Customs News Bulletin

AMENDMENT OF REGULATIONS TO GENETICALLY MODIFIED ORGANISMS ACT, 1997

(With effect from 1 April 2014)

A notice has been published to amend the regulations to the Genetically Modified Organisms Act 15 of 1997 with effect from 1 April 2014.

Various fees that are payable in terms of table 2 have been increased.

A fee of R470 will be payable for the importation and exportation of genetically modified organisms.

Download Notice 96 of 2014 for more information.  The Notice was published in Government Gazette 37307 of 14 February 2014.

A second document, entitled Genetically Modified Organisms Act: Tariffs for services Gazette 37307 Government Notice 95 has also been published.

AMENDMENT OF REGULATIONS TO LIQUOR PRODUCTS ACT, 1989

A notice has been published to amend the regulations to the Liquor Products Act 60 of 1989.

The table of fees payable in terms of section 27 (1) (k) has been amended.

Various new fees will apply in respect of the application for import certificates, analysis of samples of products intended for import, application for removal certificates in respect of imported products, application for export certificates, etc.

Download Notice 89 of 2014 for more information.  The Notice was published in Government Gazette 37308 of 14 February 2014.

DRAFT ALIEN AND INVASIVE SPECIES LIST, 2014:  NATIONAL ENVIRONMENTAL MANAGEMENT: BIODIVERSITY ACT 10 OF 2004

(Comments due by 12 March 2014)

Draft Alien and Invasive Species Lists have been published in terms of the National Environmental Management Biodiversity Act 10 of 2004 Act.

Four notices and lists in terms of sections 66(1), 67(1), 70(1)(a), 71(3) and 71A have been attached to the Schedule, namely:

1.       Notice in respect of Categories 1a, 1b, 2 and 3, Listed Invasive Species in terms of which certain restricted activities are prohibited in terms of section 71A(1); Exempted in terms of section 71(3); require a permit in terms of section 71(1)

2.       Notice in terms of section 6(1) – exempted alien species

3.       National lists of Invasive species in terms of section 70(1)(A) (See List 1 to 10 in respect of National Lists);

4.       Prohibited Alien Species

In terms of Notice 1 in respect of Categories 1a, 1b, 2 and 3 listed in terms of which certain Restricted Activities are:

a)      Prohibited in terms of section 71(A(1);

b)      Exempted in terms of section 7193); or

c)       Require a permit in terms of Chapter 7,

Read with the lists in Notice3.

In terms of a note to Notice 1, the species specific exemptions and prohibitions in terms of Notice 3 take precedence over Notice 1 in the event of any conflict.

Download Notice 78 of 2014 for more information.

Contact Ms Nomahlubi Sishuba (NSishuba@environment.gov.za) at 021 441 2700 for more information.

The draft regulations in respect of the lists have been published under Notice 79 of 2014 in a document entitled National Environmental Management: Biodiversity Act: Biodiversity Act 2004: Regulations: Alien and invasive species: Draft Gazette 37320 General Notice 79 - comments by 12 Mar 2014

LIQUOR ACT 59 OF 2003: NATIONAL LIQUOR NORMS AND STANDARDS

(Comments due by 11 March 2014)

The South African National Minister of Trade and Industry, in terms of the Liquor Act, 59 of 2003, and in consultation with the National Liquor Policy Council published a notice to extend the period for public comments with regard to the National Liquor Norms and Standards until 11 March 2014.

 To ensure compliance with the tax laws of South Africa, all registrants or licensee holders should be registered with the South African Revenue Services (“SARS”) in terms of the Income Tax Act and the proposed Customs and Excise Duty Acts.

The National Norms and Standards are additional to any other existing conditions outlined in the Liquor Act, 59 of 2003 and any provincial or relevant statute.  They will apply automatically to new applications or reviewed licenses.

The manufacturing, distribution and retail of liquor products should comply with all relevant legislation as and when amended.  This shall include:

·         Liquor Act 59 of 2003

·         Liquor Products Act 60 of 1989;

·         Counterfeit Goods Act 37 of 1997;

·         Provincial Liquor Acts;

·         Foodstuffs, Cosmetics and Disinfectant Act 91 of 1964 (this is certainly and error – should be Customs and Excise Act 91 of 1964 of Foodstuffs, Cosmetics and Disinfectant Act 54 of 1972);

·         Any other relevant legislation.

Download Notice 80 of 2014 for more information.

Interested persons may submit written comments on the proposed National Liquor Norms and Standards not later than 11 March 2014 to:

The Director-General, Department of Trade and Industry, Private Bag X84, PRETORIA, 0001 or 77 Meintjies, Block B, PRETORIA, 0001; or 77 Meintjies Street, Block B, 1^st Floor, Sunnyside, PRETORIA.

For attention: Tshililo Mabirimisa, fax (012) 394 2951 or email TRMabirimisa@thedti.gov.za .

