Acts Online
GT Shield

Customs and Excise Act, 1964 (Act No. 91 of 1964)

Chapter IV : Customs and Excise Warehouses; Storage and Manufacture of goods in Customs and Excise Warehouses

19A. Special provision in respect of customs and excise warehouses in which excisable or fuel levy goods are manufactured or stored

 

(1)
(a) Notwithstanding anything to the contrary contained in this Act the Commissioner may by rule, in respect of any excisable goods specified in Section A of Part 2 of Schedule No. 1 or fuel levy goods or any class or kind of such goods manufactured in the Republic—
(i) determine whether any such goods specified in such rule shall be entered or deemed to have been entered for home consumption at the time of issuing any prescribed document and removal from, or on receipt in, or at any time determined in such rule in respect of—
(aa) any customs and excise manufacturing warehouse;
(bb) any customs and excise manufacturing warehouse to which the goods have been removed from any other such warehouse after a particular stage of manufacture during the process of manufacture of any such goods; or
(cc) any customs and excise storage warehouse licensed by the Commissioner for any special or limited purpose to which such goods are allowed to be removed by the Commissioner after manufacture;
(ii) restrict the licensing of customs and excise storage warehouses in respect of such goods or any class or kind of such goods to such persons and for such special or limited purposes as may be specified in such rule;
(iii) prescribe—
(aa) the time and manner of payment of duty in respect of goods so entered or deemed to have been so entered;
(bb) any deferment of payment of duty, the conditions on which such deferment is granted and the period, or differentiated periods of deferment, in respect of any licensee or any class or kind of such goods;
(cc) the accounts to be kept and the accounts and other documents to be submitted with such payment;
(dd) any procedures or requirements or documents relating to the entry and removal of goods from and to any such customs and excise warehouse or for export or for use under rebate of duty;
(ee) all other matters which are required or permitted in terms of this section to be prescribed by rule;
(eeA) [Section 19A(1)(a)(iii)(eeA) deleted]
(ff) any other matter which the Commissioner may consider necessary and useful to achieve the effective and efficient administration of the provisions of this section.
(b) Except as otherwise provided in this section or in any such rule, the provisions of section 38(4) shall apply mutatis mutandis to any goods removed from any customs and excise warehouse as contemplated in paragraph (a).
(c) Notwithstanding anything to the contrary in this Act contained, goods in a customs and excise manufacturing warehouse which have been entered or deemed to have been entered for home consumption on the date of receipt in such warehouse or at the time prescribed as contemplated in paragraph (a)(i) or any goods manufactured from such goods may, subject to such conditions and procedures as the Commissioner may prescribe by rule, be removed in bond or exported from such warehouse by the licensee, as if such goods have not been so entered or deemed to have been so entered for home consumption.

 

(2) If any duty is not paid on the date prescribed in the rules for this section, the amount unpaid shall constitute a debt due to the State, and—
(a) the Commissioner may, without prior notice to the licensee—
(i) where payment is not made on or before the prescribed date on two occasions in a calendar year, prohibit for any reasonable period the removal of any goods from such warehouse unless the goods are duly entered and the duty paid prior to such removal;
(ii) claim the amount from the surety where security is furnished in the form of a surety bond or take such legal steps, including enforcement of the provisions of the Act, as the Commissioner may deem necessary and appropriate in the circumstances;
(b) the licensee shall—
(i) notwithstanding the provisions of section 91, but subject to the provisions of section 93, be liable to payment of an amount not exceeding 10 per cent of the duty concerned as a penalty;
(ii) be liable to interest from the day following the date on which payment should have been made as contemplated in section 105;
(c) the Commissioner may impose any reasonable conditions when removing the prohibition referred to in paragraph (a)(i).

 

(3)
(a) When this section comes into operation the excisable or fuel levy goods concerned shall not be removed to any customs and excise warehouse unless such warehouse is another such manufacturing warehouse or a storage warehouse licensed for any special or limited purpose as contemplated in subsection (1).
(b) The Commissioner may—
(i) approve any existing licence for any customs and excise storage warehouse as a storage warehouse for such special or limited purposes;
(ii) cancel the licence of any customs and excise storage warehouse which is not licensed for such special or limited purpose within three months after the date upon which this section comes into operation or within any longer period as the Commissioner may on good cause shown consider reasonable.

 

(4)
(a) The Commissioner may allow any imported goods to be mixed with locally produced excisable or fuel levy goods of the same class or kind in a customs and excise manufacturing warehouse licensed for the manufacture of such locally-produced goods on payment of any difference in duty between the duty leviable on such imported goods and locally-produced goods.
(b) Notwithstanding anything to the contrary in this Act contained, any such goods when so mixed shall be subject to the duties leviable and the manufacturing, accounting and removal procedures prescribed in terms of this Act in respect of excisable goods or fuel levy goods, as the case may be, manufactured in such warehouse.