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Customs News Bulletin

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12 June 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.

 

 

  

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Customs Tariff Applications and Outstanding Tariff Amendments

List 11/2013: Notice 524 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 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.

OUTSTANDING TARIFF AMENDMENTS

Following the tariff amendments of 10 May 2013, 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.·        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.

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

LIST 11/2013 – NOTICE 524 OF 2013 PUBLISHED IN GOVERNMENT GAZETTE 36472 OF 24 MAY 2013:

REDUCTION IN THE RATE OF CUSTOMS DUTY ON LAMINATES OF PHENOLIC RESINS WITH A BASIS OF PAPER

The International Trade Administration Commission (ITAC) has received an application for the reduction in the rate of customs duty on laminates of phenolic resins with a basis of paper, classifiable in tariff subheading 3921.90.05 from 10% to free.  This will be achieved by the creation of a new 8-digit subheading under subheading 3921.90 for laminates of phenolic resins with a basis of paper, thermosetting. 

Contact Mr Coert Grobbelaar for more information at cgrobbelaar@itac.org.za or at telephone (012) 394 3672.

Representations should be submitted to The Chief Commissioner, ITAC, Private Bag X753, PRETORIA, 0001 by 21 June 2013.

INCREASE IN THE RATE OF CUSTOMS DUTY ON CERTAIN SCREWS AND NUTS

The International Trade Administration Commission (ITAC) has received an application for an increase in the rate of customs duty on certain screws, bolts and nuts classifiable under tariff subheadings 7318.15.39, 7318.15.43 abd 7318.16.80 from 10% to the bound rate of 30%. 

Contact Mr Dumisani Mbambo for more information at dmbambo@itac.org.za or at telephone (012) 394 3743.

Representations should be submitted to The Chief Commissioner, ITAC, Private Bag X753, PRETORIA, 0001 by 21 June 2013.

CREATION OF VARIOUS REBATE PROVISIONS FOR THE MANUFACTURE OF DUST MASKS

ITAC has received an application for the manufacture of various rebate provisions for the manufacture of dust masks, namely:

Polyurethane flat shapes with dimensions not exceeding 50mm x 2 mm x 10 mm, self-adhesive on one side only, in rolls of a width not exceeding 20 cm, classifiable under tariff subheading 3919.10.07;

Silicone elastomeric straps with a length not exceeding 315 mm and with a width not exceeding 7 mm, classifiable under tariff subheading 3926.90.90;

Natural rubber straps with a length not exceeding 315 mm with a width not exceeding 7 mm, classifiable under tariff subheading 4016.99.90; and

Inner and outer shells of non-woven material, classifiable under tariff subheading 6307.90.10.

Contact Mr M Skenjana at mskenjana@itac.org.zaor at tel (012) 394 3675 or fax (012) 394 4675 for more information. Ref.: 28/2012.

Representations should be submitted to The Chief Commissioner, ITAC, Private Bag X753, PRETORIA, 0001 by 21 June 2013.

Download Notice 524 of 2013 for more information.

Customs Tariff Application List 09/2013 was published under Notice 387 of 19 April 2013.

 

 

 

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 Ministerof Finance in February, it was determined that parts of the tariff that are not amended resultingfrom 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 7 June 2013.

The amended pages relating to this amendment will be sent to Jacobsens subscribers under cover of amending Supplement 1021.

Supplement 1021 will cover:

·         The reduction in the general and EFTA rates of customs duty on polyether-polyols of subheading No 3907.20. from 10% and 2,5% to free as recommended in ITAC Report No. 430 (Government Gazette 36515          R. 384          07.06.2013      A1/1/1469)

·         The deletion of Rebate items 305.01/39.07/01.04(44), 306.10.39.07/01.04(48), 307.01/3907.20/01.06(64) and 319.01/3907.20/01.06(65) as they became obsolete resulting from the reduction of the general and EFTA rates of customs duty on polyether-polyols of subheading No 3907.20.15 to free as recommended in ITAC Report No. 430.  (Government Gazette 36515          R. 385 07.06.2013          A3/1/693)

