Customs News Bulletin

Amendment of Regulations relating to the  International Trade Administration Commission of South Africa (ITAC) Automotive Production and Development Programme (APDP) Regulations

A notice has been published to amend the above regulations under section 59 of the  International Trade Administration Act, 2002 (Act 71 of 2002).

In terms of Government Notice No. R. 96, published in Government Gazette No. 36147 of 15 February 2013, the above has been amended with retrospective effect to 1 January 2013, by the amendment of paragraphs 14 and 15 of the APDP Regulations.

Paragraphs 14 and 15 relate to the issuing of PRCC and the usage of PRCC respectively.

Download Notice No. 271 of 11 April 2014 at http://www.gov.za/documents/download.php?f=213180 .

Customs Tariff Applications and Outstanding Tariff Amendments

Notice 284 of 2014 (List 03/2014)

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 document relating to the SACU Tariff and tariff amendment applications:

WITHDRAWAL OF THE APPLICATION FOR AN INCREASE IN THE RATE OF DUTY ON roasted chicory classifiable under tariff subheading 2101.30.10, from 9.2 cents per kilogram (ad valorem equivalent of 1.5%) to 37% ad valorem.

Download the document  at http://www.gov.za/documents/download.php?f=213196

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 following tariff amendments will be sent to subscribers under cover of supplement 1032 which went to print today (14 April 2014).

The rate of duty on sugar is increased from free to 132c/kg. all territories. See notice R265 of 4 April 2014.  All the subheadings of heading 17.01 have been affected by this amendment.

Provision is made for a rebate of duty on certain fabrics   (classifiable in subheadings 5407.61, 5903.20.90 and 5907.00.90) used in the manufacture of upholstered furniture as recommended in ITAC Report 452.  See Notice No. R. R23 of 4 April 2014.

The loose-leaf pages that have been affected by various amendments that have been published on 11 April 2014 will also be forwarded to subscribers under cover of Supplement No 1032. 

The general rate of duty on coated fine paper, classifiable in subheadings 4810.13.20, 4810.13.90, 4810.14.10, 4810.14.90, 4810.19.90 and 4810.29.90 is increased from free to 5%.  Notice R. 272 of 11 April (A1/1/1487), published in Gazette No 37523 refers

The anti-dumping and countervailing duties on stranded wire, ropes and cables originating in or imported from India have been terminated with effect from 14 February 2014.

There are currently no more active countervailing duties.

The anti-dumping duties on stranded wire, ropes and cables imported from the People’s Republic of China, the UK, Germany and Korea have also been terminated with effect from 14 February 2014 as recommended in ITAC Report No. 462.

Notice No 274 dated 11 April 2014 (A2/1/357) published in Government Gazette No 37523 of 11 April 2014 and Government Notice No. 276 dated 11 April 2014 (A2/2/3) published in Government Gazette 37523 of 1 April 2014 refers.

Provision is also made for a rebate of the full duty on cranberry fruit juice concentrate, used in the manufacture of mixtures of fruit juice as recommended in ITAC Report No. 450.

Refer to Notice No 277 dated 11 April 2014 (A3/1/700) published in Government Gazette No 37523 of 11 April 2014.

Subscribers will soon be able to view a PDF version of the tariff book supplements at new.jacobsens.co.za.  

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