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Customs News Bulletin

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28 April 2016

 

 

Latest News

THE ROLE OF CUSTOMS IN MALARIA PREVENTION AND CONTROL

On April 25th every year people across the globe take part in a wide range of activities to mark World Malaria Day. 

The official website of World Malaria Day http://www.worldmalariaday.org/ provides key facts about the disease. Research is ongoing, and the fight against malaria is far from over.

Some of the key facts are:

  • In 2015, there were 214 million cases, and 438 000 deaths from Malaria.

  • 3.2 billion (almost half of the world population) are at risk.

  • In 2015, 97 countries had on-going malaria transmission.

  • The global malaria mortality rate was reduced by 60% in 2000, and an estimated 6.2 million lives were saved as a result of a scale-up of malaria interventions.

  • US$ 5.1 billion is needed every year, double the funding available.

  • 90% of deaths occur in Sub-Saharan Africa.

  • 70% of deaths are children under five.

  • 80% of estimated malaria cases occur in 15 most affected countries (South Africa is currently ranked 55th).

The fact that the mortality rate was reduced by 60% between 2000 and 2015 does not mean a lot. Depending on factors such as high rainfall and the sub-Saharan Africa currently faces a severe drought means that the rate could go up again. In 2011 more than 800 000 children died of the disease.

Few people know that the World Customs Organization, and Member Customs Administration, is actively involved in the fight against malaria.

Since almost one-half of the world's population lives at risk of malaria, the HS 2017 amendment, which enters into force on 1 January 2017, has been amended to provide detailed information for several categories of products that are used as anti-malarial commodities.  Countries can then use this information for the purposes of research, and to amend their customs tariffs and trade policy accordingly.

Subheading 3002.10 has been subdivided to create new subheadings 3002.11 for malaria diagnostic test kits, and 3002.12 to 3002.15 for immunological products, whether unmixed, mixed or put up in measured doses or in forms or packings for retail sale. Furthermore, the scope of the new subheadings 3002.12 to 3002.15 has been defined in new Subheading Note 1 to Chapter 30.

New subheading 3003.60 has been created to provide separately for anti-malarial medicaments. Furthermore, the scope of the new subheading 3003.60 has been defined in new Subheading Note 2 to Chapter 30.

At the same time, new subheading 3004.60 has been created to provide separately for anti-malarial medicaments. Furthermore, the scope of the new subheading 3004.60 has been defined in new Subheading Note 2 to Chapter 30.

Furthermore, new subheadings 3808.61 to 3808.69 have been created for certain products used as anti-malarial commodities. The scope of the new subheadings 3808.61 to 3808.69 has been defined in new Subheading Note 2 to Chapter 38.

The structure of subheadings 6005.31 to 6005.34 has been redrafted to provide separately for particular fabrics of polyethylene monofilament or of polyester multifilament, specified in new Subheading Note 1 to Chapter 60, used for anti-malarial nets.

Creation of new subheading 6304.20 to provide separately for bed nets, of warp knit fabrics specified in Subheading Note 1 to Chapter 63 (anti-malarial nets).

The specific provisions for malaria and anti-malarial products (with effect from 1 January 2017) are:

3002.11 -- Malaria diagnostic test kits;

Subheading Note 2 to Chapter 30:

Subheadings 3003.60 and 3004.60 cover medicaments containing artemisinin (INN) for oral ingestion combined with other pharmaceutical active ingredients, or containing any of the following active principles, whether or not combined with other pharmaceutical active ingredients: amodiaquine (INN); artelinic acid or its salts; artenimol (INN); artemotil (INN); artemether (INN); artesunate (INN); chloroquine (INN); dihydroartemisinin (INN); lumefantrine (INN); mefloquine (INN); piperaquine (INN); pyrimethamine (INN) or sulfadoxine (INN).

Subheadings 3003.60 and 3004.60:

3003.60 - Other, containing anti-malarial active principles described in Subheading Note 2 to this Chapter.

3004.60 - Other, containing anti-malarial active principles described in Subheading Note 2 to this Chapter.

Subheading Note 2 to Chapter 38:

Subheadings 3808.61 to 3808.69 cover only goods of heading 38.08, containing alpha-cypermethrin (ISO), bendiocarb (ISO), bifenthrin (ISO), chlorfenapyr (ISO), cyfluthrin (ISO), deltamethrin (INN, ISO), etofenprox (INN), fenitrothion (ISO), lambda-cyhalothrin (ISO), malathion (ISO), pirimiphos-methyl (ISO) or propoxur (ISO).