·         The creation of Rebate item 306.01/2815.11/02.06(68) to provide for sodium hydroxide for the manufacture of sodium metasilicates as recommended in ITAC Report No. 428 (Government Gazette 36515          R. 386 07.06.2013          A3/1/694)

·         The insertion of Additional Note 4 to Chapter 22 to provide for beverages of fermented origin with an alcohol content exceeding 15 per cent but not exceeding 23 per cent (Government Gazette 36515          R. 387 06.072013          A1/1/1471)

·      The insertion of Note 5 in Section A of Part 2 of Schedule No 1, consequential to the deletion of Additional Note 4 in Chapter 22, with retrospective effect from 15h06 on 23 February 2011 up to and including 28 February 2011 (Government Gazette 36515          R. 388 06.07.2013      A1/2A/156)

·         The amendment of Parts 1C and 1D to Schedule No 6, with effect from 27 February 2013, and with retrospective effect from 1 March 2011 as indicated below:

In terms of section 75 of the Customs and Excise Act, 1964, Part 1 C of Schedule No. 6 to the Customs and Excise Act 91 of 1964 is amended, with retrospective effect from 27 February 2013:

·         By the insertion of rebate items 620.11/104.15, 620.15/104.17 and 620.17/104.17; and

·         By the substitution of rebate items 620.15/104.17.15/01.01(72), 620.15/104.17.16/02.01(79) and 620.17/104.17.17/01.01(76). (Government Gazette 36515          R. 389 06.07.2013          A6/1C/35)

In terms of section 75 of the Customs and Excise Act, 1964, Part 1 C of Schedule No. 6 to the Customs and Excise Act 91 of 1964 is amended, with retrospective effect from 27 February 2013:

·         By the insertion of rebate item headings 621.09, 621.10, 621.12 and 621.13 and

·         By the substitution of rebate items 621.09/104.21.03/01.01(79), heading text (title) to 621.11, rebate item 621.12/104.23.03/01.01(74), 621.13/104.23.03/01.01(71) and heading title 621.14. (Government Gazette 36515           R. 390          06.07.2013      A6/1D/01)

In terms of section 75 of the Customs and Excise Act, 1964, Part 1 C of Schedule No. 6 to the Customs and Excise Act 91 of 1964 is amended, with retrospective effect from 1 March 2011:

·         By the insertion of rebate items 620.07.104.15.07/01.09(77), 620.08/104.16.09/01.07(75), 620.10/104.17.15/01.06(72) and 620.10/104.17.16/02.06(76); and

·         By the substitution of rebate items 620.07/104.15.07/01.07, 620.07/104.15.07/01.08, 620.07/104.15.08/02.07, 620.07/104.15.08/02.08, 620.08/104.16.09/01.05, 620.08/104.16.09/01.06, 620.08/104.16.10/02.05, 620.08/104.16.10/02.06, 620.09/104.15.09/01.02, 620.09/104.15.10/02.02, 620.10/104.17.15/01.04, 620.10/104.17.15/01.05, 620.10/104.17.16/02.04, 620.10/104.17.16/02.05, 620.11/104.15.07/01.01 and 620.11/104.15.08/02.01. (Government Gazette 36515    R. 391    06.07.2013 [A6/1C/36])

In terms of section 75 of the Customs and Excise Act, 1964, Part 1 C of Schedule No. 6 to the Customs and Excise Act 91 of 1964 is amended, with retrospective effect from 1 March 2011:

·         By the insertion of rebate items 621.17/104.23, 621.17/104.23.28/01.01, 621.18/104.21,
621.18/104.21.01/01.01, 621.19/104.23, 621.19/104.23.03/01.01 and 621.19/104.23.11/02.01 to facilitate the use of an excisable product (wine) in the manufacture of another excisable product (spirituous beverages or liqueur) under rebate of duty. (Government Gazette 36515    R. 392    06.07.2013 [A6/1D/02])

Download the amendments from SARS at:

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

 

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 (DAR/117 and DAR/116 respectively).  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