De Beers Marine (Pty) Ltd v Commissioner for the South African Revenue Service (165/2001) [2002] ZASCA 45; [2002] 3 All SA 181 (A); 2002 (5) SA 136 (SCA); 65 SATC 14 (20 May 2002)

De Beers Marine (Pty) Ltd v Commissioner for the South African Revenue Service (165/2001) [2002] ZASCA 45; [2002] 3 All SA 181 (A); 2002 (5) SA 136 (SCA); 65 SATC 14 (20 May 2002)

The Supreme Court of Appeal held that the supply of bunker fuel to South African vessels on the high seas did not qualify as 'export' under section 20(4) of the Customs and Excise Act. The vessels were neither foreign nor foreign-going, and the delivery was not to a foreign destination. The statutory deeming of the continental shelf as part of the Republic for customs purposes does not extend to the surface waters for the purpose of general customs duties. The consumption of fuel over the Namibian continental shelf, even though outside South African territorial waters, did not constitute export, as Namibia forms part of the common customs area. Therefore, the fuel should have been entered...

Citation
[2002] ZASCA 45
Parties
Appellant: De Beers Marine (Pty) Ltd; Respondent: Commissioner for the South African Revenue Service
Court
Supreme Court of Appeal
Jurisdiction
South Africa
Judgment Date
20 May 2002
Case Number
165/2001
Procedural Posture
Civil Appeal / Appeal From the High Court of the Cape Provincial Division
Outcome
Appeal dismissed with costs, including costs of two counsel.
Judges
Nienaber, Zulman, Lewis
Legal Topics
Customs and Excise Duties, Definition of Export, Continental Shelf Jurisdiction, Home Consumption, Common Customs Area
Tax Law Admiralty and Maritime Customs and Excise Duties Definition of Export Continental Shelf Jurisdiction Home Consumption Common Customs Area

Case Brief

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Parties

De Beers Marine (Pty) Ltd

Appellant

Commissioner for the South African Revenue Service

Respondent

Procedural Posture

Civil Appeal / Appeal From the High Court of the Cape Provincial Division

Legal Issues

  1. 1 Does the supply of bunker fuel to South African vessels on the high seas qualify as 'export' under section 20(4) of the Customs and Excise Act?
  2. 2 Is delivery of fuel over the South African continental shelf deemed to be 'part of the Republic' for customs purposes?
  3. 3 Does consumption of fuel over the Namibian continental shelf qualify as 'home consumption' for South African customs purposes?

Ratio Decidendi

The Supreme Court of Appeal held that the supply of bunker fuel to South African vessels on the high seas did not qualify as 'export' under section 20(4) of the Customs and Excise Act. The vessels were neither foreign nor foreign-going, and the delivery was not to a foreign destination. The statutory deeming of the continental shelf as part of the Republic for customs purposes does not extend to the surface waters for the purpose of general customs duties. The consumption of fuel over the Namibian continental shelf, even though outside South African territorial waters, did not constitute export, as Namibia forms part of the common customs area. Therefore, the fuel should have been entered...

Court Disposition

Appeal dismissed with costs, including costs of two counsel.

Orders

  • The appeal is dismissed with costs, including the costs of two counsel.