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Customs News Bulletin

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22 July 2016

 

 

Latest News

UPDATE ON THE NEW SOUTH AFRICAN LEGISLATION IMPLEMENTATION DATES

SARS Customs recently published a new page on the website which provides updates to the new customs legislation and implementation dates.  The page was last updated on 16 May 2016.

Two letters and two publications, the New Customs Acts Programme Overview leaflet and a 67-page publication titled "Guide to Customs legislation" may be downloaded from the dedicated web page. 

The SARS website deals with a background to the rewrite of the Customs and Excise Act, the starting process including publication dates of the new Customs Control and Customs Duty Acts and feedback on the process of rewriting the Rules to the new Acts as well as proposed dates for public participation and workshops on the new Rules.

The consolidated second draft of the Customs Control Rules was published for public comment on 22 December 2015 and, after being extended to 15 May 2016 comments were considered.  In a letter dated 16 May 2016, SARS undertook to provide feedback to the conclusion of the consideration process during a workshop that was planned for the end of July 2016. A date for the workshop has not been announced.

In the letter dated 16 May 2016, SARS also indicated that the second draft of the Customs Duty Rules is near completion and is expected to be published for comment before the end of July 2016.  The second draft has not been published yet. Last week the Bulletin reported that the comments on the draft HS 2017 notices has been extended to 29 July 2016.

SARS has taken a decision to facilitate the process of systems development in preparation for the first phase of implementation of the new Customs legislation which is expected to start before the end of the 2016/17 financial year.

 Visit the dedicated SARS web page for updates on the new Customs legislation (click on: http://www.sars.gov.za/ClientSegments/Customs-Excise/AboutCustoms/Pages/New-Customs-Legislation-update.aspx). The web page has also been updated with links to "Frequently Asked Questions".

 

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 were no amendments to the Southern African Customs Union (SACU) Common External Tariff (CET). The loose-leaf pages reflecting the latest tariff amendments were 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.

There were no amendments to the Customs and Excise Rules. In terms of the last Rule amendment various forms DA 260 for the rendering of excise accounts were amended in the Schedule to the Rules on 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

 

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