Sars grants special permission for aviation fuel import amidst fear of shortage

The South African Revenue Service (Sars) has granted special permission for the importation of Kerosene fuel from 21 October 2024 until 20 October 2025.

The special permission is to allow stakeholders to attend to the complexities involved in the process of the deregistration of manufacturing warehouses and reregistration of affected storage facilities.

This comes on the heels of a warning by the Fuels Industry Association of South Africa that there might be a shortage of aviation kerosene due to regulatory delays in the licensing of import storage facilities.

Sars in talks with the industry

In a media statement, the Sars Commissioner, Edward Kieswetter said they request all parties to conclude the outstanding work urgently.

“All parties must ensure that all compliance requirements are met and that the current licensing provision, in respect of the importation of kerosene fuel and its derivatives, may be confirmed where appropriate.”

“Sars believes that this announcement will bring certainty to the industry, which will benefit the country’s economy and enable everyone to travel smoothly.”

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Sars denies fault

Before Sars embarked on talks with the industry, it denied the pending shortage of aviation fuel due to ‘dithering to issue licences to fuel companies’.

The taxman said the importation and movement of both aviation kerosene is governed by the Customs and Excise Act [91 of 1964]. “It is the adherence to the provisions of the Act that has proven difficult for the fuel industry.”

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Supply from licensed fuel manufacturers

“Sars wishes to clarify that the demand for both aviation kerosene and illuminating kerosene in the Republic is met by the supply from licensed fuel manufacturers (‘refineries’) and importation.”

The taxman added that some of the licensed manufacturers stop manufacturing for reasons including the destruction of infrastructure.

“During April 2024, some of the refineries applied for and were granted temporary special storage warehouse licenses for the storage and subsequent distribution of imported aviation kerosene to OR Tambo International Airport and other airports. This was done to avert an impending crisis of the shortage of aviation kerosene that was occasioned by statutory maintenance of certain refineries,” said Sars.

The licenses granted were for a specific period and under specific conditions at the time.

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