By Lloyd Phillips
Two Eastern Free State farmers are already losing big money because wet and muddy conditions prevent their wheeled harvesters from effectively combining their harvest-ready soybean lands. Meanwhile, reportedly through no fault of their own, the imported Soucy tracks these farmers desperately need remain bonded by SARS pending payment of a R1 million penalty.
Pieter van Zyl and his attorney, Riaan du Randt, are at their wits’ end trying to get three pairs of imported Soucy tracks released by the South African Revenue Service (SARS) from customs at OR Tambo International Airport (ORTIA). SARS is reportedly demanding payment of R999 663 before it releases the tracks that, with international freight charges included, collectively cost Van Zyl and an unnamed fellow farmer approximately R5.25 million.
Van Zyl and Du Randt explain the three sets of Soucy tracks intended for replacing the conventional drive wheels on the two farmers’ combine harvesters to improve flotation and traction in muddy lands, landed at Johannesburg’s ORTIA on 27 April.
Although they are struggling to get clarity on the subject, at this stage the farmer and his attorney suspect one or more of the private companies tasked with facilitating the tracks’ entry into South Africa made a major administrative error or oversight.
“It’s been a nightmare and frustrating trying to find out from SARS why the tracks were not released and why there’s a R1 million penalty. Only after determined investigating did Riaan and I eventually discover one or more of the private companies mistakenly said the tracks were cleared by customs for collection,” Van Zyl, who farms in the Vrede district, tells African Farming.
“When the tracks were being collected from the airport, SARS came out to ask why they were being collected without SARS’ authorisation. SARS immediately took possession of the tracks again and implemented the R1 million penalty for the collection without authorisation.”
According to Du Randt, SARS subsequently and inexplicably added a further R4 million penalty that brought the total penalty to only R250 000 short of the tracks’ original collective value. Only once Du Randt challenged the legality of this latter penalty did SARS realise it was a clerical error that was subsequently corrected.
Nevertheless, while the ripe pods of Van Zyl’s and his neighbouring farmer’s soybean crops are already bursting in the fields because the combines cannot get in, the Soucy tracks remain bonded at ORTIA until someone pays the R1 million penalty.
Van Zyl estimates about one ton per hectare of soybeans worth R6 277 to R7 016/ha has already gone to waste on the ground in his lands.
“One or more of the private companies that were supposed to get the tracks properly cleared through customs and delivered to the clients should be liable to pay the R1 million to SARS. Not my client and his fellow farmer. Once the fine is paid, SARS can be approached within 21 days with an application explaining that there was no malicious intent and with a request that the fine be waived and reimbursed,” says Du Randt.
“However, nobody seems willing to acknowledge liability for their mistake nor does SARS seem open to understanding the predicament my client is in. Meanwhile, it is the two farmers who are losing money. Everyone else has their money already.”
In its response to an enquiry from African Farming, SARS states it cannot discuss individual cases because of confidentiality requirements.
However, SARS is urging the relevant parties in this matter to contact its query management system. Queries for airfreight shipments can be directed via email to airhubssmcasequery@sars.gov.za.
“We are dedicated to offering clarity and certainty. Therefore, SARS will arrange a meeting with Grain South Africa [that has also been trying to facilitate the release of the Soucy tracks] as part of our education and outreach programme to support voluntary compliance,” the response adds.
* This is a developing story. African Farming will soon approach the private companies’ for their responses on this subject.
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