Author: admin_kmos

Section 28 (Customs Act) – Ascertaining quantity of spirits by measuring the mass or volume

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28. Ascertaining quantity of spirits by measuring the mass or volume

(1)     The quantity of spirits in any container may be calculated by measuring the mass or volume.

(2)     The quantity must be calculated and may be adjusted by a tolerance of 0.25% in accordance with such procedures as may be prescribed by rule and the quantity so calculated and so adjusted shall be deemed to be the true quantity of such spirits for the purposes of this Act.

[Subsection (2) substituted by section 19 of Act 45 of 1995 and section 89 of Act 31 of 2005]

 [Section 28 substituted by section 1 of Act 103 of 72]

Section 27 (Customs Act) – Special provisions in respect of customs and excise manufacturing warehouses

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27. Special provisions in respect of customs and excise manufacturing warehouses

 

 

(1)    Subject to the provisions of this Act, goods liable to excise duty or fuel levy may not be manufactured except in terms of this section and except in a customs and excise manufacturing warehouse licensed under this Act: Provided that spirits distilled by agricultural distillers shall be excluded from the requirement of manufacture in a customs and excise manufacturing warehouse and that excisable goods may with the permission of the Commissioner be manufactured in a special customs and excise warehouse licensed under this Act.

[Subsection (1) substituted by section 10 of Act 105 of 1969, amended by section 7 of Act 84 of 1987 and substituted by section 15 of Act 59 of 1990]

(2)     Subject to the provisions of this Act, the Commissioner may, on such conditions as he may impose, permit the manufacture under the provisions of this Chapter of any goods in any customs and excise manufacturing warehouse if any of the goods used in such manufacture are liable to duty or if the goods so manufactured are dutiable.

(3)     Any dutiable goods brought into and intended for use in a customs and excise manufacturing warehouse in the manufacture of goods liable to excise duty or fuel levy shall be entered for home consumption and any duty due thereon shall be paid prior to such use.

[Subsection (3) substituted by section 10 of Act 105 of 1969, section 7 of Act 84 of 1987 and section 15 of Act 59 of 1990]


(4)     No manufacturing of goods shall take place in a customs and excise manufacturing warehouse until all premises and plant intended for use in connection with such manufacturing and the purpose for which they are to be used have been approved by and registered with the Commissioner.


(5)     ……….

[Subsection (5) deleted by section 18 of Act 45 of 1995]

(6)     All operations in customs and excise manufacturing warehouses are subject to the right of supervision by officers.

(7)    


(a)     Every licensee of a customs and excise manufacturing warehouse shall, if required by the Commissioner, provide suitable office accommodation and board and lodging for any officer stationed at or visiting such warehouse for the purposes of this Act.

[Paragraph (a) substituted by section 18 of Act 45 of 1995]

(b)     A person so providing board and lodging for an officer shall be entitled to fair remuneration therefor.

(8)      ……….

[Subsection (8) deleted by section 18 of Act 45 of 1995]

(9)     No licensee shall, without the written permission of the Controller in a customs and excise manufacturing warehouse, carry on any business except that for which the warehouse is licensed and the premises and plant are registered.

[Subsection (9) substituted by section 18 of Act 45 of 1995]

(10)   No person shall, except with the written permission of the Controller –

(a)     use any premises or plant required to be registered in terms of the provisions of this Chapter for any purpose other than that detailed in such registration;

(b)     effect any alteration to any structure on such premises or to any such plant;

(c)     bring into or have in such premises, any plant other than that detailed in such registration or remove any plant from such premises;

(d)     place below the surface of the ground any pipe or tube for conveying any material or product in a warehouse unless such pipe or tube is enclosed in casing capable of being easily opened so that the pipe or tube is exposed to view.

[Subsection (10) amended by section 18 of Act 45 of 1995]

(11)   The Commissioner may by rule prescribe the days on which and the hours during which all or any of the operations in a customs and excise manufacturing warehouse (including the removal of goods) shall be carried out.

