Latest news with #CustomsandExciseAct
The Star
6 days ago
- Business
- The Star
Mantashe promises to tackle fuel tampering after R3. 6 billion loss
Mthobisi Nozulela | Published 2 hours ago Minister of Mineral and Petroleum Resources, Gwede Mantashe, has revealed that plans are in place to continuously root out petrol stations selling adulterated fuel across the country. The country has been struggling with widespread fuel adulteration and illegal smuggling for several years, costing the country around R 3.6 billion annually. According to the South African Revenue Service (SARS), criminals are mixing diesel with cheaper substances like paraffin and under-declaring fuel imports to evade taxes. In response, government agencies, including SARS and the police, have stepped up joint operations in recent years, shutting down illegal depots and seizing millions of litres of contaminated diesel. However, the problem still persists. 'The criminal syndicates engaged in these brazen acts have become emboldened to act callously with no restraint in pursuit of their rapacious and criminal gains," SARS Commissioner Edward Kieswetter said earlier this year. In a recent parliamentary reply, Mantashe revealed that the Department has established a fuel sampling and testing programme. "The Department of Mineral and Petroleum Resources (DMPR) has established a fuel sampling and testing programme, mandated by the Regulations Regarding Petroleum Products Specifications and Standards," Mantashe said. The minister added that the department also conducts both random and scheduled fuel sampling and testing to verify compliance. "As part of this programme, the department conducts random and scheduled fuel sampling and testing for compliance with the minimum specifications and standards at retail and wholesale depot outlets. This process is carried out routinely and operates independently of the petroleum industry's own fuel quality monitoring systems" Mantashe emphasised that the department's fuel testing and enforcement programmes will continue to protect consumers and ensure compliance throughout the fuel supply chain. "The Department, in collaboration with the South African Revenue Service (SARS), is responsible for ensuring that fuel distributed in the country complies with national fuel specifications and standards. Fuel distributed by licensed wholesalers and retailers, particularly illuminating paraffin, is marked with the Authentix A1 Marker 'A1 Marker'. "This chemical marker is used to trace the presence of Illuminating Paraffin (IP) in diesel. The A1 Marker is a multi-layered chemical security solution used to detect fuel tampering throughout the value chain, as required by the Customs and Excise Act" IOL Business [email protected] Get your news on the go, click here to join the IOL News WhatsApp channel
TimesLIVE
31-07-2025
- Business
- TimesLIVE
Shop fined R600,000 over cigarettes must donate 504 desks to schools
A Mpumalanga store found guilty of selling illicit cigarettes has been fined R600,000 and ordered to buy 504 durable, high-quality double-seater desks for local schools. Initially, the shopkeeper and two directors of the business were charged but charges were withdrawn against the individuals after the company directors entered a plea bargain with the state, and only the company was charged. According to Mpumalanga Hawks spokesperson Col Magoseni Nkosi, more than 4,000 packets of illicit cigarettes valued at R107,700 were seized during a raid in September 2024. The shopkeeper, Riaz Moolla, 42, was arrested by the Hawks Secunda-based Serious Commercial Crime Investigation unit. The two company directors, Fatima Moolla, 62, and Suliman Ismail Moolla, 67, were also charged. The provincial head of the Directorate for Priority Crime Investigation, Maj-Gen Nico Gerber commended the investigation team, the National Prosecuting Authority (NPA) and the judiciary for their hard work on the case. 'It is an interesting sentence. Criminals are again out of pocket due to their crimes. The community is benefiting from this sentence, and it will definitely help the next generation in their education,' Gerber said. The company was sentenced for contravention of the Tobacco Products Act, contravention of the Customs and Excise Act and contravention of the VAT Act. The company was given three months to comply with the judgment.