INCREASE OF TARIFFS PAYABLE FOR VETERINARY IMPORT PERMITS

(With effect from 1 April 2014)

The tariffs for veterinary import permits, export certificates, master import permits and certified copies of master importer permits in terms of the Animal Diseases Act, 1984 (Act 35 of 1984) will be increased with effect from 1 April 2014.

The notice to announce the increases has been published under Notice No. 51 of 2014 in Government Gazette No. 37287 of 7 February 2014.

Download the Notice at http://www.gov.za/documents/download.php?f=209161 .

AMENDMENT OF STANDARDS AND REQUIREMENTS REGARDING THE CONTROL OF EXPORT OF VARIOUS FRUITS

(With effect from 14 February 2014)

The Department of Agriculture, Forestry and Fisheries has published two notices regarding the amendment of standards and requirements regarding the control of export of various fruits with effect from 14 February 2014.

The notices are entitled:

Agricultural Product Standards Act: Standards and requirements: Control of export of citrus fruits: Amendment: Gazette 37287 General Notice 52 of 2014

Agricultural Product Standards Act: Standards and requirements: Control of export of fruit excluding citrus and certain deciduous fruits: Amendment Gazette 37287 General Notice 53 of 2014

For more information contact:

The Executive Officer: Agricultural Product Standards, Department of Agriculture, Private Bag X343, PRETORIA, 0001, Telephone (012) 319 6051, e-mail MabibaW@nda.agric.za

SOUTH AFRICAN/EUROPEAN UNION TRADE DEVELOPMENT AND COOPERATION AGREEMENT

Application for market access permits for agricultural products

Due dates for permits:

For importation into South Africa - 18 February 2014 (See paragraph 5)

For permits to the EU – 18 February 2014 (See paragraph 3.2)

Under the WTO Market Access reform programme on Agricultural Programmes, WTO members have converted their non-tariff measures to equivalent bound tariffs. Prior to 27 January 1995, South Africa has controlled the importation of agricultural products through an import permit system.  With effect from 
1 January 1995 the permit system was abolished as additional market access is provided through tariff rate quotas under the WTO Market Access programmes.

South Africa and the European Union signed a bilateral Trade Development and Co-operation Agreement (TDCA) in 2000.  This agreement provides for, inter alia, bilateral market access permits, sometimes incorrectly called import permits, which are issued in compliance with the WTO Market Access permits.

In terms of the SA/EU TDCA both parties publish Government Gazette notices to relating to the procedures and conditions for application of the tariff rate quota permits in compliance with the WTO Market Access Agreement.

In South Africa these notices were generally published annually in September.  However, these notices were only published in January this year.

The notice which outlines the procedures and conditions for the permits for reduced import duty rates into South Africa was published on 21 January 2014 under a document entitled “Application for Market Access Permits for Agricultural Products” Gazette 37241 General Notice 27 of 2014. Downloadhttp://www.gov.za/documents/download.php?f=207996.

The notice in respect of export permits which will allow the goods of exporters into the EU was published under a document entitled Broad-based Black Economic Empowerment Act: Procedures for Application, administration and allocation of export permits under the Trade, Development and Co-operation Agreement between the European Union and South Africa G 37242 General Notice 28.

These notices are published by the South African Department of Agriculture, Forestry and Fisheries.

Customs Tariff Applications and Outstanding Tariff Amendments

Notice 44 of 2014; Notice 45 of 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 documents relating to the SACU Tariff and tariff amendment applications:

1.         Initiation of sunset review of anti-dumping duties on wire ropes and cables of diameter exceeding 32mm originating in or imported from United Kingdom and Germany and on stranded wire of diameter exceeding or equal to 12.7mm originating in or imported from China

Notice 44 of 2014 was published in Gazette No 37262 of 31 December 2014 and comments are due by 14 February 2014.

Download the document at http://www.gov.za/documents/download.php?f=208635

2.         Termination of interim review investigation of              anti-dumping duties on ropes and cables              originating in or imported from Germany and              manufactured by Casar

Notice 45 of 2014 was published in Gazette No 37262 of 31 December 2014 and comments are due by 14 February 2014.

Download the document at

http://www.gov.za/documents/download.php?f=208633

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 latest tariff amendments have been published on the 20 December 2013. These amendments were sent to subscribers under cover of Supplement 1030.

Please note that some amendments that were published in Government Gazette 37061 of 29 November 2013 will be effective with effect from Friday, 14 February 2014.

In terms of Notice Nos R. 898 and R. 899 various subheadings in Schedule Number 2 – that is anti-dumping and countervailing duty provisions – will be aligned to eight-digit level with the subheadings in Schedule No. 1 Part 1.  The duty rates will not be affected.

New 8-digit subheadings will also be created for goods (salt/sodium chloride; bromomethane (methyl bromide) and certain new pneumatic tyres) classifiable in tariff headings 2501.00, 2903.39, 4011.10 and 4011.20 for technical reasons in terms of Notice No R. 896.  The latter products are all subject to import permits from the International Trade Administration Commission (ITAC).   

Subscribers will soon be able to view a PDF version of the amended pages at new.jacobsens.co.za.  

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