Volkswagen of South Africa (VW), a local manufacturer and exporter of motor vehicles, qualified for excise duty rebates under the Export Incentive Scheme (Phase VI) in terms of the Customs and Excise Act 91 of 1964. A repealed provision, note 5(vi)(a)(ii) to rebate item 609.17 of Schedule 6, allowed a manufacturer to cede excess foreign currency earnings to other manufacturers, subject to a recommendation by the Board on Tariffs and Trade and certification by the Director-General of Trade and Industry. Due to an erroneous interpretation by the Commissioner of Customs and Excise regarding the inclusion of royalty payments in foreign currency usage, VW understated its surplus foreign currency earnings prior to the repeal of the note on 1 September 1995. After the repeal, the Commissioner conceded the error and allowed retrospective adjustment, effectively releasing additional surplus earnings. VW then applied to the Board for a recommendation to cede this additional surplus, but the Board refused on the basis that the enabling provision had been repealed. VW successfully reviewed this refusal in the High Court, and the Board appealed to the Supreme Court of Appeal.