(12)   No distilling operation shall be commenced until the whole or any part of the distilling system or plant, as the Commissioner may require, has been provided, at the expense of the licensee, with fittings and requirements to permit of the insertion or affixing of customs and excise meters, gauges, rods, locks and seals according to the rules for the purpose of securing such system or plant, and until such system or plant has been duly secured by the Controller.

[Subsection (12) substituted by section 18 of Act 45 of 1995]

(13)   If any meter, rod, lock or fitting is tampered with or damaged, or if any pipe, cock, fastening or fitting connected with a still or vessel is pierced or damaged, the licensee shall forthwith repair or renew the article in question or an officer may effect the repair or renewal at the expense of the licensee.

[Subsection (13) substituted by section 18 of Act 45 of 1995]

(14)   If any such tampering, damage or piercing has been directly or indirectly caused by the wilful act, or by the neglect or with the connivance of the licensee or his employee, such licensee, in addition to liability for the cost of the repair or renewal, shall be guilty of an offence.

(15)   The burden of showing that any such tampering, damage or piercing was not caused as aforesaid shall rest upon the licensee.

(16)   The Commissioner may, subject to such conditions as he may impose, exempt the manufacture of any class or kind of goods from any provision of this section.

[Subsection (16) inserted by section 10 of Act 105 of 1969]

Section 26 (Customs Act) – Transfer of ownership or pledging or hypothecation of warehoused goods

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26. Transfer of ownership or pledging or hypothecation of warehoused goods

(1)     Except with the prior permission of the Commissioner and subject to such conditions as may be prescribed by rule –

(a)     the owner of any dutiable goods in a customs and excise warehouse may not enter into any agreement whereby –

(i)      his ownership of such goods is transferred to any other person;

(ii)     such goods are pledged or otherwise hypothecated in favour of any other person;

(b)     any person in whose favour such goods have been pledged or hypothecated may not enter into any agreement whereby any rights obtained by him by virtue of such pledging or hypothecation are ceded to any other person.

[Subsection (1) amended by section 17 of Act 45 of 1995]

(2)     Any agreement entered into contrary to the provisions of subsection (1) shall for the purposes of this Act be deemed to be null and void.

[Section 26 substituted by section 1 of Act 89 of 1983]

Section 25 (Customs Act) – Sorting, packing, etc., in customs and excise storage warehouses

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25. Sorting, packing, etc., in customs and excise storage warehouses

 

Subject to the provisions of this Act, the Controller may permit the licensee of a customs and excise storage warehouse or the owner of any goods in such warehouse to sort, separate, pack or repack any goods in such warehouse and to make such alterations therein or such arrangements as may be necessary for the preservation of those goods or for the sale, exportation or other lawful disposal thereof.

[Section 25 substituted by section 6 of Act 95 of 1965 and section 16 of Act 45 of 1995]

Section 24 (Customs Act) – Ships or aircraft stores consumed in the Republic

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24. Ships’ or aircraft stores consumed in the Republic

If any goods shipped as stores for any foreign-going ship or aircraft from a customs and excise warehouse under the provisions of section 20(4) or any goods shipped as stores for such ship or aircraft outside the Republic (except any such goods which are used for the operation of such ship and are, save as provided in the rules, not for consumption by or for sale or disposal to the master or members of the crew or passengers of or visitors to such ship) are consumed, sold or disposed of on such ship in any port in the Republic or on such aircraft at any place in the Republic when the aircraft is not airborne or on such aircraft on a flight between any places in the Republic, the master of such ship or the pilot of such aircraft, as the case may be, shall be liable for the duty on such goods so consumed, sold or disposed of and shall, upon demand by the Controller forthwith pay the duty due on such goods: Provided that the Commissioner may by rule exempt any class or kind of stores or ship or aircraft or any stores or ship or aircraft to which circumstances specified in such rule apply from any provision of this section.

[Section 24 substituted by section 5 of Act 95 of 1965 and amended by section 15 of Act 45 of 1995]

Section 23 (Customs Act) – Storage or manufacture of prohibited goods

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23. Storage or manufacture of prohibited goods

The Commissioner may allow the storage or manufacture in a customs and excise warehouse of goods the importation, manufacture or disposal of which is prohibited or restricted under any law, provided such goods are stored or manufactured in such warehouse for export or supply as stores for foreign-going ships or aircraft only.

