Category: Chapter IV – Customs and excise warehouses; storage and manufacture of goods in customs and excise warehouses (Customs Act)

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]

Section 19A (Customs Act) – Special provision in respect of customs and excise warehouses in which excisable or fuel levy goods are manufactured or stored

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19A.  Special provision in respect of customs and excise warehouses in which excisable or fuel levy goods are manufactured or stored

 

(1)    

(a)     Notwithstanding anything to the contrary contained in this Act the Commissioner may by rule, in respect of any excisable goods specified in Section A of Part 2 of Schedule No. 1 or fuel levy goods or any class or kind of such goods manufactured in the Republic –

(i)      determine whether any such goods specified in such rule shall be entered or deemed to have been entered for home consumption at the time of issuing any prescribed document and removal from, or on receipt in, or at any time determined in such rule in respect of –

[Words preceding item (aa) substituted by section 64 of Act 30 of 2002]

(aa)   any customs and excise manufacturing warehouse;

(bb)   any customs and excise manufacturing warehouse to which the goods have been removed from any other such warehouse after a particular stage of manufacture during the process of manufacture of any such goods; or

(cc)    any customs and excise storage warehouse licensed by the Commissioner for any special or limited purpose to which such goods are allowed to be removed by the Commissioner after manufacture;

(ii)     restrict the licensing of customs and excise storage warehouses in respect of such goods or any class or kind of such goods to such persons and for such special or limited purposes as may be specified in such rule;

(iii)    prescribe –

(aa)   the time and manner of payment of duty in respect of goods so entered or deemed to have been so entered;

(bb)   any deferment of payment of duty, the conditions on which such deferment is granted and the period, or differentiated periods of deferment, in respect of any licensee or any class or kind of such goods;

(cc)   the accounts to be kept and the accounts and other documents to be submitted with such payment;

(dd)   any procedures or requirements or documents relating to the entry and removal of goods from and to any such customs and excise warehouse or for export or for use under rebate of duty;

(ee)   all other matters which are required or permitted in terms of this section to be prescribed by rule;

(eeA) simplified procedures for any person or a category of persons in respect of any matter contemplated in items (aa) to (ee) or (ff), or in any other provision of this Act relating to such goods;

[Item (eeA) inserted by section 31 of Act 61 of 2008 – commencement date to be proclaimed]

(ff)    any other matter which the Commissioner may consider necessary and useful to achieve the effective and efficient administration of the provisions of this section.

(b)     Except as otherwise provided in this section or in any such rule, the provisions of section 38(4) shall apply mutatis mutandis to any goods removed from any customs and excise warehouse as contemplated in paragraph (a).

(c)     Notwithstanding anything to the contrary in this Act contained, goods in a customs and excise manufacturing warehouse which have been entered or deemed to have been entered for home consumption on the date of receipt in such warehouse or at the time prescribed as contemplated in paragraph (a)(i) or any goods manufactured from such goods may, subject to such conditions and procedures as the Commissioner may prescribe by rule, be removed in bond or exported from such warehouse by the licensee, as if such goods have not been so entered or deemed to have been so entered for home consumption.

[Paragraph (c) added by section 64 of Act 30 of 2002]

[Commencement date of Subsection (1): 1 October 2002 – in respect of tobacco products liable to excise duty as specified in items 104.30 and 104.35 of Section A of Part 2 of Schedule No. 1 of the Act]

[Commencement date of Subsection (1): 26 February 2003 – in respect of beer and spirits liable to excise duty as specified respectively in items 104.10 and 104.20 of Section A of Part 2 of Schedule No. 1 of the Act]

[Commencement date of Subsection (1): 2 April 2003 – in respect of petroleum and other goods liable to excise duty as specified in item 105.10 of Section A of Part 2 of Schedule No. 1 of the Customs and Excise Act, 1964, and liable to fuel levy (as specified in item 195.10 of Part 5 of that Schedule]

(2)     If any duty is not paid on the date prescribed in the rules for this section, the amount unpaid shall constitute a debt due to the State, and –

