From time
to time certain government
departments publish draft
legislation to inform
stakeholders about their
intention to amend legislation,
and to invite comments. The
commentary period ranges from 2
week to longer periods,
depending on the urgency of the
matter.
The
Bulletin focuses on the
publication of information
relating to such matters which
impact on Customs and Excise
legislation and on broader
import and export legislation.
ITAC DECISION ON POULTRY
INCREASE EXPECTED SOON
Earlier this year the South
African Poultry Association
applied for an increase in the
customs duty rates on frozen
chicken meat, from the existing
rates, to protective specific
and composite duty rates, which
have been capped with the World
Trade Organisation bound ad
valorem rate of 82%. The
application was published in
Government Gazette No. 36358 of
12 April 2013 under Notice No.
378 of 2013 (ITAC Customs Tariff
Application List 08/2013).
The only frozen chicken meat
that are not affected by the
application are mechanically
deboned meat of subheading
0207.12.10, which are currently
free of duty.
Heading / Subheading |
Article Description |
Existing Duty Rates |
Requested Duty Rate |
|
MEAT AND EDIBLE
OFFAL, OF THE
POULTRY OF HEADING
01.05, FRESH,
CHILLED OR FROZEN: |
|
|
0207.1 |
- Of fowls of the
species Gallus
domesticus: |
|
|
0207.11 |
- - Not cut in
pieces, fresh or
chilled |
free |
- |
0207.12 |
- - Not cut in
pieces, frozen: |
|
|
0207.12.10 |
- - - Mechanically
deboned meat |
free |
- |
0207.12.20 |
- - - Carcasses
(excluding necks and
offal) with all cuts
(e.g. thighs, wings,
legs and breasts)
removed |
27% |
991 c/kg with a
maximum of 82% |
0207.12.90 |
- - - Other |
27% |
1 111 c/kg with a
maximum of 82% |
0207.13 |
- - Cuts and offal,
fresh or chilled |
free |
- |
0207.14 |
- - Cuts and offal,
frozen: |
|
|
0207.14.10 |
- - - Boneless cuts |
5% |
12% or 220 c/kg with
a maximum of 82% |
0207.14.20 |
- - - Offal |
27% |
67% or 335 c/kg with
a maximum of 82% |
0207.14.90 |
- - - Other |
220c/kg |
56% or 653 c/kg with
a maximum of 82% |
The duty rates above apply to
the General and EFTA columns
only. The EU and EFTA rates of
duty are free of duty.
The Minister of Trade and
Industry has already received
the ITAC recommendation, and it
is expected that the Minister of
Finance will receive a request
from the Minister to publish a
notice which will implement
ITAC’s recommendation soon.
ITAC has a standard clause in
all their tariff amendment
application notices that the
rate of duty in the application
is that requested by the
applicant, and that the
Commission may, depending on its
findings, recommend a lower of
higher rate of duty. ITAC may
also decide to maintain the
existing duty rates.
PROPOSED
REGULATIONS TO PHASE-OUT THE USE
OF POLYCHLORINATED BIPHENYLS
(PCB) AND POLYCHLORINATED
BIPHENYL (PCB) CONTAMINATED
MATERIAL
Draft
regulations were published under
the National Environmental
Management Act to phase out the
use of polychlorinated biphenyls
(PCB) and polychlorinated
biphenyl contaminated materials
by 2023.
In the
Government Notice members of the
public were invited to submit
written representations or
objections on the proposed
regulations within 60 days of
publication of the notice.
The proposed
regulations contain prohibitions
on the use, importation and sale
of PCB materials and PCB
contaminated materials.
Importers, exporters and
manufacturers of PCB materials
and PCB contaminated materials
are encouraged to download the draft
regulations in
order to determine how the
prohibitions will affect their
businesses.
Some of the
products that could be affected
by these regulation are:
1. Waste oils containing PCBs,
polychlorinated terphenyls (PCTs)
or polybrominated biphenyls (PBBs)
(subheading 2710.91); and
2. Chemical compounds
containing PCBs, PCTs or PBBs.
The proposed
regulations to phase-out the use
of PCB materials and PCB
contaminated materials were
published in Government Gazette
Notice No. 36749 of 15 August
2013 under Notice 849 of 2013.
Members of the public and
interested parties are invited
to submit written
representations and objections
to the Department of Water and
Environmental Affairs by 16
October 2013.
Download the draft
regulations for
more information.
|
The
International Trade
Administration Commission (ITAC)
is responsible for tariff
investigations, amendments, and
trade remedies in South Africa
and on behalf of SACU.
Tariff
investigations include:
Increases
in the customs duty rates in
Schedule
No. 1 Part 1 of Jacobsens. These
applications apply to all the
SACU Countries, and, if amended,
thus have the potential to
affect the import duty rates in
Botswana, Lesotho, Namibia,
Swaziland and South Africa.
Reductions
in the customs duty rates in
Schedule No. 1 Part 1. These
applications apply to all the
SACU Countries, and, if amended,
thus have the potential to
affect the import duty rates in
Botswana, Lesotho, Namibia,
Swaziland and South Africa.
