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LEGISLATION ADMINISTERED
BY THE COMMISSIONER
An
updated list of
legislation administered
by the Commissioner of
the South African
Revenue Services has
been published in
Government Gazette
38563 of 30 March 2015
under Proclamation No.
17 of 2015.
The
proclamation amends
Schedule No. 1 to the
South African Revenue
Service Act 34 of 1997.
Twenty four (24) Acts
are listed. A 25th item
is listed, namely “any
regulation,
proclamation, government
notice or rule issued in
terms of the
abovementioned
legislation or any
agreement entered into
in terms of this
legislation or the
Constitution.”
If
one looks at the list,
you will notice that the
only Customs legislation
that is specifically
mention is the Customs
and Excise Act 91 of
1964. The two new
Customs Acts (the
Customs Control Act 31
2014 and the Customs
Duty Act 30 of 2014) and
the Excise Duty Act 91
of 1964 (which is the
renamed Customs and
Excise Act that will
take effect when the new
Customs Acts takes
effect) is not on the
current list. These
Acts will take effect on
a date which will be
proclaimed by the
President, after the
Customs Acts and Excise
Acts have been amended
by the addition of new
Customs and Excise
Tariffs.
If
one looks at the list,
you will notice that
many of the Acts that
are listed are Acts
(some of them
tax-levying Acts) that
rely on the Customs
Control Act for their
implementation. In
other words, they deal
with imports and exports
(or the collection of
levies on imports and
exports) in some way or
another. Examples of
some of these Acts are
item 6, the
Value-Added Tax Act 89
of 1991 and item 15,
Diamond Export Levy Act
15 of 2007. There are
more Acts which rely on
the Customs Control Act
for their
implementation. Many of
them are acts which are
administered by other
Government departments.
You would have
noticed that Customs
legislation is becoming
much more professional
than before and under
the new dispensation,
Customs departments will
be working together with
other agencies,
importers and
exporters. For this
reason Customs
legislation and other
legislation are already
aligned and will
continue to do so in
future. Item 20 on the
list is the
Voluntary Disclosure
Programme and Taxation
Laws Second Amendment
Act 8 of 2010. Chapter
38 of the Customs
Control Act, dealing
with voluntary
disclosure relief, and
Chapter 22 will not take
effect when the Customs
Control Act enters into
force. It is almost
certain that Chapter 38
will be further aligned
to/with the SARS
Voluntary Disclosure
Programme and the
Taxation Laws Amendment
Acts before its
implementation.
Download the notice with
the Acts from http://www.gov.za/sites/www.gov.za/files/38653_p17.pdf
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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.
Insertion of
tariff subheadings
8528.69.10 and
8528.69.90 in Schedule
No. 1 Part 1 to make
provision for digital
cinema projectors above
R250 000. This amendment
is consequential to
abolishment of the ad
valorem duty on
digital cinema
projectors (in Schedule
No. 1 Part 2B) above
R250 000. (Government
Gazette 38611, R.
252 27.03.2015,
A1/1/1514). |
The ad
valorem excise duty
on digital cinema
projectors above R250
000 has been abolished
to give effect to the
Budget proposals
announced by the
Minister of Finance in
the 2015 South African
Budget Review. (Government
Gazette 38611 , R.
253, 27.03.2015,
A1/2B/161);
The fuel levy
on petrol has been
increased from 224,5c/li
to 255c/li and on diesel
from 209,5c/li to 240c/li
(Government Gazette
38611, R. 254,
27.03.2015, A1/5A/160);
The road
accident fund (RAF) levy
on petrol and diesel has
been increased from
104c/li to 154c/li to
240c/li. (Government
Gazette 38611, R.
255, 27.03.2015,
A1/5B/161); and
Part 3 of
Schedule No. 6 is
amended consequential to
the increase in the fuel
and road accident fund
levy on petrol and
diesel. (Government
Gazette 38611, R.
256, 27.03.2015,
A6/3/42).
The tariff
amendments were sent to
subscribers under cover
of Supplement 1046.
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
rule amendment (DAR/144)
was published on 27
March 2015 in
Government Gazette
38603 under Notice R.
246.
Download the
latest Customs Watch to
have access to the
latest tariff and rule
amendments. |
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