(a)     the Commissioner may, without prior notice to the licensee –

(i)      where payment is not made on or before the prescribed date on two occasions in a calendar year, prohibit for any reasonable period the removal of any goods from such warehouse unless the goods are duly entered and the duty paid prior to such removal;

(ii)     claim the amount from the surety where security is furnished in the form of a surety bond or take such legal steps, including enforcement of the provisions of the Act, as the Commissioner may deem necessary and appropriate in the circumstances;

(b)     the licensee shall –

(i)      notwithstanding the provisions of section 91, but subject to the provisions of section 93, be liable to payment of an amount not exceeding 10 per cent of the duty concerned as a penalty;

(ii)     be liable to interest from the day following the date on which payment should have been made as contemplated in section 105;

(c)     the Commissioner may impose any reasonable conditions when removing the prohibition referred to in paragraph (a)(i).

[Commencement date of Subsection (2): 1 October 2002 – in respect of tobacco products liable to excise duty as specified in items 104.30 and 104.35 of Section A of Part 2 of Schedule No. 1 of the Act]

[Commencement date of Subsection (2): 26 February 2003 – in respect of beer and spirits liable to excise duty as specified respectively in items 104.10 and 104.20 of Section A of Part 2 of Schedule No. 1 of the Act]

[Commencement date of Subsection (2): 2 April 2003 – in respect of petroleum and other goods liable to excise duty as specified in item 105.10 of Section A of Part 2 of Schedule No. 1 of the Customs and Excise Act, 1964, and liable to fuel levy (as specified in item 195.10 of Part 5 of that Schedule]

(3)   

(a)     When this section comes into operation the excisable or fuel levy goods concerned shall not be removed to any customs and excise warehouse unless such warehouse is another such manufacturing warehouse or a storage warehouse licensed for any special or limited purpose as contemplated in subsection (1).

(b)     The Commissioner may –

(i)      approve any existing licence for any customs and excise storage warehouse as a storage warehouse for such special or limited purposes;

(ii)     cancel the licence of any customs and excise storage warehouse which is not licensed for such special or limited purpose within three months after the date upon which this section comes into operation or within any longer period as the Commissioner may on good cause shown consider reasonable.

[Commencement date of Subsection (3): 1 October 2002 – in respect of tobacco products liable to excise duty as specified in items 104.30 and 104.35 of Section A of Part 2 of Schedule No. 1 of the Act]

[Commencement date of Subsection (3): 26 February 2003 – in respect of beer and spirits liable to excise duty as specified respectively in items 104.10 and 104.20 of Section A of Part 2 of Schedule No. 1 of the Act]

[Commencement date of Subsection (3): 2 April 2003 – in respect of petroleum and other goods liable to excise duty as specified in item 105.10 of Section A of Part 2 of Schedule No. 1 of the Customs and Excise Act, 1964, and liable to fuel levy as specified in item 195.10 of Part 5 of that Schedule]

(4)   

(a)     The Commissioner may allow any imported goods to be mixed with locally produced excisable or fuel levy goods of the same class or kind in a customs and excise manufacturing warehouse licensed for the manufacture of such locally-produced goods on payment of any difference in duty between the duty leviable on such imported goods and locally-produced goods.

(b)     Notwithstanding anything to the contrary in this Act contained, any such goods when so mixed shall be subject to the duties leviable and the manufacturing, accounting and removal procedures prescribed in terms of this Act in respect of excisable goods or fuel levy goods, as the case may be, manufactured in such warehouse.

[Commencement date of Subsection(4): 1 October 2002]

[Section 19A inserted by section 40 of Act 19 of 2001]

Section 19 (Customs Act) – Customs and excise warehouses

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19. Customs and excise warehouses

(1)     The Commissioner may license at any place appointed for that purpose under the provisions of this Act, warehouses (to be known as customs and excise warehouses) approved by him for the storage of such dutiable imported or such dutiable locally-produced goods or for the manufacture of such dutiable goods from such imported or such locally-produced materials or such imported and such locally-produced materials as he may approve in respect of each such warehouse.