Rebates of
duty on products, available in
the Southern African Customs
Union (SACU), for use in the
manufacture of goods, as
published in Schedule No. 3 Part
1, and in Schedule No. 4 of
Jacobsens. Schedule No. 3 Part 1
and Schedule No. 4 are identical
in all the SACU Countries.
Rebates of
duty on inputs used in the
manufacture of goods for export,
as published in Schedule No. 3
Part 2 and in item 470.00. These
provisions apply to all the SACU
Countries.
Refunds of
duties and drawbacks of duties
as provided for in Schedule No
5. These provisions are
identical in the all the SACU
Countries.
Trade
remedies include:
Anti-dumping duties (in Schedule
No. 2 Part 1 of Jacobsens),
countervailing duties to
counteract subsidisation in
foreign countries (in Schedule
No. 2 Part 2), and safeguard
duties (Schedule No. 2 Part 3),
which are imposed as measures
when a surge of imports is
threatening to overwhelm a
domestic producer, in accordance
with domestic law and
regulations and consistent with
WTO rules.
Dumping is
defined as a situation where
imported goods are being sold at
prices lower than in the country
of origin, and also causing
financial injury to domestic
producers of such goods. In
other words there should be a
demonstrated causal link between
the dumping and the injury
experienced. To remedy such
unfair pricing, ITAC may, at
times, recommend the imposition
of substantial duties on imports
or duties that are equivalent to
the dumping margin (or to the
margin of injury, if this margin
is lower).
Countervailing investigations are
conducted to determine whether
to impose countervailing duties
to protect a domestic industry
against the unfair trade
practice of proven subsidised
imports from foreign competitors
that cause material injury to a
domestic producer.
Safeguard measures,
can be introduced to protect a
domestic industry against
unforeseen and overwhelming
foreign competition and not
necessarily against unfair
trade, like the previous two
instruments. In the WTO system,
a member may take a safeguard
action, which is, restricting
imports temporarily in the face
of a sustained increase in
imports that is causing serious
injury to the domestic producer
of like products. Safeguard
measures are universally applied
to all countries, unlike
anti-dumping and countervailing
duties that are aimed at a
specific firm or country.
Schedule
No. 2 is identical in all the
SACU Countries.
ITAC has
received the following
applications concerning
amendments to the Customs Tariff
of the Southern African Customs
Union (SACU). These
applications related to:
1. Increase
in the rate of Customs Duty on
coated fine paper
Coated fine
paper is classifiable under
various subheadings of heading
No 48.10, which includes
4810.13.20, 4810.13.90,
4810.14.10, 4810.14.90,
4810.19.90 and 4810.20.90.
ITAC has
received an application from
Nampak for an increase in the
rate of duty on coated fine
paper of these subheadings from
free to the bound WTO rate of 5% ad
valorem.
Enquiries:
Manini Masithela, telephone
(012) 394 3682, fax (012) 394
4682 or e-mail
mmasithela@itac.org.za and
/ or Lebogang Loate, telephone
(012) 394 3629, fax (012) 394
4629 or e-mail lloate@itac.org.za.
Representations should be
submitted by 20
September 2013.
2. Increase
in the rate of Customs duty on
roasted chicory
Roasted
chicory is classifiable in
tariff subheading 2101.30.10.
ITAC has
received an application for
Chicory SA for an increase in
the rate of customs duty on
roasted chicory from 9,2c/kg to
37% ad
valorem. |
ITAC Ref
17/2013, Enquiries Ms. Barbara
Moeng, Tel.: (012) 394 3623,
fax: (012) 394 3623, or e-mailbmoeng@itac.org.za.
Representations should be
submitted by 20
September 2013.
3. Increase
in the general rate of Customs
Duty on heat exchange units
Heat exchange
units are classifiable under
tariff subheading 8419.40.
ITAC has
received an application from GEA
Aircooled Systems for an
increase in the rate of duty on
heat exchange units from free to
the WTO bound rate of 15% ad
valorem.
ITAC Ref
47/2012, Enquiries Mr. N
Mahlalela, Tel.: (012) 394 3684
or e-mail nmahlalela@itac.org.za.
Representations should be
submitted by 20
September 2013.
4. Creation
of rebate provisions for
concentrated cranberry and
passion fruit juices, not
containing added sugar or other
sweetening matter of a Brix
value exceeding 45 for use in
the manufacture of mixtures of
fruit juices
Cranberry
juices and passion fruit juice,
both concentrated and not
containing added sugar or other
sweetening matter, of a Brix
value exceeding 45, fall in
subheadings 2009.81.10 and
2009.89.40 respectively.
ITAC has
received an application from
Ceres Fruit Juices (Pty) Ltd for
rebate facilities to be created
for these juices for use in the
manufacture of fruit juices in
tariff subheading 2009.90.10
Currently the
cranberry and fruit juices of
subheading numbers 2009.81.10
and 2009.89.40 are subject to
general and EFTA ad
valorem rates of
20%.
