.

Part 5 – Other matters

471. Specific grounds for regarding goods exported under outward processing procedure to be cleared for outright export³³⁶

³³⁶See section 114 for general grounds on which goods must or may be regarded to be cleared for outright export.Goods exported under the outward processing procedure must in terms of section 114(1) for tax purposes be regarded to be cleared for outright export³³⁷ if—³³⁷For tax implications if goods are regarded to be cleared for outright export, see section 159.

(a)the exported goods are not used for outward processing;

(b)ownership of—

(i)the exported goods is transferred after the goods have been exported from the Republic; or

(ii)compensating products obtained from the processing of those exported goods is transferred before import of the products into the Republic;

(c)compensating products obtained from the processing of those exported goods—

(i)are not cleared for home use as outward processed compensating products within the timeframe applicable to the goods in terms of section 465; or

(ii)are cleared but after clearance are damaged, destroyed, lost or unaccounted for and it is not proved in accordance with Part 2 of Chapter 25—

(aa)that the compensating products were damaged, destroyed, lost or unaccounted for due to a recognised cause³³⁸; or³³⁸See definition of “recognised cause” in section 1.

(bb)in the case of compensating products lost due to a recognised cause, that the products, after having been lost, have not gone into home use in any way;

(d)imported goods are cleared for home use as outward processed compensating products obtained from those exported goods and the customs authority refuses³³⁹ to release those imported goods for home use as outward processed compensating products;³³⁹See sections 99 and 100.

(e)imported goods are cleared and released for home use as outward processed compensating products obtained from those exported goods and the customs authority withdraws³⁴⁰ the release of those imported goods for home use as outward processed compensating products; or³⁴⁰A release may be withdrawn in terms of section 105.

(f)the customs authority is notified that compensating products obtained from those exported goods will not be cleared for home use as outward processed compensating products.

472. Proportionate application of section 114(1) to goods exported under outward processing procedure

(a)When section 114(1) is in terms of section 471 applied to any goods exported under the outward processing procedure in circumstances where the ground for regarding the exported goods to be cleared for outright export pertains only to a part of the compensating products obtained from the exported goods, only a proportionate part of the exported goods must in terms of that section be regarded to be cleared for outright export.

(b)In determining the proportionate part of the exported goods that must be regarded to be cleared for outright export in terms of paragraph (a), a conversion rate determined in terms of section 469 must be used.

473. Effect on outward processed compensating products when goods exported for outward processing are regarded to be cleared for outright export

Compensating products obtained from goods exported under the outward processing procedure lose their tax free status as outward processed compensating products if those exported goods are in terms of section 114(1) regarded to be cleared for outright export.

474. Rules to facilitate implementation of this Chapter

Rules made in terms of section 903 to facilitate the implementation of this Chapter may include rules prescribing the form and format of a statement referred to in section 468(2).

475. Offences in terms of this Chapter

(1)A person clearing goods for outward processing is guilty of an offence if that person contravenes or fails to comply with a condition or requirement referred to in section 462 applicable to that person.

(2)An importer of goods is guilty of an offence if that person clears goods for home use as outward processed compensating products in contravention of section 464.

Chapter 21
Customs processing of persons entering or leaving Republic

476. Definitions

In this Chapter—"commercial goods" means items in the accompanied or unaccompanied baggage of a person entering or leaving the Republic that are imported into or exported from the Republic for commercial or other business purposes, and includes—(a)items intended—(i)to be sold, leased or otherwise commercially transacted; or(ii)for use in a business or profession; and(b)items which by reason of their nature, quantity, volume or other attribute can reasonably be classified as goods intended for commercial or other business purposes;"personal effects" means items (new or used) in the accompanied or unaccompanied baggage of a person entering or leaving the Republic which that person has on or with him or her or takes along for, and reasonably required for, personal or own use, such as any wearing apparel, toilet articles, medicine, personal jewellery, watch, cellular phone, food and drinks and other items evidently on or with that person for personal or own use, but excludes—(a)in relation to a person entering the Republic, any of the above items to the extent that they fall within any of the categories of items that must be declared in terms of section 479(1); or(b)in relation to a person leaving the Republic, any of the above items to the extent that they fall within any of the categories of items that must be declared in terms of section 484(1);"tax free allowance"—³⁴¹³⁴¹Rules under section 6 regulate the tax free allowance of BLNS countries.(a)in relation to a person entering the Republic, an amount uniformly fixed in the Customs Duty Act, the Excise Duty Act and the Value-Added Tax Act indicating the combined customs value of items in the accompanied and unaccompanied baggage of a person entering the Republic which such a person may import into the Republic free from any duty, levy or tax imposed by those Acts; or(b)in relation to a person leaving the Republic, an amount fixed in the Customs Duty Act indicating the combined customs value of items in the accompanied and unaccompanied baggage of a person leaving the Republic which such a person may export from the Republic free from export duty imposed by that Act;³⁴²³⁴²This paragraph obviously only applies if a duty on the export of goods has been imposed in terms of the Customs Duty Act."tax free limit" means the maximum quantity of a specific class or kind of consumable goods uniformly fixed in the Customs Duty Act, the Excise Duty Act and the Value-added Tax Act that may in terms of those Acts be imported, as part of the accompanied or unaccompanied baggage of a person entering the Republic, free from any duty, levy or tax imposed by those Acts.

477. Purpose and application of this Chapter

(1)The purpose of this Chapter is to provide for—

(a)the processing for customs purposes of persons entering or leaving the Republic; and

(b)such persons to declare their accompanied and unaccompanied baggage.

(2)This Chapter applies, subject to subsection (3), to—

(a)all persons entering or leaving the Republic, including crew members of a vessel, aircraft, train or vehicle; and

(b)the accompanied and unaccompanied baggage of such persons.

(3)This Chapter does not apply³⁴³ to—³⁴³Note that this subsection does not prevent Customs from intervening in terms of Chapter 33 if a person referred to in this subsection is suspected of having prohibited goods in his or her possession or in his or her baggage.

(a)persons who entered the Republic on board a foreign-going vessel or aircraft on their way to a destination outside the Republic and who—

(i)remain on board the vessel or aircraft on which they entered the Republic until the vessel or aircraft leaves the Republic;

(ii)disembark under customs supervision for transfer to another foreign-going vessel or aircraft on which they will leave the Republic; or

(iii)disembark for another reason but without leaving the transit area at a place of entry; and

(b)the accompanied and unaccompanied baggage of such persons that—

(i)remain on board the vessel or aircraft on which the baggage entered the Republic until the vessel or aircraft leaves the Republic; or

(ii)are transferred under customs supervision to another foreign-going vessel or aircraft on which the baggage will leave the Republic.

Part 1 – Persons entering Republic

478. Incoming traveller and crew declarations

(1)A person entering the Republic must—

(a)subject to section 488, complete, and submit to the customs authority, a declaration containing such personal and travel information, including information concerning that person’s accompanied and unaccompanied baggage, as may be prescribed by rule; and

(b)declare all items in that person’s accompanied or unaccompanied baggage that must be declared in terms of section 479.

(2)When declaring accompanied or unaccompanied baggage items in terms of subsection (1), a person must furnish the customs authority, when requested to do so, with full particulars concerning those items, including any available invoices and other commercial documents relating to those items.

479. Accompanied and unaccompanied baggage items that must be declared

(1)The following items in a person’s accompanied or unaccompanied baggage must be declared:

(a)Any items that are commercial goods;

(b)any items that that person brings into the Republic temporarily for later re-exportation from the Republic, distinguishing between—

(i)items to be re-exported in an unaltered state; and

(ii)items to be re-exported after being remodelled, processed, repaired or altered in the Republic;

(c)any items previously taken out of the Republic that that person returns to the Republic, distinguishing between—

(i)items returned in an unaltered state; and

(ii)items that have undergone remodelling, processing, repair or alteration abroad;

(d)any items that are prohibited, restricted or sectorally controlled goods; and

(e)all other items in a person’s accompanied or unaccompanied baggage excluding—

(i)any items that are personal effects;

(ii)any items of a class or kind for which a tax free limit has been fixed and of which the quantity does not exceed that limit, subject to subsection (2)(a); and

(iii)any items of a class or kind to which the tax free allowance is to be applied and of which the combined customs value does not exceed that allowance, subject to subsection (2)(b).

