Category: Chapter VIII – Registration, licensing and accredited clients (Customs Act)

“Degrouping operator” definition of section 64G of Customs Act

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‘degrouping operator’ shall mean the licensee of a degrouping depot.

(b)     No person shall from a date prescribed by the Commissioner by rule perform any act in connection with, or be in possession of, any air cargo for the purposes and activities contemplated in paragraph (a) unless such person has obtained the appropriate licence for a degrouping depot in accordance with the requirements of section 60, this section, any note to Schedule No. 8, any relevant rule, the application form and any conditions the Commissioner may impose in each case.

 

(2)    

 

(a)    

(i)      Application for such a licence shall be made on the form prescribed by the Commissioner by rule and the applicant shall furnish such information and supporting documents as may be specified in such form and comply with all requirements contemplated in subparagraph (1)(b).

(ii)     The Commissioner may require the degrouping operator to enter into an agreement with the Commissioner and may prescribe such agreement by rule.

(b)     Before any licence is issued, the applicant must furnish security; and such security may be altered, as contemplated in section 60(1)(c).

 

(3)     The degrouping operator shall be liable for duty on goods received and such liability shall cease as contemplated in section 44(5C).

 

(4)    

 

(a)     Goods in a degrouping depot shall be deemed to be under customs control and the degrouping operator shall comply with all requirements in respect thereof specified in this section, and any other relevant provision of this Act including any rule made in terms of this section or any agreement entered into between the degrouping operator and the Commissioner or any condition specified by or directive issued by the Commissioner.

(b)     Any goods received by the degrouping operator which are in excess of manifested quantities or excess goods unmanifested or any shortages, of whatever nature, shall be reported and dealt with as prescribed by rule.

(c)     Subject to any adaptation or other special requirement prescribed by rule, the provisions of section 18 shall apply mutatis mutandis to the movement of goods to a degrouping depot or from a degrouping depot to another degrouping depot.

 

(5)     The Controller may require any consolidated or other package to be detained in the degrouping depot for examination of the package or its contents.

 

(6)    

 

(a)     The Commissioner may refuse any application for a degrouping depot licence or cancel or suspend such licence.

(b)     The provisions of section 60(2) shall apply mutatis mutandis for the purposes of paragraph (a).

 

(7)     The Commissioner may prescribe by rule-

 

(a)     the application form and any other form required for the purposes of any customs procedure;

(b)     the documents to be furnished in support of the application form or to be submitted, completed and kept in respect of any activity relating to the operation of the degrouping depot;

(c)     activities allowed in a degrouping depot;

(d)     any procedure or obligation or standards of conduct to be observed in the operation of the degrouping depot;

(e)     any condition and procedure relating to liability for duty;

(f)     all matters that are required or permitted in terms of this section to be prescribed by rule;

(g)     any other matter which is necessary to prescribe and useful to achieve the efficient and effective administration of the air cargo and a degrouping depot as contemplated in this section; and

(h)     subject to section 3(2), any delegation of powers or duties as contemplated in that section.

[Section 64G inserted by section 143 of Act 45 of 2003]

“Licensed distributor” definition of section 64F of Customs Act

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‘licensed distributor’ means any person who –

(a)     is licensed in accordance with the provision of section 60 and this section;

(b)     obtains at any place in the Republic for delivery to a purchaser in any other country of the common customs area for consumption in such country or for export (including supply as ships’ or aircraft stores), fuel, which has been or is deemed to have been entered for payment of excise duty and fuel levy, from stocks of a licensee of a customs and excise manufacturing warehouse; and

(c)     is entitled to a refund of duty in terms of any provision of Schedule No. 6 in respect of such fuel which has been duly delivered or exported as contemplated in paragraph (b);

“Fuel” definition of section 64F of Customs Act

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‘fuel’ means any goods classifiable in any item of Section A of Part 2 of Schedule No. 1 liable to excise duty and goods classifiable in any item of Part 5 of Schedule No. 1 liable to fuel levy, used as fuel.

(2)    

(a)     No person, except a licensee of a customs and excise warehouse, who removes to any other country in the common customs area or exports any fuel, which has been entered or is deemed to have been entered shall be entitled to any refund of duty unless such person is a licensed distributor as contemplated in this section.

(b)     Application for such a licence shall be made on the form prescribed by the Commissioner by rule and the applicant shall comply with all the requirements specified therein and with any additional requirement that may be prescribed in any other rule and as may be determined by the Commissioner in each case.

(c)     Before any licence is issued the applicant must furnish security as contemplated in section 60(1)(c): Provided that the Commissioner may, on good cause shown, to the extent considered reasonable in each case, exempt any person from furnishing such security or reduce the amount of such security.