ITAC Ref
13/2013, Enquiries Khosi
Mzinjana, Tel.: (012) 394 366,
fax (012) 394 4664 or e-mailkmzinjana@itac.org.za.
Representations should be
submitted by 20
September 2013.
5. Reduction
of the Customs Duty on poly
vinyl butyral
Tariff
subheading 3920.91 covers poly
vinyl butyral.
ITAC has
received an application from
National Auto Glass (Pty) Ltd
for a reduction in the rate of
duty on poly vinyl butyral from
10% ad
valorem to
free.
ITAC Ref
05/2012, Enquiries Sipho
Tsabalala, Tel.: (012) 394 3739
or e-mail stsabalalala@itac.org.za or
Chris Sako, tel.: (012) 394
3669 or e-mail csako@itac.org.za.
Representations should be
submitted by 20
September 2013.
6. Amendment
of Tariff subheadings
8302.30.30, 8302.41.10 and
8302.42.10
The tariff
subheadings above cover:
“- - Fittings
of iron, steel or copper,
commonly used in the manufacture
of windows, doors and door
frames (excluding window opening
mechanisms), of base metal”
“- - -
Fittings of iron, steel or
copper, commonly used in the
manufacture of windows, doors
and door frames”; and
“- - -
Fittings of iron, steel or
copper, commonly used in the
manufacture of doors and door
frames”
ITAC has
received an application from
SARS that the wording of the
three subheadings be amended as
follows:
“8302.30.30 -
- Fittings of iron, steel or
copper, commonly
used in the manufacture of
windows(excluding
window opening mechanisms),
doors and door frames (excluding
window opening mechanisms), of
base metal”
“8302.41.10 -
- - Fittings of iron, steel or
copper, commonlyof
a kind used solely
or principally for in
the manufacture of windows, doors
and door frames of
base metal”;
and
“8302.42.10 -
- - Fittings of iron, steel or
copper, commonlyof
a kind used solely
or principally for in
the manufacture of doors
and door frames of
base metal.”
The current
descriptions are misleading and
lead to tariff classification
issues which have not been
foreseen when the original
8-digit subheadings were
created.
This
amendment is proposed in order
to reduce the possible incorrect
interpretations that could lead
to costly and unnecessary
litigation when disputes arise.
ITAC Ref
18/2013, Enquiries Mr. N
Mahlalela, Tel.: (012) 394 3684
or e-mail nmahlalela@itac.org.za.
Download Notice
860 of 2013 for
more information on the reasons
for these applications.
Representations should be
submitted by 20
September 2013.
The
applications were published
under LIST 14/2013 in Notice No.
860 OF 2013 which was published
in Government Gazette No. 36760
OF 23 August 2013.
Customs
Tariff Application List 13/2013
was published under
Notice 745 of 2013 in
Government Gazette 36666 of 19
July 2013. |
With the
exception of certain parts of
Schedule
No. 1, such as Schedule No. 1
Part 2 (excise duties), Schedule
No. 1 Part 3 (environmental
levies) Schedule No. 1 Part 5
(fuel and road accident fund
levies), the other parts of the
tariff is amended by SARS based
on recommendations made by ITAC
resulting from the
investigations relating to
Customs Tariff Applications
received by them. The ITAC then
investigates and makes
recommendations to the Minister
of Trade and Industry, who
requests the Minister of Finance
to amend the Tariff in line with
the ITAC’s recommendations. SARS
is responsible for drafting the
notices to amend the tariff, as
well as for arranging for the
publication of the notices in
Government Gazettes.
During the annual budget speech
by the Minister of
Finance in February, it was
determined that parts of the
tariff that are not amended
resulting from
ITAC recommendations, must be
amended through proposals that
are tabled by the Minister of
Finance.
Once a year big tariff
amendments are published by SARS,
which is in line with the
commitments of South Africa and
SACU under international trade
agreements.
Under these amendments, which
are either published in November
or early in December, the import
duties on goods are reduced
under South Africa’s
international trade commitments
under existing trade agreements. |
The following amendments will be
sent to Jacobsens subscribers
under cover of Supplement 1024:
·
Additional Note 1(f) to Chapter
27 has been amended by amending
the distillation specifications
for illuminating kerosene.
The tariff amendment above was
published in Government Gazette
No. 36780 of 30 August 2013
under Notice number R. 640.
The Jacobsens reference number
for this amendment will be
A1/1/1474.
On 5 July 2013 provisional
payments were imposed in
relation to safeguard duties on
frozen potato chips or French
fries up to and including 20
January 2014 as recommended in
ITAC Report No. 436.
A correction notice was
published on 6 September 2013 in
Government Gazette No. 36824 to
amend the subheading in that
notice to subheading no.
2004.10.20.
The correction notice was
published under Notice No. R
667.
Subscribe to the Jacobsens
Customs Watch or download the
latest Customs Watch to have
access to the latest tariff and
rule amendments. |