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

 

15 September 2016

 

 

Latest News

ENVIRONMENTAL LEVY ON TYRES: DRAFT LEGISLATION (Comments due by 20 September 2016)

There are currently four types of environmental levies payable to SARS in terms of Part 3 to Schedule No. 1 of the Customs and Excise Tariff, namely:

Environmental levies on plastic bags of subheading 3923.2, on electricity generated in the Republic of South Africa (subheading 2716.00), on electric filament lamps (certain subheadings under 8539.2) and on carbon dioxide emissions of motor vehicles of certain subheadings of headings 87.03 and 87.04.

The environmental levy on plastic bags was introduced in 2004. Since then various environmental levies have been introduced and the Government indicated that in future it will impose various environmental levies.

In the 2015 South African national budget proposal the Minister of Finance also indicated that an environmental levy of R2,30/kg would be introduced on new tyres to reduce tyre waste and promote recycling of old tyres.  The tyre levy will be imposed on 1 October 2016.

Draft form DA 178 is being inserted to provide for the environmental levy return on tyres as well as draft forms DA 185.4B2 (annexure to  Form DA 185) which is being substituted to provide for the warehouse business type for tyres. The form DA185 will also be amended accordingly. 

Comments should be submitted to C&E_legislativecomments@sars.gov.za on or before 20 September 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 07/2016". (Comments due by 23 September 2016).

The document was published in Government Gazette No. 40229 of 26 August 2016 under General Notice No. 508 of 2016.

The application relates to three different applications to amend the SACU Common External Tariff, namely:

1.       REDUCTION IN THE RATE OF CUSTOMS DUTY ON:

Compound containing an unfused triazine ring (whether or not hydrogenated) in structure: Atrazine, classifiable under tariff subheading 2933.69.30, from 10 per cent ad valorem to free of duty.

Enquiries: Ref 04/2016: Mrs. Ayanda Gandi, Fax: (012) 394 4724; E-mail: endou@itac.org.za, Mr Nkulana Phenya, Fax: (012) 394-4677; E-mail: nphenya@itac.org.za.

2.       CREATION OF A REBATE PROVISION ON:

Other switches, with moulded casings of plastics or other insulating material, with a current rating not exceeding 800 A, classifiable in tariff subheading 8536.50.50 for the manufacture of electric blankets classifiable in tariff subheading 6301.10.

Other electrical conductors, for a voltage exceeding 80 V, not fitted with connectors, classifiable in tariff subheading 8544.49.90 for the manufacture of electric blankets classifiable in tariff subheading 6301.10.”

Enquiries: ITAC Reference: 11/2016. Lufuno Maliaga and Diphetogo Rathete, Tel: 012 394 3835/3683 alternatively e-mail: lmaliaga@itac.org.za or drathete@itac.org.za.

3.       AMENDMENT OF REBATE PROVISION 320.01 BY:

The inclusion of goods used in the manufacture of furniture products classifiable under tariff headings 94.01, 94.03 and 94.04 as follows:

Fitting of plastics (3926.90.90); wooden dowels (4409.29.90); wire nails (7317.00.02); staples of iron or steel (7317.00.40); locks and keys (8301.30); etc.

Enquiries ITAC Reference 10/2016: Mr Pfarelo Phaswana/Ms Diphetogo Rathete, Tel: 012 394 3628/3683 or e-mail: ppaswana@itac.org.za or drathete@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 Common External Tariff (CET) of the Southern African Customs Union (SACU) at time of publication.

The loose-leaf pages reflecting the latest tariff amendments were sent to subscribers under cover of Jacobsens Supplement 1078. For more information about these amendments see the subscribers notice to Supplement 1078 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@itacs.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.