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.
IMPORT DUTIES ON CHICKEN INTO
SACU INCREASED
In an
unexpected step, the South
African Revenue Service
published a notice to increase
the rates of customs duty on
frozen chicken into the Southern
African Customs Union on Monday
30 September 2013.
Customs tariff amendments
affecting the Southern African
Customs Union (SACU), comprising
Botswana, Lesotho, Namibia,
South Africa and Swaziland are
normally published on Fridays.
Earlier this year the South
African Poultry Association
applied for an increase in the
customs duty rates on frozen
chicken meat, from the existing
rates, to protective specific
and composite duty rates, which
have been capped with the World
Trade Organisation bound ad
valorem rate of 82%. The
application was published in
Government Gazette No. 36358 of
12 April 2013 under Notice No.
378 of 2013 (ITAC Customs Tariff
Application List 08/2013).
The
only frozen chicken meat that
was not affected by the
application was mechanically
deboned meat of subheading
0207.12.10, which is currently
free of duty.
ITAC
has a standard clause in all
their tariff amendment
application notices that the
rate of duty in the application
is that requested by the
applicant, and that the
Commission may, depending on its
findings, recommend a lower of
higher rate of duty. ITAC may
also decide to maintain the
existing duty rates. The table
below indicates the rates prior
to the increased, the requested
duty rates as well increased
duty rates.
Heading / Subheading |
Article Description |
Duty Rates prior to
30 September 2013 |
Duty rates with
effect from 30
September 2013 |
Requested Duty Rate |
Remarks |
|
MEAT AND EDIBLE
OFFAL, OF THE
POULTRY OF HEADING
01.05, FRESH,
CHILLED OR FROZEN: |
|
|
|
|
0207.1 |
- Of fowls of the
species Gallus
domesticus: |
|
|
|
|
0207.11 |
- - Not cut in
pieces, fresh or
chilled |
free |
free |
- |
|
0207.12 |
- - Not cut in
pieces, frozen: |
|
- |
|
|
0207.12.10 |
- - - Mechanically
deboned meat |
free |
free |
- |
|
0207.12.20 |
- - - Carcasses
(excluding necks and
offal) with all cuts
(e.g. thighs, wings,
legs and breasts)
removed |
27% |
31% |
991 c/kg with a
maximum of 82% |
ITAC recommended a
slight increase
given that carcasses
are an important
source of protein
for the poor |
0207.12.90 |
- - - Other |
27% |
82% |
1 111 c/kg with a
maximum of 82% |
Whole bird
(constitutes an
insignificant
percentage of the
SACU market (1%).
Whole bird is
destined at the high
end of the market. |
0207.13 |
- - Cuts and offal,
fresh or chilled |
free |
free |
- |
|
0207.14 |
- - Cuts and offal,
frozen: |
|
- |
|
|
0207.14.10 |
- - - Boneless cuts |
5% |
12% |
12% or 220 c/kg with
a maximum of 82% |
For example chicken
breasts |
0207.14.20 |
- - - Offal |
27% |
30% |
67% or 335 c/kg with
a maximum of 82% |
ITAC recommended a
slight increase
given that offal is
an important source
of protein for the
poor |
0207.14.90 |
- - - Other |
220c/kg (about 18%) |
37% |
56% or 653 c/kg with
a maximum of 82% |
Bone in portions
(thighs, wings,
drumsticks) (leg
quarters) (IQF
portions)(“braai
packs”)(70% of
production by
domestic industry) |
The
duty rates above apply to the
General and EFTA columns only.
The EU and EFTA rates of duty
are free of duty and have not
been affected by the
application.
The
South African Poultry Producers
Association requested composite
duty rates and claimed that
chicken importers were
under-invoicing their chicken
imports. However, ITA could not
find any evidence of
under-invoicing and decided to
recommend normal ad valorem
duties only.
The
notice to implement the
increases was published in
Government Gazette No. 36876, R.
715 dated 30 September 2013.
Download
Notice No. R. 715 of view
the Customs Watch for more
information.
Download Report No 442
entitled:”
INCREASE IN THE RATES OF CUSTOMS
DUTY ON FROZEN MEAT OF FOWLS OF
THE SPECIES GALLUS DOMESTICUS:
WHOLE BIRD, BONELESS CUTS,
BONE-IN PORTIONS, CARCASSES AND
OFFAL”.
DRAFT CUSTOMS LEGISLATION FOR
PUBLIC COMMENT
Proposed new rebate item for
duty free goods imported for
exploration for or production of
petroleum
(Comments due today)
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: -
·
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;
·
allows for the temporary imports
provided the conditions
stipulated in the item notes are
complied with;
·
provide for exemption from VAT
on the goods imported solely for
use in petroleum exploration;
and
·
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.
|
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 domestic dollar-based
reference price (DBRP) for sugar
from US$ 358/ton to US$ 764/ton
through an adjustment of the
calculation of the DBRP for
sugar by basing it on the
domestic cost of production
Sugar is
classifiable under various
subheadings of heading No 17.01.
ITAC has
received an application from the
South African Sugar Association
for an increase in the domestic
dollar-based reference price
(DBRP) for sugar from US$
358/ton to US$ 764/ton through
an adjustment of the calculation
of the DBRP for sugar by basing
it on the domestic cost of
production. By using the
requested reference price, the
variable tariff formula for
sugar will trigger an increase
in the London No. 5 sugar
settlement price falls by US$
20/ton below the base price,
which is the 3-week moving
average price for the London No.
5 settlement price.
