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Customs News Bulletin

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23 March 2016

 

 

Latest News

REVISED RULES IN RESPECT OF THE GENERAL PRINCIPLES GOVERNING CLEARANCE AND RELEASE OF GOODS AND CUSTOMS PROCEDURES: CHAPTER 4 of THE CUSTOMS CONTROL ACT, 2014 (ACT NO. 31 OF 2014)

(Comments due on 15 April 2016)

Chapter 5 of the Customs Control Act, 2014 (Act No. 31 of 2014) determines the general principles governing:

(a) the transport of goods not in free circulation (in other words goods under Customs Control);

(b) the sealing of containers, vehicles and packages;

(c)   the loading and off-loading of goods destined for export; and

(d)  the transfer of goods between vessels, vehicles and containers.

There are 14 sections under Chapter 5 of the Customs Control Act: sections 119 to 132, and the chapter is sub-divided into three (3) parts, namely:

Part 1: Transport of goods not in free circulation  (Sections 120  - 125);

Part 2:  Sealing, loading, off-loading and transfer of goods (Sections 126 - 130);

Part 3: Other matters  (Section 131 - 132). 

There are thirteen (13) Rules under Chapter 5 of the Customs Control Act, 2014, dealing with:

5.1

Transport of goods not in free circulation with other goods in same vehicle (section 124)

5.2

Receipt notifications by carriers when receiving goods not in free circulation for transport (sections 131 and 903)

5.3

Delivery notifications by carriers when delivering goods not in free circulation at destination (sections 131 and 903)

5.4

Reporting of breakdowns, accidents and other unforeseen events (section 125)

5.5

Customs permissions to transfer goods between vehicles or containers (section 130)

5.6

Transfer of goods to vehicles or containers operated by other carriers (section 130)

5.7

Application for permission to redirect transport of goods under customs procedures to places other than authorised places (sections 208, 230, 304, 322, 415 and 442)

5.8

Delivery notifications by persons transporting goods to premises to which goods were redirected (section 903(1)(c) and (d))

5.9

Receipt notifications by persons in control of premises to which goods were redirected (section 903(1)(c) and (d))

5.10

Seals and sealing of vehicles, containers and packages (sections 126 and 131)

5.11

Seal verification and reporting of seal discrepancies (section 131(a))

5.12

Affixing of replacement seals (section 131(a))

5.13

Records to be kept in relation to seals (section 131)

In the meantime the period for commentary on the revised draft rules to Customs Control Act, 2014 has been extended to 15 April 2016.  This may be your last opportunity to comment on the Draft Rules to the Customs Control Act, 2014.

Refer to the Draft Rules to the Customs Control Act, 2014, which may be downloaded from the SARS website at 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 Commission of South Africa (ITAC) also publishes Sunset Review Applications in relation to anti-dumping duty in terms of which any definitive anti-dumping duty will be terminated on a date not later than five years from the date of imposition, unless the International Trade Administration Commission determines, in a review initiated before that date on its own initiative or upon a duly substantiated request made by or on behalf of the domestic industry, that the expiry of the duty would likely lead to continuation or recurrence of dumping and material injury.

The International Trade Administration published a document entitled International Trade Administration Act: Initiation of sunset review of anti-dumping duties on polyethylene terephthalate originating in or imported from Chinese Taipei, South Korea and India.

The anti-dumping duties subject to review is polyethylene terephthalate (PET), in primary forms (excluding liquids and pastes) classifiable under tariff subheading 3907.60.9, originating in or imported from the India, South Korea and Chinese Taipei. Refer to anti-dumping duty items 207.01/3907.60.9/0107(70) – 207.01/3907.60.9/03.07(71).

Responses and any information regarding this matter and any arguments concerning the allegation of dumping and the resulting threat of material injury must be submitted in writing by 28 February 2016.

Contact the investigating officers Mr Busman Makakola at telephone number +27 12 394 3380 or Mr Emmanuel Manamela at telephone number +27 12 394 3632 or at fax number +27 12 394 0518 for more information.

The document was published in Government Gazette No. 39636 of 29 January 2016 under Notice No. 44 of 2016.

 

 

 

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 amendments to the Southern African Customs Union (SACU) Tariff at time of publication.

The latest amendments were reported on in the Bulletin of 16 March 2016.

These amendments related to an increase in the general rate of duty on polyurethane prepolymers of tariff subheading from free to 10% and a reduction in the rate of customs duty on canned mussels

The amendments were published in Government Gazette No. 39799 of 11 March 2016. The Notice Numbers were R. 239 and R. 240.

The amendments were sent to subscribers under cover of Jacobsens Supplement 1068.

 

 

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. Rule 120.09A 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 No. R. 1294.

 

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Contact Information:

 

Contact the Author:

Havandren Nadasan
Jacobsens Editor

Tel: 031-268 3510
e-mail to:
newjacobsens@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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