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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
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.
EXPORT
CONTROL GUIDELINES ON THE
EXPORTATION OF FERROUS AND
NON-FERROUS WASTE AND SCRAP
The
importation and exportation of
waste and scrap are subject to
import and export control under
the Basel Convention on the
Control of Trans-boundary
Movements of Hazardous Wastes
and their Disposal ("the
Convention"), which was adopted
on 22 March 1989 by the
Conference of Plenipotentiaries
in Basel, Switzerland. The
convention was adapted in
response to a public outcry in
the 1980’s, in Africa and other
parts of the developing world,
following the discovery of
deposits of toxic wastes
imported from abroad.
South Africa
is a signatory to the
Convention, and it is for that
reason that waste and scrap are
subject to import and export
controls.
The
International Trade
Administration Commission of
South Africa (ITAC) is
responsible for economic growth
and development in South Africa
and within the Southern African
Customs Union (SACU). In order
to raise incomes and promote
investment and employment, an
efficient and effective system
for the administration of
international trade was
established, subject to the
International Trade
Administration Act ("the Act")
and the Southern African Customs
Union Agreement.
The core
functions are:
ITAC
published a notice entitled
“Export Control Guidelines on
the Exportation of Ferrous and
Non-Ferrous Waste and Scrap”
under the heading Export
Control. The notice
states that the Minister
of Economic Development issued a
policy directive in terms of
section 5 of the Act, which sets
out that ITAC may exercise its
powers under the Act to regulate
the exportation of ferrous and
non-ferrous waste and scrap by
not allowing the exportation of
ferrous and non-ferrous waste
and scrap (scrap metal) unless
it has first been offered, for
local beneficiation, to domestic
consumers of scrap metal such as
foundries, mills, mini-mills or
scrap processors, for a period
determined by ITAC and at a
price discount or other formula
determined by ITAC.
It is further
stated that ITAC will ensure
that the type and quality of
scrap metal intended for export
is accurately reflected on
applications for export permits
and that all applications are
accompanied by a letter or
certificate by a metallurgical
engineer or otherwise suitably
qualified person, confirming the
type, quality and quantity of
scrap available for export, as
well as the information as to
when and where such scrap metal
may be inspected by prospective
buyers (who are the domestic
consumers referred to in
paragraph 1 above).
The scrap
metals are metals of various
headings of Section XV of the
Harmonized System, in accordance
with the trade policy directive
as listed in the Export Control
Regulations, published in
Government Gazette Notice No.
R.92 of 10 February 2012 in
terms of section 6 of the Act.
The Export Control Regulations
are also reproduced in the
Jacobsens Harmonized Customs
Tariff, volume 2, under the
section “Export Control”.
Download the notice entitled
“EXPORT CONTROL GUIDELINES ON
THE EXPORTATION OF FERROUS AND
NON-FERROUS WASTE AND SCRAP” 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.
The ITAC has
received the following
applications concerning
amendments to the SACU Customs
Tariff:
LIST
13/2013 – NOTICE 745 OF 2013
PUBLISHED IN GOVERNMENT GAZETTE
36666 OF 19 JULY 2013:
Creation of a rebate provision
for non-linear glass tubes
(envelopes) equipped with
mountings and leading-in wires
for the manufacture of compact
fluorescent lamps (CFL)
The
International Trade
Administration Commission (ITAC)
has received an application for
the creation of a rebate
provision for non-linear glass
tubes (envelopes) equipped with
mountings and leading in wires,
classifiable in tariff heading
85.39, for the manufacture of
compact fluorescent lamps (CFL)
classifiable in tariff
subheading 8539.31.90.
Enquiries:
ITAC Ref 07/2013, contact Mr
Daniel Thwala, telephone (012)
394 5162 or email: dthwala@itac.org.za .
Amendment of rebate item
316.18/8504.10/01.06
In addition to the application
above, ITAC has also received an
application to amend rebate item
316.08/8504.10/01.06 by changing
the minimum power rating from 8W
to 5W.
The rebate provision will be
amended to cover electronic
ballasts, for the manufacture of
fluorescent discharge lamps
(excluding ultra-violet lamps)
of tariff subheading 8539.31.90,
with a power rating of 5W or
more but not exceeding 23W.
The effect of the amended rebate
provision will be that
electronic ballasts, for the
manufacture of fluorescent
discharge lamps (excluding
ultra-violet lamps) of tariff
subheading 8539.31.90, with a
power rating of between 5 W and
8W which are currently excluded
from the rebate provision will
also qualify for the rebate
provision once it is amended.
The applicant was Eveready (Pty)
Ltd, and the reason for the
application is to provide
support for the compact lamps
manufacturing industry in the
SACU region and to also advance
the national initiative to
develop the local green
economy. It is further stated
that the new and amended rebate
provisions will lead to job
creation in SACU.
Enquiries:
ITAC Ref 07/2013, contact Mr
Daniel Thwala, telephone (012)
394 5162 or email: dthwala@itac.org.za .
Representations should be
submitted to The Chief
Commissioner, ITAC, Private Bag
X753, PRETORIA, 0001within
four (4) weeks, that is by 16
August 2013.
Download Notice
745 of 2013 for
more information.
Customs
Tariff Application List 12/2013
was published under Notice 634
of 21 June 2013 in Government
Gazette 36575. |
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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 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
during the past week.
The last amendment that was
published was the amendment of
26 July 2013 in respect of the
imposition of anti-dumping
duties on unframed mirrors. See
below:
Imposition of anti-dumping
duties on unframed mirrors
Anti-dumping duties are imposed
on unframed mirrors of a
thickness of 2mm or more, but
not exceeding 6mm, originating
in or imported from the People's
Republic of China ("China") as
recommended in ITAC Report No.
435.
The definite anti-dumping duty
of 40,22% is imposed with
retrospective effect to 8 March
2013, which was the date of the
imposition of the provisional
payment. (Notice R.163 published
in GG 36208 on 8 March 2013
refers).
The amendment was published on
the 26th of
July 2013 in Government Gazette
No. 36684 under Notice R.516.
The Jacobsens reference number
of the amendment is A2/1/348.
The current rate of duty on the
specified unframed mirrors
originating in or imported from
China is now 55,22%, and the
remaining duties are as follows:
general - 15%; EFTA - 3,7%; and
the SADC and EU - free.
Subscribe to the Jacobsens
Customs Watch or download the
latest Customs Watch to have
access to the latest tariff and
rule amendments. |