Section 22 (Customs Act) – Samples of goods in a customs and excise warehouse

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22. Samples of goods in a customs and excise warehouse

The Controller may, in accordance with the rules, permit samples of goods in a customs and excise warehouse to be taken by the owner of such goods and may permit payment of duty thereon to be deferred until the goods from which such samples have been taken are entered for delivery from that warehouse for any purpose.

Section 21A (Customs Act) – Provisions for administration of customs controlled areas within industrial development zones and special economic zones

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21A.  Provision for administration of customs controlled areas within industrial development zones and special economic zones

[Heading of section 21A substituted by section 18 of Act 39 of 2012 effective on the date on which the Special Economic Zones Act comes into operation, 9 February 2016]

(1)     For the purposes of this section, unless the context otherwise indicates –

Section 21 (Customs Act) – Special customs and excise warehouses

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21. Special customs and excise warehouses

 

(1)     The Commissioner may, subject to such conditions as he may in each case impose, license at any place in the Republic special customs and excise warehouses for such special purposes and for such period as he may specify, provided such security as he may require, is furnished.

 

(2)     Unless the Commissioner otherwise indicates when licensing a special customs and excise warehouse for the storage or manufacture of goods, the provisions of this Act in respect of customs and excise storage or manufacturing warehouses or the storage or manufacture of goods in such warehouses, shall apply to such special warehouse and to the storage or manufacture of goods therein, as the case may be.

[Subsection (2) added by section 9 of Act 105 of 1969]

 

(3)    

 

(a)     Notwithstanding anything to the contrary contained in this Act, the Commissioner may, subject to such exception or adaptation prescribed in this subsection or as the Commissioner may prescribe by rule, licence a special customs and excise storage warehouse in terms of the provisions of this Act for the storage –

(i)      for export of any imported goods which are free of duty; or

(ii)     of any other goods for such purposes as may be prescribed by rule.

(b)     Notwithstanding anything to the contrary contained in any other provision of this Act, imported goods free of duty stored in such warehouse shall, for the purposes of the application of any provision of this Act, be deemed to be goods liable to duty.

(c)     For the purposes of paragraph (a) only importers accredited in terms of section 64E may store goods which are free of duty in such warehouse,

(d)    

(i)      Notwithstanding the provisions of section 19(9)(a), no goods to which this subsection relates shall be stored in such warehouse for a period of longer than 6 months from the time the goods were first entered for storage.

(ii)     The Commissioner may, on application by the importer before the period of 6 months expires, on good cause shown extend such period for not longer than 3 months.

(iii)    Where the importer fails to export the goods before the period of 6 months or any extended period lapses, the importer shall be guilty of an offence and shall –

(aa)   cause such goods to be abandoned or destroyed as provided in this Act; or

(bb)   enter such goods for export or such purposes as may be authorised under the rules for this section or any other provision of this Act, unless those goods are restricted or prohibited under any law.

[Item (bb) substituted by section 17 of Act 21 of 2006]

[Subparagraph (iii) substituted by section 1 of Act 10 of 2005]

(e)     The Commissioner may prescribe by rule –

(i)      the goods and activities that are allowed in such warehouse;

(ii)     the person, other than the importer of duty free goods, who may store the goods specified in these rules in such warehouse;

(iii)    the requirements to be complied with by applicants and licensees;

(iv)    the procedures applicable to the operation of and removal of goods from such warehouse;

(v)     the rules of conduct to be observed by the licensee;

(vi)    all matters which are required or permitted in terms of this subsection to be prescribed by rule; and

(vii)   any other matter which the Commissioner may reasonably consider to be necessary and useful to achieve the efficient and effective administration of the provisions of this subsection.

