Draft Rules:
Chapters 32 to 41 and Annexure A to the Customs Control Act No. 31 of
2014
The fourth and final batch of draft Rules to the Customs
Control Act has been published for comments by SARS Customs.
Annexure A contains the “penalty list” and has been
incorporated in the document for ease of reference. Although it doesn't
currently form part of the Rules, it will be published at a later stage
in section 876(1)(a) of the Customs Control
Act.
The draft amendments proposed for Chapter 37 are aimed at
establishing uniform appeal and dispute resolution procedures for the
Customs Control Act and the Tax Administration Act (TAA) and for that
purpose to align the provisions of Chapter 37 of the Control Act with
the corresponding provisions contained in Chapter 9 of the Tax
Administration Act.
Download the Draft Rules, Annexure A and the Comment Sheet by
clicking on the links below:
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Draft Customs Control Rules - Chapters 32 to
Chapter 41 and Annexure A
·
Draft Customs Control Rules Comment Sheet
·
Draft Chapter 37 Amendments
See links at http://www.sars.gov.za/Legal/Preparation-of-Legislation/Pages/Draft-Documents-for-Public-Comment.aspx.
The WCO reveals Customs’ priorities for 2015
International Customs Day is celebrated annually on 26
January. Every year there is a specific theme. International Customs
Day 2015 heralds the launch of the WCO Year of Coordinated Border
Management (CBM). During 2015, Customs administrations are encouraged
to actively promote the partnerships they have built to improve and
expedite border processing.
The theme entails the coordination of practices that Customs
have implemented within their own administrations, with other Customs
authorities, and with other government departments that are also
operating at borders, as well as with economic operators involved in
cross-border trade.
The slogan “Coordinated Border Management - An inclusive
approach for connecting stakeholders,” signals the aspiration of the
international Customs community to further enhance its collaboration,
co-operation and working relationships with its many partners in
international trade.
The World Customs Organization advocates closer
cooperation between border agencies as it offers many benefits.
Amongst the benefits of CBM are:
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Better service delivery
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Less duplication
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Cost-savings through economies of scale
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Fewer but better targeted interventions
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Cheaper transport costs
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Less waiting times
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Lower infrastructure improvement costs
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Wider sharing of information and
intelligence
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Strengthened connectivity between all
border stakeholders
Coordinated border management will also enable the multiple
public service functions undertaken at borders posts to be to be delivered
more successfully, leading in turn to an improved investment climate,
an enhanced trading environment, and increased economic growth.
Under the umbrella of the WCO, Customs administrations have
produced numerous instruments and tools in support of better
coordinated border management.
The Revised Kyoto Convention (RKC) contains several standards
that specifically deal with coordinated border management (CBM), such
as coordinating border opening hours, performing joint controls, and
setting up juxtaposed Customs offices, all of which facilitate trade.
In addition to the RKC Guidelines, the CBM Compendium offers technical
guidance for improvements in this domain.
Integrating stand-alone border agency systems into one unified
Single Window system is a core CBM principle to Customs administrations
and other government departments to combine the policy, legal, and
technology elements of such systems in one system.
Currently the WCO SAFE Framework of Standards to Secure and
Facilitate Global Trade (SAFE Framework) rests on two pillars, namely
Customs to Customs network and Customs to business partnerships. It is anticipated that a third pillar
will be added to the SAFE Framework namely “Customs to other government
agencies”, making the annual theme particularly apt and timely. It will
coincide with the third anniversary of the SAFE Framework.
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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.
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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 on 19 December 2014. The Notice was published in Government
Gazette 38319
Comments were 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 7 mm), of a diameter exceeding 19 mm,
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.
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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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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.
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Forms are
also prescribed by rule, and are published in the Schedule to the
Rules.
There were no
rule amendments at time of publication. The last amendment (DAR/140)
was published on 8 August 2014. Government Notice No. R.600 was
published in the Government Gazette 37890 of
8 August 2014.
Download the latest Customs Watch to
have access to the latest tariff and rule amendments.
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