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

Customs and Excise Rules

Chapter IV : Customs and Excise Warehouses: Storage and Goods in Customs and Excise Warehouses

Rules for Section 37A of the Act

Special provisions in respect of marked goods and certain goods that are free of duty

Goods to be marked and marked goods

 

37A.01

(a) Only unmarked goods referred to in section 37A(2)(c)(ii) when marked by the addition of a marker by an approved licensee of an approved customs and excise warehouse as required by section 37A(2)(a) and prescribed in these rules shall constitute marked goods referred to in section 37A(2)(c)(i).
(b) The marker shall be the substance supplied under the trade name Authentix A1 by Authentix Inc. which shall be so added in a proportion equal to or exceeding 20 milligrams of the marker per litre of the unmarked goods.
(c) For the purposes of section 37A(2)(c)(iii) any goods shall be deemed to contain marked goods when such goods contain a proportion of such marker which is equal to or exceeds 1 milligram of the marker per litre.

 

37A.02

(a) Any imported unmarked goods intended to be marked and any imported goods which are free of duty as contemplated in section 37A(1)(a) shall be entered for storage in a customs and excise warehouse on forms SAD 500 (WH) and SAD 505.
(b) When any quantity of imported unmarked goods have been marked such form SAD 500 shall be amended by voucher of correction reflecting the description and tariff heading or subheading and item for marked goods in respect of such quantity.
(c) Such voucher of correction shall be supported by a declaration by the licensee of the customs and excise warehouse where the unmarked goods were marked similar in form and content to the declaration to be furnished in terms of paragraph (f).

(d)

(i) If any imported goods referred to in paragraph (a) are mixed with locally manufactured goods of the same class or kind in the circumstances contemplated in section 37(7), such goods may be accounted for in accordance with the provisions relating to locally manufactured goods.
(ii) In addition to the record required to be kept in terms of rules 37A.03(b), a licensee of a customs and excise warehouse shall keep additional records and stock accounts of unmarked goods and goods marked and aviation kerosene referred to in rule 37A.1 2, for accounting of all such goods manufactured, received or marked in, and removed from such warehouse.
(e) For the purposes of section 37A(2)(b)—
(i) any unmarked goods which have been marked and any other imported goods which are free of duty as contemplated in section 37A(1)(a) shall be deemed to be and referred to in these rules as specified imported goods for the purposes of application of sections 38(4) and 39(2A);
(ii) in applying the provisions of section 38(4) and 39(2A) the rules relating to the removal of excisable mineral oils from a customs and excise warehouse shall mutatis mutandis apply to the removal from such warehouse of any marked goods or other goods which are free of duty as contemplated in section 37A(1)(a), whether specified imported goods or goods manufactured in the Republic except that—
(aa) the mutatis mutandis application of the provisions of rules 36.04, 36.05(a) and 36.06, in respect of any invoice issued for excisable mineral oils as provided in rule 27.31, shall be subject to the provisions of rules 37A.06 if the goods concerned are marked goods;
(bb) separate accounts and other documents relating to the removal of each of such goods shall be completed and presented to the Controller as required;
(cc) If specified imported goods are removed from such warehouse for rewarehousing, removal in bond or for export such goods shall be entered according to the provisions applicable to any such removal of dutiable imported goods;
(dd) a SAD 500 shall be presented to the Controller with each of the monthly accounts for such goods.
(f) Every licensee of a customs and excise warehouse shall include a statement with every such account and bill of entry presented to the Controller in respect of marked goods declared as having been removed from such warehouse during the stated period that at the time of removal all such marked goods—
(i) were properly marked and contained a proportion equal to or exceeding 20 milligrams of the marker per litre of the unmarked goods as required by rule 37A.01;
(ii) did not have any substance present therein which or the colour of which could prevent or impede the detection of such marker;
(iii) did not have any substance present therein that could remove or neutralise such marker.

 

37A.03

(a) The licensee of the customs and excise warehouse shall, before use, keep the marker—
(i) separate from all other substances and in a secured storage area; and
(ii) except when removed for immediate use, either in a tank or in other containers, in either case bearing or labelled with a description of the contents.
(b) Such licensee shall keep—
(i) a certified record of the quantity of the marker which is received, stored and used in which is recorded not later than the close of business on the working day following that on which the marker has been received and used—
(aa) the date of receipt, the person from whom received, the description and quantity of the marker received; and
(bb) the quantity of marker used each day or whenever marking takes place and the quantity in litres of unmarked goods to which those quantities of marker have been added;
(ii) a certified balanced stock account made up to the end of each calendar month showing the quantity and description of the marker which is stored for use or is in use at the time of stocktaking, the quantity used, and the quantity of unmarked goods marked with such marker.
(c) Unless the Commissioner may otherwise allow, the record shall be kept at the said customs and excise warehouse.
(d) Such licensee shall keep such record available for at least three years from the date of the last entry therein for inspection on demand by an officer.

 

37A.04

(a) Marking of goods must be by one of the following methods—
(i) in line on receipt into main storage;
(ii) in bulk direct into main storage;
(iii) in line on removal from main storage to segregated storage;
(iv) subject to such conditions as the Commissioner may in each case impose, by injector on delivery from the customs and excise warehouse.
(b) The licensee of the customs and excise warehouse must ensure that equipment used for adding the marker to unmarked goods is—
(i) maintained in good working order;
(ii) secured against interference;
(iii) regularly tested and recalibrated if necessary.

 

37A.05 Marked goods shall at all times be stored in tanks or containers separate from those tanks or containers used for the storage of unmarked goods.