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Exchange Control Circular 15/2020 Under Review

November 25, 2020

National Treasury

Exchange Control Circular 15/2020 is under review.

In a joint statement, national treasury, the South African Reserve Bank and Financial Sector Conduct Authority indicated that the review follows the announcement by the finance minister in the Medium Term Budget Policy Statement (MTBPS) Speech on 28 October 2020.

“The review is limited to providing clarification on the scope of changes to the announcement related to the reclassification of inward listed instruments.”

In the statement, the MTBPS announcement is described as designed to “create an enabling environment that makes it easier for foreign investors to invest in South Africa, and support South Africa’s growth as an investment and financial hub for Africa”.

The Circular issued on 29 October 2020 is suspended with immediate effect.

Comments on proposals to amend the Circular are invited until 15 December 2020.

Meanwhile, the South African Revenue Service, in Gazette 43927, published an amendment to Schedule 1 of the Customs and Excise Act:

• Notice 1245 – Amendment to Part 1 of Schedule No. 1, by the substitution of tariff subheadings 1001.91 and 1001.99 as well as 1101.00.10, 1101.00.20, 1101.00.30 and 1101.00.90, to reduce the rate of customs duty on wheat and wheaten flour from 83,21c/kg and 124,81c/kg to 54,42c/kg and 81,63c/kg respectively, in terms of the existing variable tariff formula – Minute 07/2020.