(2)

(a)If the total quantity of items of a specific class or kind referred to in subsection (1)(e)(ii) in a person’s accompanied or unaccompanied baggage exceeds the tax free limit fixed for that class or kind, the whole quantity of those items in that person’s accompanied or unaccompanied baggage must be declared in terms of subsection (1)(e).

(b)If the combined customs value of the items referred to in subsection (1)(e)(iii) in a person’s accompanied or unaccompanied baggage exceeds the tax free allowance, all those items in that person’s accompanied or unaccompanied baggage must be declared in terms of subsection (1)(e).

(3)Items in a person’s accompanied or unaccompanied baggage that must be declared in terms of subsection (1), must be declared whether or not the person entering the Republic is the owner of those items.

480. Clearance of accompanied and unaccompanied baggage items that must be declared³⁴⁴

³⁴⁴In this Act a distinction is drawn between declaring goods and clearing goods. To “declare” goods means to disclose the goods and provide any required information concerning the goods to a customs officer. To “clear” goods means to formally enter the goods for home use or a customs procedure. See definitions in section 1.

(1)Section 89 applies to accompanied and unaccompanied baggage items that must be declared in terms of section 479(1), and such items must, subject to subsection (4), be cleared for home use³⁴⁵ or a customs procedure,³⁴⁶ as may be permissible in the circumstances.³⁴⁵This could be a clearance for home use under Chapter 8 or, in the case of section 479(1)(c)(i), a clearance for home use under the inbound leg of the temporary export procedure or in the case of section 479(1)(c)(ii), a clearance for home use under the inbound leg of the outward processing procedure.³⁴⁶The inbound leg of the temporary admission procedure would be permissible in the case of section 479(1)(b)(i), and the inbound leg of the inward processing procedure would be permissible in the case of section 479(1)(b)(ii).

(2)

(a)Items in the accompanied or unaccompanied baggage of a person that must in terms of subsection (1) be cleared, may be cleared in accordance with simplified clearance requirements referred to in Part 3 of Chapter 24.

(b)Unless the customs authority determines otherwise in a specific case, paragraph (a) does not apply to commercial goods and such goods must be cleared in accordance with regular clearance requirements.

(3)A person may clear items in that person’s accompanied or unaccompanied baggage referred to in section 479(1)(b)(ii) for inward processing despite the fact that that person is not licensed as an importer of goods for inward processing.³⁴⁷³⁴⁷See licensing requirement in section 634(2)(a).

(4)Chapter 35 applies to items referred to in section 479(1)(d) and those items must be dealt with in accordance with that Chapter.

(5)Items in a person’s accompanied or unaccompanied baggage that are in terms of section 479(1)(e)(i), (ii) or (iii) excluded from the requirement to be declared may be imported without any clearance formalities.³⁴⁸³⁴⁸See section 91(1)(e). It also follows that no import tax is payable on these baggage items as no tax is payable on imported goods exempted from clearance formalities. All taxes on imported goods are in terms of the applicable tax levying Acts based on clearance for home use.

481. Import tax payable on accompanied and unaccompanied baggage items

(1)If any items in the accompanied or unaccompanied baggage of a person cleared in terms of section 480 attract import tax in terms of a tax levying Act on account of that clearance—

(a)the rate at which those items attract import tax must be determined and the tax must be assessed in accordance with that tax levying Act, subject to subsection (2);³⁴⁹ and³⁴⁹This provision generally applies to all accompanied and unaccompanied baggage items cleared in terms of section 480 for home use.

(b)any such import tax must be paid on demand unless the tax levying Act regulating that tax specifically provides otherwise for taxable accompanied or unaccompanied baggage items.

(2)A person may instead of paying an amount of import tax determined in accordance with subsection (1)(a) on any items in his or her accompanied or unaccompanied baggage declared in terms of section 479(1)(e) and which consist of goods specified in a tax levying Act as goods to which the tax free allowance may be applied, elect to have import tax on those items assessed as follows:³⁵⁰³⁵⁰It is to be noted that this subsection is limited to items declared in terms of section 479(1)(e)(iii) and cannot therefore be applied to commercial goods that must be declared in terms of section 479(1)(a).

(a)Items selected by that person of which the combined customs value is within the tax free allowance: no import tax payable on those items;

(b)items selected by that person from items not already selected in terms of paragraph (a), of which the combined customs value does not exceed an upper limit uniformly fixed in the Customs Duty Act, the Excise Duty Act and the Value-added Tax Act: import tax payable on those items at a flat rate of import tax uniformly fixed in the Customs Duty Act, the Excise Duty Act and the Value-added Tax Act; and

(c)any remaining items not already selected in terms of paragraph (a) or (b): import tax payable on those items at the rates payable in terms of the applicable tax levying Acts.

482. Place where incoming traveller and crew declarations must be submitted

Section 478(1) and (2) must be complied with—

(a)in the case of a person who entered the Republic on a foreign-going vessel, at the customs seaport where that person disembarks from the vessel;

(b)in the case of a person who entered the Republic on a foreign-going aircraft, at the customs airport where that person disembarks from the aircraft;

(c)in the case of a person who entered the Republic on a cross-border railway carriage, at the rail traveller terminal where that person disembarks from the railway carriage; or

(d)in the case of a person who entered the Republic in a vehicle or on foot, at the land border-post where the person entered the Republic.

Part 2 – Persons leaving Republic

483. Outgoing traveller and crew declarations

(1)A person in the process of leaving the Republic must—

(a)subject to section 488, complete and submit to the customs authority a declaration containing such personal and travel information, including information concerning that person’s accompanied or unaccompanied baggage, as may be prescribed by rule; and

(b)declare all items in that person’s accompanied or unaccompanied baggage that must be declared in terms of section 484.

484. Accompanied and unaccompanied baggage items that must be declared

(1)The following items in a person’s accompanied or unaccompanied baggage must be declared:

(a)Any items that are commercial goods;

(b)any items that that person takes out of the Republic temporarily for later re-importation into the Republic, distinguishing between—

(i)items to be re-imported in an unaltered state; and

(ii)items to be remodelled, processed, repaired or altered abroad;

(c)any items previously brought into the Republic that that person takes out of the Republic, distinguishing between—

(i)items that are in an unaltered state; and

(ii)items that have undergone remodelling, processing, repair or alteration in the Republic;

(d)any items that are prohibited, restricted or sectorally controlled goods; and

(e)all other items in a person’s accompanied or unaccompanied baggage excluding—

(i)any items that are personal effects; and

(ii)any items of a class or kind to which the tax free allowance is to be applied and of which the combined customs value does not exceed that allowance, subject to subsection (2).

(2)If the combined customs value of the items referred to in subsection (1) in a person’s accompanied or unaccompanied baggage exceeds the tax free allowance, all those items in that person’s accompanied or unaccompanied baggage must be declared in terms of subsection (1)(e).

(3)Items in a person’s accompanied or unaccompanied baggage that must be declared in terms of subsection (1) must be declared whether or not the person leaving the Republic is the owner of those items.

485. Clearance of accompanied and unaccompanied baggage items that must be declared³⁵¹

³⁵¹In this Act a distinction is drawn between declaring goods and clearing goods. To “declare” goods means to disclose the goods and provide any required information concerning the goods to a customs officer. To “clear” goods means to formally enter the goods for home use or a customs procedure. See definitions in section 1.

(1)Section 93 applies to accompanied and unaccompanied baggage items that must be declared in terms of section 484(1), and such items must, subject to subsection (4), be cleared for export.³⁵²³⁵²This could be clearance for outright export or, in the case of section 484(1)(b)(i), clearance for export under the outbound leg of the temporary export procedure, in the case of section 484(1)(b)(ii), clearance for the outbound leg of the outward processing procedure, in the case of section 484(1)(c)(i), the outbound leg of the temporary admission procedure or, in the case of section 484(1)(c)(ii), the outbound leg of the inward processing procedure.

(2)

(3)A person may clear items in that person’s accompanied or unaccompanied baggage referred to in section 484(1)(c)(ii) for export as inward processed compensating products despite the fact that that person is not licensed as an exporter of inward processed compensating products.³⁵³³⁵³See licensing requirement in section 634(2)(c).