IOL News
07-07-2025
- Business
- IOL News
SA Revenue Service imposes new excise duty on vaping liquid
A news customs duty has been slapped on vaping liquid, which will result in higher prices. On Friday the South African Revenue Service (SARS) introduced important amendments to the Customs and Excise Act, 1964, aimed at tightening the regulation of electronic cigarettes and vaping products. These changes, reflected in amendments to Schedule No. 1 (Parts 1 and 2A) and Schedule No. 6 (Part 1E), include the insertion of new tariff subheadings, the introduction of an excise duty on vaping liquid, and the implementation of new rebate provisions for defective or exported products. XA Global Trade Advisors explained that under the amended tariff structure, a new subheading, 8543.40.10, has been inserted to specifically classify vaping devices presented with vaping liquid, whether or not the liquid contains nicotine. The customs duty applicable to this subheading is currently set at free for imports under the general rate and under all listed trade agreements. However, while the customs duty is zero, SA Revenue Service (Sars) has introduced a new excise duty under Tariff Item 116.10.10, applicable to vaping liquid contained within such devices. A rate of R3.18 per millilitre now applies, making it critical for importers and manufacturers to recalculate their pricing structures accordingly. To ensure clarity regarding how this duty applies, Note 5 was inserted into Section A of Part 2A of Schedule No. 1. This note explicitly states that the rate of excise duty listed (R3.18/ml) is only applicable to the liquid component of the vaping device, not the hardware itself. These changes collectively ensure that vaping devices with prefilled liquid are clearly classified and taxed in line with existing excise policies for tobacco and substitute products. XA Global Trade Advisors said in line with the above adjustments, Sars also introduced three new rebate provisions under Schedule No. 6: Rebate Items 622.24, 622.25, and 622.26. These items allow for full duty refunds on vaping devices that are returned due to manufacturing defects, post-manufacturing deterioration, or contamination, or where devices are exported directly from a licensed customs and excise warehouse. To qualify, importers or manufacturers must meet several requirements, including ensuring that returned products are in sealed wholesale packaging, accompanied by a credit note, and returned within 12 months of removal from the warehouse. Furthermore, any reprocessing or destruction of returned products must occur under Sars supervision, with accurate records maintained throughout. XA Global Trade Advisors said these regulatory changes reflect Sars's commitment to stricter excise compliance in the vaping sector and signal an alignment with the treatment of traditional tobacco products. Businesses dealing in electronic vaping devices, particularly those importing prefilled or disposable units, must ensure that they are properly licensed, registered under the correct rebate provisions, and compliant with the administrative requirements set out in the latest amendments. According to Statista, in South Africa, the revenue in the e-cigarettes market is projected to reach $690.4 million (R12.3 billion) in 2025. This market is expected to experience an annual growth rate of 2.44% (CAGR 2025-2030).
IOL News
02-07-2025
- IOL News
Counterfeit alcohol trade surges
Gauteng police recently acted on a tip-off, leading to the closure of an illegal alcohol manufacturing facility in Jeppestown. Image: Gauteng SAPS/X The escalating crisis of counterfeit goods in South Africa has intensified calls for urgent measures to combat organised crime, following a series of high-profile arrests linked to illicit alcohol trade syndicates. Recent statistics reveal a staggering 55% increase in illegal alcohol volumes since 2017, prompting officials and activists alike to classify the situation as a national crisis. Last month IOL reported that the Drinks Federation of South Africa (DF-SA) found that the volume of counterfeit alcohol in the country reached 773 000 hectolitres in 2024. This surge has coincided with several police operations aimed at dismantling the networks behind these illegal products after Gauteng police, on Monday, acting on a tip-off conducted a raid in the city centre which led to the closure of an illegal alcohol manufacturing facility in Jeppestown. During this operation, authorities uncovered millions of rands worth of counterfeit alcohol, including fake whiskey, vodka, and gin, as well as counterfeit labels and packaging worth R3.5 million. Colonel Dimakatso Nevhuhulwi of the Gauteng police confirmed that six suspects were arrested, including a man who presented a dubious liquor license from Mpumalanga. "Upon arrival at the said premises, the team was met by a man who claimed to be the owner of the business and further produced a liquor license which was for a Mpumalanga-based establishment. Following a search of the property, the team discovered the manufacturing and production of whiskey, vodka, and gin, including the reprint of counterfeit labels and packaging," stated Nevhuhulwi. At the weekend, police in Bloemfontein in the Free State confirmed the arrest of six foreign nationals after confiscating counterfeit goods valued at more than R19 million during raids in the CBD. Reacting to the raids in the Free State, National police spokesperson, Amanda Van Wyk, revealed that the search and seizure warrants were executed in accordance with the Customs and Excise Act at targeted shops. The arrests in Bloemfontein and Johannesburg were preceded by the arrest of a 31-year-old man who was arrested last week for allegedly manufacturing and illegally distributing counterfeit alcohol at his home in Klaarwater, Mariannhill, west of Durban. During the raid, KZN police confiscated counterfeit vodka with a street value of R250 000, which was found being manufactured at the site. At the time, police spokesperson Captain Carmen Rhynes indicated that members of the provincial organised crime, the provincial drugs and firearm unit, and the provincial counterfeit goods unit were instrumental in the arrest. "Members of the Provincial Organised Crime Unit (Narcotics), assisted by the Provincial Drug and Firearm Unit and the Provincial Counterfeit Goods Unit, acted on intelligence-driven information regarding the manufacturing and illegal distribution of counterfeit alcohol, specifically vodka, in the Klaarwater area in Mariannhill, Durban. They executed a search warrant at the identified premises and a suspect of 