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 19A of the Act

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

Rules in respect of Spirits

Clearance of spirits received in a VMS warehouse and payment of duty

Purchase

19A3.03

(a)

Whenever goods referred to in these rules are removed in bond from a VMP warehouse to a VMS warehouse on issuing form SAD 500 (ZIB), the licensee of the VMS warehouse must submit for processing a duly completed form SAD 500 (ZRW) to the Controller in respect of goods received within 14 days after the date of removal of those goods from the premises of the VMP warehouse for delivery to the VMS warehouse.

(b)

(i)	For the purposes of section 19A(1)(a)(i), all spirits received in the VMS warehouse from a VMP warehouse during any accounting month shall be deemed to have been entered for home consumption on the date of closing of accounts as prescribed in rule 19A.06.

(ii)	The stock account duly completed in respect of all the spirits received during such accounting month shall, subject to compliance with the provisions of section 38(4), be deemed to be due entry of such spirits.

(c)	Only spirits that have been blended and stabilised (spirituous beverages) may be removed from a VMS warehouse for purposes of home consumption.

(d)

(i)	Subject to paragraph (e), from the quantity removed from—

(aa)	a customs and excise storage warehouse (OS) for imported goods or from a VMP to a VMS warehouse, there may be deducted by the licensee of the VMS warehouse 1,5 per cent as contemplated in section 75(18)(a) and 0,25 per cent as contemplated in section 75(18)(b)(i); or

(bb)	a SVM warehouse to a VMS warehouse, there may be deducted by the licensee of a VMS warehouse 1,5 per cent only as contemplated in section 75(18)(a).

(ii)	The SVM warehouse referred to in subparagraph (i), means an SVM warehouse in which a final product of fermentation produced therein is stripped as contemplated in Additional Note 4 to Chapter 22 of Part 1 of Schedule No. 1 and removed to a VMS warehouse.

(e)	The 1,5 per cent referred to in paragraph (d) is only deductible in respect of spirits used for blending and stabilising and the quantity of spirits so used must be specified on form DA 260.

(f)

An excise account on prescribed form DA 260 and its schedules, in respect of the excise duty payable on the spirits received from the VMP warehouse during the relevant accounting month and deemed to have been entered for home consumption as contemplated in paragraph (b), which is to be specified in such form, together with the validating form SAD 500, must be submitted by the licensee of the VMS warehouse to reach the Controller within 30 days after the date of closing of accounts, during the hours of business prescribed in item 201.20 of the Schedule to the Rules for acceptance of SAD forms and for receipt of duties and other revenue.

(g)

(i)	The excise duty payable as calculated on form DA 260 and entered on form SAD 500 must be paid to the Controller in respect of such spirits—

(aa)	blended into blends not containing at least 25 per cent alcohol by volume matured spirits, within 110 days after the end of such accounting month;

(bb)	blended into blends containing at least 25 per cent alcohol by volume matured spirits, within 130 days after the end of such accounting month; and

(cc)	not blended into blends as described in paragraph (aa) and (bb), within 110 days after the end of such accounting month.

(ii)	Payment of such excise duty must reach the Controller within the specified periods during the hours of business prescribed in item 201.20 of the Schedule to the Rules for acceptance of bills of entry and for receipt of duties and other revenue.

(iii)

If payment is made by electronic funds transfer, proof of payment must be submitted to reach the Controller during the periods and the hours of business specified in paragraph (f).

(h)

(i)

For the purpose of section 19A(1)(c), the quantity of spirits in spirituous beverages removed in bond or exported from a VMS warehouse after entry or deemed entry for home consumption may, after liability has ceased as contemplated in rule 19A.09, be deducted from the quantity of spirits received in such VMS warehouse and accounted for on form DA 260 for payment of excise duty in any subsequent month, provided the licensee proves that the rate of duty applicable at the time the spirits were so entered and removed or exported is the same as the rate applicable to the quantity of spirits so accounted for on the relevant form DA 260 for payment of excise duty.

(ii)	Where the licensee produces such proof and such rate differs, an appropriate adjustment must be made on form DA 260 in respect of the excise duty payable.

(iii)

Where the licensee is unable to produce proof of such rate of duty in respect of the spirits so removed in bond or exported, the lowest rate applicable during a period of 12 months prior to the date on which the spirits were so entered for removal in bond or for export must, for the purposes of section 75(11A), be used for determining any adjustment to the excise duty payable for such accounting month.