(4)Chapter 35 applies to items referred to in section 484(1)(d) and those items must be dealt with in accordance with that Chapter.

(5)Items in a person’s accompanied or unaccompanied baggage that are in terms of section 484(1)(e)(i) or (ii) excluded from the requirement to be declared may be exported without any clearance formalities.³⁵⁴³⁵⁴See section 95(1)(f). It also follows that no export tax is payable on these baggage items as no tax is payable on goods destined for export that are exempted from clearance formalities.

486. Export tax payable on accompanied and unaccompanied baggage

(1)If any items in the accompanied or unaccompanied baggage of a person cleared in terms of section 485 attract export tax in terms of a tax levying Act on account of that clearance—

(a)the rate at which those items attract export tax must be determined and the tax must be assessed in accordance with that tax levying Act, subject to subsection (2);³⁵⁵ and³⁵⁵This provision generally applies to all accompanied and unaccompanied baggage items cleared in terms of section 485 for outright export.

(b)any such export tax must be paid upon demand unless the tax levying Act regulating that tax specifically provides otherwise for taxable accompanied or unaccompanied baggage items.

(2)A person may instead of paying an amount of export duty determined in accordance with subsection (1)(a) on any items in his or her accompanied or unaccompanied baggage declared in terms of section 484(1)(e) and which consist of goods of the classes or kinds to which the tax free allowance may be applied, elect to pay export duty on those items as follows:³⁵⁶³⁵⁶It is to be noted that this subsection only applies to items declared in terms of section 484(1)(e)(ii).

(a)Items selected by that person of which the combined customs value is within the tax free allowance for export baggage items: no export duty payable on those items;

(b)items selected by that person from items not already selected in terms of paragraph (a), of which the combined customs value does not exceed an upper limit fixed in the Customs Duty Act: export duty payable on those items at a flat rate of duty fixed in the Customs Duty Act; and

(c)any remaining items not already selected in terms of paragraph (a) or (b): export duty payable on those items at the rates payable in terms of the Customs Duty Act.

487. Place where outgoing traveller and crew declarations must be submitted

Section 483(1) and (2) must be complied with—

(a)in the case of a person who will leave the Republic in a foreign-going vessel, at the customs seaport where that person boards the vessel;

(b)in the case of a person who will leave the Republic in a foreign-going aircraft, at the customs airport where that person boards the aircraft;

(c)in the case of a person who will leave the Republic in a cross-border railway carriage, at the rail traveller terminal where that person boards the railway carriage; or

(d)in the case of a person who will leave the Republic in a vehicle or on foot, at the land border-post where the person will leave the Republic.

Part 3 – Other matters

488. Channel or other system

(1)The Commissioner may by rule prescribe a channel or other customs processing system to facilitate the processing at places of entry or exit of persons entering or leaving the Republic.

(2)In terms of such a system—

(a)persons who have items in their accompanied baggage that must be declared in terms of section 479 or 484, must be processed separately from persons who do not have any items in their accompanied baggage that must be declared; and

(b)persons who do not have any items in their accompanied baggage that must be declared in terms of section 479 or 484, must be allowed to proceed without customs formalities unless a customs officer intervenes in terms of this Act.

(3)Unless the customs authority demands otherwise in relation to a specific person—

(a)section 478(1)(a) need not be complied with at a place of entry where a channel system is in force; and

(b)section 483(1)(a) need not be complied with at a place of exit where a channel system is in force.

489. Rules to facilitate implementation of this Chapter

Rules made in terms of section 903 to facilitate the implementation of this Chapter may include rules prescribing—

(a)processes and timeframes for declaring items in the unaccompanied baggage of a person entering or leaving the Republic, and the handling and storage of such items;

(b)the goods or persons, or categories of goods or persons, that are excluded from this Chapter or any provision of this Chapter; and

(c)expedited procedures for the processing of pre-approved trusted or frequent travellers.

490. Offences in terms of this Chapter

(1)A person entering the Republic is guilty of an offence if that person contravenes or fails to comply with section 478(1) or (2).

(2)A person in the process of leaving the Republic is guilty of an offence if that person contravenes or fails to comply with section 483(1) or (2).

Chapter 22
International postal articles handled by South African Post Office

Part 1 – Introductory provisions

491. Purpose and application of this Chapter

(1)The purpose of this Chapter is to regulate—

(a)the clearance and release of international postal articles handled by the South African Post Office;

(b)the handling and inspection of such international postal articles for customs purposes; and

(c)the assessment of tax on such international postal articles.

(2)This Chapter applies only to international postal articles—

(a)imported into the Republic for—

(i)delivery in the Republic by the South African Post Office; or

(ii)transit to another country through the South African Post Office; or

(b)posted in the Republic for export from the Republic through the South African Post Office.³⁵⁷³⁵⁷As this Chapter applies only to international postal articles handled by the South African Post Office, international postal articles imported or exported through private couriers must be treated as ordinary imported or exported goods.

492. Prohibited, restricted or sectorally controlled goods

Chapter 35 applies if an international postal article consists of or contains prohibited, restricted or sectorally controlled goods.

Part 2 – Clearance and release of international postal articles

493. Clearance of imported international postal articles

(1)

(a)Imported international postal articles that are not in terms of section 91 exempted from clearance requirements for imported goods, must be cleared for home use or a permissible customs procedure as required by section 89.

(b)The provisions of this Act regulating the regular clearance and release of imported goods apply, subject to subsection (2) and the other provisions of this Chapter, to the clearance and release of imported international postal articles referred to in paragraph (a).

(2)

(a)If an international postal article with a customs value not exceeding an upper limit prescribed by the Minister by notice in the Gazette is to be cleared for home use under Chapter 8, the postal declaration accompanying that postal article in terms of section 497 must for purposes of the clearance be regarded to be a clearance declaration for home use under Chapter 8.

(b)International postal articles cleared for home use in accordance with the simplified clearance process provided for in paragraph (a) may be exempted by rule from any provision of this Act applicable to the regular clearance or release of goods for home use.

494. Clearance of international postal articles destined for export

(1)

(a)International postal articles destined for export from the Republic that are not in terms of section 95 exempted from clearance requirements for goods destined for export, must be cleared for export as required by section 93.

(b)The provisions of this Act regulating the regular clearance and release of goods destined for export apply, subject to subsection (2) and the other provisions of this Chapter, to the clearance and release of international postal articles referred to in paragraph (a) destined for export.

(2)

(a)If an international postal article with a customs value not exceeding an upper limit prescribed by the Minister by notice in the Gazette is to be cleared for outright export, the postal declaration accompanying that postal article in terms of section 497 must for purposes of the clearance be regarded to be a clearance declaration for outright export under the export procedure.³⁵⁸³⁵⁸This simplified clearance process would not apply if the postal article is to be exported in terms of a customs procedure other than outright export, such as temporary export.

(b)The simplified clearance process provided for in paragraph (a) does not apply if the exporter of a postal article intends to apply in terms of Chapter 4 of the Customs Duty Act for a drawback of duty exceeding R100.

(c)International postal articles cleared for outright export in accordance with the simplified clearance process provided for in paragraph (a) may be exempted by rule from any provision of this Act applicable to the regular clearance or release of goods for outright export.

Part 3 – Customs processing of international postal articles

495. Removal of international postal articles to international postal clearance depots

All international postal articles received by the South African Post Office must be removed to a licensed international postal clearance depot before—

(a)delivered in the Republic, in the case of international postal articles imported for delivery in the Republic; or

(b)exported from the Republic, in the case of international postal articles posted in the Republic for delivery outside the Republic.

496. Presentation of international postal articles to customs authority

The South African Post Office must present all international postal articles handled by it at a licensed international postal clearance depot to the customs authority at that depot, except postal articles excluded from clearance requirements in terms of section 91(1)(i) or 95(1)(j).

497. Postal declaration to accompany international postal articles presented to customs authority

(1)When an international postal article referred to in section 496 is presented to the customs authority, the article must be accompanied by a postal declaration completed by or on behalf of the consignor of the postal article.

(2)A postal declaration in terms of subsection (1) must—

(a)be on a form as may be prescribed by rule and contain the information required on the form;

(b)signed and dated by the declarant; and

(c)be supported by such supporting documents as may be prescribed by rule.

