South African Revenue Services (Customs & Excise) v Desmonds Clearing and Forwarding Agents CC (039/05) [2006] ZASCA 9; 2006 (4) SA 284 (SCA); 68 SATC 181 (16 March 2006)

South African Revenue Services (Customs & Excise) v Desmonds Clearing and Forwarding Agents CC (039/05) [2006] ZASCA 9; 2006 (4) SA 284 (SCA); 68 SATC 181 (16 March 2006)

The court held that the temporary storage of the trailers at Sensation Transport's premises in Durban did not constitute a diversion to a destination other than that declared on entry for removal in bond, as contemplated by section 18(13) of the Customs and Excise Act. The respondent provided a reasonable explanation for the separation and storage of the trailers, namely mechanical failure of the truck, and there was no evidence of intention to divert the goods to another destination. The Act and Rules did not require storage in a bonded warehouse in such circumstances, nor did they prescribe a specific route for removal in bond. The further detention of the trailers by the appellant was...

Citation
[2006] ZASCA 9
Parties
Appellant: South African Revenue Services (Customs & Excise); Respondent: Desmonds Clearing and Forwarding Agents CC
Court
Supreme Court of Appeal
Jurisdiction
South Africa
Judgment Date
16 March 2006
Case Number
039/05
Procedural Posture
Civil Appeal / Appeal From Order of the Durban High Court
Outcome
Appeal dismissed with costs, including costs of two counsel.
Judges
MPATI, STREICHER, NUGENT, CLOETE, CACHALIA
Legal Topics
Customs and Excise Act, Goods in Transit, Forfeiture, Removal in Bond
Administrative Law Tax Law Customs and Excise Act Goods in Transit Forfeiture Removal in Bond

Case Brief

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Parties

South African Revenue Services (Customs & Excise)

Appellant

Desmonds Clearing and Forwarding Agents CC

Respondent

Procedural Posture

Civil Appeal / Appeal From Order of the Durban High Court

Legal Issues

  1. 1 Whether temporary storage of imported trailers at premises within South Africa constituted a diversion to a destination other than that declared on entry for removal in bond, as contemplated by section 18(13) of the Customs and Excise Act 91 of 1964.
  2. 2 Whether the further detention of the trailers by the appellant was lawful.

Ratio Decidendi

The court held that the temporary storage of the trailers at Sensation Transport's premises in Durban did not constitute a diversion to a destination other than that declared on entry for removal in bond, as contemplated by section 18(13) of the Customs and Excise Act. The respondent provided a reasonable explanation for the separation and storage of the trailers, namely mechanical failure of the truck, and there was no evidence of intention to divert the goods to another destination. The Act and Rules did not require storage in a bonded warehouse in such circumstances, nor did they prescribe a specific route for removal in bond. The further detention of the trailers by the appellant was...

Court Disposition

Appeal dismissed with costs, including costs of two counsel.

Orders

  • The appeal is dismissed with costs, such costs to include those consequent upon the employment of two counsel.