Perhaps the easiest way to distinguish between the numerous types of clearances involving the term “Home Use” is to make a distinction between:
1) Clearance of goods “for” Home Use; versus
2) Clearance “of” Home Use goods
Clearance “for” Home Use would involve the importation and clearance of goods into ‘free circulation’ in South Africa.
Clearance “of” Home Use goods would involve the clearance of goods already in ‘free circulation’ for exportation from South Africa.
The “Home Use” Procedure (i.e. importation) is Procedure Category Code A (discussed in former blog posts). These types of clearances may involve import Duty Paid or General Rebate clearance of goods.
Goods termed as “free circulation” goods are goods no longer subject to Customs control.
“Home Use” Procedure goods attract a “Tax Due” status. Import duties and taxes must be paid. Once all duties and taxes are paid, and all Customs formalities are complete, and a Customs Release Notification is granted, such goods are said to be in “free circulation”.
Also visit our Customs Compliance website http://www.cuscom-it.com
The Customs Procedure Codes (CPC) and the Tax Status of goods are inextricably linked. The CPC codes indicate what the Tax Status of goods are.
“export taxes from South Africa may become levied for the first time…”
The following definitions are important in understanding the concept of Tax Status in the new Customs Control Act:
“Tax” is defined as “an import tax, export tax or domestic tax on goods”.
“Taxable” indicates that an “import or export tax has been imposed… in terms of a tax levying Act”.
“Tax Levying Act” means any legislation other than the Customs Control Act on which tax is levied. It includes any international agreements to which other legislation applies. It particularly includes the:
– Customs Duty Act
– Value-added Tax Act
– Excise Duty Act
– Diamond Export Levy Act
– Diamond Export Levy Administration Act
A Tax Status may be conferred on Home Use goods or goods which attract any other Customs Procedure. The following Tax Statuses may apply to goods:
– Tax Due Status
– Tax Free Status (of tax imposed)
– Tax Refundable Status (on domestic tax such as VAT and Excise duty)
The Customs Duty Act also makes reference to a “Partial Tax Due Status”.
An interesting development at SARS over the past few years has being the imposition of environmental levies on goods such as plastic bags, tyres, and CO2 tax on motor vehicles.
Industry rumors are abound that export taxes from South Africa may become levied for the first time in a number of decades. The new Customs legislation makes sufficient provision for the possibility of export taxes.