At Enterprise Ethanol, we receive frequent inquiries from businesses and individuals seeking quotes for ethanol often unaware of the necessary SARS licensing requirements for legal procurement in South Africa. As a responsible supplier, we want to ensure our customers have a clear understanding of the SARS licenses required to purchase ethanol (absolute alcohol) for various applications.
Before you can purchase ethanol from us or any other supplier it’s crucial to know about the two main SARS licenses needed, namely:
- SARS User Rebate License
- SOS (Special Off-Sales) License.
Each license serves a different purpose based on the intended use of the ethanol and helps you stay compliant with South African regulations. Let’s explore what each license means, who’s eligible, and typical use cases to help you determine which license applies to your business needs.
1️. SARS User Rebate License (Rebate Item 621.08)
The User Rebate License allows eligible businesses to purchase undenatured ethanol without paying the high excise duty as long as it’s used for specific, non-consumable, or food-grade applications. This license is especially relevant for industries relying on high-purity ethanol for manufacturing purposes.
Who’s Eligible?
- Companies that use ethanol strictly for non-consumable manufacturing (e.g., pharmaceuticals or cosmetics) or food-grade applications.
- Businesses producing alcoholic beverages or using ethanol in food flavoring extracts.
- Applicants need to meet SARS record-keeping and reporting requirements for accurate tracking of ethanol usage.
Use Case Examples:
- Food & Beverage Production: Ethanol used in making spirits, liqueurs, and fortified drinks.
- Flavor and Extracts Production: Ethanol applied as a solvent in flavor and extract production, such as vanilla or botanical extracts.
- Pharmaceutical Manufacturing: Ethanol used in disinfectants, antiseptics, and other medical-grade solutions.
- Cosmetics Production: Ethanol serving as a base for perfumes, sprays, and personal care products.
This license helps companies lower costs by exempting ethanol from excise duties, as long as they comply with usage and reporting guidelines.l type depends on its end use, but in all cases, pharmaceutical-grade ethanol must comply with strict regulatory standards to ensure that it is safe and effective for use in medications, topical solutions, and disinfectants.
2️. SOS (Special Off-Sales) License
The SOS License is required for companies handling ethanol specifically for off-sale purposes, such as industrial or chemical applications. This license ensures that ethanol is used safely and legally and it helps SARS monitor distribution to prevent unauthorized use.
Enterprise Ethanol holds an SOS License, allowing us to serve as a trusted supplier of ethanol throughout Southern Africa. Our licensing ensures we meet SARS regulatory requirements enabling us to provide ethanol reliably for industrial, scientific, and non-consumable applications across the region.
Who’s Eligible?
- Companies using ethanol for industrial or scientific purposes, not for beverage or food production.
- Eligible businesses may include those in fuel production, chemical manufacturing, or scientific research.
- Applicants must have proper systems in place for tracking, storage, and use that comply with SARS regulations.
Use Case Examples:
- Biofuel Production: Ethanol blended into biofuels or as an additive in fuel processing.
- Scientific and Laboratory Use: Ethanol used in laboratory reagents, testing, and experimentation.
- Industrial Cleaning Solutions: Ethanol-based cleaners for commercial cleaning and sanitation applications.
Both licenses require strict adherence to SARS regulations, detailed record-keeping, and regular reporting. By securing the correct SARS license before reaching out for quotes, you can streamline your ethanol procurement process, avoid delays, and benefit from South Africa’s thriving ethanol industry!
At Enterprise Ethanol, we’re here to help you understand these requirements so you can make informed decisions and stay compliant with SARS. Feel free to reach out if you have any questions about the licensing process or if you need assistance determining which license is best for your business.
Disclaimer
This blog post provides general information on ethanol purity and its applications. Always consult qualified professionals for advice tailored to your business’s specific requirements.