Conversely a
reduction in the duty will be
triggered if the London No. 5
sugar settlement price increases
by US$ 20/ton above the base
price.
Enquiries: Ms
Lebogang
Loate,
fax (012) 394 4629 or Ms
K Mzinjana
, fax (012) 394 4664.
Representations should be
submitted by 18 October
2013. |
2.
Comments requested on the
increase in the allocation of
quota levels for the importation
of used overcoats under rebate
item 460.11/00.00/01.00 for 2014
Rebate item
460.11 provides for a partial
rebate on used over-coats,
car-coats, raincoats, anoraks,
ski-jackets, duffle-coats,
mantles, three-quarter coats,
greatcoats, hooded caps, trench
coats, gabardines, padded
waistcoats and parkas (excluding
any other clothing articles)
classifiable in tariff headings
61.01, 61.02, 62.01, 62.02 and
6309.00.13, in such quantities,
at such times and subject to
such conditions as ITAC may
allow by specific permit.
The used
coats that are admissible under
this item must be imported in
bales and must be designed to be
worn over all other clothing as
protection against the weather.
ITAC has
requested interested parties to
comment on a request by the
Association of Importers of Worn
Overcoats for a 30% increase in
the level of the quota for 2014
regarding applications in terms
of the provision under rebate
item 460.11/00.00/01.00 for
permits mention in the item.
Furthermore
interested parties are requested
to comment on a proposed
amendment to the rebate item by
the addition of the following
conditions:
1. Containers
must arrive for inspection only
during Monday to Friday. No
arrivals may occur during
Saturday, Sunday or public
holidays.
2. Importers
need to provide the
International Trade
Administration Commission Of
South Africa (ITAC) with proof
of salaries being paid to
temporary workers.
3. The
date for issuing permits be
changed from February to an
earlier period.
Enquiries:
Barbara Moeng
,
Coert
Grobbelaar
Tel (012) 394 3672, Fax (012)
394 4672, or Kokami Getrude
Legodi, tel (012) 394 3812, fax
(012) 394 3812, email
klegodi@itac.org.za
Download the
Notice to view the reasons for
the increase in the quota levels
and amendment of the Guidelines.
Representations should be
submitted by 18
October 2013.
3. Creation
of a rebate provision for full
customs duty on (other) pile
fabrics, knitted or crocheted,
of man-mad fibres, classifiable
in tariff subheading 6001.92,
for the manufacture of footwear
with uppers of textile
materials, classifiable in
Chapter 64
ITAC has
received an application from
Fast Fox Footwear / t/a Little
Slippery Co. In Port Elizabeth
for the creation of a rebate
facility mentioned above.
As reasons
for the application, it was
stated that there are no local
manufacturers, and the company
is under threat from imported
slippers.
ITAC Ref
37/2012, Enquiries Mr M
Skenjana, tel. (012) 394 3675,
fax (012) 394 4675 or e-mail
mskenjana@itac.org.za
Representations should be
submitted by 18 October
2013.
4. Withdrawal
of the application for an
increase in the rate of duty on
Biaxially oriented polypropylene
classifiable under tariff
subheadings 3920.20.25 and
3920.20.30 from 10% to 20%
ITAC has
decided to withdraw the
application above because Fima
Films (Pty) Ltd indicated that
as a result of the change in the
management structure, a new
strategy which differs from that
of the previous management was
developed. The new management
has considered the application
for the increase in the rate of
duty and decided that it would
not be beneficial for the
company owing to the negative
response received from the
downstream industry opposing the
application.
ITAC Ref
06/2013, Enquiries Mr Nkulana
Phenya fax (012) 394 4677 or
e-mail
Nphenya@itac.org.za
or Ms Ayanda Ndou at fax (012)
394 4724 or e-mail
endou@itac.org.za
The
applications were published
under LIST 15/2013 in Notice No.
945 OF 2013 which was published
in Government Gazette No. 36849
OF 20 September 2013.
Customs
Tariff Application List 14/2013
was published under Notice 860
of 2013 in Government Gazette
36760 of 23 August 2013.
The following
applications were published
under List 14/2013:
1.
Increase in
the rate of Customs duty on
coated fine paper (heading
48.10, various subheadings);
2.
Increase in
the rate of Customs duty on
roasted chicory (subheading
2101.30.10);
3.
Increase in
the general rate of Customs Duty
on heat exchange units
(subheading 8419.40);
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;
5.
Reduction of
the Customs Duty on poly vinyl
butyral (subheading 3920.91);
and
6.
Amendment of
Tariff subheadings 8302.30.30,
8302.41.10 and 8302.42.10
(fittings of iron, steel or
copper) |
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 will be
sent to Jacobsens subscribers
under cover of Supplement 1025:
Correction Notice to amend the
tariff subheading for the
provisional payments in relation
to safeguard duties in relation
to frozen chips or French fries
to subheading No. 2004.10.20.
The correction notice above was
published in Government Gazette
No. 36824 of 5 September 2013
under Notice number R. 667.
A notice was published on 27
September 2013 to impose
provisional payments in relation
to anti-dumping duties on coated
paper, classifiable in heading
48.10, originating in or
imported from China or the
Republic of Korea up to and
including 14 March 2014 as
recommended in ITAC Report No.
445
This notice was published in
Government Gazette No. 36866 of
27 September 2013 under Notice
No. R. 706.
The rates of Customs duty on
frozen meat of fowls of the
species Gallus domesticus
have also been increased. View
main article for more
information.
Subscribe to the Jacobsens
Customs Watch or download the
latest Customs Watch to have
access to the latest tariff and
rule amendments. |