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Customs News Bulletin

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18 November 2015

 

 

Latest News

South African Department of Trade and Industry and National Consumer Commissioner Seminar on Food Labeling and Consumer Protection in South Africa

The Department of Trade and Industry (the dti) in partnership with the National Consumer Commission (NCC) will be hosting a Seminar on Food Labelling and Consumer Protection in South Africa.

The seminar is motivated by the fact that the mislabelling of food products remains a concern for government as it violates food labeling regulations and poses economic, ethical and health challenges.

The seminar will focus on:

  • The state of enforcement and compliance with food labelling regulations within the context of the Consumer Protection Act.

  • Trends and developments in respect of the labelling of food products in the consumer market.

  • Risks and consequences of misrepresentation and non-compliance with food labelling regulations.

  • Approaches to effectively enforce food labelling regulations in the country.

Food industry associations in the various sub-sectors, policy makers, retailers, importers, exporters, regulators, lobby groups, activists, academics and other specialists concerned with food labelling are invited to attend the seminar and to engage in discussions towards strengthening the current approaches as well as debate the best practices to deal with the violation of food labelling regulations.

The seminar will be at Diep in die Berg, 929 Disselboom Ave, Pretoria East on 25 November 2015 from 08h00 to 17h00. The theme of the seminar will be: "A 360⁰ Review".

Interested parties are invited to RSVP by Friday 20 November 2015 to Elsie Hlahaswane at ehlahaswane@thedti.gov.za or 012 394 3368 or Zak Desai at zdesai@thedti.gov.za or 012 394 3518.

Visit http://www.thedti.gov.za/invitations/Food_Labeling.pdf for more information.

AGOA UPDATE

Further to the Jacobsens Customs Bulletin Article "AGOA still hangs in the balance" (Bulletin, 12 November 2015), the Minister of Trade and Industry, Mr Rob Davies briefed journalists in Parliament yesterday on the outstanding issues to finalise the AGOA deal.

A health protocol agreement allowing for the import of US bone-in-chicken portions have been signed by state vets of the United States and South Africa. 

The only outstanding issues are:

  •  A letter dealing with salmonella in poultry; and

  • finalisation of an agreement on the sanitary and phytosanitary issues related to US beef and pork imports.

The Minister indicated on Monday 16 November 2015 that these matters would be dealt with in the next couple of days.

"These issues are not big," Mr Davies said. "We are close to concluding the outstanding matters and there is progress. We think we are well on track to conclude all the regulatory matters well within the deadline (January 4) set in the notice sent by US President Barack Obama," Mr Davies said.

The Bulletin will keep you posted.

 

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 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.

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.

 

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.

The International Trade Administration Commission (ITAC) has received 2 applications to amend the Customs Tariff of the Southern African Customs Union (SACU), comprising Botswana, Lesotho, Namibia, South Africa and Swaziland.  A correction notice to replace a previous application was also published.

The applications relate to:

  •  Increase in the general rate of duty on numerous iron and non-alloy steel products of Chapter 72 from free to 10%, as requested by ArchelorMittal South Africa Limited.  (Comments due by 6 November 2015 – within two weeks of publication date);

  • Increase in the general rate of customs duty on certain ceramic ware classifiable in tariff subheadings 6910.10 and 6910.90, as requested by Vaal Sanitaryware (Pty) Ltd from 20% to 30% ad valorem. (Comments due within 4 weeks of the publication date of the Notice, which is 23 October 2015); and  

  • Reduction in the rate of duty on certain diesel, petrol and electric passenger vehicles not exceeding 800kg; diesel goods vehicles not exceeding 1 100kg and petrol and electric goods vehicles exceeding 800kg, from 25% ad valorem to free of duty.  The vehicles are classifiable in tariff subheadings 8703.21.75, 8703.31.85, 8703.90.31, 8704.21.77, 8704.31.77, 8704.90.35 shall have steering wheels fitted on the left hand side of the vehicle and may not be operated on a public road in terms of the National Road Traffic Act (Act 93 of 1996).

The applications were published in Government Gazette 39324 of 23 October 2015 under Notice No. 1007 of 2015 (List 11/2015).

Download the Notice at http://www.gov.za/sites/www.gov.za/files/39324_gen_1007.pdf  

List 10/2015 was published under Notice No. 709 of 2015 in a Government Gazette of 18 September 2015. 

 

 

 

 

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 tariff amendments at time of publication.

The latest amendment to the Southern African Customs Union (SACU) Harmonized Customs Tariff was published in Government Gazette 39375 of 6 November 2015 under Notice R. 615, with effect from 25 March 2015.

In terms of that amendment, the anti-dumping duties on solar glass originating in or imported from the People’s Republic of China and India were terminated with retrospective effect to 25 March 2015.

The loose-leaf pages to amend the Jacobsens Harmonized Customs Tariff were sent to subscribers under cover of Supplement 1061.

 

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.

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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