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Customs News Bulletin

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4 May 2016

 

 

Latest News

 HS 2017 AMENDMENTS FOR SOUTHERN AFRICAN CUSTOMS UNION PUBLISHED

(Comments due 30 June 2016)

SARS Customs, the South African Customs Administration, published various draft notices to align the Harmonized System-based Customs Tariff of the Southern African Customs Union (SACU) with the 6th edition of the HS that will enter into force on 1 January 2017.

An Explanatory Memorandum has been published together with a draft notice to implement the amendments to Schedule No. 1 Part 1 of the SACU Tariff resulting from the amendments.  Draft notices to amendment Schedule No. 1 Part 2A (specific excise duties), Schedule No. 1 Part 2B (ad valorem excise duties), Schedule No. 2 Part 1 (antidumping duties), Schedule No. 3 Part 1 (rebates) and Schedule No. 6 (rebates on excise duties) by aligning these Schedules with Schedule No. 1 Part 1 have also been published. 

Two correlation tables have also been published to indicate the old and new provisions in Schedule No. 1 Part 1 and in other parts of the Tariff.

The changes in HS 2017 reflect the amendments to the Nomenclature appended to the International Convention on the Harmonised Commodity Description and Coding System (HS Convention), which were accepted as a result of the Customs Co-operation Council's (now the World Customs Organisation) recommendations of 27 June 2014. These amendments will enter into force on 1 January 2017. Complementary amendments to the HS Nomenclature 2017 have been accepted as a result of the Council Recommendation of 11 June 2015.

As a signatory to the HS Convention, South Africa implements the amendments in terms of section 48(1)(c) of the Customs and Excise Act, 1964.  The other SACU Members (Botswana, Lesotho, Namibia and Swaziland) are also Members of the World Customs Organization (WCO), and the SACU Common External Tariff (CET) is also the Customs Tariff of those countries as a result of the SACU Agreement, since the SACU Countries have identical tariffs. Therefore members in Botswana, Lesotho, Namibia and Swaziland should also comment on these changes.

The HS 2017 amendments and correlation table (Schedule No. 1) up to a 6-digit level can be viewed on the WCO website at http://www.wcoomd.org

To view all draft amendments kindly visit the HS 2017 webpage or visit http://www.sars.gov.za/Legal/Preparation-of-Legislation/Pages/Draft-Documents-for-Public-Comment.aspx. Comments on the draft notices are due on 30 June 2016.

 

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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