SARS rules for offshore bunkering finalised

Offshore bunkering operations likely to resume

SOUTH AFRICA: The amended of Sections 21, 60 and 120 of the Customs and Excise Act, 1964 (Act 91 of 1964) have been finalised and will come into effect on 30 November 2024, just over a year after the South African Revenue Service (SARS) brought the offshore bunkering operations in Algoa Bay to a close.

After initiating three rounds of public engagements, SARS amended the rules to accommodate a wider range of wider range of fuels on land, as well as the inclusion of a new warehouse type for purposes of “bonded fuel goods”, namely a “land-based bonded fuel goods special storage warehouse” (land-based SOS) and a “sea-based bonded fuel goods special storage warehouse” (sea-based SOS).

The new rules clarifies the customs treatment of on-sea transfers and the receipt of imported fuel which occurs between a foreign-going vessel within South Africa’s waters to a foreign-going vessel which is due to leave the country.

The document provides definitions for what constitutes a sea-based bonded storage warehouse, coasting vessels, bunkering, storage vessel and more.

Following the finalisation of the amended rules, the industry will be eager to see the resumption of offshore bunkering and sources suggest that there are already operators working towards moving vessels into position.

There are still likely to be some challenges ahead as environmentalists continue to oppose the provision of these services based on previous incidents of oil spills that have occurred. Despite this the moratorium on issuing licences has been lifted by the South African Maritime Safety Authority (SAMSA).

Commenting on the situation in January of this year, Sobantu Tilayi, COO of SAMSA, acknowledged that the closure of the sector had resulted in reputational damage for South Africa, but said that the aim would be to rebuild capacity to meet the demand from additional shipping traffic transiting the coast due to the ongoing situation in the Red Sea.

Although pronouncements by the then Acting CEO of SAMSA, Tau Morwe in April this year suggested that the resumption of services were imminent no operators were able to offer services while SARS undertook to amend the rules that had led to the sector’s closure.

It is estimated that the closure of the Algoa Bay bunkering station in September last year impacted directly on at least 50 companies – many of them newly established to meet the needs of the sector.

PHOTO: © Maritime Review Africa

Ongoing fatalities in the fishing sector

Multi-national maritime operations focus on safe navigation

3580

RSS Upcoming Events

26 May 2026 MARITIME STRAITS IN A CHANGING WORLD ORDER 5/26/2026 2:00 PM - 3:00 PM

In this webinar, WMU faculty will engage with Professor James Kraska, Chair and Charles H. Stockton Professor of International Maritime Law in the Stockton Center for International Law at the Naval War College, posing questions that explore the current state of international law as it applies to the Strait of Hormuz and comparable maritime chokepoints.

27 May 2026 COMMUNICATING TIPPING POINTS 5/27/2026 2:00 PM - 3:30 PM

Tipping points in the Earth system are often portrayed as ominous, abrupt shifts that could significantly alter life on Earth. While this reflects the seriousness of the science, the framing can also create confusion and discourage action.

1 Jun 2026 SEAPOWER FOR AFRICA 6/1/2026 - 6/4/2026

The Sixth SPAS will feature conference sessions, networking events and an international exhibition showcasing the latest naval equipment, technologies and solutions that will help our navies effectively protect Africa’s maritime interests. We sincerely look forward to welcoming you to this landmark symposium and working together to shape a safer, more cooperative maritime future for the continent.