31 years of age was found on site and placed immediately under arrest for the contravention of the Liquor Act and the Counterfeit Goods Act," Rhymes said. Reacting to the latest incidents of illicit proliferation of counterfeit booze, anti-crime activist Yusuf Abramjee said that SARS estimates the proliferation of illegal alcohol costs the country's economy over R11 billion in lost annual excise tax revenue. "The illicit alcohol trade is completely unregulated, and apart from the massive revenue losses, this leads to numerous social issues. People are being sold dodgy alcohol that potentially contains fatal ingredients. It isn't regulated, and criminals don't care what they're selling as long as they make a profit. Meanwhile, criminals are stealing the taxes that are meant to pay for vital services such as schools, hospitals, and housing," Abramjee stated. Abramjee has attributed the increase to a lack of stringent law enforcement efforts within and across SA borders, which he said contributes directly to the flows of illicit goods on the back of the recent COVID-19 pandemic which destroyed various industries. "The main problem is the lack of adequate enforcement by authorities and a growing lack of faith in the rule of law. Between 2016 and 2019, just R26 million worth of alcohol was seized by SARS. Since then, the sales bans imposed during the COVID-19 pandemic have entrenched illicit networks. The SA Liquor Board Association (SALBA) estimates that more than one in five bottles sold in SA is illicit. The problem is even worse in the tobacco industry, as illicit cigarettes are even easier to distribute and trade illegally," he added. Cape Times
IOL News
01-07-2025
- IOL News
Calls for crackdown on counterfeit goods as South Africa's illicit trade crisis escalates
Gauteng police recently acted on a tip-off, leading to the closure of an illegal alcohol manufacturing facility in Jeppestown. Image: Gauteng SAPS/X The escalating crisis of counterfeit goods in South Africa has intensified calls for urgent measures to combat organised crime, following a series of high-profile arrests linked to illicit alcohol trade syndicates. Recent statistics reveal a staggering 55% increase in illegal alcohol volumes since 2017, prompting officials and activists alike to classify the situation as a national crisis. Last month IOL reported that the Drinks Federation of South Africa (DF-SA) reported that the volume of counterfeit alcohol in the country reached 773,000 hectolitres in 2024. This surge has coincided with several police operations aimed at dismantling the networks behind these illegal products after Gauteng police, on Monday, acting on a tip-off conducted a raid in the city centre which led to the closure of an illegal alcohol manufacturing facility in Jeppestown. During this operation, authorities uncovered millions of rands worth of counterfeit alcohol, including fake whiskey, vodka, and gin, as well as counterfeit labels and packaging worth R3.5 million. Colonel Dimakatso Nevhuhulwi of the Gauteng police confirmed that six suspects were arrested, including a man who presented a dubious liquor license from Mpumalanga. "Upon arrival at the said premises, the team was met by a man who claimed to be the owner of the business and further produced a liquor license which was for a Mpumalanga-based establishment. Following a search of the property, the team discovered the manufacturing and production of whiskey, vodka, and gin, including the reprint of counterfeit labels and packaging," stated Nevhuhulwi. At the weekend, police in Bloemfontein in the Free State confirmed the arrest of six foreign nationals after confiscating counterfeit goods valued at more than R19 million during raids in the CBD. Reacting to the raids in the Free State, National police spokesperson, Amanda Van Wyk, revealed that the search and seizure warrants were executed in accordance with the Customs and Excise Act at targeted shops. The arrests in Bloemfontein and Johannesburg were preceded by the arrest of a 31-year-old man who was arrested last week for allegedly manufacturing and illegally distributing counterfeit alcohol at his home in Klaarwater, Mariannhill, west of Durban. During the raid, KZN police confiscated counterfeit vodka with a street value of R250,000, which was found being manufactured at the site. At the time, police spokesperson Captain Carmen Rhynes indicated that members of the provincial organised crime, the provincial drugs and firearm unit, and the provincial counterfeit goods unit were instrumental in the arrest. "Members of the Provincial Organised Crime Unit (Narcotics), assisted by the Provincial Drug and Firearm Unit and the Provincial Counterfeit Goods Unit, acted on intelligence-driven information regarding the manufacturing and illegal distribution of counterfeit alcohol, specifically vodka, in the Klaarwater area in Mariannhill, Durban. They executed a search warrant at the identified premises and a suspect of 31 years of age was found on site and placed immediately under arrest for the contravention of the Liquor Act and the Counterfeit Goods Act," Rhymes said. Reacting to the latest incidents of illicit proliferation of counterfeit booze, anti-crime activist Yusuf Abramjee revealed that SARS estimates the proliferation of illegal alcohol costs the country's economy over R11 billion in lost annual excise tax revenue. "The illicit alcohol trade is completely unregulated, and apart from the massive revenue losses, this leads to numerous social issues. People are being sold dodgy alcohol that potentially contains fatal ingredients. It isn't regulated, and criminals don't care what they're selling as long as they make a profit. Meanwhile, criminals are stealing the taxes that are meant to pay for vital services such as schools, hospitals, and housing," Abramjee stated. Abramjee has attributed the increase to a lack of stringent law enforcement efforts within and across SA borders, which he said contributes directly to the flows of illicit goods on the back of the recent COVID-19 pandemic which destroyed various industries. "The main problem is the lack of adequate enforcement by authorities and a growing lack of faith in the rule of law. Between 2016 and 2019, just R26 million worth of alcohol was seized by SARS. Since then, the sales bans imposed during the COVID-19 pandemic have entrenched illicit networks. The SA Liquor Board Association (SALBA) estimates that more than one in five bottles sold in SA is illicit. The problem is even worse in the tobacco industry, as illicit cigarettes are even easier to distribute and trade illegally," he added.
