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Customs News Bulletin

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13 May 2013

 
 

Latest News

 

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 weeks 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.

 

   The role of the South African Customs Administration in passenger control

Customs is responsible for protecting South African borders so that authorised travellers and legitimate goods can pass freely. They do this by using risk management technology and customs checks carried out by their officers at sea, land and airports.

The new SARS website provides useful information to travellers.

 

If you are planning to travel into or out of South Africa, there are rules about what goods you can bring with you.

There are heavy penalties for smuggling and is recommended that one adheres to the following guidelines:

  • Never carry anything into South Africa for someone else.
  • Never bring prohibited goods into South Africa, such as:
    • narcotic, psychotropic substances and habit-forming drugs in any form and any paraphernalia relating to the aforementioned;
    • fully automatic, military and unnumbered weapons, explosives and fireworks and weapons of mass destruction;
    • poison and other toxic substances;
    • cigarettes with a mass of more than 2kg per 1 000;
    • goods to which a trade description or trademark is applied in contravention of any Act (for example, counterfeit goods);
    • unlawful reproductions of any works subject to copyright; and/or
    • prison-made and penitentiary-made goods
  • If you are driving, make sure that everyone travelling with you knows which goods are prohibited or restricted - if you smuggle goods into South Africa in a car, our officers may seize the car.
  • If you are in doubt, speak to an officer in the red channel.

Useful publications and forms are published in the new section for travellers at http://www.sars.gov.za/ClientSegments/Customs-Excise/Travellers/Pages/default.aspx .

  

 

Customs Tariff Applications and Outstanding Tariff Amendments

List 08/2013 and List 09/2013: Notice 378 of 2013 and Notice 387 of 2013

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 the 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 ITAC has received the following application concerning amendments to the SACU Customs Tariff:

LIST 09/2013 – NOTICE 387 OF 2013 PUBLISHED IN GOVERNMENT GAZETTE 36371 OF 19 APRIL 2013:

APPLICATION 1: REDUCTION IN THE RATES OF CUSTOMS DUTY ON SELF-ADHESIVE PLATES, SHEETS, FILM, FOIL, STRIP AND OTHER FLAT SHAPES, OF PLASTICS, WHETHER OR NOT IN ROLLS, OF POLYETHYLENE TEREPHTHALATES

The ITAC received an application for the reduction in the duty rate on SELF-ADHESIVE PLATES, SHEETS, FILM, FOIL, STRIP AND OTHER FLAT SHAPES, OF PLASTICS, WHETHER OR NOT IN ROLLS, OF POLYETHYLENE TEREPHTHALATES, classifiable in tariff subheading 3919.90.03, from 10% to free of duty.

Contact Mr Nkulana Phenya, fax (012) 394 4677 or Ms. Elizabeth Kekana, fax (012) 394 4668 or email nphenya@itac.org.za or ekekana@itac.org.za (ITAC reference 43/2012) for more information.

Comments can also be directed to:

The Chief Commissioner, International Trade Administration Commission (ITAC), Private Bag X753, PRETORIA, 0001.

Download Notice 387 of 2013 for more information.

APPLICATION 2: CREATION OF REBATE PROVISIONS FOR TEXTILE FABRICS FOR THE MANUFACTURE OF UPHOLSTERED FURNITURE

The ITAC received an application for the creation of three rebate provisions for woven fabrics, classifiable under tariff subheadings 5407.61, 5903.20.90 and 5907.00.90 respectively, imported subject to permits by ITAC, for the manufacture of upholstered furniture classifiable under tariff heading 94.01.

Download Notice 387 of 2013 for more information.

Contact Mr M Skenjana, Tel (012) 394 3675, fax (012) 394 4675 or at e-mail mskenjana@itac.org.za (ITAC reference 37/2012) for more information.

Comments can also be directed to:

The Chief Commissioner, International Trade Administration Commission (ITAC), Private Bag X753, PRETORIA, 0001.

   LIST 09/2013 – NOTICE 387 OF 2013 PUBLISHED IN

   GOVERNMENT GAZETTE 36371 OF 19 APRIL 2013:

APPLICATION 3: CREATION OF A REBATE PROVISION FOR PALM OIL FOR THE MANUFACTURE OF EDIBLE FATS AND OILS

The ITAC received an application for the creation of a rebate provision for Palm oil, refined, bleached and deodorised but not fractioned, classifiable in tariff subheading 1511.90, for the manufacture of edible fats and oils, classifiable in tariff subheading 1517.90.

Contact Ms L Maliaga Tel (012) 394 3675, fax (012) 394 3835 or e-mail lmaliaga@itac.org.za (ITAC reference 63/2012) for more information.

Comments can also be directed to:

The Chief Commissioner, International Trade Administration Commission (ITAC), Private Bag X753, PRETORIA, 0001.

Download Notice 387 of 2013 for more information.

Representations on all the above applications should be submitted to the above address by 17 May 2013.

