Customs News Bulletin

11 February 2014

 

Latest International Trade News

 

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.

 

Latest International Trade News

AMENDMENT: TARIFFS PAYABLE FOR VETERINARY IMPORT PERMIITS INCREASE

The tariffs for veterinary import permits, export certificates, master import permits and certified copies of master importer permits in terms of the Animal Diseases Act, 1984 (Act 35 of 1984) will be increased with effect from 1 April 2014.

The notice to announce the increases has been published under Notice No. 51 of 2014 in Government Gazette No. 37287 of 7 February 2014.

Download the Notice at http://www.gov.za/documents/download.php?f=209161 .

 

AMENDMENT OF STANDARDS AND REQUIREMENTS REGARDING THE CONTROL OF EXPORT OF VARIOUS FRUITS

(With effect from 14 February 2014)

 The Department of Agriculture, Forestry and Fisheries has published two notices regarding the amendment of standards and requirements regarding the control of export of various fruits with effect from 14 February 2014.

The notices are entitled:

Agricultural Product Standards Act: Standards and requirements: Control of export of citrus fruits: Amendment: Gazette 37287 General Notice 52 of 2014

Agricultural Product Standards Act: Standards and requirements: Control of export of fruit excluding citrus and certain deciduous fruits: Amendment Gazette 37287 General Notice 53 of 2014 

For more information contact:

The Executive Officer: Agricultural Product Standards, Department of Agriculture, Private Bag X343, PRETORIA, 0001, Telephone (012) 319 6051, e-mail MabibaW@nda.agric.za

 

 

SOUTH AFRICAN/EUROPEAN UNION TRADE DEVELOPMENT AND COOPERATION AGREEMENT

 Application for market access permits for agricultural products

Due dates for permits:

For importation into South Africa - 18 February 2014 (See paragraph 5)

For permits to the EU – 18 February 2014 (See paragraph 3.2)

 

Under the WTO Market Access reform programme on Agricultural Programmes, WTO members have converted their non-tariff measures to equivalent bound tariffs. Prior to 27 January 1995, South Africa has controlled the importation of agricultural products through an import permit system.  With effect from 
1 January 1995 the permit system was abolished as additional market access is provided through tariff rate quotas under the WTO Market Access programmes.

South Africa and the European Union signed a bilateral Trade Development and Co-operation Agreement (TDCA) in 2000.  This agreement provides for, inter alia, bilateral market access permits, sometimes incorrectly called import permits, which are issued in compliance with the WTO Market Access permits.

In terms of the SA/EU TDCA both parties publish Government Gazette notices to relating to the procedures and conditions for application of the tariff rate quota permits in compliance with the WTO Market Access Agreement.

In South Africa these notices were generally published annually in September.  However, these notices were only published in January this year.

The notice which outlines the procedures and conditions for the permits for reduced import duty rates into South Africa was published on 21 January 2014 under a document entitled “Application for Market Access Permits for Agricultural Products” Gazette 37241 General Notice 27 of 2014. Download http://www.gov.za/documents/download.php?f=207996.

The notice in respect of export permits which will allow the goods of exporters into the EU was published under a document entitled Broad-based Black Economic Empowerment Act: Procedures for Application, administration and allocation of export permits under the Trade, Development and Co-operation Agreement between the European Union and South Africa G 37242 General Notice 28.

These notices are published by the South African Department of Agriculture, Forestry and Fisheries.

Download the Notices for more information. 

Customs Tariff Applications and Outstanding Tariff Amendments

Notice 44 of 2014; Notice 45 of 2014

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 published the following documents relating to the SACU Tariff and tariff amendment applications:

1.         Initiation of sunset review of anti-dumping duties on wire ropes and cables of diameter exceeding 32mm originating in or imported from United Kingdom and Germany and on stranded wire of diameter exceeding or equal to 12.7mm originating in or imported from China

 

Notice 44 of 2014 was published in Gazette No 37262 of 31 December 2014 and comments are due by 14 February 2014.

 

Download the document at http://www.gov.za/documents/download.php?f=208635

2.         Termination of interim review investigation of              anti-dumping duties on ropes and cables              originating in or imported from Germany and              manufactured by Casar

 

Notice 45 of 2014 was published in Gazette No 37262 of 31 December 2014 and comments are due by 14 February 2014.

 

Download the document at

http://www.gov.za/documents/download.php?f=208633

 

 

Customs Tariff Amendments

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 latest tariff amendments have been published on the 20 December 2013. These amendments were sent to subscribers under cover of Supplement 1030.

Please note that some amendments that were published in Government Gazette 37061 of 29 November 2013 will be effective with effect from Friday, 14 February 2014.

 

 

In terms of Notice Nos R. 898 and R. 899 various subheadings in Schedule Number 2 – that is anti-dumping and countervailing duty provisions – will be aligned to eight-digit level with the subheadings in Schedule No. 1 Part 1.  The duty rates will not be affected.

 

New 8-digit subheadings will also be created for goods (salt/sodium chloride; bromomethane (methyl bromide) and certain new pneumatic tyres) classifiable in tariff headings 2501.00, 2903.39, 4011.10 and 4011.20 for technical reasons in terms of Notice No R. 896.  The latter products are all subject to import permits from the International Trade Administration Commission (ITAC).   

 

Subscribers will soon be able to view a PDF version of the amended pages at new.jacobsens.co.za.  

Download the latest Customs Watch to have access to the latest tariff and rule amendments.

 

Customs Rule Amendments

The Customs and Excise Act is amended by the Minister of Finance. Certain provisions of the Act are supported by Customs and Excise Rules, which are prescribed by the Commission of SARS. These provisions are numbered in accordance with the sections of the Act. The rules are more user-friendly than the Act, and help to define provisions which would otherwise be unclear and difficult to interpret.

Forms are also prescribed by rule, and are published in the Schedule to the Rules. 

There were no rule amendments at the time of publication.

Various Government Gazette notices were published to amend the Customs and Excise Rules on 20 and 27 December 2013.   

Under Notice No. R. 1017 dated 20 December 2013 (DAR/132) which was published in Government Gazette No 37169 the Rules for section 119A relating to the electronic submission of excise accounts and returns via eFiling is amended.  Note the dates in rule 119A.R101A(10)(e) and rule 119A.R101(10)(g)

 Notice No R. 1018 of 20 December 2013 amended item 202.00 of the Schedule to the Rules by the substitution of various DA 260 Excise (wine) Accounts and their schedules. See DAR/133 which was published inGovernment Gazette 37169 of 20 December 2013.  Visit the SARS website at http://www.sars.gov.za/Legal/Secondary-Legislation/Rule-Amendments/Pages/Rule-Amendments-2013.aspx for more information. 

Under the third amendment the rules for section 15 on traveller declarations were amended and form DA 331 was deleted.  Notice No. R. 1031 published in Gazette No 37180 of 27 December 2013 (DAR/134 refers).

Download the amendments to view the notices.

 

 

 

 

 

 

Contact Information:

 

 

Contact the Author:

Mayuri Govender

Jacobsens Editor

Tel: 031-268 3273
e-mail:  
jacobsen@lexisnexis.co.za

 

 

Leon Marais 
Independent Customs Specialist
Tel: 053-203 0727

e-mail: leon.marais@intekom.co.za