http://www.lexisnexis.co.za/images/jacobsens/jacobsens_logo.jpg

Customs News Bulletin

http://www.lexisnexis.co.za/images/jacobsens/jacobsens_img01.jpg

 

http://www.lexisnexis.co.za/images/jacobsens/jacobsens_img02.jpg

 

http://www.lexisnexis.co.za/images/jacobsens/jacobsens_img03.jpg

http://www.lexisnexis.co.za/images/jacobsens/jacobsens_img04.jpg

http://www.lexisnexis.co.za/images/jacobsens/jacobsens_img05.jpg

 

http://www.lexisnexis.co.za/images/jacobsens/jacobsens_img06.jpg

http://www.lexisnexis.co.za/images/jacobsens/jacobsens_img07.jpg

http://www.lexisnexis.co.za/images/jacobsens/jacobsens_img08.jpg

http://www.lexisnexis.co.za/images/jacobsens/jacobsens_img09.jpg

 

11 May 2016

 

 

Latest News

ANTI-DUMPING DUTIES ON BOLTS AND NUTS OF IRON OR STEEL  

There have been numerous enquiries about the status of the anti-dumping duties on bolts and nuts of iron or steel imported from or originating in the People’s Republic of China (PRC). Following an investigation into the matter, the response below was received from the International Trade Administration Commission of South Africa (ITAC).

Anti-dumping duties were imposed on bolts and nuts of iron or steel originating in or imported from the PRC on 6 August 1999, with retrospective effect to 5 February 1999. Two sunset reviews have been conducted with regard to this original anti-dumping duty, one during 2004/05 and another during 2010/11 and in both instances the anti-dumping duties were again imposed for a further period of 5 years.

The current anti-dumping duties of 55,4% and 122,7% under anti-dumping duty items 215.02/7318.15.43/01.08 and 215.02/7318.16.90/7318.16.90 were imposed on 6 May 2011, and notice was given in Government Gazette 38877 of 19 June 2015, under Notice No. 588 of 2015 that the anti-dumping duties are due to expire on 5 May 2016 if a review is not initiated.

The five year expiry date of the duties on bolts and nuts of iron or steel was 5 May 2016. Legally, however, duties do not expire automatically. A recommendation from ITAC to the Minister of Trade and Industry is necessary and should the Minister approve such a recommendation, he will request the Deputy Minister of Finance to amend the Customs and Excise Act to give effect. The Commission is in the process of making the said recommendation to the Minister of Trade and Industry.

If ITAC recommends that the anti-dumping duties be abolished, they would be abolished with retrospective effect to 5 May 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.

An amendment to the Common External Tariff of the Southern African Customs Union (SACU) was published in Government Gazette 39976 dated 6 May 2016.

The amendment relates to an amendment of the General Notes to Schedule No. 1 by the insertion of the name of the Republic of Croatia after General Note 1(b) to give effect to the Republic of Croatia’s accession to the European Union Protocol of Trade with retrospective effect to 13 July 2013.

In addition to this amendment, subscribers are also advised to remove the pages containing the provisions relating to Rebate Item 317.04 from the loose-leaf Jacobsens Harmonized Customs Tariff, which is used by subscribers in South Africa, Botswana, Lesotho, Namibia and Swaziland.

Rebate item 317.04 relates to the Motor Industry Development Programme (MIDP), which was replaced by the Automotive Production and Development Programme (APDP) on 1 January 2013.

In terms of the Transitional Notes to rebate item 317.03 (Notes 10.1 to 10.8), the provisions relating to rebate item 317.04 had to remain in the binders until at least 31 December 2013.

The loose-leaf pages reflecting the amendments will be sent to subscribers under cover of Jacobsens Supplement 1071. For more information about these amendments see the subscribers notice to Supplement 1071 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.

SARS Customs published an amendment to the Rules to the Customs and Excise Act, 1964, consequential to the accession of the Republic of Croatia to the European Union Protocol of Trade.

The rule amendment (supposedly DAR/158) was published on 6 May 2016 in Government Gazette 39976 under Notice No. R. 509.

 

 

LexisNexis

 

 

 

 

 

Contact Information:

 

Contact the Author:

Havandren Nadasan
Jacobsens Editor

Tel: 031-268 3510
e-mail to:
jacobsens@lexisnexis.co.za

 

Leon Marais
Independent Customs Consultant
Tel: 053-203 0727
e-mail to:
leon.marais@intekom.co.za

 

LexisNexis

 

© Customs News Bulletin is prepared for distribution by LexisNexis. It is for information only, and does not constitute the provision of professional advice of any kind. No responsibility for loss occasioned to any person acting or refraining from action as a result of any material in this publication can be accepted by the author, copyright owner or publisher.

Copyright: LexisNexis (Pty) Ltd retains the copyright of this email. No part of this email may be reproduced in any form or by any means without the publisher's written permission. Any unauthorised reproduction of this work will constitute a copyright infringement and render the doer liable under both civil and criminal law.

To unsubscribe e-mail jacobsen@lexisnexis.co.za.