   Customs Tariff Application List 08/2013 was published  

   under Notice 378 of 12 April 2013.

 

NOTICE OF THE INTERIM REVIEW OF THE ANTI-DUMPING DUTIES ON ROPES AND CABLES MANUFACTURED BY CASAR AND ORIGINATING IN OR IMPORTED FROM GERMANY

    (Comments due by 19 May 2013)

There are currently various anti-dumping duty provisions under item 215.02/7312.10.

These provisions apply to ropes and cables, of iron or steel, not electrically insulated, of a diameter exceeding 8 mm (excluding that of wire of stainless steel, that of wire plated, coated or clad with copper and that identifies as conveyor belt cord), commonly identified or referred to as steel wire ropes, classifiable under tariff subheading 7312.10.40. The rates of anti-dumping duty vary from 76,17% (if imported from or originating in the United Kingdom) to 133,65% (if imported from or originating in China).

The ITAC accepted an application for an interim review in terms of the Anti-Dumping Regulations (ADR) 45 with regard to ropes and cables manufactured by Casar Drahtseilwerk Gmbh (the Applicant) and originating from Germany.

The subject product, when imported from or originating in Germany is currently subject to anti-dumping duty at a rate of 93%, in terms of antidumping duty item 215.02/7312.10/10.06(67).

The Applicant submitted sufficient evidence and established a prima facie case to enable ITAC to arrive at a reasonable conclusion that an investigation should be initiated on the basis of changed circumstances with regard to dumping and the level of anti-dumping applicable to the applicant. On the basis of information submitted by the Applicant, ITAC found that there was prima facie proof that dumping no longer takes place.

The period of investigation for the purposes of determining the dumping margin in the exporting country will be 1 January 2012 to 31 August 2012.

The ITAC has requested that any information regarding this matter must be submitted in writing to the following address not later than 30 days from the date of the notice, which was published in Government Gazette No. 36371 of 19 April 2013, under Notice 386 of 2013.

Information must be submitted to The Senior Manager, Trade Remedies I, ITAC, Private Bag X 753, Pretoria, 0001 at physical address Block E (Uuzaji Building), The DTI Campus, 77 Meintjies Street, Sunnyside, PRETORIA, SOUTH AFRICA.

Enquiries mat be directed to the investigating officers, Mr Zuko Ntsangani at telephone +27 12 394 3662 or Mr Emmanuel Manamela at telephone +27 12 394 3632 or at fax +27 12 394 3518.

Download Notice No 386 of 2013.

 

OUTSTANDING TARIFF AMENDMENTS

Following the tariff amendments of 7 December 2012, the following possible tariff amendments are still outstanding and due and some of them may be published soon:

·      Increase in the rates of customs duty on MEAT AND EDIBLE MEAT OFFAL, OF POULTRY OF HEADING 01.05, and more specifically frozen carcasses and cuts and offal, classifiable in Tariff subheadings 0207. 12 AND 0207.14.

·      Creation of a rebate facility on sodium hydroxide (caustic soda) in solid classifiable under tariff subheading 2815.11, for use in the manufacture of sodium metasilicates classifiable in 2839.11.

·      Creation of a rebate facility on petroleum bitumen, classifiable under tariff subheading 2713.20 to full duty rebate.

·      Ad valorem customs duty (luxury tax) on small aircraft and boats as mentioned by the south African Minister of Finance during the 2012 Budget Speech.

·      Review of the Customs duty on photographic film of tariff subheading 3701.10.90.

   

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, 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 amendment was published on 10 May 2013, which increased the general rate of customs duty on polytetrafluoroethylene tape from 10% to 20% as recommended in ITAC report No. 426. Notice No. R. 388 of 12 April 2013 refers.

The amended pages relating to this amendment will be sent to Jacobsens subscribers under cover of amending supplement 1020.

   Download the amendments from SARS at:

http://www.sars.gov.za/Legal/Secondary-Legislation/Tariff-Amendments/Pages/Tariff-Amendments-2013.aspx

Refer to Jacobsens Customs News Bulletin dated 15 April 2013 for an overview of the tariff amendments which have been published so far this year.

 

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.

The last amendment was published in Government Gazette No 36433 of 10 May 2013 under Notices No. R. 339 and R. 340. The reference number for Notice No. R. 340 was DAR/116.  In terms of these notices:

The Rules for section 76 for the purpose of a refund application contemplated in section 76(4) of the Act are amended by the insertion of form VOC CR 001; and

Rule 59A.03(1)(a) is amended to give effect to risk based use of temporary registration code 70707070.

Download the amendments to view the notices.

     

 

               Contact Information:

 

 

Contact the Author:

             Mayuri Govender

             Jacobsens Editor

             Tel: 031-268 3273
             e-mail to:
jacobsen@lexisnexis.co.za

 

 

Leon Marais
Independent Customs Consultant
Tel: 053-203 0727

e-mail to: leon.marais@intekom.co.za