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.
DRAFT CUSTOMS LEGISLATION FOR PUBLIC COMMENT
Proposed new rebate item for duty free goods imported
for exploration for or production of petroleum
(Comments
due by 30 September 2013)
Draft
Notices were recently published on the SARS website relating to a
proposed new rebate item for duty free goods imported for exploration
for or production of petroleum.
Utilisation of the rebate item will be subject to production of
a rebate permit from ITAC. Draft
Notes to the rebate item (460.23) with regard to the ITAC permit have
also been published.
Many Schedule No 4 rebate provisions are exempted from payment
of VAT under Schedule No 1 to the VAT Act, 89 of 1991. A draft
notice to exempt goods imported under paragraph 8 of Schedule No 1
to the VAT Act has also been published.
The proposed amendments: -
1. makes a distinction
between imported goods that are duty free and not subject to an ITAC
permit and those that attract duty but are subject to an ITAC permit;
2.
allows for the temporary
imports provided the conditions stipulated in the item notes are
complied with;
3.
provide for exemption
from VAT on the goods imported solely for use in petroleum exploration;
and
4.
are intended for implementation with effect from
1 January 2014.
View the SARS Draft
Amendment website for more information on draft documents that have
been published
recently.
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 regulations are:
-
Waste oils containing PCBs, polychlorinated terphenyls (PCTs) or
polybrominated biphenyls (PBBs) (subheading 2710.91); and
-
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.
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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-mailmmasithela@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.
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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 underNotice 745 of 2013 in Government Gazette 36666 of
19 July 2013.
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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.
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There were
no tariff amendments at time of publication.
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.
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