Customs Tax Status of Goods

            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.

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