DIAMOND EXPORT LEVY

What is it?

On 1 November 2008 a Diamond Export Levy on unpolished diamonds exported from the RSA was introduced. Although this is legislated in the Diamond Export Levy Act, SARS is mandated to administer and collect this levy.

Who is it for?

All Producers, Dealers, Beneficiators and /or Holders of Permits must pay this levy when exporting such diamonds.
  1. A return levypayer (i.e. a registered person who makes payment of the levy on the basis of periodic return as contemplated in Section 5(1) of the Administration Act) will pay the levy in line with the stipulations of Section 5(1) of the Diamond Export Levy (Administration)  
  2. A holder of a permit is regarded as a direct levypayer (a person who does not qualify for registration under Section 2(1) of the Administration Act or is a person contemplated in Section 5(1A) of that Act) and will make payment of the levy before exporting the unpolished diamonds from South Africa

What steps must I take?

Producers, Dealers and Beneficiators who trade in unpolished diamond(s) must register their business with SARS.
On registration, the business will receive a Customs client code number which must be used when export declarations are made to SARS. The following is required:
  • Completion of six-monthly excise accounts, even if a “nil return / account “ is to be made.
  • Before application for registration begins, the Applicant must get relevant Permits / Licences from the Regulator in Johannesburg

What is the export rate of duty and what is the aim of the Diamond Export Levy?

The export rate of duty is 5% of the total value less overpaid or plus underpaid. The aim of the Diamond Export Levy as stated in both the Diamond Export Levy Act No. 15 of 2007 and the Diamond Export Levy (Administration) Act No. 14 of 2007 is to:
  1. Promote the development of the local economy by encouraging the local diamond industry to process (cut, polish etc.) diamond(s) locally;
  2. Develop Skills; and
  3. Create employment

When and how should it be paid?

The Act provides for six-monthly payments, i.e. twice per Financial Year. The Financial period depends on whether it is a natural person or juristic person e.g. Business.
Return levy payers will pay the levy in line with the stipulations of Section 5(1) of the Diamond Export Levy (Administration) Act. A holder of a permit is regarded as a direct levy payer and will make payment of the levy before exporting the unpolished diamond(s) from the Republic.
It can be paid via Bank EFT or by bank guaranteed cheque at specified SARS branch offices.
 
Last Updated: 11/05/2016 10:08 AM     print this page
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 Top FAQs

Who is liable to pay the Diamond export Levy to SARS?
1) A return levypayer (i.e. a registered person who makes payment of the levy on the basis of periodic return as contemplated in Section 5(1) of the Administration Act)

What are the export requirements in relation to such Exports?
a) No unpolished diamonds may be exported from South Africa unless i) The unpolished diamonds have been registered for export by the South African Diamond Regulator.

What is the qualification for Imports?
a) No unpolished diamonds may be imported into South Africa unless:i) The unpolished diamonds have been declared in terms of the Diamond Export Levy Act to the Controller of Customs.

What is the basic information as stipulated in the Diamond Export Levy Standard Operating Procedure (SOP)?
Producers, Dealers, Beneficiator(s) or the holder of an export permit who export unpolished diamond(s) from the Republic must register with SARS.

What is an unpolished diamond and to whom does it apply?
It is a diamond in its natural state or a synthetic diamond which has after the production thereof not been altered in any manner and includes diamond,