New subheadings 3080.61 to 3808.69

3808.6 - Goods specified in Subheading Note 2 to this Chapter:

3808.61 -- In packings of a net weight content not exceeding 300 g

3808.62 -- In packings of a net weight content exceeding 300 g but not exceeding 7.5 kg

3808.69 -- Other

Subheading Note 1 to Chapter 60:

Subheading 6005.35 covers fabrics of polyethylene monofilament or of polyester multifilament, weighing not less than 30 g/m2 and not more than 55 g/m2, having a mesh size of not less than 20 holes/cm2 and not more than 100 holes/cm2, and impregnated or coated with alpha-cypermethrin (ISO), chlorfenapyr (ISO), deltamethrin (INN, ISO), lambda-cyhalothrin (ISO), permethrin (ISO) or pirimiphos-methyl (ISO).

6005.35 -- Fabrics specified in Subheading Note 1 to this Chapter

Subheading Note 1 to Chapter 63:

Subheading 6304.20 covers articles made from fabrics, impregnated or coated with alpha-cypermethrin (ISO), chlorfenapyr (ISO), deltamethrin (INN, ISO), lambda-cyhalothrin (ISO), permethrin (ISO) or pirimiphos-methyl (ISO).

6304.20 - Bed nets, of warp knit fabrics specified in Subheading Note 1 to this Chapter.

Visit the WCO website at www.wcoomd.org for more information.

WHAT ITAC CONSIDERS IMPORTANT IN EVALUATING APPLICATIONS FOR AMENDMENT OF CUSTOMS DUTIES

The International Trade Administration Commission of South Africa (ITAC) published a document entitled “International Trade Administration Act: Policy directive on matters ITAC shall consider in evaluating applications for amendment of customs duties”.

The document was issued in terms of section 5 of the International Trade Administration Act, 71 of 2002, and relates to Customs duty amendments under Schedule No 1 Part 1.

The guidelines are listed in paragraph 3 as:

  • Job creation or job retention, including commitments for specified categories such as youth employment;

  • Industrial output;

  • Investments in plant, equipment, skills, and research and development;

  • Economic investment such as support for participation in manufacturing and related activities by small business, black-owned or black-managed enterprises, and Common Customs Area supply chains; and

  • Pricing of outputs.

The document was published in Government Gazette No. 39945 of 21 April 2016 under Government Notice No. 476.

 

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 the latest applications to amend the Customs Tariff of the Southern African Customs Union (SACU) under a document entitled: "International Trade Administration Act: Customs and Excise Tariff Applications: List 2/2016".

The document was published in Government Gazette No. 39943 under General Notice No. 251 of 2016.

The application relates to an increase in the general rates of customs duty on stainless steel flat products of various subheadings under headings 72.19 and 72.20.  The application is for an increase from free to 10% ad valorem.

Contact Ms Lufuno Maliaga or Ms Diphetogo Rathete at telephone numbers (012) 394 3835 or (012) 394 3683, or at e-mail lmaliaga@itac.org.za or drathete@itac.org.za.

The applicant was Columbus Stainless (Pty) Ltd., Hendrina Road, Middelburg, Mpumalanga.

Representations should be made by 20 May 2016.

Customs Tariff Application List 01/2016 was published in Government Gazette 39718 of 19 February 2016 under Notice  No. 16 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) HS tariff

The latest tariff amendments were published in Government Gazettes on 8 and 11 April 2016.

Those amendments related to increases in the rates of customs duty on wheat and wheaten products, of tariff subheadings 1001.91, 1001.99, 1101.00.10 and 1101.00.90; reductions in the rates of customs duty; the termination of the anti-dumping duties on acrylic blankets; the withdrawal of the rebate provision on plates, sheets, film, foil and strips of polymers of propylene, biaxially oriented, for the manufacture of self-adhesive tape; and the creation of rebate provision for acrylic sheet used in the manufacture of sanitary ware of plastic.

 The loose-leaf pages reflecting the amendments were sent to subscribers under cover of Jacobsens Supplement 1070. For more information about these amendments see the subscribers notice to Supplement 1070 or view the Customs Watch.

 

 

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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