Customs News Bulletin

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 week 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.

SUNSET REVIEWS

In accordance with the Anti-Dumping Regulations (ADR) and Countervailing Regulations (CVR), any definitive anti-dumping or countervailing duty shall be terminated on a date not later than five years from the date of imposition, unless the authorities determine, in a review initiated before that date on their own initiative or upon a duly substantiated request made by or on behalf of the domestic industry, that the expiry of the duty would be likely to lead to continuation or recurrence of dumping and injury or subsidized exports and injury.

The International Trade Administration Commission of South Africa (ITAC) has notified all interested parties, in Notice No. 664 of 2013 which was published in Government Gazette No. 36592 of 28 June 2013, that, unless a duly substantiated request is made by or on behalf of the SACU industry, indicating that the expiry of duty would be likely to lead to the continuation or recurrence of dumping and injury or subsidized exports and injury, the following anti-dumping and countervailing duties will expire in 2014:

ITAC will conduct its investigations in accordance with the relevant sections of the International Trade Administration  Act, the Anti-Dumping Regulations (ADR) and the Countervailing Regulations (CVR), read with the World Trade Organisation (WTO) Agreement on Implementation of Article VI of the GATT 1994 and the Agreement on Subsidies and Countervailing Measures.

Manufacturers in the SACU of the products listed above, who wish to submit a request for the duty to be reviewed prior to the expiry date thereof, are requested to do so not later than the close of business day on 29 July 2013.  In instances where no comments or replies are received within these time limits, ITAC will recommend the termination of the duties on the date of expiry.

SACU manufacturers who do submit a request timeously are requested to subsequently submit duly substantiated information, indicating that the expiry of the duty would be likely to lead to the recurrence of dumping and injury or subsidized exports and injury, to the ITAC, on or before the date as specified.

The request by manufacturers in the SACU of the subject products, and duly substantiated information, indicating what the effect of the expiry of the duties will be, must be submitted in wring to:

The Senior Manager: Trade Remedies I, International Trade Administration Commission (ITAC), Block E – The DTI Campus, 77 Meintjies Street, Sunnyside, Pretoria, South Africa.

The postal address is:  The Senior Manager: Trade Remedies I, Private Bag X753, PRETORIA, 0001, SOUTH AFRICA.

Enquiries may be directed to the Senior Manager: Trade Remedies I, Ms Carina Janse van Vuuren at telephone (012) 394 3594 or at fax (012) 394 0518.

Notice 633 of 2013; List 12/2013: Notice 634 of 2013, Notice 635 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.

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

NOTICE 633 OF 2013 PUBLISHED IN GOVERNMENT GAZETTE 36575 OF 21 JUNE 2013:

NOTICE OF INITIATION OF AN INVESTIGATION INTO THE ALLEGED DUMPING OF DISODIUM CARBONATE (SODA ASH) ORIGINATING IN OR IMPORTED FROM THE UNITED STATES OF AMERICA

ITAC received and accepted an application alleging that disodium carbonate (soda ash) were being dumped in the Southern African Customs Union (SACU) market, causing material injury to the SACU industry concerned.

The applicant, the Government of Botswana , on behalf of Botswana Sosa Ash, 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 dumping, material injury and causality.

The product allegedly being dumped is disodium carbonate (soda ash), classifiable under tariff subheading 2836.20, originating or imported from United States of America (USA).

Responses to the questionnaire and any information regarding this matter and any arguments concerning the allegation of dumping and the resulting threat of material injury must be submitted in writing to:

The Senior Manager: Trade Remedies I, International Trade Administration Commission (ITAC), Block E – The DTI Campus, 77 Meintjies Street, SUNNYSIDE, PRETORIA, SOUTH AFRICA.

The postal address is:  The Senior Manager: Trade Remedies I, Private Bag X753, PRETORIA, 0001, SOUTH AFRICA.

All responses, including non-confidential copies of the responses should be submitted to ITAC by 21 July 2013.

Enquiries may be directed to:

Mr Elias Tema at telephone +27 12 394 3640 or Mr Andre Zietsman telephone at +27 12 394 3673 or at fax +27 12 394 0518.

Download Notice No 633 of 2013 for more information.

LIST 12/2013 – NOTICE 634 OF 2013 PUBLISHED IN GOVERNMENT GAZETTE 36575 OF 21 JUNE 2013:

Increase in the Rate of Customs Duty on Certain Plates, Sheets, Film, Foil and Strip, of Plastics, Non-Cellular and Not Reinforced, Laminated, Supported or Similarly Combined With Other Materials

The International Trade Administration Commission (ITAC) has received an application for an increase in the rate of customs duty on certain plates, sheets, film, foil and strip, of plastics, non-cellular and not reinforced, laminated, supported or similarly combined with other materials, such as:

·           biaxially oriented with a thickness exceeding 0,012 mm but not exceeding 0,06 mm, not heat shrinkable, printed, not metallised; and

·           biaxially oriented with a thickness exceeding 0,012 mm but not exceeding 0,06mm, not heat shrinkable, unprinted, not metallised;

classifiable under tariff subheadings 3920.20.25 and 3920.20.30 from 10% to 20%. 

Contact Mr Nkulana Phenya or Ms Ayanda Ndou for more information at fax (012) 394 4677 or (012) 394 4724.

Representations should be submitted to The Chief Commissioner, ITAC, Private Bag X753, PRETORIA, 0001 by 19 July 2013.

Download Notice 634 of 2013 for more information.

Customs Tariff Application List 11/2013 was published under Notice 524 of 24 May 2013 in Government Gazette 36472.

NOTICE 635 OF 2013 PUBLISHED IN GOVERNMENT GAZETTE 36575 OF 21 JUNE 2013:

NOTICE OF INITIATION OF AN INVESTIGATION INTO THE ALLEGED DUMPING OF FROZEN POTATO CHIPS ORIGINATING IN OR IMPORTED FROM BELGIUM AND THE NETHERLANDS

ITAC received and accepted an application alleging that potato chips were being dumped in the Southern African Customs Union (SACU) market, causing material injury to the SACU industry concerned.

The applicant, McCain Foods (SA) (Pty) Ltd, supported by Nature’s Choice Products (Pty) Ltd, Lambert Bay Foods and Potatoes South Africa, 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 dumping, material injury and causality.

The product allegedly being dumped is frozen potato chips, classifiable under tariff subheading 2004.10.90, originating or imported from Belgium and Netherlands.

Responses to the questionnaire and any information regarding this matter and any arguments concerning the allegation of dumping and the resulting threat of material injury must be submitted in writing to:

The Senior Manager: Trade Remedies II, International Trade Administration Commission (ITAC), Block E – The DTI Campus, 77 Meintjies Street, SUNNYSIDE, PRETORIA, SOUTH AFRICA.

The postal address is:  The Senior Manager: Trade Remedies II, Private Bag X753, PRETORIA, 0001, SOUTH AFRICA.

All responses, including non-confidential copies of the responses should be submitted to ITAC by 21 July 2013.

Enquiries may be directed to:

Mr Edwin Mkwanzi at +27 12 394 3742; Mr Sandile Mantolo at +27 12 394 3902; Ms Mercy Mukwevho at +27 12 394 3907 or Ms Boniswa Mehlomakulu at +27 12 394 3818 or at fax +27 12 394 0518.

Download Notice No 635 of 2013 for more information.

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, 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.

The most recent tariff amendment was published on 7 June 2013.

The amended pages relating to this amendment will sent to Jacobsens subscribers under cover of amending supplement 1021.  Supplement 1021 was sent to print on Friday, 14 June 2013.

Supplement 1021 covers:

·         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.