[Subsection (3) added by section 44 of Act 30 of 2002 and substituted by section 22 of Act 34 of 2004]

Section 20 (Customs Act) – Goods in customs and excise warehouses

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20. Goods in customs and excise warehouses

 

(1)  

 

(a)     Any dutiable imported or dutiable locally-produced goods and any beverages produced from excisable spirits in pursuance of any permission granted under the provisions of section 31(2), being goods or beverages of a class or kind approved by the Commissioner in respect of each warehouse, may be entered for storage in a customs and excise warehouse with deferment of payment of duty and no such goods or beverages shall be removed to or placed in a customs and excise warehouse until they have been so entered.

[Paragraph (a) substituted by section 4 of Act 95 of 1965 and section 8 of Act 105 of 1969]

 

(b)     Such entry shall be deemed to be due entry in respect of such goods at the place of importation or manufacture for the purposes of this Act.

 

(2)    

 

(a)    

 

(i)      Upon the entry and landing of imported goods for storage in or the transfer of dutiable locally-produced goods to a customs and excise warehouse or the transfer of dutiable manufactured goods from a customs and excise manufacturing warehouse to a customs and excise storage warehouse, the licensee of any such warehouse in which such goods are stored or to which such goods are so transferred shall take and record an accurate account of such goods, which shall include, subject to any deduction that may be allowed under section 75(18), the debiting to stock of any excess found on receipt of such goods at such warehouse.

(ii)     The said licensee shall immediately upon the receipt of such goods report to the Controller any such excess so found.

[Paragraph (a) substituted by section 8 of Act 105 of 1969 and section 1 of Act 86 of 1982]

 

(b)     Subject to the provisions of subsection (18) of section 75 and of subsection (5), no allowance for loss or diminution of any nature which occurs while such goods are being transported to or kept in any such warehouse or transported from one warehouse to another or removed in bond shall be allowed.

[Paragraph (b) substituted by section 4 of Act 95 of 1965]

 

(3)     Goods on which no duty is payable and of a class or kind approved by the Commissioner in respect of each warehouse, may, subject to such conditions and to the keeping of such records as the Commissioner may in each case determine, without entry, be taken into a customs and excise warehouse for the purpose of being used in the manufacture of or in conjunction with dutiable goods.

[Subsection (3) substituted by section 4 of Act 95 of 1965]

 

(4)     Subject to section 19A, no goods which have been stored or manufactured in a customs and excise warehouse shall be taken or delivered from such warehouse except in accordance with the rules and upon due entry for one or other of the following purposes –

 

(a)     home consumption and payment of any duty due thereon;

(b)     rewarehousing in another customs and excise warehouse or removal in bond as provided in section 18;

[Paragraph (b) substituted by section 6 of Act 84 of 1987]

(c)     ……….

[Paragraph (c) deleted by section 6 of Act 84 of 1987]

(d)     export from customs and excise warehouse (including supply as stores for foreign-going ships or aircraft).

[Subsection (4) amended by section 14 of Act 45 of 1995 and section 41 of Act 19 of 2001]

 

(4)bis No person shall, without the written permission of the Controller, divert any goods entered for removal from or delivery to a customs and excise warehouse, except goods entered for payment of the duty due thereon, to a destination other than the destination declared on entry of such goods or deliver or cause such goods to be delivered in the Republic except in accordance with the provisions of this Act.

[Subsection (4)bis inserted by section 4 of Act 95 of 1965 and substituted by section 14 of Act 45 of 1995]

 

(5)     Subject to the provisions of any item in any Schedule, the duty on any deficiency in a customs and excise warehouse shall be paid forthwith on demand after detection of such deficiency.

[Subsection (5) substituted by section 4 of Act 95 of 1965 and section 8 of Act 105 of 1969, amended by section 14 of Act 59 of 1990, section 14 of Act 45 of 1995 and section 59 of Act 30 of 1998 and substituted by section 88 of Act 31 of 2005]

 

(6)     Goods packed for retail sale shall not be entered for storage in a storage warehouse unless they are packed in outer containers normally used in the wholesale trade in respect of such goods.

 

(7)     ……….

[Subsection (7) deleted by section 1 of Act 86 of 1982]