Bunkers have largely been supplied to vessels in South African ports via bunker barge, albeit that direct pipeline to vessel and road tanker supplies occur on occasion.

The South African Revenue Service (“SARS”) has, however, recently expressed the opinion that the supply of bunker fuel to foreign going vessels by bunker barge does not qualify for a rebate of fuel levies and Road Accident Fund levies on export supplies in terms of Schedule 6 to the Customs & Excise Act 91 of 1964.

SARS has proposed amendments to the legislation to allow for the licensing of bunker barges or vessels as licensed removers of goods in bond for the transfer of bunkers ship-to-ship.

It remains to be seen how local bunkers suppliers will react to these developments, but until clarity is obtained, the cost of bunkers in South Africa may increase substantially.

Should you have any queries or require any further information, please contact Quintus van der Merwe (qvdm@wylie.co.za) or Taryn Hunkin (thunkin@wylie.co.za)