Customs News Bulletin

22 April 2014

 

Latest International Trade News

 

STATUTORY MEASURES RELATING TO PIGS

The Department of Agriculture, Forestry and Fisheries have published three notices relating to levies relating to pigs, registration by abattoirs and exporters of live pigs and records and returns by abattoirs and exporters of live pigs under the Marketing of Agricultural Products Act, 1996 (Act No 47 of 1996).

Notice Numbers R. 290, R. 291 and R. 292 of 17 April 2014 refer.

Download the Notices:

Marketing of Agricultural Products Act: Continuation of statutory measure and determination of guideline price: Levies relating to pigs Gazette 37553 Government Notice R.  292

Marketing of Agricultural Products Act: Continuation of statutory measure: Registration by abattoirs and exporters of live pigs Gazette 37553 Government Notice R.  290

Marketing of Agricultural Products Act: Continuation of statutory measures: Records and returns by abattoirs and exporters of live pigs Gazette 37553 Government Notice R. 291

 

Customs Tariff Applications and Outstanding Tariff Amendments

Notice 312 of 2014 (List 04/2014)

(Comments due 1 May 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:

INCREASE IN THE GENERAL RATE OF CUSTOMS DUTY ON WIRE OF IRON OR NON-ALLOY STEEL PLATED OR COATED WITH OTHER BASE METALS (BEADWIRE) classifiable under tariff subheading 7217.30 from free to 10% ad valorem..

Download the document  at

http://www.gov.za/documents/download.php?f=213251.

 

 

 

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 have been sent to subscribers under cover of supplement 1032 which went to print on 14 April 2014.

Increase in the rate of duty on sugar from free to 132c/kg.

Creation of a rebate provision for 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. 

Increase in 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 from free to 5%..Termination of 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.

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

Creation of a rebate provision 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.

The following amendment will be sent to subscribers under cover of supplement 1033:

Schedule No. 4 to the Customs and Excise Act, 91 of 1964 has been amended by the insertion of rebate item 460.23/00.00/02.00 and by the amendment of rebate item 460.23 to distinguish between equipment used in exploration for, or production of, petroleum and imported free of duty and equipment that is subject to customs duties and a permit from ITAC.

The amendment has been published on 17 April 2014, and the effective date of the amendment is 1 January 2014.

The amendment was published in Gazette No 37554 under Notice No R.289. Jacobsens reference A4/2/369 refers.

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.

 

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 have been no Rule amendments.

The last Rule amendment was published on 14 March 2014.

Forms DA 185 and DA 185.4A5 have been amended to change the references to MIDP to APDP.

Notice No. R. 174 published in Gazette No 37422 of 14 March 2014 (DAR/135 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