498. Customs authority’s functions in relation to international postal articles presented to it

(1)When international postal articles referred to in section 496 are presented to the customs authority at a licensed international postal clearance depot, a customs officer must promptly—

(a)distinguish between—

(i)postal articles that must be cleared in terms of regular clearance requirements referred to in section 493(1) or 494(1) and those that must be cleared in terms of the simplified clearance process referred to in section 493(2) or 494(2);

(ii)postal articles that are taxable³⁵⁹ and those that are not; and³⁵⁹See definition of “taxable” in section 1.

(iii)postal articles that are or contain prohibited, restricted or sectorally controlled goods and other postal articles;

(b)notify importers or exporters of postal articles that must be cleared in terms of regular clearance requirements referred to in section 493(1) or 494(1), if not already cleared in terms of those requirements;

(c)release cleared non-taxable postal articles which are not or do not contain prohibited, restricted or sectorally controlled goods, to the South African Post Office for delivery in the Republic or for export from the Republic, as the case may be;

(d)deal with prohibited, restricted or sectorally controlled goods in accordance with Chapter 35;

(e)assess any import or export tax payable on cleared taxable postal articles in accordance with any applicable tax levying Act;

(f)release any cleared tax assessed postal articles to the South African Post Office for—

(i)collection on behalf of the Commissioner of any assessed import or export tax payable on the articles; and

(ii)delivery in the Republic or export from the Republic, as the case may be; and

(g)perform any other tasks as may be prescribed by rule.

(2)The South African Post Office is in respect of each international postal article that it presents to the customs authority in terms of this section entitled to recover from the addressee or consignor a customs presentation fee prescribed by rule in order to offset the costs incurred by it in performing the service on behalf of the addressee or consignor.

Part 4 – Payment of import or export tax on international postal articles

499. Release of international postal articles

No international postal article assessed by the customs authority and on which any import or export tax is payable may be delivered to the addressee or exported by the South African Post Office before the tax payable on the postal article has been paid.

500. Payment of tax on international postal articles

(1)Any import tax payable on an international postal article cleared for home use in terms of Chapter 8 or for a customs procedure that renders the goods subject to the payment of import tax in accordance with—

(a)regular clearance requirements referred to in section 493(1), must be paid to the Commissioner by the person responsible in terms of the applicable tax levying Act for payment of the tax; or

(b)the simplified clearance process provided for in section 493(2), must be paid to the South African Post Office as collecting agent of the Commissioner by the person in the Republic to whom the postal article is addressed.

(2)Any export tax payable on an international postal article cleared for a customs procedure that renders the goods subject to the payment of export tax in accordance with—

(a)regular clearance requirements referred to in section 494(1), must be paid to the Commissioner by the person responsible in terms of the applicable tax levying Act for payment of the tax; or

(b)the simplified clearance process provided for in section 494(2), must be paid to the South African Post Office as collecting agent of the Commissioner by the person in the Republic who consigns the postal article for export through the South African Post Office.

(3)The South African Post Office is for purposes of this Act the collecting agent of the Commissioner for import and export tax referred to in subsection (1)(b) and (2)(b).

501. Time when tax becomes payable and rate of tax

(1)Import or export tax on an international postal article cleared in accordance with—

(a)regular clearance requirements referred to in section 493(1) or 494(1), becomes payable and must be paid in accordance with the tax levying Act regulating that tax; or

(b)the simplified clearance process provided for in section 493(2) or 494(2)—

(i)becomes payable when the customs authority has assessed the tax on the postal article in terms of section 498; and

(ii)must be paid before the postal article is delivered to the consignee or exported, as the case may be, unless provided otherwise in the tax levying Act regulating that tax.

(2)The rate at which import or export tax is payable on an international postal article cleared in accordance with—

(a)regular clearance requirements referred to in section 493(1) or 494(1), is the rate applicable at the time of clearance of the postal article, unless provided otherwise in the tax levying Act regulating that tax; or

(b)the simplified clearance process provided for in section 493(2) or 494(2), is the rate applicable at the time of the assessment, unless provided otherwise in the tax levying Act regulating that tax.³⁶⁰³⁶⁰See for instance section 81 of the Customs Duty Act

502. Payment of tax to customs authority

(1)The South African Post Office must—

(a)on a daily basis pay over to the Commissioner the import or export tax that it collected the previous day; or

(b)if an agreement referred to in subsection (2) has been entered into between the Commissioner and the South African Post Office, pay over to the Commissioner the tax that it collected at regular intervals as agreed.

(2)The Commissioner may enter into a written agreement with the South African Post Office on—

(a)the collection by the South African Post Office of tax payable on international postal articles;

(b)the payment of the tax that it collected to the Commissioner at such regular intervals as may be agreed; and

(c)the manner in, and the intervals at, which the South African Post Office must report to the Commissioner on tax collected by it on international postal articles.

503. Cancellation and repayment of tax

(1)The Commissioner may, at the request of the South African Post Office and subject to such conditions as the Commissioner may determine, cancel any import or export tax payable on an international postal article, or repay to the South African Post Office any import or export tax already paid by it to the Commissioner on an international postal article, if the postal article, whilst under the control of the South African Post Office, was—

(a)destroyed;

(b)abandoned;

(c)not collected;

(d)refused by the addressee;

(e)not delivered to the addressee;

(f)returned to the sender;

(g)re-directed to a third country; or

(h)not exported from the Republic.

(2)Postal articles referred to in subsection (1)(b), (c) or (d) must be dealt with in accordance with the Postal Services Act, 1998 (Act No. 124 of 1998).

(3)Chapter 4 of the Customs Duty Act does not apply to the repayment of duty to the South African Post Office in terms of subsection (1).

504. Condonation of underpayment

The Commissioner may condone any underpayment of import or export tax on an international postal article if the amount of the underpayment is less than R50.

Part 5 – Inspection of international postal articles

505. Enforcement to be consistent with this Part

When performing an enforcement function in relation to international postal articles a customs officer must perform that function in a manner consistent with this Part.

506. Opening of international postal articles

A customs officer may open an international postal article only if necessary—

(a)to retrieve any invoice or consignment-related information contained inside the postal article;

(b)to compare the contents of the postal article with the description, quantity, tariff heading, value, origin and any other information reflected on the postal declaration made in respect of the postal article in terms of section 497;

(c)to assess—

(i)whether the postal article is subject to the payment of any import or export tax; or

(ii)the amount of any tax payable on the postal article;

(d)to determine whether the postal article is or contains prohibited, restricted or sectorally controlled goods; or

(e)to carry out any other enforcement function provided for in this Act.

507. Personal or private communications

(1)No customs officer may—

(a)open any international postal article that weighs 30 grams or less, unless the customs officer on reasonable grounds suspects that the postal article contains prohibited, restricted or sectorally controlled goods;

(b)read, copy or make an extract from any personal or private communication found in any international postal article opened in terms of section 506 if reading, copying or making an extract from that communication is not necessary for the enforcement of this Act or a tax levying Act; or

(c)disclose any personal or private communication found in any international postal article opened in terms of section 506 otherwise than for a purpose permitted in terms of Part 5 of Chapter 1.

(2)For the purpose of this section a personal or private communication does not include—

(a)an invoice;

(b)an order form;

(c)a cheque;

(d)a newspaper, magazine, book, catalogue or similar printed matter;

(e)a blank form; or

(f)any other communication as may be prescribed by rule.

508. Notification that international postal articles have been opened

(1)When opening an international postal article a customs officer must affix a notification to the postal article informing the addressee that the postal article has been opened and inspected by a customs officer.

(2)An opening notification must contain the information and be affixed in a manner as may be prescribed by rule.

(3)The customs authority may dispense with subsection (1) if disclosure of the fact that an international postal article has been opened may obstruct the investigation of serious crime.

509. Seizure and confiscation of international postal articles

(1)An international postal article is subject to seizure and confiscation by the customs authority in terms of Chapter 34 if that postal article or its contents is found to be not in accordance with—

(a)the clearance declaration submitted in respect of that postal article; or

(b)the postal declaration accompanying that postal article in terms of section 497.

(2)Subsection (1) does not apply to closed international postal articles conveyed by or for the South African Post Office under an international consignment document for purposes of international transit.³⁶¹³⁶¹See section 203.

