ALL FAQs

Can I declare at Nakop, for example, and make a cash payment at Vioolsdrift into the Vioolsdrift account?
It is preferable to pay at the port where the declaration is made/goods are cleared (or directly into the relevant port’s bank account).

Can I make a bulk deposit into my SARS account long before my declaration is made?
No. Currently the SARS revenue accounting system does not accept ‘bulk deposits’ without any corresponding transaction. Once the declaration is submitted, then payment is made and proof of payment submitted to the relevant branch.

Goods originally imported 'FREE' of duty were re-exported in terms of Schedule 5 to the Customs Act, can I claim the VAT back from Customs?
VAT refunds on commodities originally imported free in terms of the rate of duty under Schedule 1 Part 1 (ordinary Customs duty) and subsequently to be re-exported in terms of Schedule 5 may not be claimed according to this

I’m a Clearing Agent and I can no longer use the Importer’s deferment account. What do I do?
Your Importer must apply for an EDI profile for you to use on their behalf.

If a customs declaration was processed at one Customs Office and the client needs to apply for a refund, can the client apply at another office?
No. The refund must be processed at the same place where the original customs declaration was lodged / processed.

In terms of the customs deferment scheme how long can payments be deferred for?
Payments can be deferred for a period of up to thirty (30) days. At the conclusion of the period of deferment, the client is allowed a further seven (7) days in order to settle the account.

In the event of an over-declaration of VAT where the deferment scheme was utilized; how can I claim the refund of VAT?
SARS will not pay out over-declared VAT - clients should recover such on their next VAT 201 return, subject to the normal rules.

Is the duty payable on currency?
Although currency is included in the definition of goods, it cannot be classified in terms of the Customs tariff, which means that no duty is payable thereon.

May a registered agent partake in the deferment scheme?
Yes, as a registered agent who may act on behalf of foreign principals, a registered agent, if complying with all the requirements of the deferment scheme, may partake therein.

MIPD - What is an Import Rebate Credit Certificate (IRCC)?
An IRCC is a certificate issued by ITAC, allowing the holder thereof to use the value on such certificate to reduce the FOB value on goods as specified in Note 24 of Rebate Item 317.04.

Must the security (bond) required for participating on the Deferement Scheme always be equal to 100% of the deferment limit?
As the deferment limit is linked to the security amount, it may be varied in two ways: i) The security can be equal to the deferment limit (100%);

SA/MAL - What will be the rate of Customs duty that will apply to goods imported under the bilateral agreement between South Africa and Malawi?
Refer to Article 2 of the Trade Agreement between the Governments of the Republic of South Africa and the Republic of Malawi which provides, subject to the provisions of the agreement,

SA/ZIM - What preferential rate of Customs duty would apply under the SA-Zimbabwe bi-lateral trade agreement when flour is imported into Zimbabwe from South Africa? What documents would be necessary to substantiate the origin of the goods?
The bi-lateral agreement does not provide for preferential treatment of wheat flour of tariff heading 11.01 traded between the party countries.

SARS over-charged me on duties and VAT, will my refund application receive priority?
Where the refund/drawback is a result of an error on the part of SARS in assessing the duties and VAT, the refund shall receive priority.

What authority is required if a clearing agent wishes to use their client's deferment account?
If a clearing agent/broker utilises the deferment account of an importer they need to obtain a power of attorney and provide SARS with a copy of such.

What happens if a Refer to Drawer (RD) cheque is encountered for payments on deferment accounts?
A Refer to Drawer (RD) cheque will be subjected to immediate suspension of the client’s deferment account. The account will be subject to the outstanding duties,

What is a DA70 (Provisional Payment)?
A DA 70 is the form on which Provisional Payment are made. These are legally binding payments for the following reasons: 1. Used to secure revenue that may become due to Customs i.e. allowing goods to be released pending production

What is the current rate of VAT payable on imported goods?
VAT on imported goods is paid on the Added Tax Value (ATV) and this is determined as follows:Customs Value, plus any duty levied on the goods, plus 10 per cent of the Customs Value.

When will SARS issue the statement for the thirteenth payment for my customs deferment account?
Statements for the thirteenth payment will be generated and issued by SARS four (4) days prior to the payment/settlement date."

Why are penalties imposed on declarations where no duty is involved?
If Exporters havent complied with certain customs regulations, penalties may be imposed for these contraventions. In accordance with the requirements of the Customs and Excise Act;

Will Customs consider a time-expired application for a customs refund or drawback?
Limitation on the period for which refunds and drawback claims will be considered and the period within which the applications must be received by the Controller/Branch.

Can a client defer more duties and/or VAT if the deferment limit is exceeded?
If the deferment limit in any deferment period is exceeded the client will not be able to defer any more duties / VAT for the remainder of that period and all further duties / VAT must be paid immediately by alternative payment methods until the client

Counterfeit Goods - Imported counterfeit goods were destroyed by customs, what is the procedure to claim the duties and VAT paid?
Where Customs duties and value-added tax (VAT) have been paid on counterfeit goods which are destroyed, no refund thereof will be considered under any circumstances.

Deferment and Accreditation - What is the turnaround time for Deferment applications and for Accreditation?
The turnaround times for a Deferment application is approximately 30 working days whereas the turnaround times for Accreditation is dependent on interations between SARS and the applicant however the maximum turnaround time is currently set at 150 days.

Disposal - A vehicle imported under rebate is stolen or hijacked while within the time period in which it may not be disposed of. Is the importer liable for duty and VAT?
a) When a vehicle declared under rebate of duty is stolen within the time period in which it may not be disposed of, duty and VAT will in the case of vehicles declared under Rebate Items 406 or 460 be payable on the remainder of the period on a pro rata

During peak periods can the deferment limit be increased?
For peak periods the client needs to request for an increase in limit. The peak period increase can only be registered when a client has a partial bond.

How are the duties calculated for goods that have been imported?
All items that are cleared through Customs are determined by a tariff heading (classification of the item), once this has been done the rate of duty applicable for the item will apply.

How is VAT calculated on imported goods?
VAT on imported goods is paid on the Added Tax Value (ATV) and this is determined as follows:Customs Value, plus any duty levied on the goods, plus 10 per cent of the Customs Value.

Imported goods were subsequently sold to a client in Botswana can I claim the duty paid on importation on the DA66?
The duty paid on goods imported and sold for trade purposes to the BLNS countries cannot be refunded on a DA 66 or any other form.

When is the 10% mark up applicable on import duties?
The 10% mark up is applicable on imported goods which are exported from outside the Customs Union; i.e. goods coming from BLNS countries will be excluded.

Imported counterfeit goods were destroyed by customs. What is the procedure to reclaim the duties and VAT paid?
Where Customs duties and value-added tax (VAT) have been paid on counterfeit goods which are destroyed, no refund will be considered under any circumstances.

What is the R24 fee that the South Africa Post Office charges on postal items?
The CN22 code R24 charge is a Post Office Assessment Fee and not a SARS Customs charge. As per the Post Office website https://www.postoffice.co.za/contactus/questions/postalrates.pdf on page 18:

Last Updated: 12/02/2016 12:19 PM     print this page
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