Customs and Excise Act, 1964 (Act No. 91 of 1964)Chapter VII : Amendment of Duties58A. Anti-forestalling measures in respect of anticipated increased in excise duties |
| (1) | For purposes of this section— |
‘‘controlled period’’ means a period leading up to an anticipated increase in the rate of duty on excisable goods, as may be determined by the Commissioner in terms of subsection (5)(a)(ii) for the purpose of applying this section; and
‘‘duty forestalling’’ means the practice of entering excisable goods for home consumption in quantities exceeding the quantities determined, as contemplated in subsection (2), during a period leading up to an anticipated increase in the rate of excise duty, thereby avoiding the payment of the increased rate of duty when that increase becomes effective.
| (2) | In order to combat duty forestalling in respect of an anticipated increase in the rate of duty on excisable goods, the Commissioner may limit the quantities of excisable goods that may be entered for home consumption during a controlled period to such quantities as may be determined in accordance with a formula prescribed by rule in terms of subsection (5)(b)(i). |
| (3) | No person may during a controlled period enter excisable goods for home consumption in excess of the quantities contemplated in subsection (2), unless the Commissioner approves the entry of such excess quantity in exceptional circumstances. |
| (4) | A person who contravenes subsection (3) is guilty of an offence and is liable on conviction to a fine not exceeding R20 000 or treble the value of the goods cleared in excess of the quantities contemplated in subsection (2), whichever is the greater, and the goods cleared in excess of the relevant quantity shall be liable to forfeiture. |
| (5) | The Commissioner may make rules for the effective implementation of this section, including rules to— |
| (a) | determine— |
| (i) | the kind or description of the excisable goods to which this section applies, taking into account the prevalence of duty forestalling in the particular industry; and |
| (ii) | the controlled period during which this section is applied, which period may not exceed three months; and |
| (b) | prescribe— |
| (i) | the formula to be used for calculating the quantity of excisable goods that may be entered for home consumption during the controlled period, taking into account the average amount of entries for home consumption per product per registered importer or licenced manufacturing warehouse, calculated over a period sufficiently long to reflect seasonal fluctuations; and |
| (ii) | the penalties that may be imposed for an offence referred to in subsection (4). |
[Section 58A inserted by section 5(1) of Notice No. 16, GG 42169, dated 17 January 2019 (Tax Administration Laws Amendment Act, 2018 (Act No. 22 of 2018) - takes effect on a date to be determined by the Minister by Notice in the Government Gazette]