Part 6 – Other matters

510. Conclusion of agreements

The Commissioner may conclude any agreement with the South African Post Office in order to—

(a)improve the ability of each party to fully execute their respective functions;

(b)enhance the level of co-operation between the parties;

(c)secure and expedite the clearance and release of international postal articles;

(d)enhance security relating to international postal articles and the detection of prohibited, restricted and sectorally controlled goods;

(e)facilitate the exchange of information between the SARS and the South African Post Office and the use of information technology with regard to the clearance and release of international postal articles; and

(f)provide for any other matters that may be required in order to control the movement of goods by international post.

511. Rules to facilitate implementation of this Chapter

Rules made in terms of section 903 to facilitate the implementation of this Chapter may include rules prescribing—

(a)procedures for customs processing of international postal articles at licensed international postal clearance depots;

(b)measures for—

(i)combating tax evasion in relation to goods sent by post;

(ii)the detection of prohibited, restricted and sectorally controlled goods sent by post; and

(c)matters relating to the removal of international postal articles to a state warehouse or other premises referred to in section 580(1) or the retention of such postal articles at such premises.

Chapter 23
Access to and sampling of goods³⁶²

³⁶²See section 724 for sampling of goods by Customs, whether or not as part of an inspection.

512. Purpose of this Chapter

(1)The purpose of this Chapter is to provide for persons having an interest in goods that are subject to customs control to access and to take samples of and perform other actions in relation to the goods.

(2)This Chapter may not be read as affecting—

(a)the enforcement functions of customs officers in terms of this Act;

(b)the powers of any law enforcement agency or other persons accessing or taking samples of or performing other actions in relation to goods in terms of any legislation for the purpose of enforcing that legislation; or

(c)a provision of a tax levying Act providing for the accessing of goods or the taking of samples of goods by persons having an interest in the goods.

513. Right of access to and taking samples from goods

(1)Whilst goods are subject to customs control, a person who clears or who is entitled to clear the goods, or a person who acts on behalf of such a person, may with the approval of the customs authority access the goods and—

(a)take samples of the goods; or

(b)perform any other action in relation to the goods as may be permitted by rule.

(2)Samples may in terms of subsection (1) be taken—

(a)for establishing or verifying—

(i)the nature or characteristics of the goods;

(ii)the quality or content of the goods;

(iii)the tariff classification, customs value or origin of the goods; or

(iv)any other fact in relation to the goods as may be prescribed by rule;

(b)for use as—

(i)evidence in a court or other proceedings referred to in Chapter 37; or

(ii)trade samples; or

(c)for any other purpose as may be—

(i)prescribed by rule; or

(ii)approved by the customs authority in a specific case.

(3)Samples taken in terms of subsection (1) may be—

(a)examined, analysed or tested in any way;

(b)subjected to a chemical, mechanical or technological process;

(c)used for obtaining advice, including expert or technical advice, on the goods as reflected by the samples or a matter relating to the goods; or

(d)utilised in any other way necessary for achieving any of the purposes of subsection (2).

(4)Samples may be taken from goods in terms of subsection (1) without formally clearing the samples for home use or a customs procedure, subject to section 514 or 515.

(5)Access to, sampling of or other action in relation to goods in terms of subsection (1) must take place under supervision of a customs officer, if the customs authority so requires.³⁶³³⁶³For access to goods by interested persons during customs inspection, see section 758.

514. Samples of imported goods

(1)Samples taken in terms of section 513 of imported goods before the goods are cleared for home use or a customs procedure in terms of section 89 must, if the goods are subsequently cleared for—

(a)home use under Chapter 8, be included in the quantity cleared for home use; or

(b)a customs procedure, for tax and all other purposes be regarded to be cleared for home use under Chapter 8.³⁶⁴³⁶⁴For tax status of samples taken from imported goods, see section 155.

(2)

(a)Samples taken in terms of section 513 of imported goods—

(i)already cleared for home use do not affect the amount of any tax paid or payable on the goods; or

(ii)already under a customs procedure, must for tax and all other purposes be regarded to be cleared for home use under Chapter 8.

(b)The person who cleared the goods for a customs procedure referred to in paragraph (a)(ii) must in terms of section 174 amend the clearance declaration to exclude the samples from the declaration.

(3)Subsections (1) and (2) do not apply to samples temporarily removed and such samples must for all purposes be regarded to remain part of the goods from which they were taken.

515. Samples of goods in free circulation cleared for export under export procedure

(1)Samples taken in terms of section 513 of goods that are cleared for export under the export procedure must for tax purposes and all other purposes be regarded to have reverted to free circulation³⁶⁵ if—³⁶⁵If samples are in terms of section 515(1) regarded as having reverted to free circulation section 161 becomes applicable to those samples.

(a)those goods were in free circulation before being cleared for export; and

(b)those samples are taken of the goods before being exported from the Republic.

(2)The person who cleared the goods for export must in terms of section 174 amend the clearance declaration to exclude the samples from the declaration.

(3)Subsection (1) do not apply to samples temporarily removed and such samples must for all purposes be regarded to remain part of the goods from which they were taken.

516. Rules to facilitate implementation of this Chapter

Rules made in terms of section 903 to facilitate the implementation of this Chapter may include rules prescribing—

(a)processes and requirements for gaining access to and taking samples from goods; and

(b)customs supervision over persons when accessing and taking samples from goods.

517. Offences in terms of this Chapter

(1)A person referred to in section 513(1) is guilty of an offence if that person takes samples of any goods otherwise than in accordance with this Chapter.

(2)A person, other than a person entitled in terms of section 513(1) to take samples of goods, is guilty of an offence if that person takes samples of any goods to which this Chapter applies.

Chapter 24
Expedited clearance and release of goods³⁶⁶

³⁶⁶Expedited procedures for accredited persons dealt with in rules under Chapter 30. The use of specific commercial documents and carnets as clearance declarations covered in Chapters on customs procedures where they are permissible.

518. Purpose of this Chapter

The purpose of this Chapter is to provide for—

(a)the clearance and release of goods for home use or a permissible customs procedure on submission of incomplete or provisional clearance information;

(b)the release of goods for home use or a permissible customs procedure subject to subsequent clearance; and

(c)the clearance and release of goods for home use or a permissible customs procedure in accordance with simplified clearance requirements.

519. Other clearance and release provisions to apply except insofar as provided otherwise in this Chapter

(1)The other provisions of this Act applicable to the clearance and release of goods for home use or a customs procedure apply to the clearance and release of goods for home use or such customs procedure in terms of this Chapter except to the extent that those other provisions are modified, qualified or deviated from in this Chapter.

(2)In the event of any inconsistency between a provision of this Chapter and another provision of this Act, the provision of this Chapter prevails.

520. Tax status of goods not affected when cleared in terms of this Chapter

The clearance of goods in terms of this Chapter for home use or a customs procedure does not affect the tax status of the goods had the goods been cleared for home use or that customs procedure in terms of regular clearance requirements.

Part 1 – Clearance and release of goods on incomplete or provisional clearance information

521. Goods to which this Part may be applied

Any goods may, subject section 538(a), be cleared and released for home use or a customs procedure in terms of this Part.

522. Application to clear and obtain release of goods on incomplete or provisional clearance information

(1)The customs authority may on application by a person entitled to submit a clearance declaration to clear goods for home use or a specific customs procedure³⁶⁷ and who does not have all the information or documents at hand to submit a regular clearance declaration for the clearance of the goods, allow that person—³⁶⁷See section 165.

(a)to clear the goods for home use or that customs procedure in terms of an incomplete or provisional clearance declaration; and

(b)to obtain release of the goods on acceptance by the customs authority of the incomplete or provisional clearance declaration.

(2)An application in terms of subsection (1)—

(a)may be in respect of—

(i)a specific parcel, container or consignment of goods; or

(ii)a specific class or kind or other category of goods to be cleared by the relevant person during a specific period;³⁶⁸ and³⁶⁸For instance goods containerised at a container depot or bulk goods in consecutive consignments.

