Standard General Insurance Company Ltd v Commissioner for Customs and Excise (622/02) [2004] ZASCA 35; [2004] 2 All SA 376 (SCA); 2005 (2) SA 166 (SCA); 66 SATC 192 (31 March 2004)

Standard General Insurance Company Ltd v Commissioner for Customs and Excise (622/02) [2004] ZASCA 35; [2004] 2 All SA 376 (SCA); 2005 (2) SA 166 (SCA); 66 SATC 192 (31 March 2004)

The Supreme Court of Appeal held that Gem Shipping, as a licensed clearing agent acting on behalf of the exporter (AMKA), incurred liability for customs duty under section 18A of the Customs and Excise Act. The court interpreted 'person who exports' in section 18A to include the statutory definition of 'exporter', which encompasses agents. The liability under section 18A arises when goods are entered for export and is not contingent upon a demand by the Commissioner. The time-bar in section 99(5) applies only to liabilities incurred under section 99 and does not extinguish liabilities under section 18A or those arising from the special removal bond. The bond created a principal obligation...

Citation
[2004] ZASCA 35
Parties
Appellant: Standard General Insurance Company Limited; Respondent: Commissioner for Customs and Excise
Court
Supreme Court of Appeal
Jurisdiction
South Africa
Judgment Date
31 March 2004
Case Number
622/02
Procedural Posture
Civil Appeal / Appeal From Johannesburg High Court; Special Plea Dismissed; Appeal Heard and Dismissed
Outcome
Appeal dismissed with costs, including costs of two counsel.
Judges
Howie, Nugent, Cloete, Lewis, Jones
Legal Topics
Customs and Excise Act, Liability of Clearing Agent, Special Removal Bond, Prescription of Tax Liability, Suretyship, Statutory Interpretation
Tax Law Commercial and Corporate Customs and Excise Act Liability of Clearing Agent Special Removal Bond Prescription of Tax Liability Suretyship Statutory Interpretation

Case Brief

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Parties

Standard General Insurance Company Limited

Appellant

Commissioner for Customs and Excise

Respondent

Procedural Posture

Civil Appeal / Appeal From Johannesburg High Court; Special Plea Dismissed; Appeal Heard and Dismissed

Legal Issues

  1. 1 Whether a clearing agent incurs liability for customs duty under section 18A of the Customs and Excise Act independently of liability under section 99(2).
  2. 2 Whether the special removal bond creates a principal obligation for the clearing agent and surety, independent of statutory liability.
  3. 3 Whether the time-bar in section 99(5) applies to liabilities incurred under section 18A or the special bond.

Ratio Decidendi

The Supreme Court of Appeal held that Gem Shipping, as a licensed clearing agent acting on behalf of the exporter (AMKA), incurred liability for customs duty under section 18A of the Customs and Excise Act. The court interpreted 'person who exports' in section 18A to include the statutory definition of 'exporter', which encompasses agents. The liability under section 18A arises when goods are entered for export and is not contingent upon a demand by the Commissioner. The time-bar in section 99(5) applies only to liabilities incurred under section 99 and does not extinguish liabilities under section 18A or those arising from the special removal bond. The bond created a principal obligation...

Court Disposition

Appeal dismissed with costs, including costs of two counsel.

Orders

  • The appeal is dismissed.
  • The appellant is ordered to pay the costs of the appeal, including those occasioned by the employment of two counsel.