COMPULSORY TARIFF DETERMINATIONS
ON ALCOHOLIC BEVERAGES
Clause 15 in the Tax
Administration Laws Amendment
Bill, B14 of 2014 imposes
compulsory tariff determinations
for alcoholic beverages. Draft
rules have been published on the
SARS website to give effect to
the amendment by proposing
amendments to section
47(9)(a)(iv) and the Rules
thereto and provide clarity on
the phasing in thereof.
In terms of the draft rule:
The amendment will take effect
on 1 April 2015 – and it is no
April fool’s joke.
In accordance with section
47(9)(a)(iv)(ee) any alcoholic
beverage that will be imported
for the first time, or newly
manufactured, on or after 1
April 2015 must be submitted for
tariff classification through
the office of the Controller at
the place where the beverage is
imported or manufactured before
application of the procedures
respectively specified in items
(A) and (B) of that section.
In accordance with section
47(9)(a)(iv)(ff)(A) the order
and periods for submissions of
applications for tariff
determinations in respect of the
classes of all kinds of
alcoholic shall be:
-
Alcoholic beverages for
which no tariff
determination was issued
prior to 1 April 2015.
-
Subheading 2208.90: 1 April
2015 to 30 September 2015.
-
Other fermented beverages
(subheading 2206.00.90): 1
October 2015 to 31 March
2016.
-
Liqueurs and cordials
(subheading 2208.70) and
other fermented alcoholic
beverages (subheadings
2206.00.83, 2208.00.84 and
2206.00.87): 1 April 2016 to
30 September 2016.
-
Beer made from malt
(subheading 2203.00.90) and
cider, perry and mead
(subheading 2206.00.81,
2206.00.82 and 2206.00.85):
1 October 2016 to 31 March
2017.
-
All other classes or kinds
of alcoholic beverages not
mentioned above: 1 April
2017 to 31 March 2018.
-
Alcoholic beverages for
which a tariff determination
was issued 24 months or more
prior to 1 April 2015, after
a period of 36 months (1
April 2018) but not later
than 31 March 2019.
-
Alcoholic beverages for
which a tariff determination
was issued within 24 months
prior to 1 April 2015: 1
April 2019 to 31 March 2020.
It should be noted that no new
tariff determination application
in respect of any existing
determination is required for
any change in the alcoholic
strength of beverages classified
under any subheading of heading
22.04 or 22.05, provided the
alcoholic strength remains
within the range specified in
the subheading of the existing
tariff determination.
For more information download
the draft notice at
http://www.sars.gov.za/AllDocs/LegalDoclib/Drafts/LAPD-LPrep-Draft-2014-88%20-%20Draft%20Rules%20for%20section%2047%20New%20rules%20for%20alcoholic%20beverages.pdf
.
We wish our readers a prosperous
2015. |
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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.
The International Trade
Administration Commission (ITAC)
published a notice regarding
several applications concerning
amendments to the Customs Tariff
for South Africa and Botswana,
Lesotho, Namibia and Swaziland.
Comments are due by 23 January
2015.
The first application relates to
an increase in the general rate
of customs duty on
zinc-coated/galvanized steel,
aluminium-zinc coated steel and
paint-coated steel, classifiable
under tariff subheadings
7210.41, 7210.49, 7212.30,
7210.61, 7210.90, 7225.99,
7210.70 and 7212.40 from free of
duty to 10% ad valorem.
(ITAC Reference 05/2014.
Enquiries: Ms Ramphabana and/or
Mr N. Mahlalela. Telephone:
(012) 394 3627, (012) 394 3684.
E-mail:
nramphabana@itac.org.za
and/or
nmahlalela@itac.org.za.
The second application relates
to the reduction in the general
rate of customs duty on primary
cells/batteries, cylindrical
(excluding those of a height not
exceeding 7mm), of a diameter
exceeding 19mm , classifiable
under tariff subheading
8506.50.25, from 10% ad
valorem to free. (ITAC
Reference 07/2014. Enquiries and
correspondence to be directed to
Ms M Moloto. Telephone: (012)
394 3676. Fax: (012) 394 4676.
Email:
mmoloto@itac.org.za.
Download the notice (Government
Notice No. R. 1155 of 2014) http://www.gov.za/sites/www.gov.za/files/38319_gen1155.pdf
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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.
There were no
tariff amendments since the
amendments that were released
on 22 December 2014.
Download the
latest Customs Watch to have
access to the latest tariff
amendments. |
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