(3)    

(a)     In addition to any other provision of this Act relating to refunds of duty, any refund of duty contemplated in this section shall be subject to compliance with the requirements specified in the item of Schedule No. 6 providing for such refund and any rule prescribing any requirement in respect of the movement of such fuel to any such country or for export.

(b)     Notwithstanding anything to the contrary contained in this Act, the Commissioner may pay any such refund at such intervals for such periods and on such conditions as may be prescribed by rule.

(4)     The Commissioner may make rules –

(a)     prescribing the forms to be completed and the procedures to be followed and other requirements to be observed for the purposes of administering the provisions of this section and the provisions for a refund of duty in Schedule No. 6;

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

(c)     in respect of any other matter which is necessary to prescribe and useful to achieve the efficient and effective administration of this section.

(5)    

(a)    

(i)      Any person who in any application for a refund of duty in terms of the provisions of Schedule No. 6 makes a false statement shall be guilty of an offence and liable on conviction to a fine not exceeding R100 000 or double the amount of any duty refunded as a result of the false statement for refund, whichever is the greater, or to imprisonment for a period not exceeding 10 years, or both such fine and imprisonment and the fuel in respect of which the offence has been committed shall be liable to forfeiture under this Act.

(ii)     For the purposes of subparagraph (i), any forfeiture amount in respect of such fuel shall be calculated on the basis of the usual retail price thereof on the date the false statement was submitted or on the date of assessment of such amount, whichever is greater.

[Section 64F inserted by section 108 of Act 74 of 2002]

Section 64E (Customs Act) – Accredited clients

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64E.    Accredited clients

(1)    

(a)     The Commissioner may-

(i)      confer accredited client status on any applicant therefore who is licensed or registered under any provision of this Act; and

(ii)     determine by rule levels of accredited client status and specific criteria applicable to each level.

[Paragraph (a) substituted by section 36 of Act 61 of 2008 effective on 1 August 2011]

(b)     Every applicant for accredited client status shall apply for a specific level thereof and, in addition to the criteria prescribed for that level by rule or that may be determined by the Commissioner, prove, as may be applicable, the following:

[Words preceding subparagraph (i) substituted by section 36 of Act 61 of 2008 effective on 1 August 2011 and section 19 of Act 39 of 2013 effective on 16 January 2014]

(i)      an appropriate record of compliance with customs and excise procedures;

(ii)     that the accounting records and other documents kept for providing evidence of compliance with customs and excise procedures utilise information prepared in a manner consistent with general accounting principles appropriate to the procedure concerned;

[Subparagraph (ii) substituted by section 19 of Act 39 of 2013 effective on 16 January 2014]

(iii)    that an effective computer system is in operation capable of performing the functions, and in respect of which an agreement has been concluded, as contemplated in section 101A;

(iv)    that the person who will administer the accredited client requirements has sufficient knowledge of customs and excise laws and procedures to implement and maintain an efficient and effective accredited client compliance system;

[Subparagraph (iv) substituted by section 19 of Act 39 of 2013 effective on 16 January 2014]

(v)     that the business in respect of which application is made for accredited client status has sufficient financial resources;

(vi)    any other measurable requirements which the Commissioner may require in support of the application.

(c)     The Commissioner may determine such separate criteria for accredited client status in respect of customs or excise clients as may be prescribed by rule.

[Paragraph (c) added by section 19 of Act 39 of 2013 effective on 16 Jnuary 2014]

(2)     The Commissioner may –

(a)     conduct such investigation as may be reasonably necessary to verify any statements in the application;

(b)     enter into any agreement with the applicant which may include, notwithstanding any other provisions of this Act, deferment of payment of any duty or value-added tax payable on the importation of any goods into the Republic and payment thereof as may be specified in such agreement;

(c)     prescribe by rule the following:

(i)      the application form to be completed and the supporting documents to be furnished by each applicant according to the customs and excise procedures applicable to the activities of the applicant;

(ii)     the form of agreement to be entered into between the applicant and the Commissioner;

(iii)    standards of conduct which may include procedures to be followed in respect of –

(aa)    the entry of goods;

(bb)   the payment of duty;

(cc)    the documents to be processed;

(dd)   the control of goods; or

(ee)    goods carried or removed; and

(iv)    the benefits conferred upon an accredited client;

[Subparagraph (iv) substituted by section 50 of Act 30 of 2002]

(v)     any other matter that is necessary in order to regulate the benefits provided in terms of this section;

[Subparagraph (v) added by section 50 of Act 30 of 2002]

(d)     delegate, by rule, subject to section 3(2), any power which may be exercised or assign the duties that shall be performed by the Commissioner in accordance with the provisions of this Act to any officer or other person.

