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

 

14 July 2016

 

 

Latest News

COMMENT PERIOD FOR DRAFT HS 2017 AMENDMENTS FOR SOUTHERN AFRICAN CUSTOMS UNION EXTENDED

(Comment period extended to 29 July 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 earlier this year.

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 (anti-dumping 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 Harmonized 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 were originally due on 30 June 2016 however this has now been extended to 29 July 2016. Interested parties should look how the classification of the products they deal in are affected.  It should be noted that the rates of duty may not be amended as a result of the transposition to another HS tariff subheading.

 

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 4/2016".

The document was published in Government Gazette No. 40088 of 24 June 2016 under General Notice No. 366 of 2016.

The application relates the creation of rebate of duty on Single yarn (excluding sewing thread) containing 85 per cent or more by mass of polyester staple fibres, not up for retail sale, measuring 160 dtex or more but not exceeding 330 dtex, classifiable in tariff subheading 5509.21, in such quantities, at such times and subject to such conditions as the International Trade Administration Commission may allow by specific permit for the manufacture of knitted fabrics of a mass exceeding 100/m², classifiable under tariff heading 60.06.

The investigating officers were Ms T Morale or Mr Chris Sako at telephone numbers (012) 394 3694 or (012) 394 3669, or at e-mail  tmorale@itac.org.za or csako@itac.org.za.

Comments are due by 24 July 2016.

Customs Tariff Application List 03/2016 was published in Government Gazette No. 39960 of 29 April 2016 under Notice No. 264 of 2016.

ITAC also published its latest round of sunset reviews under Notice No. 365 of 2016 in Government Gazette 40088 of 24 June 2016.

In terms of this notice the anti-dumping duties on fully threaded screws with hexagon heads from China, the anti-dumping duties on drawn, float and solar glass and unframed mirrors from Indonesia and the anti-dumping duties on chicken meat portions from the USA will expire unless a duly substantiated request is made by or on behalf of the SACU industry indicating that the expiry of the duties would be likely to lead to the continuation or recurrence of dumping and injury.

Enquiries may be directed to the Senior Manager: Trade Remedies I, Ms Carina Janse van Vuuren at telephone (012) 394 3594 or at fax (012) 394 0518.

ITAC published an application for the withdrawal of the application to increase the rate of Customs duty on printed bi-axially oriented polypropylene film or polymers of propylene classifiable under tariff subheadings 3920.20.25, 3920.20.35 and 3920.20.45 from 10% and free to 20% ad valorem under a document entitled: "International Trade Administration Act: Customs and Excise Tariff Applications: List 5/2016".

The document was published in Government Gazette No. 40110 of 1 July 2016 under Notice No. 377 of 2016.

The original application was published in Government Gazette 39718 of 19 February 2016.

For further enquiries contact Mrs Ayanda Ghandi at endou@itac.org.za.

 

 

 

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 was one amendment to the Southern African Customs Union (SACU) Common External Tariff (CET) i.e., the HS-based Customs Tariff of Botswana, Lesotho, Namibia, South Africa and Swaziland.

Provision is made for various 8-digit tariff subheadings under heading 08.11 to provide for fruit not containing any added sugar or sweetening matter on a statistical level. 

The amendments to the Common External Tariff of the Southern African Customs Union (SACU) were published in Government Gazette No. 40128 dated 8 July 2016, Notice No. R. 820.

The loose-leaf pages reflecting the amendments will be sent to subscribers under cover of Jacobsens Supplement 1075. For more information about these amendments see the subscribers notice to Supplement 1075 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.

The latest Customs Rule amendment (DAR/158) was published on 6 May 2016 in Government Gazette 39976 under Notice No. R. 509. The amendment relates to the accession of the Republic of Croatia to the European Union Protocol of Trade.

Another amendment to the Customs and Excise Rules with the reference number DAR/158 was published. It should be noted that this should have been DAR/159.  In terms of the new Rule amendment various forms DA 260 for the rendering of excise accounts are amended in the Schedule to the Rules and under Notice No R. 818 which was published in Government Gazette No. 40128 of 8 July 2016. For more information about these amendments view the latest Customs Watch.

 

 

 

 

 

 

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 jacobsens@lexisnexis.co.za.