Biodiesel producers must register with SARS and apply for either a Commercial or Non-commercial producers licence.
A non-commercial licence is for small producers. The limitation on production is 300 000 litres of biodiesel per annum. The advantage of this licence is that producers do not pay the Fuel Levy and Road Accident Fund, Levy.
A commercial licence is for industrial size producers. There is no limitation on production but the producer must pay 50% of the Fuel Levy and 100% of the Road Accident Fund Levy.
Commercial producers must also apply to the Department of Energy for a Manufacturing Licence and a Wholesale Licence.
Licensing and Registration requirements as this is dealt with in document SE-LR-02
Liability for duty and levies For Biodiesel
a) Excise duty, Fuel levy and Road Accident Fund (RAF) levy on biodiesel is charged by way of duty at source (DAS) whereby the duties and levies are assessed when the dutiable product goes into home consumption.
b) In terms of Section 37B.02, any person, who wishes to manufacture biodiesel, must register as a
commercial or non-commercial manufacturer of biodiesel under Section 59A.
c) Rule 37B.04 further states that any commercial registered biodiesel manufacturer who manufactures,
or who anticipates that he/she will manufacture, more than 25 000 litres of biodiesel per calendar month AND 300 000 litres of biodiesel per calendar year also needs to license his / her manufacturing premises as a customs and excise manufacturing warehouse (VM).
Type of warehouses allowed in the biodiesel industry:
a) The manufacture of biodiesel takes place in a licensed VM. Such warehouse shall be licensed at the
Controller / Branch Manager’s office nearest to the premises where manufacture takes place.
b) The manufacturing premises of a non-commercial manufacturer of biodiesel is not required to be licensed as a VM.
Biodiesel Commercial manufacturer In South Africa
a) Liability for duty –
i) A commercial manufacturer of biodiesel is liable for the duty and levies specified in any item of Part 2A, Part 5A and Part 5B of Schedule 1 in respect of all biodiesel manufactured by such a manufacturer in his/her licensed manufacturing warehouse (VM).
ii) Duty must be brought to account on the relevant Excise accounts being:
A) DA 160 –Petroleum Products: Account for manufacturing warehouse [includes Category
2 manufacturers of biodiesel] (Refer to SE-OIL-04-M01); and
B) DA 162 – Biodiesel account for Category 1 manufacturing warehouse (Refer to SE-OIL03-M01).
b) Category 1 Manufacturers of Biodiesel –
i) Manufactures biodiesel exclusively for consumption in South Africa;