Diamond Export Levy
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What is the Diamond Export Levy?
On 1 November 2008 a Diamond Export Levy on unpolished diamonds exported from the RSA was introduced. Although this is legislated in the Diamond Export Levy Act, SARS is mandated to administer and collect this levy.
Who does the Levy effect?
All Producers, Dealers, Beneficiates and Holders of Permits must pay this levy when exporting such diamonds.
- A return levy payer will pay the levy in line with the stipulations of the Diamond Export Levy (Administration)
- A holder of a permit is regarded as a direct levy payer and will make payment of the levy before exporting the unpolished diamonds from South Africa
What steps are to be taken by Levy Payers?
Producers, Dealers and Beneficiates who trade in unpolished diamonds must register their business with SARS.
On registration, the business will receive a customs client code number that must be used when export declarations are made to SARS. The following will be required:
- Completion of six-monthly excise accounts, even if a “nil return account “ is to be made.
- Before application for registration begins, the applicant must get relevant Permits & Licences from the Regulator in Johannesburg
What is the export rate of duty and why is the levy in place?
The export rate of duty is 5% of the total value less overpaid or plus underpaid. The aim of the Diamond Export Levy as stated in both the Diamond Export Levy No.15 & No.14 respectively is to:
- Promote the development of the local economy by encouraging the local diamond industry to process (cut, polish etc.) diamonds locally
- Develop Skills, using a local workforce
- Create employment
When should the levy be paid?
The Act provides for six-monthly payments. This equates to twice per Financial Year. The Financial period depends on whether it is a natural person or juristic person e.g. Business.
Return levy payers will pay the levy in line with the stipulations of the Diamond Export Levy Act. A permit holder is regarded as a direct levy payer and will make payment of the levy before exporting the unpolished diamonds from the Republic.
It can be paid via Bank EFT or by bank guaranteed cheque at specified SARS branch offices.
Who is liable to pay the Diamond export Levy to SARS?
- A return levy payer will pay the levy in accordance with the stipulations of the Diamond Export Levy
- A holder of a permit is regarded as a direct levy payer and will make payment of the levy before exporting the unpolished diamonds from South Africa
What are the export requirements in relation to such Exports?
No unpolished diamonds may be exported from South Africa unless:
- The South African Diamond Regulator has registered the unpolished diamonds for export
- The unpolished diamonds have been declared in terms of the Diamond Export Levy Act to the Controller of Customs
- The unpolished diamonds have been released for export by the Regulator upon receipt of a Customs stamped copy of the Customs declaration.
What are the qualifying points for Imports?
No unpolished diamonds may be imported into South Africa unless:
- The unpolished diamonds have been declared in terms of the Diamond Export Levy Act to the controller of customs
- The Regulator has released the unpolished diamonds for imports.