SARS publishes revisions to bunker storage rules

Bunker regulations up for comment

SOUTH AFRICA: Following the shutdown of the offshore bunkering in Algoa Bay in September last year, industry stakeholders have welcomed the opportunity to comment on the publication of revisions to the rules regulating the storage of imported bunker fuel in special customs and excise storage warehouses.

Parties have until the 10 May to submit their responses to the draft amendments from the South African Revenue Services (SARS) that were published last week.

The amendments to the rules under sections 21 and 60 relating to the creation of a new warehousing, published for public comment on 11 December 2023, have been reviewed after extensive public comments were received and considered. The new draft of the rule amendments is now undergoing a second round of public comment.

According to the explanatory document supplied by SARS, the new warehouse type is now ring-fenced for duty suspended warehousing of imported bunker fuel and is called a special customs and excise storage warehouse for imported bunker fuel.

There is also a proposed amendment in Part 1 of Schedule No.1 to Note 1(h) to Chapter 27 inserting a requirement of a maximum of 0,5% m/m sulphur content for purposes of residual fuel oil products intended for use in ships or boats as marine fuel or marine oil.

While no re-warehousing is permitted, allowable movements include movements from sea-based and land-based warehousing.

The draft makes provision for two types of licensed marine removers:

a licensed marine remover moving duty suspended imported bunker fuel to or from a special storage warehouse for imported bunker fuel
a licensed marine remover moving duty paid imported bunker fuel from a special storage warehouse for imported bunker fuel.

PHOTO: The Avatar and Sea Empress in Algoa Bay.