What is a surety bond?
A surety bond is an agreement with a guarantor who promises to pay SARS any debt owed by the registrant or licensee if she/he cannot pay.
How to submit the bond
Before submitting the surety bond:
- The trader must give the full names of the principal and financial institution, and the full names and roles of the individuals who can sign on behalf of the principal and financial institution.
- The signatures of two witnesses must be present for each signature of the individuals authorised to sign surety on behalf of the principal and the financial institution.
- Each signatory and witness must initial each page of surety. They must also initial any changes made on the surety, except for the last page.
- A signatory must sign in her/his own capacity and not on behalf of someone else.
- The wording, terms, and conditions of the surety must not be changed.
- The corporate seal (stamp impression) of the financial institution must be on the surety.
- The financial institution must endorse its reference number on the surety.
Note: SARS will refuse the application if the surety is incorrectly completed or not signed by the principal, financial institution, or their witnesses.
When receiving the request letter from SARS, the trader must submit the bond within 14 business days. If not, SARS will refuse the application, and the trader must submit a new application.
How to Apply to Cancel the Bond
Before submitting their cancellation applications, taxpayers/clients who plan to do so at a Customs & Excise branch office — or through Registration, Licencing, and Accreditation (RLA) — must first resolve all outstanding obligations, e.g. acquittals and returns. SARS will refuse applications if the taxpayer has outstanding Customs & Excise obligations, including debt.
Submit cancellations (withdrawals) through RLA if the bond was onboarded/approved on RLA. If not, submit the application at the nearest Customs & Excise branch office.
Bond Withdrawal on RLA
When submitting a withdrawal application, upload the cancellation/withdrawal letter with the application.
What Are the Supporting Documents?
- The trader must give SARS a letter (on a letter head of the company) that shows:
- The resolution passed at a meeting of the board of directors and consent of the close corporation.
- The persons allowed to sign documentation, surety bonds, addendums, or instruments of security on behalf of the applicant.
- The should forward the completed surety bond and her/his permission letter from the company. To give SARS permission to withdraw the bond, traders should use either:
- eFiling, if the application was submitted to SARS on eFiling.
- E-mail (PDF copy) to [email protected] and [email protected] (if not submitted on eFiling).
- When SARS has checked that the surety bond has been completed correctly, we will ask the trader to deliver or courier the original bond to us.
Where Should Bonds Be Delivered?
Finance: Revenue Accounting
Lehae la SARS, 299 Bronkhorst street,
Nieuw Muckleneuk, Pretoria, 0181
Business hours: weekdays from 08:00–16:00.
Arrange to have the bond delivered or collected by emailing [email protected].
If SARS has not received the original bond documents at the address above after 14 days, we will refuse the application.
Frequently Asked Questions
Which client types require bonds to be given to SARS?
For Customs & Excise client types for whom SARS requires bonds, refer to the guide, SC-SE-05 — Bonds — External Policy.
For a new application, which bond form must I complete?
The forms are different for each client type. Refer to SC-SE-05 — Bonds — External Policy.
If I need to change the bond details, which form should I use?
Addendum to be completed. For the client type on the policy, refer to SC-SE-05 — Bonds — External Policy.
How do I replace the existing bond and change the financial institution?
Submit applications for Excise, Deferment, and Consignor manually. Visit your nearest customs office to submit the documents, including DA185, the relevant annexure, and supporting documents.
How do I withdraw the bond?
- AEO clients: the appointed customer relationship manager will facilitate the process.
- RLA applications: apply only on RLA.
- Manual applications: visit your nearest customs office for help. Bring the DA185 form, relevant annexures, and supporting documents.
How do I ask for proof of registration of an excise client only?
Send your request to the excise mailbox — [email protected] — and attach certified copies of the letter of authority, company resolution, and ID copies of the directors.
When will I get the bond back after cancellation?
To arrange to get the bond, email [email protected].