(b)must be submitted to the customs authority in accordance with requirements and within a timeframe as may be prescribed by rule read with sections 908 and 909: Provided that —

(i)submission of an incomplete or provisional clearance declaration within the timeframe applicable to that declaration³⁶⁹ covering a specific parcel, container or consignment of goods without first obtaining the customs authority’s permission in terms of subsection (1) to clear the goods in terms of an incomplete or provisional clearance declaration, may be regarded to be an application referred to in that subsection; and³⁶⁹The applicable timeframe is the period as stated in section 90 or 94, or as extended or shortened in terms of section 908 or 909.

(ii)release by the customs authority of such specific parcel, container or consignment of goods on authority of the incomplete or provisional declaration may be regarded to be an approval of the application.

(3)Approval of an application in terms of subsection (1) is subject to such conditions as may be prescribed by rule or as the customs authority may determine in a specific case, which may include conditions—

(a)requiring security to cover any risks in relation to tax payable or that may become payable on the goods; and

(b)determining special requirements for securing the handling, movement, storage or use of the goods until full and final clearance of the goods in terms of section 526.

(4)The customs authority may refuse an application in terms of subsection (1)—

(a)if approving the application may put the payment or collection of tax or compliance with an applicable provision of this Act or a tax levying Act at risk; or

(b)on any other good ground.

523. Contents of incomplete clearance declarations

(1)Except when the customs authority determines otherwise, an incomplete clearance declaration must at least state—

(a)whether the goods are cleared for home use or a customs procedure, and if for a customs procedure, the desired customs procedure;

(b)in the case of goods already under a customs procedure,³⁷⁰ the reference number of the clearance declaration for that customs procedure;³⁷⁰See section 110.

(c)in the case of imported goods (other than goods imported under a customs procedure), the date of actual or expected arrival of the goods, as may be applicable, at a place referred to in section 90;

(d)the tariff classification of the goods;

(e)the quantity of the goods;

(f)the value of the goods;

(g)the origin of the goods;

(h)the customs code and name of the person submitting the declaration, or, if submitted by a customs broker acting in terms of section 165(1)(b)—

(i)the customs code of the customs broker; and

(ii)the customs code and name of the principal on whose behalf the declaration is submitted;

(i)the number and date of the transport document issued in respect of the goods; and

(j)such additional information as may be prescribed by rule or as the customs authority may determine in a specific case, including information that may be needed to—

(i)calculate the amount of security that may be required in respect of the goods;

(ii)identify the goods and achieve effective customs control over the goods; and

(iii)release the goods.

(2)An incomplete clearance declaration must be supported by at least the supporting documents as may be prescribed by rule or as the customs authority may determine in a specific case.

524. Contents of provisional clearance declarations

(1)A provisional clearance declaration for home use or a customs procedure must—

(a)contain all the information required to be included in a regular clearance declaration for home use or that customs procedure, as the case may be; and

(b)indicate which of the information is included provisionally pending subsequent confirmation or correction.

(2)A provisional clearance declaration must in respect of information not included provisionally, be supported by supporting documents required in terms of this Act.

525. Release of goods cleared in terms of incomplete or provisional clearance declarations

(1)Goods that are cleared in terms of an incomplete or provisional clearance declaration must, subject to the provisions of this Act regulating the release of goods, be released as if the goods were cleared in terms of a regular clearance declaration.

(2)The customs authority may in addition to any other grounds on which the release of goods may or must be refused, refuse to release the goods if a condition referred to in section 522(3) applicable to the goods is not met.

526. Supplementary clearance declarations

(1)A person clearing goods in terms of an incomplete or provisional clearance declaration is not absolved from full and final clearance of the goods and must within a timeframe as may be prescribed by rule from the date of acceptance³⁷¹ by the customs authority of the incomplete or provisional clearance declaration, submit to the customs authority a supplementary clearance declaration in relation to those goods.³⁷¹See section 171.

(2)A supplementary clearance declaration must—

(a)supplement—

(i)the incomplete clearance declaration to which it relates by providing all the information required for a regular clearance that was not included in the incomplete clearance declaration; or

(ii)the provisional clearance declaration to which it relates by confirming or correcting all the information in the provisional clearance declaration that was included provisionally;

(b)be supported by all outstanding supporting documents;

(c)state the reference number of the incomplete or provisional clearance declaration to which it relates; and

(d)if the incomplete or provisional clearance declaration to which it relates was submitted manually, be submitted to the same Customs Office where the incomplete or provisional clearance declaration was submitted.

(3)A timeframe prescribed by rule in terms of subsection (1) may in terms of section 908 or 909 be extended or shortened, but if extended it may not be extended by more than seven calendar days.

(4)A supplementary clearance declaration and the incomplete or provisional clearance declaration to which it relates must for the purposes of this Act and any applicable tax levying Act be regarded to constitute a single indivisible clearance declaration taking effect on the date when the incomplete or provisional clearance declaration is submitted to the customs authority.

527. Tax payable in respect of goods cleared in terms of this Part

(1)Any import or export tax payable on goods that are cleared in terms of this Part for home use under Chapter 8 or for a customs procedure that renders the goods subject to the payment of import or export tax must be—

(a)assessed when the supplementary clearance declaration submitted in terms of section 526(1) in respect of the goods is accepted by the customs authority in terms of section 171; and

(b)paid on demand following such assessment, unless provided otherwise in the applicable tax levying Act or payment of the tax is deferred in terms of the applicable tax levying Act.

(2)Unless the applicable tax levying Act determines otherwise, the rate of tax applicable to the goods is the rate applicable as at date of acceptance by the customs authority of the incomplete or provisional clearance declaration.

528. Application of this Part to restricted and sectorally controlled goods

When applying this Part to—

(a)restricted goods, section 784 must be complied with when the incomplete or provisional clearance declaration is submitted to the customs authority; or

(b)sectorally controlled goods, the application of this Part does not affect compliance with section 794.

Part 2 – Release of goods subject to subsequent compliance with clearance requirements

529. Goods to which this Part may be applied

Any goods may subject to section 538(a), be released and subsequently cleared in terms of this Part, excluding restricted and sectorally controlled goods.

530. Application for expedited release

(1)The customs authority may on application by a person entitled to submit a clearance declaration to clear goods for home use or a specific customs procedure and who desires expedited release of the goods but cannot immediately comply with the clearance requirements, release the goods for home use or that customs procedure on condition that a regular clearance declaration be submitted to the customs authority after the release of the goods.

(2)An application in terms of subsection (1) must be submitted to the customs authority in accordance with requirements and within a timeframe as may be prescribed by rule read with sections 908 and 909.

(3)An application referred to in subsection (1) may only be granted—

(a)if the person requiring release of the goods—

(i)provides sufficient reasons why—

(aa)expedited release of the goods is required; and

(bb)the clearance requirements cannot be complied with immediately;

(ii)submits minimum information on the goods concerned, as may be prescribed by rule or as the customs authority may determine in a specific case;

(iii)undertakes to submit a regular clearance declaration within a period referred to in section 531 after the release of the goods; and

(iv)complies with any other requirements as may be prescribed by rule or determined by the customs authority in a specific case; and

(b)if approval of the application will not put the payment or collection of tax or compliance with an applicable provision of this Act or a tax levying Act at risk.

(4)Approval of an application referred to in subsection (1) is subject to such conditions as may be prescribed by rule or as the customs authority may determine in a specific case, which may include conditions—

(a)requiring security to cover any risks in relation to tax payable or that may become payable on the goods; and

(b)determining special requirements for securing the handling, movement, storage or use of the goods until the goods are cleared in terms of section 531.

531. Subsequent submission of clearance declarations

The person who obtained release of goods in terms of section 530 for home use or a customs procedure must submit to the customs authority a regular clearance declaration to clear the goods for home use or that customs procedure within a timeframe after the release of the goods as may be prescribed by rule read with sections 908 and 909.

532. Tax payable in respect of goods released in terms of this Part

(1)Any import or export tax payable on goods that are released in terms of this Part for home use under Chapter 8 or for a customs procedure that renders the goods subject to the payment of import or export tax must be—

(a)assessed when the regular clearance declaration submitted in terms of section 531 in respect of those goods is accepted by the customs authority in terms of section 171; and

(b)paid on demand following such assessment, unless provided otherwise in the applicable tax levying Act or payment of the tax is deferred in terms of the applicable tax levying Act.