(3)    

(a)     The Commissioner may refuse any application for accredited client status or any level of accredited client status or cancel or suspend such status.

[Paragraph (a) substituted by section 36 of Act 61 of 2008 effective on 1 August 2011]

(b)     The provisions of section 60(2) shall apply mutatis mutandis for the purposes of paragraph (a).

(c)     Any accredited client status conferred by the Commissioner shall remain valid for a period prescribed by rule.

[Paragraph (c) added by section 36 of Act 61 of 2008 effective on 1 August 2011]

(4)     . . . . . .

[Subsection (4) added by section 36(1)(e) of Act 61 of 2008 and repealed by section 15 of Act 21 of 2021 effective on 19 January, 2022]

[Section 64E inserted by section 48 of Act 19 of 2001]

Section 64F (Customs Act) – Licensing of distributors of fuels obtained from the licensee of a customs and excise manufacturing warehouse

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64F.  Licensing of distributors of fuels obtained from the licensee of a customs and excise manufacturing warehouse

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

Section 64D (Customs Act) – Licensing of remover of goods in bond

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64D.    Licensing of remover of goods in bond

 

(1)     No person, except if exempted by rule, shall remove any goods in bond in terms of section 18(1)(a) or for export in terms of section 18A, or any other goods that may be specified by rule unless licensed as a remover of goods in bond in terms of subsection (3).

 

(2)    

 

(a)     The expression ‘remover in bond’ in this Act shall, unless the context otherwise indicates, include any person that removes any goods contemplated in subsection (1).

(b)     Any remover in bond exempted from licensing by rule shall, in addition to any provisions of this Act governing the removal or carriage of goods in bond generally, comply with such other relevant requirements as may be prescribed in this section and its rules.

 

(3)    

 

(a)     Application for such licence shall be made on the form prescribed by the Commissioner by rule and the applicant shall comply with all the requirements specified therein and with any additional requirement that may be prescribed in any other rule and as may be determined by the Commissioner in each case.

(b)     The Commissioner may subject to such conditions as he may prescribe by rule and such obligations as he may in each case impose licence any person applying therefor as a remover of goods in bond.

 

(3A)

 

(a)     The Commissioner may, subject to such conditions as he may prescribe by rule and impose in each case, allow a licensed remover of goods in bond to subcontract the removal or carriage of goods to which this section relates to another licensed remover of goods in bond.

(b)     When a licensed remover of goods so subcontracts, both such licensed removers shall he jointly and severally liable for the fulfilment of all obligations under this Act as contemplated in subsection (6).

[Subsection (3A) inserted by section 49 of Act 30 of 2002]

 

(4)    

 

(a)     The Commissioner may by rule prescribe technical specifications and other requirements in respect of any vehicle, container or other transport equipment used in the removal or carriage of any goods in bond.

(b)     The Commissioner may, after the date this section comes into operation, determine a date by rule from which no person shall remove any goods in bond under this Act in any vehicle container or other transport equipment that is not approved by the Commissioner as complying with the specifications and other requirements prescribed in such rule.

(c)     Any vehicle container or other transport equipment used for the removal of goods in bond under this section shall be marked as prescribed by rule.

 

(5)    

 

(a)     Before any person is licensed as a remover of goods in bond such person shall furnish such security and enter into such agreement as the Commissioner may require.

(b)     The Commissioner may at any time require that the form, nature or amount of such security shall be altered or renewed in such manner as he may determine.

(c)     Notwithstanding the provisions of paragraph (a), the Commissioner may, subject to such conditions as he may prescribe by rule and impose in each case accept such security from any other person in respect of any goods removed or carried by such remover.

[Paragraph (c) added by section 49 of Act 30 of 2002]

 

(6)    

 

(a)     In addition to any liability incurred under this Act a licensed remover of goods in bond shall be liable for the fulfilment of all obligations imposed under this Act on any other person in respect of any goods removed or carried by such remover including the payment of duties and charges and to any penalties or amounts demanded under section 88(2)(a).

(b)     The liability of such remover shall in no way affect the liability incurred under this Act in respect of such goods by the master, pilot, container operator, importer, exporter, manufacturer, licensee or any other principal or any agent referred to in section 99.

 

(7)     No security provided by a licensed remover of goods in bond shall be utilised or accepted as security for the fulfilment of any obligation in terms of this Act by any other such remover of goods in bond.

 

(8)    

 

(a)     The Commissioner may –

(i)      refuse any application for a new licence or any application for a renewal of a licence by a remover of goods in bond; or

(ii)     suspend or cancel such licence.

