Customs News Bulletin

10 March 2014

 

Latest International Trade News

 

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 R.470 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 REGARDING INSPECTIONS AND APPEALS TO AGRICULTURAL PRODUCT STANDARDS ACT

(with effect from 1 April 2014)

A notice has been published to amend the regulations regarding inspections and appeals to the Agricultural Product Standards Act.

The notice relates to the amendment of inspections and appeals relating to local products and products for export.

In part one of the notice which is entitled “Agricultural Products Standards Act: Regulations: Inspections and Appeals: Local: Amendment”, tables 1 and 2 are amended.

Table 1 is entitled “inspection” and relates to inspection on request and audit and management systems respectively.  Table 2 is entitled appeal fees: local and relates to appeal fees in respect of a whole range of agricultural products in alphabetical order.

The second part of the notice relates to the amendment of regulations regarding inspections and appeals for agricultural products for export.

In this part of the notice the fees in Tables 1 to 4 are amended.

The amendments have been published under Notice R. 131 of 28 February 2014 in Government Gazette 37365. Download Notice R. 131 for more information. 

 

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, 1st 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 .

 

 

 

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:

INCREASE IN THE RATE OF CUSTOMS DUTY ON VITREOUS ENAMALS (HS CODE 3207.20)

 

Ferro Industrial Products (Pty) Ltd  applied for an increase in the rate of customs duty on vitreous enamel, classifiable under tariff subheading 3207.20 from free to 20%. Comments are due by 21 March 2014.

 

Download the document  at http://www.gov.za/documents/download.php?f=210254

 

ITAC has also published the following documents:

International Trade Administration Act: Final determination in the investigation into the alleged dumping of coated paper originating in or imported from China and Korea Gazette 37337 General Notice 110; and

International Trade Administration Act: Initiation of a sunset review of the anti-dumping duties on gypsum plasterboard originating in or imported from Indonesia and Thailand: Comments invited G 37337 General Notice  111 - comments by 31 Mar 2014

 

 

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.

Three notices to amend the SACU Tariff.

The rates of customs duty on certain screws, bolts and nuts have been increased as recommended in ITAC Report 453.

ITAC recommended in Report number 453 dated 9 January 2014 that the rate of Customs duty on certain screws and bolts classifiable under tariff subheadings 7318.15.39 and 7318.15.43 be increased from 10% to 20%  and that the customs duty on hexagonal nuts (excluding hexagonal dome nuts, hexagonal nuts with non-metalic inserts, hexagonal collared nuts and hexagonal self-locking nuts) classifiable under tariff subheading 7318.16.90 also be increased through the creation of a separate tariff subheading.

Consequential to this recommendation new subheadings 7318.16.20 and 7318.16.30 were created and the rate of duty on hexagonal nuts of 7318.16.30 were increased to 20%. The notice (R.153) to implement this recommendation was published in Government Gazette No 37393 of 7 March 2014. Reference A1/1/1484.

Amendment of item 207.01/3920.49/01.06 to exclude specific PVC strips of a thickness of 2mm and a width not exceeding 20mm from the existing anti-dumping duties applicable on PVC rigid, originating in or imported from the People's Republic of China (PRC)

An investigation into the alleged dumping of PVC rigid was conducted in 2007 and definitive anti-dumping duties were imposed on the products in question originating in or imported from the People’s Republic of China on 25 April 2008, with retrospective effect to 26 October 2007.

ITAC recommended in Report 454 entitled Exclusion of specific PVC strip of a thickness of 2 mm and a width not exceeding 20 mm from the existing from the existing anti-dumping duties applicable on PVC rigid originating in or imported from the People’s Republic of China: Final Determination that the products in question be excluded from payment of anti-dumping duties with retrospective effect from 26 October 2007.

The notice (R.154) to implement the recommendation was published in Government Gazette No 37393 of 7 March 2014.  (The reference number is A2/1/355).

The provisional payments in relation to anti-dumping duties in relation to paper imported or originating from the Republic and Korea and China have been withdrawn as recommended in Report No 464. The notice to implement the recommendation of the report have been publish in Government Gazette No 37416 of 7 March 2014. Notice R.165 – reference PP/146).   

 

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 were no rule amendments at the time of publication.

Various Government Gazette notices were published to amend the Customs and Excise Rules on 20 and 27 December 2013.   

Under Notice No. R.1017 dated 20 December 2013 (DAR/132) which was published in Government Gazette No 37169 the Rules for section 119A relating to the electronic submission of excise accounts and returns via eFiling is amended.  Note the dates in rule 119A.R101A(10)(e) and rule 119A.R101(10)(g)

 Notice No R.1018 of 20 December 2013 amended item 202.00 of the Schedule to the Rules by the substitution of various DA 260 Excise (wine) Accounts and their schedules. See DAR/133 which was published in Government Gazette 37169 of 20 December 2013. 
 

Visit the SARS website at http://www.sars.gov.za/Legal/Secondary-Legislation/Rule-Amendments/Pages/Rule-Amendments-2013.aspx for more information. 

Under the third amendment the rules for section 15 on traveller declarations were amended and form DA 331 was deleted.  Notice R.1031 published in
Gazette 37180 of 27 December 2013 (DAR/134 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