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FORMULATE A STRATEGY FOR THE NEW CUSTOMS ERA
Over the past months the Jacobsens Customs News Bulletin have given you a lot of insight about the new Customs legislation and what you can expect.
You would have noticed that the Customs legislation is becoming much more professional than before, and under the new dispensation Customs departments will be working together with one another as well as with other agencies and importers and exporters.
You would also have noticed that Customs legislation and other legislation are already aligned and will continue to do so in future. As a result of that penalties for non-compliance will become harsher.
Despite these changes the expectations are that the new legislation will encourage small, medium and micro enterprises to start trading internationally. And with new legislation it is no better time for them to start importing and exporting.
Risk management and ICT will play a key role in the new legislation, and historic data will be used to determine how compliant companies are – which will have an impact on Customs’ future relationship with the importer or his customs broker. In terms of Chapter 30 of the Customs Control Act the performance of a company over the past five years will be evaluated to determine the level of Customs accreditation if a client applies for accreditation. One must thus not wait for the new legislation to take effect later this year before he gets his house in order.
Importers and exporters (and their appointed Customs Brokers) must now get together with their customs specialists to assess their processes and procedure and to determine a way forward.
Processes, policies, procedures and internal systems will have to be redesigned and clients will have to form strategic partnerships and/or make new appointments to identify and minimise risks.
Importers and exporters are advised to set up appointments with their Customs clearing and forwarding agents and discuss their concerns as a matter of urgency. |
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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 International Trade Administration Commission (ITAC) has published a notice to initiate a sunset review on the anti-dumping duties on fresh or chilled garlic imported from or originating in China.
The Notice (Government Notice R.244 of 2015) was published in Government Gazette 38574 on 20 March 2015.
Comments are due by 3 April 2015.
Enquiries may be directed to the investigating officers, Ms Thuli Nkomo at telephone number +27 12 394 1190 or Mr Greg Kuhn at telephone number +27 12 394 3636 or at fax number +27 12 394 0518. |
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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 published during the past week.
The last tariff amendment was published in the Government Gazette 38563 of 13 March 2015
The amendment relates to an increase in the rates of duty on wheat and wheaten flour from 15,7c/kg to 46,1c/kg and 23,5c/kg to 69,2c/kg respectively, in terms of the existing variable tariff formula as recommended in ITAC Minute M09/2014
The tariff amendment will be sent to subscribers under cover of Supplement 1045.
Download the two latest Customs Watch to have access to the latest tariff amendments. |
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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.
The rules pertaining to Industrial Development Zones (IDZ’s) (under sections 21A) have been aligned with the new Special Economic Zones legislation to be implemented by the Department of Trade and Industry. The Rules will take effect on the date that the regulations to the Special |
Economic Zones Act comes into effect. (The Draft SEZ Regulations have been published in Government Gazette No 38592 of 20 March 2015 under Notice No 251 of 2015).
In terms of the second Rule amendment compulsory tariff determinations for alcoholic beverages must be obtained with effect from 1 April 2015.
The rule amendments (DAR/142 and DAR/143) was published on 20 March 2015 in 38575 under Notice R. 225 and 226.
Download the latest Customs Watch to have access to the latest tariff and rule amendments. |
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