(b)     The provisions of section 60(2) shall apply mutatis mutandis for the purposes of paragraph (a).

(9)     The Commissioner may make rules –

 

(a)     to delegate or assign, subject to section 3(2), any of the powers that may be exercised or assign any of the duties that shall be performed by the Commissioner in accordance with the provisions of this Act to any officer or any other person;

(b)     to prescribe forms and procedures or any condition to be complied with by any remover for the purpose of regulating the removal of goods in bond;

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

(d)     in respect of any other matter which the Commissioner may consider reasonably necessary and useful for the purposes of administering the provisions of this section.

[Section 64D inserted by section 48 of Act 19 of 2001]

Section 64C (Customs Act) – Licence to search wreck or to search for wreck

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64C.    Licence to search wreck or to search for wreck

(1)     No person shall search any wreck or search for any wreck unless he is licensed with the Commissioner to do so and has furnished such security as the Commissioner may require.

(2)     The Commissioner may by rule prescribe the circumstances under which and the conditions on which a licence may be issued to any person entitling him to search or to search for any wreck, but no such licence shall give the holder thereof the exclusive right to search or to search for any particular wreck.

[Section 64C inserted by section 47 of Act 45 of 1995]

Section 64B (Customs Act) – Clearing agent licences

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64B.      Clearing agent licences

 

(1)     No person shall, for the purposes of this Act, for reward make entry or deliver a bill of entry relating to, any goods on behalf of any principal contemplated in section 99(2), unless licensed as a clearing agent in terms of subsection (2).

[Subsection (1) substituted by section 58 of Act 53 of 1999]

 

(2)    

 

(a)     Application for such licence shall be made on the form prescribed by the Commissioner by rule and the applicant shall comply with all the requirements specified therein and with any additional requirements that may be prescribed in any other rule and as may be determined by the Commissioner in each case.

(b)     The Commissioner may, subject to such conditions as he may prescribe by rule and such obligations as he may in each case impose, license any person applying therefor as a clearing agent.

(c)     The Commissioner may prescribe by rule –

(i)      a date from which the applicant and employees of the applicant must be in possession of a qualification obtained at such time and with at least such qualifying mark as may be stated in such rule;

(ii)     any other matter which may be reasonably necessary and useful to achieve the efficient and effective administration of the objects of this section.

[Paragraph (c) added by section 47 of Act 19 of 2001]

(d)     For the purposes of paragraph (c), “applicant” means any natural person or a director of a company or member of a close corporation or a partner of a partnership, who participates in the clearing agents’ business of the company, close corporation or partnership, as the case may be.

[Paragraph (d) added by section 47 of Act 19 of 2001]

[Subsection (2) substituted by section 46 of Act 45 of 1995 and section 58 of Act 53 of 1999]

 

(3)     Before any such person is so licensed as a clearing agent, he shall furnish such security as the Commissioner may require.

 

(4)     The Commissioner may at any time require that the form, nature or amount of such security shall be altered or renewed in such manner as he may determine.

 

(5)     A licensed clearing agent shall be liable in respect of any entry made or bill of entry delivered as contemplated in section 99(2).

[Subsection (5) added by section 58 of Act 53 of 1999]

 

(6)     A licensed clearing agent shall disclose the name and category of the principal referred to in section 99(2) on such bill of entry and if such agent does not so disclose or makes or delivers a bill of entry where the name of another such agent or his own name is stated as the importer, exporter, remover in bond or other principal, as the case may be, he shall be liable for the fulfilment of the obligations imposed on such principal in terms of this Act.

[Subsection (6) added by section 58 of Act 53 of 1999]

 

(7)     No security provided by a licensed clearing agent shall be utilised or accepted as security for the fulfilment of any obligations in terms of this Act of any other such agent.

[Subsection (7) added by section 58 of Act 53 of 1999]

[Section 64B inserted by section 19 of Act 112 of 1977]

Section 64A (Customs Act) – Container depot licenses

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64A.     Container depot licenses

(1)     No person shall store or unpack, or pack for export, such containers as the Commissioner may specify, except at a container depot licensed in terms of subsection (2).

(2)     The Commissioner may, subject to such conditions as he may in each case impose, license, for such period as he may in each case determine, at any place appointed for that purpose under the provisions of this Act, container depots approved by him for the storing, unpacking or packing of containers contemplated in subsection (1), provided such security as he may require is furnished.

(3)     The Commissioner may at any time require that the form, nature or amount of such security shall be altered or renewed in such manner as he may determine.

(4)     The Controller may require any container contemplated in subsection (1) to be detained in any container depot licensed in terms of subsection (2), for its examination or that of its contents.

[Section 64A inserted by section 8 of Act 71 of 1975]