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

Customs and excise warehouses which may be licensed for the primary manufacture (VMP), secondary manufacture (VMS) or storage of spirits
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19A3.01

(a)

(i)These rules are additional to the general rules numbered 19A.
(ii)Unless the context otherwise indicates or where otherwise specified, for the purpose of the rules in respect of spirits—

 

"blend"

means the combination of two or more different substances, including spirits, to obtain one potable product;

 

"matured spirits"

means spirits stored in wooden vats for a period of at least three years to allow the said spirits to mature;

 

"mixture"

means the combination of two or more spirituous products of the same class or kind to obtain a product of a consistently acceptable standard;

 

"spirits"

includes spirituous products;

 

"spirituous products"

includes spirituous beverages;

 

"stabilisation"

means storage of a blend or mixture for a period of time to allow the combined product to become stable;

 

"VMP warehouse"

means a customs and excise manufacturing warehouse for primary production of spirits used for the activities prescribed in these rules;

 

"VMS warehouse"

means a customs and excise manufacturing warehouse for secondary production of spirits used for the activities prescribed in these rules.

 

(iii)When accounting for any quantity of spirits in terms of any provision of these rules, such quantity must be expressed in litres of absolute alcohol at 20°C.
(b)A customs and excise warehouse for the manufacture or storage of spirits may be licensed only as a—
(i)manufacturing warehouse for primary production of spirits (VMP warehouse);
(ii)manufacturing warehouse for secondary production of spirits (VMS warehouse) for use in spirituous beverages;
(iii)special customs and excise storage warehouse for the storage of spirits for export, which may be for—
(aa)unpacked spirits; or
(bb)packed spirits.
(iv)special customs and excise storage warehouse for the storage of spirits for supply to any other special customs and excise storage warehouse licensed as a duty free shop or for the supply of dutiable goods to foreign-going ships and aircraft;

(v)

(aa)special customs and excise storage warehouse licensed for full or partial denaturing of spirits, and supply of such partially denatured spirits to
(A)rebate users registered as contemplated in the rules for section 59A to obtain such spirits under rebate of duty in terms of the provisions of item 621.08 of Schedule No. 6 for the manufacture of other goods or for such other purposes as may be specified in such item;
(B)any warehouse contemplated in subparagraph (bb); or
(C)export such denatured spirits.
(bb)special customs and excise storage warehouse licensed for packing or repacking of undernatured and partially denatured spirits for supply to rebate users registered as contemplated in subparagraph (aa).
(cc)special customs and excise storage warehouse for the storage of spirits for supply to rebate users registered as contemplated in the rules for section 59A.

[Rule 19A3.01(b)(v)(cc) inserted by Notice No. R. 1081 GG41165, dated 6 October 2017]

(c)

(i)Manufacture of spirits from the distillation or re-distillation of any substance must take place in a VMP warehouse; and
(ii)the following additional activities may take place in a VMP warehouse.
(aa)re-distillation of spirits (including gin distillation);
(bb)maturation of spirits;
(cc)maceration of spirits;
(dd)mixing of the same types of spirits to obtain consistent quality standards.

(d)

(i)Blending and stabilising of spirits must, and in addition, bottling and packaging of spirits may, take place in a VMS warehouse
(ii)Any installation used only for bottling and packaging of spirits will not be licensed as a VMS warehouses.
(e)For the purposes of section 19A(1)(a)(ii), spirits stored in a customs and excise storage warehouse as contemplated in paragraph (b)(iii), (iv) or (v) may not be removed from such warehouse for home consumption and payment of duty, except if—
(i)the Commissioner on good cause shown, and subject to such conditions as he may impose in each case, permits such removal;
(ii)the goods are required to be removed from such warehouse in terms of the provisions of section 19(9); and
(iii)in the case of (b)(v), such spirits are removed to a registered rebate user as contemplated in that paragraph.

 

19A3.02

(a)
(i)Where spirits are removed from a VMP warehouse for home consumption and payment of duty, the invoice or dispatch delivery note duly completed and issued as contemplated in rule 19A.04, shall, subject to compliance with the provisions of section 38(4), be deemed to be due entry for home consumption of such spirits.

(ii)

(aa)In accordance with rule 19A.06, the excise account on prescribed form DA 260 and its schedules, in respect of the relevant accounting month, which is to be specified in such form, together with the form SAD 500 must be submitted by the licensee of the VMP warehouse and the excise duty as calculated on form DA 260 paid by the licensee of the VMP warehouse to reach the Controller within 30 days after the date or last day contemplated in rule 19A.06(b)(i), but not later than the penultimate working day of the month following such date or day 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.
(bb)If payment is made by electronic funds transfer, proof of payment must be submitted to reach the Controller during the period and the hours of business specified in subparagraph (aa).

(b)

(i)The quantity of spirits removed in bond or exported from a VMP warehouse may, where liability has ceased as contemplated in rule 19A.09, be deducted by the licensee of such warehouse from the quantity of spirits accounted for, provided the rate of duty leviable at the time the spirits were so entered for removal in bond or for export is the same as the rate applicable to the quantity of spirits so accounted for on such form DA 260.
(ii)where such rates differ an appropriate adjustment must be made on form DA 260 in respect of the excise duty payable.