SARS Excise division has published a second draft to amend rules under sections 21 and 60 of the act relating to the creation of a new warehousing type as "special customs and excise storage warehouse for imported fuel levy goods (land-based and sea-based)", the first draft was published for public comment on 11 December 2023, after receiving numerous inputs from the stakeholders, SARS reviewed and considered those public inputs.
A new draft of the rule amendments details the changes in approach. It refers to the new warehouse type description now as "ring-fenced for duty suspended warehousing of imported bunker fuel" and is called a "special customs and excise storage warehouse for imported bunker fuel".
Bunker fuel definition: is a distillate fuel (Diesel) and residual fuels used for supply to vessels. The proposed amendment in Part 1 of Schedule No.1 to Note 1(h) to Chapter 27 is to insert a requirement of a maximum of 0,5% m/m Sulphur content (Product Analysis) for purposes of residual fuel oil products intended for use in ships or boats as marine fuel or marine oil. It also outlines the permissible movements out of these licensed warehouses related to the bunkering of vessels –
- from sea-based: removal for export for supply as ship stores for use by foreign-going vessels.
- from land-based: removal for export for supply as ship stores for use by foreign-going vessels,
- removal for home use on payment of duty for supply to coasting vessels.
The new amendments strictly outline that "No re[1]warehousing is permitted." They also set out for licensed marine removers of imported bunker fuel to remove or transport imported bunker fuel to and from these warehouses.
There are two types of licensed marine removers that are suggested, namely –
- a licensed marine remover moving duty suspended imported bunker fuel to or from a special storage warehouse for imported bunker fuel (Bonded removals).
- a licensed marine remover moving duty paid imported bunker fuel from a special storage warehouse for imported bunker fuel (rebate/ refund after export has been proven).
Conclusion:
These amendments are in response to mitigate non-compliance relating to the bunkering services, especially cases at Algoa Bay were identified.
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