Local production tax
Production tax started under the name excise duty since the thirteenth of the twentieth century, it had been applied on any processed commodity in the local factories including workshops that produce doors and windows and ice factories even the printing machines ,duties rate vary from 5% to 210% .excise duty administration had been part of Sudan customs till this day ,which by itself under the authority of the ministry of finance.
Exise duty administration had been collecting exise duty by percentage of 5% as development tax up to (1983) exise duty has passed after that under many names (exise duties – consumption tax – exise tax). Exise duties had been cancelled in1986 and returned back again after only (6) months after cancellation for deficit in balance.
In 1990 commodities were divided in to state and federal, these are:
- Tobacco and derivatives (cigarettes + melliferous)
- Soft drinks (carbonated water) liquid juices
Where the collected tax accrued to the federal treasury , the remained collected amounts from other commodities accrued to the interest of the state which the commodity produced there.
The tax collected by Customs officer who is resident in the factory or through indirect supervision, Customs officer has the authority to detect the firm and stock taking of the stores.
There were some regulations regarding the firm that should be observed:
- Presenting letter from the ministry of industry for purpose of prices
- Preparing stores for the product and should be secured by the firm and the Customs officer
- Factory should not amended unless Customs authority agreed thereof
- Should present all licenses or certifications regarding the establishment of the factory (investment authority)
- Customs officer should be provided by the stock of the raw materials (supply – use) (enter – withdrawal)
Third: Tax collected by two means of accounts:
- current account: account should be refreshed and should drawn from
- deferred account: there should be security so that payment be later on in a defined time determined by agreement with Customs director.
Customs where tax should exempted:
- In case of exportation, after making the required security, and be sure that goods were out of the country and presentation of export certificate
- In case of damage of commodity during processing or its contravene to health procedures.
- Goods used inside the ship or used for the purpose its presented for.
- Commodities transported to a free zone (after being sure of that)
There were penalties for those who contravening exise duty laws such as confiscation of means of transport and the goods in case of evading payment of the tax according to exise duty law for the year 1984 amended in 1991.
Administrative Order No.(1) for the year 2014
Procedures and regulations of recovery of exise duty paid
on exported commodities
First: The legal references:
According to the provisions of article (37) and (40) of Exise duty law for the year 1985 and article (17) of Exise duty regulation for the year 1990 , exports local produced commodities which subject to exise duty and recovery of paid duties according to the conditions and regulations stated in this order
The former issued administrative orders for the same subject by the number (9) for the year 2012 dated June\3\2012 and the administrative order No(12)for the year 2013 dated May\14\2013.
procedures and regulations for exporting local produced commodities which subject to exise duty :
- The quantity withdrawn for exportation should be declared and exporting port should be defined.
- The producer shall notify the concerned Customs administration which shall collect the tax in written application introduced to Customs in the production site and shall attach to the notification application the documents ensuring the intention to export (export contract certified by the ministry of trade and export form (Form EX) from any authorized commercial bank.
- The locally produced commodities which intended to be exported shall be withdrawn from the factory to the port of export defined in the export application in Customs form No.(10).
- The quantities of commodities intended to be exported shall be loaded from production areas to export ports under the full control of Customs authorities.
- The words (For export) in English and Arabic should be written on commodities intended for export.
- The producer or exporter shall provide financial security (security cheque) to the Customs administration in the production site (starting exporting station)covering the due taxes and duties for the withdrawal quantity valid for not less than (6)months according to the provisions of articles (37) and (40) of the exise duty law for the year 1985.
- Completion of exportation procedures in the port of exit and obtaining export complete documents, Customs form No(27) + Customs release + Financial receipt for export service duties certified by the final exit station.
Fourth: Conditions and regulations of pay off the security for the imported quantities of commodities that locally produced and subject to exise duty
- The producer or exporter shall present an application for pay off the security for the imported quantities to the concerned Customs administration in the production site supported by the following documents:
- Customs from No.(27) certified by final exporting station .
- Customs form No.(10) which the exported quantities withdrew from the factory thereby.
- Any other documents ensuring the fact of exportation to outside the country.
- Recovery procedures for security cheque and pay off the security for exported commodities shall be completed during six months from the date of commodities exporting declared in Customs from No.(27) directly in Customs stations where the exported commodities withdrawal from.
- Applications introduced after the period of time of recovery which determined by six months in article (40) of exise duty law for the year 1985 and also the applications not supported by documents ensuring the event of exportation.
Fifth: Provisions and regulation of recovery for goods paid duty on in cash and had exported:
- Producer or exporter shall have the right to recover exise duty on commodities that paid duty on in cash upon withdrawal from the factory for local consumption and then exported later on.
- Producer or exporter shall present the following documents in case of exporting commodities:
- Export certificate (Customs form No.(27)
- The manifest (Customs form No.(10) which the quantity withdrawal by
- The financial receipt which ensure the payment of exise duty on that quantity
- Claim should be introduced during a period of six months from the date of exportation.
- The concerned Customs administration in production site shall prepare periodical report quarter a year registering in it the withdrawal quantities for exportation and the quantities which the security thereof has paid off supported by exportation documents and security cheque which recovered for revision and matching in technical directorate and financial affairs directorate.
- Administrations and Customs station in production sites and exportation ports shall comply with and observe by what stated in this order and shall be implemented from the date of signing on it
Issued under my signature in 26 of Rabie Alawal 1435 A.H
corresponding to 27 January 2014.
Police major general juristic
D.Saif Eldin Omer Suleiman