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Customs News Bulletin

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17 December 2015

 

 

Latest News

South Africa’s Port infrastructure may not be able to handle grain imports due to the drought

For the first time this decade South Africa has been forced to import maize due to the crippling drought. 

In last week’s Bulletin it was reported that Mr Jannie de Villiers, the CEO of Grain indicated the impact of the drought on South Africa’s demand.

In a radio interview with Moneyweb, Mr De Villiers was of the opinion that South Africa’s port infrastructure may not be able to handle the maize imports which is a direct result of the crippling drought.

As a worst-case scenario Transnet is preparing for 4 million tons of maize imports. Transnet CEO is of the opinion that Transnet’s rail capacity will be able to handle that. However, they are concerned because there are not enough silo capacity to handle the imports of mainly white maize.

Cape Town is best geared to handle part of the imports. But Cape Town will not be able to handle all the imports. The other ports do not have silo’s. The cost of transporting the maize from ports to Gauteng will also have a negative impact on the cost of maize, and the consumer will have to pay for it.

De Villiers was also concerned that the quality of the imported white maize is not as good as what South Africa is used to.

 

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 published the following applications to amend the SACU Tariff under Notice No. 1168 of 2015 (List 12/2015) in Government Gazette 39433 of 20 November 2015.

The applications relate to:

1.   Increase in the general rate of duty on:

gas stoves classifiable in 7321.11 from 15% to 30%, as requested by Defy Appliances (Pty) Ltd.  (Comments due by 18 December 2015 – within four (4) weeks of publication date);

Enquiries: ITAC Ref: 24/2015, Enquiries: Mr Dumisani Mbambo/Mr Daniel Thwala, Tel: 012 394 3743/5162 or email dmbambo@itac.org.za/dthwala@itac.org.za.

2.   REBATE OF CUSTOMS DUTY ON:

  • Woven fabrics of polyester staple fibres, containing 60 per cent or more by mass of such fibres but not exceeding 70 per cent, mixed mainly or solely with cotton, with a dtex of 115 but not exceeding 145, of a mass exceeding 100 g/m˛ but not exceeding 119 g/m˛, dyed, plain weave, classifiable in tariff subheading 5513.21 in such quantities, at such times and subject to such conditions as the International Trade Administration Commission may allow by specific permit for the manufacture of shirts classifiable in tariff headings 62.05 and 62.06, as requested by Pep Stores Clothing.

Enquiries: ITAC Ref: 24/2015, Enquiries: Ms T Morale, Tel: 012 394 3694 or email tmorale@itac.org.za; or

Chris Sako Tel No (012) 394 3669, Fax no: (012) 394 4669 Email: csako@itac.org.za.

(Comments due by 18 December 2015 – within four (4) weeks of publication date).

3.  REDUCTION IN THE CUSTOMS DUTY ON:

  • Aluminium printing plates classifiable under tariff subheading 3701.30.25, from 15% ad valorem to free of duty.

[Ref: 14/2015] Enquiries: Ms. Amina Varachia, Tel: (012) 394 3732, Fax: (012) 934 4732, E-mail: avarachia@itac.org.za or Ms. Khosi Mzinjana, Tel: (012) 394 3664, Fax: (012) 934 4664, E-mail: kmzinjana@itac.org.za

Download the Notice at  http://www.gov.za/sites/www.gov.za/files/39433_gen1168.pdf

List 11/2015 was published under Notice No. 1007 of 2015 in  Government Gazette 39324 of 23 October 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.

 

The “big amendment” is used to maintain the Tariff, and various notices have been published to be implemented with effect from 1 January 2016:

  • Technical amendments to Schedules 1 to 5 are published in Notices R, 1214 to R 1220 in Government Gazette No. 39502 of 11 December 2015.

  1. Note K.6 is amended to include Namibia to the SADC Protocol on Trade

  2. Creation of separate 8-digit tariff subheadings on products classifiable in Chapters 9, 29, 32, 34, 38, 39, 72, 87 and 98

  3. An error that Jacobsens pointed out to SARS in respect of an incorrect anti-dumping item for wheelbarrows was rectified;

  4. The following rebate items in Schedule No 3 have been deleted:

Rebate item 304.07/23.04/01.04 (as it has become redundant), Notes to rebate item 317.04; and rebate items 317.04/98.01/01.04 to 317.04/98.01/05.04.

  • Various rebate items in Schedule No. 4 relating to the MIDP has been deleted.

  • Refund item 539.01/2710.1/01.05 has been deleted as the expiry date was 31 March 2012

 The amendments were published in Government Gazette 39502 of 11 December 2015 under Notices No. R. 1214 to R 1220. The loose-leaf pages to amend the Jacobsens Harmonized Customs Tariff will be sent to subscribers under cover of Supplement 1064.

 

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:

Havandren Nadasan
Jacobsens Editor

Tel: 031-268 3510
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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