Part 3 – Simplified clearance and release of goods

533. Goods to which this Part may be applied

(1)Any goods falling within any of the following categories may be cleared and released for home use or a customs procedure in accordance with this Part:

(a)Accompanied or unaccompanied baggage items that may in terms of section 480(2) or 485(2) be cleared for home use or a customs procedure in accordance with this Part;

(b)means of transport that may in terms of—

(i)section 270, 271 or 272 be cleared and released in accordance with this Part for the temporary admission procedure or in terms of section 276, 277 or 278 for export under that procedure; or

(ii)section 381, 382 or 383 be cleared and released in accordance with this Part for the temporary export procedure or in terms of section 389, 390 or 391 for home use under that procedure; or

(c)any other category of goods as may be prescribed by rule, subject to subsection (2).

(2)Goods falling within a category of goods prescribed by rule in terms of subsection (1)(c) may not be cleared and released in terms of this Part if—

(a)the customs value of the goods exceeds an amount determined by the Minister by notice in the Gazette;

(b)the goods are liable in terms of a tax levying Act to tax exceeding an amount determined by the Minister by notice in the Gazette;

(c)the goods consist of international postal articles imported or exported through the South African Post Office Limited;³⁷² or³⁷²Non-commercial international postal articles imported or exported through the South African Post Office Limited are in terms of sections 91(1)(i) and 95(1)(j) excluded from clearance requirements. Other international postal articles imported or exported through the South African Post Office Limited must be cleared in terms of Chapter 22.

(d)excluded from this Part in terms of section 538(a).

(3)The customs authority may despite subsections (1) and (2) on good cause shown allow any specific consignment of goods which does not fall within a category referred to in subsection (1) or which is excluded in terms of subsection (2), to be cleared and released in terms of this Part.

534. Application for simplified clearance

(1)The customs authority may, on application by a person entitled to submit a clearance declaration to clear goods for home use or a specific customs procedure,³⁷³ allow that person—³⁷³See section 165.

(a)to clear the goods for home use or that customs procedure in accordance with simplified clearance procedures as may be prescribed by rule; and

(b)to obtain release of the goods on acceptance by the customs authority of a simplified clearance declaration or another document that may be used as a clearance declaration in terms of such simplified clearance requirements.

(2)An application in terms of subsection (1)—

(a)may be in respect of—

(i)a specific parcel, container or consignment of goods; or

(ii)a specific class or kind or other category of goods to be cleared by the relevant person during a specific period; and

(b)must be submitted to the customs authority in accordance with requirements and within a timeframe as may be prescribed by rule read with sections 908 and 909: Provided that—

(i)submission within the applicable timeframe of a simplified clearance declaration or another document referred to in subsection (1)(b) covering a specific parcel, container or consignment of goods without first obtaining the customs authority’s permission in terms of subsection (1), may be regarded to be an application referred to in that subsection; and

(ii)acceptance by the customs authority of the simplified clearance declaration or other document may be regarded to be an approval of the application.

(3)The customs authority may refuse an application in terms of subsection (1)—

(a)if approving the application may put the payment or collection of tax or compliance with an applicable provision of this Act or a tax levying Act at risk; or

(b)on any other good ground.

(4)The requirement of prior application does not apply to a person clearing goods referred to in section 533(1)(a) or (b), and such a person may—

(a)summarily clear the goods for home use or the relevant customs procedure in accordance with the simplified clearance requirements referred to in subsection (1); and

(b)obtain release of the goods on acceptance by the customs authority of a simplified clearance declaration or another document that may be used as a clearance declaration in terms of such simplified clearance requirements.

535. Simplified clearance requirements

(1)Simplified clearance requirements that may be prescribed in terms of section 534(1) may—

(a)provide for the submission of simplified clearance declarations to clear goods in terms of this Part;

(b)allow other documents to be submitted in lieu of clearance declarations to clear goods in terms of this Part, including—

(i)any transport documents issued in respect of the goods;

(ii)any supporting documents issued in respect of the goods; and

(iii)any other documents required to be submitted in respect of the goods to the customs authority in terms of this Act;

(c)prescribe the minimum information such simplified clearance declarations or other documents must contain;

(d)prescribe timeframes for the submission of such simplified clearance declarations or other documents;

(e)prescribe the manner of submission of such simplified clearance declarations or other documents;

(f)exempt persons clearing or goods cleared in terms of this Part from any specific provisions of this Act applicable to the clearance and release of goods; and

(g)prescribe any other relevant matters.

(2)Different simplified clearance requirements may be prescribed in terms of subsection (1) for different categories of persons or goods.

536. Tax payable in respect of goods cleared in terms of this Part

(a)assessed when the simplified clearance declaration or other document that may be used as a clearance declaration in respect of those goods is accepted by the customs authority in terms of section 171; and

(b)paid on demand following such assessment, unless provided otherwise in the applicable tax levying Act or payment of the tax is deferred in terms of the applicable tax levying Act.

(2)Unless the applicable tax levying Act determines otherwise, the rate of tax applicable to the goods is the rate applicable as at the date of acceptance by the customs authority of the simplified clearance declaration or other document.

537. Application of this Part to restricted and sectorally controlled goods

When applying this Part to—

(a)restricted goods, section 784 must be complied with when the simplified clearance declaration or other document that may be used as a clearance declaration is submitted to the customs authority; or

(b)sectorally controlled goods, the application of this Part does not affect compliance with section 794.

Part 4 – Other matters

538. Rules to facilitate implementation of this Chapter

Rules made in terms of section 903 to facilitate the implementation of this Chapter may include rules—

(a)that exclude any class or kind or other category of goods from the application of any Part of this Chapter—

(i)if the application of that Part to such goods present undue risk to the payment or collection of tax; or

(ii)if such goods are not suitable for clearance and release in accordance with that Part;

(b)prescribing forms, processes, requirements and timeframes for the submission to the customs authority of applications in terms of this Chapter;

(c)designating the Customs Offices to which applications in terms of this Chapter may be submitted in paper format; and

(d)prescribing for goods cleared in terms of this Chapter distinctive release procedures and requirements that may modify, qualify or deviate from the standard release procedures and requirements set out in Part 2 of Chapter 7.

539. Offences in terms of this Chapter

(1)A person clearing goods in terms of an incomplete clearance declaration or a provisional clearance declaration is guilty of an offence if that person contravenes or fails to comply with section 526(1) or (2).

(2)A person who obtained release of goods in terms of section 530 is guilty of an offence if that person—

(a)contravenes or fails to comply with a condition imposed in terms of section 530(4); or

(b)fails to comply with section 531.

Chapter 25
Damaged, destroyed, lost or unaccounted goods

540. Purpose and application of this Chapter

(1)The purpose of this Chapter is to determine—

(a)the procedures to be followed when goods not in free circulation are damaged, destroyed, lost or unaccounted for; and

(b)the tax and other consequences when such goods are damaged, destroyed, lost or unaccounted for.

(2)This Chapter does not apply to goods that have become damaged, destroyed or lost or are unaccounted for—

(a)in a state warehouse operated by the Commissioner;

(b)in an excise warehouse;³⁷⁴ or³⁷⁴The Excise Duty Act applies to goods damaged, destroyed, lost or unaccounted for in an excise warehouse.

(c)whilst or after being imported or before or whilst being exported in contravention of entry or exit requirements as set out in Part 2 of Chapter 2.³⁷⁵³⁷⁵Section 42 applies to such goods whether or not damaged, destroyed, lost or unaccounted for in the process.

Part 1 – Goods other than compensating products

541. Application of this Part

(1)This Part applies to all goods not in free circulation that have become damaged, destroyed or lost or are unaccounted for, including—

(a)imported goods to which section 89 applies that were damaged, destroyed or lost or became unaccounted for before the goods—

(i)are cleared as required by that section for home use or a customs procedure; or

(ii)were released for home use or a customs procedure;

(b)imported goods cleared for home use or a customs procedure in terms of section 170 that were damaged, destroyed or lost or became unaccounted for before the goods were released for home use or that customs procedure; and

(c)goods under a customs procedure that were damaged, destroyed or lost or became unaccounted for before the completion of the procedure.³⁷⁶³⁷⁶As a customs procedure commences when goods are cleared for the procedure, this paragraph covers all goods cleared for a customs procedure, including goods in free circulation cleared under the export procedure for export. Apart from goods cleared for a customs procedure, goods that automatically come under a customs procedure are also included here, such as means of transport used in international trade and reusable transport equipment. See for instance sections 289 and 290.

