1. SOUTH AFRICAN REVENUE SERVICE CUSTOMS PROPOSED DEFERMENT MODEL

2. SARS CUSTOMS REVISED DEFERMENT MODEL
BACKGROUND
SARS CUSTOMS DEFERMENT DEFINITION UNDER THE NEW CUSTOMS DUTY ACT
BENEFITS FOR ACCREDITED SARS CUSTOMS CLIENTS
REVISED DRAFT DEFERMENT MODEL
TRANSITIONAL RULES

3. BACKGROUND 6TH FEB 2015 NOTICE ISSUED PROPOSING A SINGLE PAYMENT DATE
SAAFF CONSULTATION WITH MEMBERS REQUESTED STATUS QUO TO BE MAINTAINED
20 MAY 2015 SARS CUSTOMS INFORMS THAT IMPLEMENTATION OF THE PROPOSAL HAS BEEN POSTPONED
9TH JUNE, 27 MONTHS LATER SARS PUBLISHES
A REVISED DRAFT DEFERMENT MODEL
COMMENT DUE 31 July 2017

4. DEFERMENT DEFINITION UNDER THE NEW DUTY ACT
“deferment account” means an account allocated by the customs authority to a deferment benefit holder for administering the payment of duties in terms of the deferment benefit granted to that person;
“deferment benefit holder” means a person liable for the payment of duty or a customs broker to whom a duty deferment benefit has been granted in terms of section 24 of the Customs Duty Act;

6. BENEFITS FOR A SARS CUSTOMS ACCREDITED CLIENT
682. (1) The Commissioner may by rule prescribe the benefits of persons on whom
accredited client status has been conferred, which may include—
(a) exemption from specific requirements of this Act or a tax levying Act;
(b) clearing and obtaining release of goods in accordance with simplified or
expedited clearance and release requirements;
(c) submitting and obtaining customs processing of documents in accordance
with simplified or expedited processes;
(d) deferment of tax on goods; and
(e) simplified tax payment methods.

7. Customs District Office..n
End State Deferment Model: Traders have will have the ability to rationalise FANs
Risk Management
Legal Entity
Involves holistic risk management of the Entity
Limits are consolidated into one Single Limit
Surety is taken against this Single Limit.
Customs
Single limit
Consolidated surety
Cash Flow Management
Each Facility has its own Payment Date
Each Facility is independently managed ….
Account 1
Facility 1
Payment Date 2
Account 2
Facility 2
Payment Date 2
Account n
Facility n
Payment Date 3
Duplicate accounts can be removed
Operational Management
Customs District
Office 1
Customs District
Office 2
Customs District Office..n
Deferment is available to all Ports of Entry
Traders can assign Ports to a Facility

8. REVISED DRAFT DEFERMENT MODEL PROPOSES
THREE FIXED DEFERMENT PAYMENT DATES 7; 15th and 21st.
SARS FINANCIAL YEAR-END PAYMENT DATE FIXED AS 29TH MARCH.
NATIONAL MAXIMUM DEFERMENT FACILITY ALLOWS FOR:
SINGLE VIEW; PER REGISTERED LEGAL ENTITY; NATIONAL LIMIT; CONSOLIDATED SURETY; AND

9. REVISED DRAFT DEFERMENT MODEL PROPOSES
TRADERS CAN NOW TRADE AT ALL PORTS OF ENTRY.
SEPARATE DEFERMENT FACILITY AT EACH PORT OF ENTRY WITH EACH FACILITY WITH OWN PAYMENT DATE; AND
CONSOLIDATED FACILITIES WITH SEPARATE PAYMENT DATE PER CONSOLIDATED FACILITY.

10. REVISED DRAFT DEFERMENT MODEL PROPOSES
SECURITY IS RISK ASSESSED AGAINST ALL TAX TYPES.
FACILITY TO BE RE-ASSESSED EVERY 3 YEARS.

11. REVISED DRAFT DEFERMENT PROPOSES
DEFERMENT ONLY APPLICABLE TO DECLARATIONS UNDER THE HOME USE PROCEDURE (OLD STRAIGHT FORWARD DUTY PAID)
ALL OTHER PURPOSE CODES TO BE PAID CASH (OLD EX WAREHOUSE XDP, XIR; REBATE CLEARANCES ETC)
AMENDED DECLARATIONS – VOC – MAY ONLY BE DEFERRED IF PROCESSED IN THE SAME DEFERMENT PERIOD AS THE PRIME DECLARATION. OTHERWISE PAY CASH AND INTEREST.

12. TRANSITIONAL RULES
APPLICATION FOR DEFERMENT FACILITY BEFORE THE CUSTOMS DUTY ACT COMES INTO EFFECT IS PROVIDED FOR.
TO FACILITATE TRANSITION IT HAS BEEN RECOMMENDED THAT SARS CREATE AN ADDENDUM TO ACCOMMODATE NEW BOND REQUIREMENTS WITH EXISTING BONDS