[Subsection (1) substituted by section 7 of Act 105 of 1969]

(2)     Such warehouses may be licensed either for the storage of dutiable goods (to be known as customs and excise storage warehouses) or for the manufacture of dutiable goods (to be known as customs and excise manufacturing warehouses), but the Commissioner may license a storage and a manufacturing warehouse on the same premises provided they are separated in a manner approved by him.

(3)     The Controller may, in addition to any lock used by the licensee, cause any customs and excise warehouse to be locked with a State lock for such period as he deems fit, and no person shall remove or break such lock or enter such warehouse or remove any goods therefrom without the permission of the Controller while it is so locked.

(4)    

(a)     The Controller may at any time take stock of the goods in any customs and excise warehouse and duty shall, subject to the provisions of subsection (5) of section 20, forthwith be paid upon any deficiency.

(b)     If the stock is found to be greater than the quantity which should be in such warehouse, the excess shall, subject to the provisions of subsection (18) of section 75, be debited to stock and the duty thereon paid on entry for home consumption.

[Paragraph (b) substituted by section 3 of Act 95 of 1965]

(5)     The State or any officer shall in no case be liable for any loss of or damage of whatever nature to any goods in a customs and excise warehouse or for any loss or damage sustained by reason of wrong delivery of such goods.

(6)     In addition to any liability for duty incurred by any person under any other provision of this Act, the licensee of a customs and excise warehouse shall, subject to the provisions of subsection (7), be liable for the duty on all goods stored or manufactured in such warehouse from the time of receipt into such warehouse of such goods or the time of manufacture in such warehouse of such goods, as the case may be.

(7)     Subject to the provisions of subsection (8), any liability for duty in terms of subsection (6) shall cease when it is proved by the licensee concerned that the goods in question have been duly entered in terms of section 20(4) and have been delivered or exported in terms of such entry.

[Subsection (7) substituted by section 13 of Act 45 of 1995]

(8)     If the licensee concerned fails to submit any such proof as is referred to in subsection (7) within the period for which goods of that class or kind may be stored or kept in a customs and excise warehouse or if the licensee commits an offence under this Act in respect of any goods stored or kept in such warehouse he shall upon demand by the Controller forthwith pay the duty due on such goods.

[Subsection (8) substituted by section 13 of Act 45 of 1995]

(9)    

(a)     Except with the permission of the Commissioner, which shall only be granted in circumstances which he on good cause shown considers to be reasonable and subject to such conditions as he may impose in each case, no imported goods entered for storage or excisable or fuel levy goods manufactured in a customs and excise warehouse, excluding spirits or wine in the process of maturation or maceration, shall be retained in any customs and excise warehouse for a period of more than two years from the time the imported goods were first entered for storage or from the time the excisable or fuel levy goods were deemed to have been manufactured in terms of section 44(2).

(b)     ……….

[Subsection (b) deleted by section 30 of Act 61 of 2008]

[Subsection (9) added by section 13 of Act 45 of 1995 and substituted by section 39 of Act 19 of 2001]

(10)   Notwithstanding anything to the contrary contained in this Act, the Commissioner may permit the licensee of a customs and excise storage or manufacturing warehouse to make use of a computer system to record and control the manufacture of goods, goods stored or manufactured in, received into and removed from such warehouse, if the-

(a)     licensee of such warehouse is accredited in terms of section 64E; and

(b)     Commissioner is satisfied that the licensee’s computer system is capable of recording and controlling goods manufactured or stored, received and removed and identifying those goods by clear references to-

(i)      relative bills of entry processed in connection therewith;

(ii)     a prescribed certificate, invoice or other prescribed or approved document issued in respect thereof as contemplated in section 38(4) or (5); and

(c)     licensee is able to comply with any reasonable requirements the Commissioner may prescribe by rule or impose in a specific case to ensure the information contained in such a computer system is secure and is preserved in such a manner that it is readily available to be accessed by an officer for audit purposes.

[Subsection (10) added by section 30 of Act  61 of 2009 – commencement date to be proclaimed]