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Customs News Bulletin

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20 January 2016

 

 

Latest News

DRAFT CUSTOMS CONTROL ACT RULES SECOND ROUND RELEASED

(Comments due by 1 April 2016)

The second draft of the Customs Control Rules made under the Customs Control Act, 2014 (Act No. 31 of 2014), was published for public comment. The due date for comments is on/before 1 April 2016.

SARS published two documents (a clean one and one with track changes) as well as an explanatory memorandum.

According to the SARS Explanatory Memorandum the amendments made to the first draft of the Rules include changes occasioned by external stakeholder comments received after publication of the first draft, internal feedback and SARS operational requirements, changes to give effect to proposed amendments of the Customs Control Act, 2014, (as contained in the Taxation Administration Laws Amendment Bill, 2015), as well as the technical review of the draft as a whole.

It is further stated that technical amendments include the correction of errors, the moving of provisions (for example the moving of definitions to rule 1.1), the adaptation of wording to ensure consistency of similar provisions throughout the text, the insertion of provisions inadvertently omitted, the insertion of general provisions applicable to all the Chapters and the consequential deletion or adaptation of provisions in the various Chapters.

Download the Explanatory Memorandum  and the Draft Notices from  http://www.sars.gov.za/Legal/Preparation-of-Legislation/Pages/Draft-Documents-for-Public-Comment.aspx.

 

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. 1220 of 2015 (List 13/2015) in Government Gazette 39531 of 18 December 2015.

The applications relate to:

1.   Increase in the general rate of duty on:

acrylic sanitary ware classifiable in 3922.10 from 20% to 30%, as requested by Libra Bathroom (Pty) Ltd.  (Comments were due by 15 January 2016 – within four (4) weeks of publication date);

Enquiries: ITAC Ref: 15/2015, Enquiries: Mrs Ayanda Gandi  Fax (012) 394 4724 or e-mail endou@itac.org.za/Mr Nkulana Phenya Fax (012) 394 4677 or email nphenya@itac.org.za.

Download the Notice at   http://www.gov.za/documents/international-trade-administration-act-customs-tariff-application-list-132015-comments.

List 12/2015 was published under Notice No. 1168 of 2015 of 20 November 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 tariff amendments were published on 18 December 2015.

This amendments were published in the following Government Gazettes:

  • Government Gazette 39524 dated 18 December 2015.

  • Government Gazette 39525 dated 18 December 2015.

  • Government Gazette 39526 dated 18 December 2015.

  • Government Gazette 39527 dated 18 December 2015.

See below:

The rates of duty on sugar of tariff subheadings 1701.12, 1701.13, 1701.14, 1701.91 and 1701.99 are reduced from 304,00c/kg to 245,4c/kg as recommended in ITAC Minute M07/2015.

  • Government Gazette 39524, R. 1244, 18.12.2015 A1/1/1529

Tariff headings 7404.00 and 8111.00 are subdivided into into 8-digit subheadings 7404.00.10; 7404.00.20; 7404.00.30; 7404.00.40; 7404.00.90; 8111.00.10 and 8111.00.90 to provide for brass, bronze and manganese waste scrap.

  • Government Gazette 39527, R. 1249, 18.12.2015           A1/1/1530

Tariff subheadings 7213.91, 7214.20, 7227.90, 7228.30 and 7228.60 are amended to increase the rate of duty on steel wire rod, steel reinforcing bar and structural steel from free to 10%.

  • Government Gazette 39539, R. 1265, 18.12.2015           A1/1/1532

Anti-dumping item 205.01/2523.29/01.06; 205.01/2523.29/02.06; 205.01/2523.29/03.06; 205.01/2523.29/04.06 and 205.01/2523.29/05.06 are inserted for the imposition of anti-dumping duties on Portland cement originating in or imported from Pakistan as recommended in ITAC Report 512.

  • Government Gazette 39526, R. 1246, 18.12.2015 A2/1/373

Rebate item 311.42/6001.92/01.06 is created to provide for a rebate provision for knitted pile fabrics polyester fabrics for use in the manufacture of goods classifiable in tariff subheading 6304.91.90 as recommended in ITAC Report 508.

  • Government Gazette 39527, R. 1247, 18.12.2015 A3/1/715

Rebate item 460.03/0207.14.9/01.07 is created to provide for the temporary rebate provision of the full anti-dumping duty on frozen meat of species Gallus domesticus, cut into pieces with bone in, imported from or originated in the United States of America classifiable in tariff subheading 0207.14.9 as recommended in ITAC’s Minute M08/2015.

  • Government Gazette 39525, R. 1245, 18.12.2015 A4/2/372

A correction notice is published to withdraw certain tariff subheadings in Chapters 61 and 62 where they appear in Government Notice No. R.1220 of Government Gazette No. 39502 published on 11 December 2015.

  • Government Gazette 39527, R. 1250, 18.12.2015 A1/1/1531

The loose-leaf pages to amend the Jacobsens Harmonized Customs Tariff will be sent to subscribers under cover of Supplement 1064. The loose-leaf amendments for the big amendments will be sent to subscribers under cover of Jacobsens Supplement 1065.

 

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 31 December 2015, SARS Customs published an Amendment of the Customs and Excise Rules under section 120. Rule120.09A was inserted to provide for currency conversions for determining value of goods exported or to be exported

The rule amendment (supposedly DAR/157) was published on 31 December 2015 in Government Gazette 39569  under Notice R. 1294.

 

 

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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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