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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.
Customs Tariff Compliance
Tariff classification in the
Southern African Customs Union (SACU)
Tariff is done in accordance
with the International
Convention on the Harmonized
Commodity Description and Coding
System.
The Harmonized System ("HS") of
SACU, comprising Botswana,
Lesotho, Namibia, South Africa
and Swaziland, can be found in
Schedule No. 1 Part 1 of the
Jacobsens Harmonized Customs and
Excise Tariff. It is the
loose-leaf version of the SARS
Customs online tariff.
The HS is the standardised
coding system of names and
numbers used in international
trade. Over 200
countries representing about 98
percent of world trade use
the HS as a basis for revenue
collection, import and export
controls and the compilation of
international trade data and
statistics.
Within the context of the
Southern African Customs Union (SACU),
customs tariff compliance
relates to the accurate tariff
classification and declaration
of goods imported into or
exported from SACU. Importers
or exporters are responsible for
the correct declaration of their
goods, whether or not they make
use of appointed Customs
clearing and forwarding agents.
Accurate tariff classification
is a requirement for a healthy
and prosperous economy and
accurate tariff classification
ensures that all goods are
classified uniformly. It then
ensures that the playing field
for everyone involved in
international trade is levelled
resulting in governments and
government departments being
able to monitor the state of the
economy and establish
appropriate trade policies.
The data collected by SARS is
based on the HS. This data is
assembled from the information
which is provided by importers,
exporters and their appointed
customs clearing and forwarding
agents on bills of entry. The
data is then used to determine
appropriate duty rates,
negotiate trade agreements,
maintain trade statistics, and
effectively identify goods and
shipments that pose a risk to
the health, safety and security
of Botswana, Lesotho, Namibia,
South Africa and Swaziland.
Accurate HS data is also of
vital importance to the business
community because it is
accurate, detailed and used
widely. It is one of the few
economic indicators that is of
immediate use to businesses.
Since the Harmonized System
entered into force in 1988, the
demand for HS data has increased
internationally. Some of the
reasons include changes in the
international trading
environment, globalization,
expanded free trade and
widespread tariff reductions as
a result of the successes of the
World Trade Organization and its
umbrella agreements which
entered into force in 1995, and
in the case of South Africa its
new democracy which was formed
in 1994 and its resultant
re-admission in the global trade
arena.
Non-compliance can
result in delays at the time of
release of goods, customs
audits, penalties, non-timeous
payment of exporters and
high-risk profiles with Customs
resulting in future shipment to
be stopped or detained.
DRAFT AMENDMENT OF SCHEDULE NO 6
PART 3, NOTE 6 (f) (iv)
(Comments due 30 October 2013)
Note
(f) in Part 3 of Schedule No 6
deals with mining on land:
Refunds of levies on eligible
purchases for distillate fuel
for mining as specified in
paragraph (b)(i) to this
paragraph.
The
proposed amendment aims to
exclude mining for sand, rock,
stone, soil (excluding topsoil),
clay, gravel and limestone as
mining activities, except
through quarrying. Dredging,
surface collection and
underground operations are
excluded.
Download the documents from the
SARS website at http://www.sars.gov.za/Legal/Preparation-of-Legislation/Pages/Draft-Documents-for-Public-Comment.aspx.
DRAFT TARIFF AMENDMENTS
EFFECTIVE FROM 1 JANUARY 2013
(Comment due on 29 October
2013)
The
South African Revenue Service
published various draft notices
which will give interested
parties an indication of what is
in stall for 2014.
Draft
Tariff Amendments including the
proposed amendments to implement
the EFTA phase-downs for 2014
with effect from 1 January 2014:
· Explanatory
Memorandum
· Draft
amendment of Part 1 of Schedule
No. 1 to implement 2014
phase-downs
· Draft
amendment of Part 1 of Schedule
No. 2 to replace 6-digit
commodity codes with 8-digit
commodity codes
· Draft
amendment of Part 2 of Schedule
No. 2 to replace 6-digit
commodity codes with 8-digit
commodity codes
· Draft
amendment to delete Note 8 in
Schedule No. 3
· Draft
amendment to delete Note 5 in
Schedule No. 4
· Draft
amendment to delete Note 14 in
Schedule No. 5
These
amendments relate to the annual
phase-downs and all proposed
amendments are explained in the
attached Explanatory Memorandum.
Download the documents from the
SARS website at http://www.sars.gov.za/Legal/Preparation-of-Legislation/Pages/Draft-Documents-for-Public-Comment.aspx .
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 No. R.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.
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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, emailklegodi@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
October2013.
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-mailendou@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) |
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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.
Subscribers can expect to
receive the following loose-leaf
amendments under cover of
Supplement 1026.
The amendments relate to the
following tariff amendments
which were published in
Government Gazette Notices on 11
and 18 October 2013:
· Deletion
of tariff subheading 3921.90.05
and insertion of two new
subheadings (3921.90.07 and
3921.90.09) to give effect to
ITAC Report No. 433 to reduce
the general rate of customs duty
on laminates of phenolic resin
with a basis of paper,
thermosetting.
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The amendment was published in
Government Gazette Notice No.
36924 of 18 October 2013 under
Notice No. R.774 (Jacobsens
Reference: A1/1/1476)
· Amendment
of the rates of anti-dumping
duty on garden picks, spades,
shovels, rakes and forks,
originating in or imported from
the People’s Republic of China,
classifiable in tariff
subheadings 8201.10, 8201.30 and
8201.40, as recommended in ITAC
Report No. 444 entitled Sunset
Review of anti-dumping duties on
garden picks, spades, shovels,
rakes and forks, originating in
or imported from the People’s
Republic of China. Anti-dumping
duty items
215.11/8201.10/01.06(62);
215.11/8201.30/03.06(66);
215.11/8201.30/04.06(60) and
215.11/8201.90.01.06(60) are
amended accordingly
The amendment was published in
Government Gazette Notice No.
36924 of 18 October 2013 under
Notice No. R. 775 (Jacobsens
Reference: A2/1/352)
The amendments of 11 October
2013 (all published in
Government Gazette Notice No.
36905 under R.742 to R.742) were
discussed in the Bulletin dated
14 October 2013.
· The
creation of a new rebate
provision for refined, bleached
and deodorized but not
fractionated palm oil used in
the manufacture of edible fats
and oils as recommended in ITAC
Report No. 439.
· Amendment
of Note 6 (b)(iv) in Part 3 of
Schedule No. 6 consequential to
the increase in the Road
Accident Fund Levy rate on rail
from 88c/l to 96c/l as announced
in the 2013 Budget Review of the
Republic.
· The
antidumping duties on door locks
and door handles originating in
or imported from the People’s
Republic of China is terminated
with effect from 21 August 2013.
Subscribe to the Jacobsens
Customs Watch or download the
latest Customs Watch to have
access to the latest tariff and
rule amendments. |
