Customs News Bulletin

26 May 2014

 

Latest Amendments

PROPOSED AMENDMENTS TO THE REGULATIONS REGARDING THE CONTROL OF EXPORT OF FRESH CUT FLOWERS AND FRESH ORNAMENTAL FOLIAGE (Comments due by 9 June 2014)

The Directorate: Agricultural Products Standards of the Department of Agriculture, Forestry and Fisheries has published two notices relating to the regulations regarding the control of export of fresh cut flowers and fresh ornamental foilage to invite comments regarding the proposed repeal of regulations R.2014 to R.2017 that were published on 23 August 1991.

Government Notice Nos. R.340 and R.341 of 9 May 2014 published in Government Gazette 37606 refers.

Download notices at http://www.gov.za/documents/download.php?f=213365 and http://www.gov.za/documents/download.php?f=213366.

 

Customs Tariff Applications and Outstanding Tariff Amendments

Notice 375 of 2014 (List 05/2014) (Comments due on 23 June  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 rate of customs duty on paper and paperboard, coated, covered, impregnated or covered with plastic classifiable under tariff subheading 4811.59.90; and other paper, paperboard, cellulose fibres, classifiable under tariff subheading 4811.90.90 from free to 5% ad valorem by the creation of 8-digit subheadings.

Download the document  at

http://www.gov.za/documents/download.php?f=213475.

 

   

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 amendments have been published recently:

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 being imported free of duty, and equipment that is subject to customs duties and a permit from ITAC.

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

The amendment was published in Government Gazette 37554 under Notice No R.289.

Jacobsens reference A4/2/369 refers.

The amendment of the rate of duty on heat exchange units in tariff subheading 8419.50 from free to 15% as recommended in ITAC Report No. 465;

Provision is made for a rebate of full duty on methyl ester sulphate for the manufacture of washing preparation by the insertion of rebate item 306.06/3402.11.20/01.08 as recommended in ITAC Report No. 469; and

Provision is made for a rebate of full duty on polyurethane flat shapes and natural rubber straps for the manufacture of dust mask as recommended in ITAC Report No. 460.

Tariff amendments published on 9 May 2014:

The descriptions of tariff subheadings 8302.30.30, 8302.41.10 and 8302.42.10 has been amended as requested by SARS and approved by ITAC.  (Government Notice R. 335, published in Government Gazette 37606 of 9 May 2014  – Jacobsens reference: A1/1/1489).

The anti-dumping duty provisions on welded link chain ranging in size from 4 mm to 10 mm originating in or imported from China (anti-dumping duty items 215.02/7315.82.03/01.08 and 215.02/7315.82.03/02.08) have been deleted as recommended in ITAC Report Number 461 (Government Notice R.336, published in Government Gazette 37606 of 9 May 2014 – Jacobsens reference: A2/1/358).

A new rebate provision has been created by the insertion of item 312.01/6001.92/01.06 to provide for a rebate of full duty on other pile fabrics, knitted or crocheted, of man-made fibres, classifiable in tariff subheading 6001.92, for the manufacture of footwear with uppers of textile materials classifiable in Chapter 64 as recommended in  ITAC Report 470. (Government Notice No. R. 377, published in Government Gazette 37654 dated 23 May 2014 – Jacobsens reference: A3/1/703).

The amendments will be sent to subscribers under cover of supplement 1033.

Subscribers will soon be able to view a PDF version of the tariff book supplements at www.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. 

Form CR 1 titled General Application for Customs Refund: Voucher of Correction have been amended and a new form has substituted the existed form in the schedule to the Rules.

The notice was published in Government Notice R.361 published in Government Gazette 37631 of 16 May 2014 (DAR/138).

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