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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 International Trade
Administration Commission (ITAC)
may end up in Court (again) on
the proposed tariff hike on
chicken
Last week it was reported that
the Association of Meat
Importers and Exporters (AMIE)
would file an application at the
Pretoria High Court relating to
import duty costs for chicken.
The action was about obtaining
confidential information which
might shed light on the
application, and the subsequent
investigation into an increase
in the customs duty rates
pertaining to frozen chicken
meat into the Southern African
Customs Union (SACU).
The South African Poultry
Association (SAPA) applied for
an increase in import duties,
which AMIE has vehemently
opposed on the basis that the
increased tariffs could have a
detrimental effect on food
prices. AMIE argues that the
price of chicken could increase
by as much as 50% due to the
proposed new tariffs.
AMIE has further claimed that
the International Trade
Administration Commission of (ITAC)
initiated investigations into
this, but did not verify certain
information and reduced the
period for comment from four
weeks to three.
ITAC, on the other hand, has
claimed that it had to speed up
this period for comment as the
industry was in distress.
ITAC then received an
application to increase the
customs duties on frozen chicken
meat to a maximum of 82%, which
is the WTO bound rate. The
application was received by the
SAPA, and published in
Government Gazette No. 36358 of
12 April 2013 under Notice No
378 of 2013 (List 08/2013).
Comments were due by 3 May 2013.
The application lodged by SAPA
argued that South African
producers, as well as producers
from Botswana, Lesotho, Namibia
and Swaziland – the BLNS
countries – are distressed and
their survival is threatened
mainly by a large and rapid
increase in the volume of
imports of extremely low-priced
frozen poultry meat. It stated
that some small and medium-sized
producers had been forced to
shut down, while those still in
operation faced the threat of
imminent closure and that
certain large producers, having
already reduced their
workforces, would suffer further
losses in workforce in the
future.
Should the current situation
persist, SAPA argued, the large
producers would be forced to
drastically scale back
operations and possibly close
some. It added that low-priced
imports negatively impacted on
further investment in the
poultry industry and associated
industries, affecting commercial
and emerging broiler producers,
as well as the SACU’s production
capacity, and compromised food
security in the bloc’s member
countries.
The meat in question pertains to
the following:
·
Carcasses (excluding necks and
offal) with all cuts (for
example, thighs, wings, legs and
breasts) removed fall under
tariff subheading 0207.12.20,
which are currently subject to a
rate of customs duty of 27% -
requested rate to be increased
to 991c/kg, with a maximum of
82%;
·
Other: whole bird of tariff
subheading 0207.12.90 is
currently subject to a rate of
customs duty of 27% - requested
rate to be increased to 1
111c/kg, with a maximum of 82%;
·
Boneless cuts of tariff
subheading 0207.14.10 are
currently subject to a rate of
customs duty of 5% - requested
rate to be increased to 12%, or
220c/kg, with a maximum of 82%;
·
Offal, tariff subheading
0207.14.20, is presently subject
to a rate of customs duty of 27%
- requested rate to be increased
to 335c/kg, with a maximum of
82%; and
·
Other: bone-in portions of
tariff subheading 0207.14.90,
which are currently liable for a
rate of customs duty of 220c/kg,
- requested rate to be increased
to 56%, or 653c/kg, with a
maximum of 82%.
It is well known that traders
manipulate the customs value by
reducing the invoiced value. The
requested duty rates are
composite rates, or formula
duties. The effect of composite
or formula rates of duty is
lower customs values trigger
higher duty rates. A legitimate
customs value may thus end up
paying less duty than the
consignment with the manipulated
value. Similarly cheaper imports
will end up paying more duty.
Download
Notice No 378 of 2013 for
more information.
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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. |
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.
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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 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 was sent
to print on Friday afternoon.
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 |
