Customs Division steps up measures to ensure importation of quality fruit juices |23 July 2014

To ensure the different types of fruit and vegetable juices entering the country are of good quality with less water and sugar, the Customs Division is reinforcing classification of these products to ensure those with high sugar and water content are taxed accordingly.

The aim is to ensure that such products being bought and consumed by the public are good for their health and that people are well aware of the content of sugar and water in the products they choose to buy.

The classification measure should not have any impact on the present prices of juice in the country.
In September 2012, the government through the Ministry of Finance took the decision to review the tax rate that was being applied on different types of fruit and vegetable juices entering the country.

This was done with the intention of having very good quality juice imported and having a healthy nation. Such a type of juice would attract no tax and it was expected that importers would support this idea by importing healthy juice.

The Customs Division has noted that lots of juices entering the country were being wrongly classified under the Harmonised System (HS) Codes resulting in appropriate taxes not being collected. This is now being rectified.

Following Customs Division Notification Number 1 that was published in June 2014 on this subject and took effect as of July 9, 2014, all fruit and vegetable juices are being classified under their correct code and this will attract taxes on some types.

For example: All natural fruit and vegetable juices that sugar and water have not been added apart from needed preservatives, and that the sugar level is below 20% (20 brix) will attract no tax. These are classified under HS Code 20.09 followed by their appropriate codes for the different types.

All those as above but having sugar level above 20% (20 brix) will have R5 applied per litre.  
 
All other juices where sugar and water have been added, they will attract a tax of R10 per litre and will be classified under HS Code 22.02 followed by the appropriate code.

The Customs Division is calling on importers to apply the correct HS Code on all imports to avoid the possibility of penalties being imposed.
Members of the public requiring more information on the issue can contact the Customs Division on 4293736.