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Customs News Bulletin

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15 July 2015

 

 

Latest News

PROPOSED NEW BENEFITS FOR LEVEL TWO ACCREDITED CLIENT STATUS RELATING TO THE EXAMINATION OF GOODS BY SARS CUSTOMS

SARS has published a draft notice on its website to indicate its intention to amend the Rules to section 64E of the Customs and Excise Act by adding  two new benefits for Level 2 accredited client status relating to the examination of goods in Rule 64E.14.

Other Level 2 accreditation benefits includes:

  1. appointment of a Customs Relationship Manager tasked with facilitating the relationship between the client and customs;

  2. reduction of the amount of any security required for compliance with a customs procedure;

  3. fewer routine documentary and physical inspections;

  4. prioritising a request for tariff and valuation determinations;

  5. prioritising access to non-intrusive inspection techniques when goods are stopped or detained for inspection.

Download the Draft Notice at http://www.sars.gov.za/AllDocs/LegalDoclib/Drafts/LAPD-LPrep-Draft-2015-32%20-%20Draft%20Rule%2064E%20Amendment.pdf.

Comments are due by 20 July 2015.

 

Customs Tariff Applications and Outstanding Tariff Amendments

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.

ITAC published a noticed titled International Trade Administration Act: Investigation of Possible Exclusion of Tinted Glass Mirrors from Existing Anti-Dumping Duties Applicable to Unframed Glass Mirrors Originating In or Imported From China. Final determination in Government Gazette 38960 of 10 July 2015.

Under Notice 698 of 2015, ITAC made a final determination that the inability to distinguish between the products, unless sent for laboratory testing, could lead to the circumvention of the anti-dumping duties on unframed mirrors originating in or imported from China. The Commission therefore decided to recommend to the Minister of Trade and Industry not to exclude tinted glass mirrors from the existing anti -dumping duties on unframed glass mirrors originating in or imported from China.

Contact the investigating officers Ms. Selma Takács at (012) 394 3596 or Ms. Mosa Sebe at (012) 394 1850 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.

There were no new tariff amendments at time of publication.

The latest tariff amendments were published in Government Gazette 38925 on 3 July 2015.   

The amendments related to the deletion of anti-dumping duty items 211.06/5503.20/01.06 and 211.06/5503.20/02.06 with effect from 27 May 2015 and the insertion of rebate item 318.03/9028.30/01.06 to create a rebate provision for certain components used for the manufacture of electricity meters

The loose-leaf pages to amend the Jacobsens Harmonized Customs Tariff were sent to subscribers under cover of Supplement 1052.

 

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.

Forms are also prescribed by rule, and are published in the Schedule to the Rules. 

There were no Rule amendments at time of publication.

On 3 July 2015, SARS Customs published an Amendment of the Customs and Excise Rules under section 21A relating to special economic zones (SEZs).

The rule amendment (DAR/156) was published on 3 July 2015 in Government Gazette 38925 under Notice R. 566.

The effective date of this amendment will be on the date that the regulations under the Special Economic Zones Act, 2014 come into effect.

Download the latest Customs Watch at www.jacobsens.co.za to have access to the latest tariff and rule amendments.

 

LexisNexis

 

 

 

 

 

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

 

LexisNexis

 

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