(2)This Part does not apply to—

(a)compensating products;³⁷⁷ or³⁷⁷See Part 2 of this Chapter for compensating products that become damaged, destroyed, lost or unaccounted for.

(b)goods that were seized or confiscated or that were abandoned to the Commissioner.³⁷⁸³⁷⁸See section 556 for seized, confiscated or abandoned goods that are damaged, destroyed or lost or unaccounted for.

542. Notification of goods damaged, destroyed, lost or unaccounted for

(1)The customs authority must within a period and in a manner as may be prescribed by rule read with section 908, be notified if goods to which this Part applies are damaged, destroyed, lost or unaccounted for.

(2)A notification referred to in subsection (1) must be submitted by the person—

(a)who was in physical control of the goods when the goods were damaged, destroyed or lost, in the case of damaged, destroyed or lost goods; or

(b)who is responsible for the goods and discovered or was informed that the goods are unaccounted for, in the case of goods unaccounted for.

(3)Subsection (2) does not prevent any of the following persons from submitting the notification referred to in subsection (1):

(a)The person clearing the goods;³⁷⁹³⁷⁹See section 166.

(b)the customs broker or other person who submitted the clearance declaration in respect of the goods;

(c)the owner of the goods; or

(d)any other person who has a material interest in the goods.

(4)A notification referred to in subsection (1) must—

(a)identify the goods damaged, destroyed or lost or unaccounted for, in a manner and by way of documents as may be prescribed by rule;

(b)indicate whether the goods have been cleared, and if so—

(i)whether for home use or a customs procedure; and

(ii)the number and date of the clearance declaration;

(c)give a detailed account of how, when and where the goods became damaged, destroyed, lost or unaccounted for;

(d)contain any other particulars as may be prescribed by rule; and

(e)be accompanied by documentary proof referred to in section 544, 545, 546 or 547, as may be applicable.

543. Consequences of failure to notify

If the customs authority is not notified in accordance with section 542 of goods to which this Part applies that were damaged, destroyed, lost or unaccounted for—

(a)any tax that was payable on the goods before they were damaged, destroyed, lost or unaccounted for remains payable as if the goods were not damaged, destroyed, lost or unaccounted for;

(b)no tax already paid on the goods is refundable;

(c)section 92(1) must be applied to the goods, in the case of imported goods damaged, destroyed, lost or unaccounted for before the goods were cleared in accordance with sections 89 and 90 for home use or a customs procedure;

(d)section 112(1) must be applied to the goods, in the case of imported goods damaged, destroyed, lost or unaccounted for whilst under a customs procedure; and

(e)section 113(1) must be applied to the goods, in the case of goods damaged, destroyed, lost or unaccounted for whilst under a customs procedure if the goods were in free circulation when the goods came under that procedure.

544. Damaged goods

(1)A notification in terms of section 542 in relation to damaged goods must be accompanied by documentary proof if the goods were damaged due to—

(a)a natural occurrence;

(b)an accident;

(c)a hostile act by a third party; or

(d)the inherent characteristics of the goods.

(2)If the customs authority accepts documentary proof submitted to it in terms of subsection (1) that the goods were damaged due to a cause referred to in that subsection—

(a)any existing clearance declaration submitted in respect of the goods must be—

(i)withdrawn, if all the goods covered by the declaration were damaged; or

(ii)amended to exclude the damaged goods, if only part of the goods covered by the declaration was damaged;

(b)any import or export tax payable but not yet paid on the goods by virtue of that clearance falls away in respect of the damaged goods, unless provided otherwise in the tax levying Act regulating that tax;

(c)any import or export tax already paid on the damaged goods by virtue of that clearance may in accordance with the tax levying Act regulating that tax be refunded to the person who paid the tax, unless provided otherwise in that Act;³⁸⁰ and³⁸⁰But see section 555.

(d)the damaged goods must, in the case of imported

Customs Control Act, 2014

Act 31 of 2014

Customs Control Act, 2014

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Customs Control Act, 2014

Act 31 of 2014

Chapter 1Interpretation, application and administration of this Act

Part 1 – Interpretation of this Act

1. Definitions

2. Time of importation or exportation and of arrival or departure

Part 2 – Purpose and application of this Act

3. Purpose of this Act

4. Goods and persons to which this Act applies

5. Territorial application of this Act

6. Application of this Act in relation to SACU member states

7. Application of this Act in relation to SADC member states

8. Application of this Act in relation to tax levying Acts and legislation regulating goods and persons entering or leaving Republic

Part 3 – Administration of this Act

9. Commissioner to administer this Act

10. Designation of customs officers

11. Powers and duties of customs officers

12. General requirements for performing enforcement functions29

13. Identification of customs officers and equipment

14. Customs Offices

15. Agreements for assistance in administration of this Act and tax levying Acts

16. Customs co-operation with other countries

17. Provision of special customs services

Part 4 – Delegations

18. Delegation by Minister

19. Delegation by Commissioner

Part 5 – Confidentiality

20. Definition

21. Confidentiality

22. Disclosures to authorised recipients

23. Disclosures in terms of international agreements

Part 6 – Other matters

24. Requests for information

25. Rules to facilitate implementation of this Chapter

26. Offences in terms of this Chapter

Chapter 2Customs control, places of entry and exit and customs controlled areas

27. Purpose of this Chapter

Part 1 – Customs control

28. Customs control of goods

29. Customs control of persons

30. Foreign-going vessels and aircraft passing through Republic without calling or landing

Part 2 – Places of entry and exit

31. Designation of places of entry and exit

32. Purposes for which places of entry or exit may be used

33. Restrictions on use of places of entry or exit

34. Places of entry or exit in terms of international agreements with adjoining countries

35. Information sharing agreements

36. Places of entry for foreign-going vessels and aircraft

37. Calls or landings resulting from forced circumstances42

38. Places of entry or exit for cross-border trains

39. Places of entry or exit for vehicles

40. Places of entry or exit for persons

41. Places of entry or exit for goods

42. Consequences in event of contravention of entry or exit requirements

Part 3 – Customs controlled areas

43. List of customs controlled areas

Part 4 – Other matters

44. Exclusions and exemptions

45. Rules to facilitate implementation of this Chapter

46. Offences in terms of this Chapter49

Chapter 3Reporting requirements for inbound and outbound vessels, aircraft, trains, buses, trucks, persons and cargo50

47. Purpose and application of this Chapter

Part 1 – Reporting requirements for arriving and departing foreign-going vessels

48. Application of this Part

49. Advance loading and arrival notices

50. Arrival reports

51. Advance departure notices

52. Permission to depart

53. Departure reports

Part 2 – Reporting requirements for arriving and departing foreign-going aircraft

54. Application of this Part

55. Advance arrival notices

56. Arrival reports

57. Advance departure notices

Chapter 1
Interpretation, application and administration of this Act

12. General requirements for performing enforcement functions²⁹

Chapter 2
Customs control, places of entry and exit and customs controlled areas

37. Calls or landings resulting from forced circumstances⁴²

46. Offences in terms of this Chapter⁴⁹

Chapter 3
Reporting requirements for inbound and outbound vessels, aircraft, trains, buses, trucks, persons and cargo⁵⁰

Part 4 – Reporting requirements for arriving and departing buses⁵³

Part 5 – Reporting requirements for trucks entering or leaving Republic⁵⁴

Chapter 4
General principles governing clearance and release of goods and customs procedures

90. When clearance declarations for goods imported through places of entry must be submitted⁵⁸

92. Consequences in event of failure to clear goods imported through places of entry⁶⁵

94. When export clearance declarations for goods exported through places of exit must be submitted⁷²

96. Consequences in event of failure to clear for export goods in free circulation⁷⁸ through places of exit⁷⁹

97. Clearance substitutions before release of goods⁸²

99. When release of goods must be refused⁸⁶

100. When release of goods may be refused⁸⁹

105. When release of goods must or may be withdrawn⁹¹

107. Clearance and release substitutions for goods released for home use⁹⁵