Customs News Bulletin

	26 September 2016

Latest News

A COMPARISON BETWEEN UNIVERSITY FEES IN SOUTH AFRICA 2016 AND SETA TRAINING FEES

During the current round of protests against student fees at South African universities a presenter on a SABC radio station was shocked when he heard how high the student fees at South African universities were, and raised some questions about training fees in South Africa in general.

An investigation into unaccredited training and SETA-accredited training versus university fees yielded interesting results.

Third year B. Accounting fees at a university in central South Africa would set you back R48 000 plus accommodation and books (about R 8000 for the books) per annum. More than 75% of the books prescribed for the third year B. Accounting degree at that University are published or distributed by LexisNexis.

Accredited training providers that are accredited at Sector Education and Training Authorities (SETA’s) train (adult) learners on South African Qualifications Authority (SAQA) accredited qualifications.  Learners are assessed by accredited assessors, and the assessments are moderated internally and externally by moderators. 

Training providers offering accredited training would thus have to absorb the following costs:

• Venue hire (if not in-house)

• Travelling to venue

• Facilitator cost

• Catering (if not in-house)

• Tea, coffee and refreshments (if not in-house)

• Printing and binding

• Class stationary

• Helpdesk support (if available)

• Marketing

• Staff cost

• Assessor fees

• Internal moderation

• External moderation

• Audits by TETA or other SETA

• Registration

• Statement of Results and other certificates

In some sectors only face-to-face learning interventions are allowed. Under the Transport and Training Authority (TETA) an accredited provider presents face-to-face training (at the venue of the training provider) or on-site, or e-Learning through an online platform.

Accredited training in the ETDP SETA is only through face-to-face sessions. Prices range from R850/day for a NQF 4 level unit standard to R1525/day for a NQF 5 level unit standard with a credit value of 10. According to SAQA’s latest level descriptors a NQF level 4 qualification is the equivalent of Grade 12. See below:

NQF level	Description	School Grade	NQF Category	Examining Body
1	General certificate	4 - 9	GET - General Education and Training	UMALUSI
2	Elementary certificate	10	FET - Further Education and Training	UMALUSI
3	Intermediate certificate	11	FET - Further Education and Training	UMALUSI
4	National certificate	12 (Standard 10)	FET - Further Education and Training	UMALUSI
5	Higher certificate	-	HET - Higher Education and Training	Council on Higher Education (CHE)
6	Diploma / Advanced certificate	-	HET - Higher Education and Training	Council on Higher Education (CHE)
7	Bachelor’s degree / advanced diploma	-	HET - Higher Education and Training	Council on Higher Education (CHE)
8	Bachelor Honours degree / Postgraduate diploma / Bachelor’s degree	-	HET - Higher Education and Training	Council on Higher Education (CHE)
9	Master’s degree / Master’s degree (professional)	-	HET - Higher Education and Training	Council on Higher Education (CHE)
10	Doctoral Degree / Doctoral Degree (professional)	-	HET - Higher Education and Training	Council on Higher Education (CHE)

A full qualification in the Education Training and Development Practices (ETDP) SETA would cost you about R25 000.

The entry level Customs Compliance and Freight Forwarding Qualification is at NQF level 3. The SAQA Qualification number is 59365. The qualification comprises a combination of learning outcomes from fundamental, core and elective components totaling a minimum of 130 credits.

All fundamental unit standards to the value of 36 credits are compulsory. For example Unit Standard 119472 titled "Accommodate audience and context needs in oral/signed communication" worth 5 credits.

In the core component all unit standards to the value of 66 credits are compulsory. For example Unit Standard 252416 titled: "Describe and apply the current Customs and Excise Act" worth 6 credits.

The elective component comprises four areas of specialization: Generic, Customs, Airfreight and Surface freight.  In this component learners must choose a specialization based on the area in which they work or in which they are interested, totaling a minimum of 28 credits. The customs components are:

• Classify commodities according to customs tariff (8 credits);

• Calculate customs values (7 credits);

• Calculate duties on tax payable on internationally traded goods (5 credits);

• Frame and submit customs declarations and carrier release documentation (8 credits).

There are advanced (NQF 4) customs qualifications on accreditation, certification of origin and on how to analyse and solve complex tariff classification issues (such as how to apply for tariff determinations and applications to reduce or increase customs duty. 

At this stage there are 12 companies that are accredited to offer this qualification, but beware - not all of them have good training material.

Material or assessment criteria could be outdated. Material could also be incorrect or they may not be properly aligned to the specific outcomes and assessment criteria of the unit standards.  Some material is presented to learners as "integrated material" when in fact that is simply an attempt at covering up material which is missing large parts. In some such cases the "integrated" learning material is missing complete unit standards.

Some learning material are freely available as public domain material. The quality of that material leaves much to desire, and ethical service providers do not make use of such material. Instead they pay subject matter experts to update the material on their behalf.

Some tips that companies can follow to protect themselves against unscrupulous practices include the following:

1. Obtain references from other companies who have received training from the same training provider.

2. Check the CV’s of the facilitators the training provider will be using. A facilitator should have at least 10 years relevant work experience. This is a critical requirement and is non-negotiable.

3. Check the training material to see if it is aligned to the specific outcomes of the unit standards. Use your departmental managers to check the material.

4. If the training provider claims they are registered with TETA that does not mean they are good or even half-good. Double check with the TETA-SETA what their performance record is like. They may be in the process of losing their accreditation.

5. Consult with a specialist and obtain a second opinion. The training world is small and inferior training providers are well known in the industry. This means anyone involved in training will be well aware of such providers and will be able to warn you.

One training provider’s advice is the following: "Ask for a sample of the manuals before committing to any training. A good training provider will not be ashamed of his material."

Training your staff ensures a better future for the South African Freight Forwarding and Customs Industry.

The NQF 3 customs compliance and freight forward qualification could cost anything from R24 750 online to R45 000 onsite or through face-to-face training. One training provider claims to offer online training for R12 500 per learner. 

Some training providers could insist that you have a NQF 2 qualification in international trade before you enroll for the NQF 3 qualification. With them both qualifications (face-to-face) could set you back R43 000 per learner.

Unaccredited training for half a day at one training provider ranged from R1 585 per learner (delegate) per day to R13 400 per delegate for 5 days. Some service providers offer quality training over a period of 5 days for below R8 000 per learner.

The crux of the matter is the prices and standard of training could differ substantially.  Do your homework properly.

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. View the Bulletin of 15 September 2016 for more information.

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. On 16 September 2016 the rates of duty on various subheadings (1701.12, 1701.13, 1701.14, 1701.91, and 1701.99) were amended to reduce the rate of customs duty on sugar from 144,33c/kg to 31.89c/kg.

The amendment is in terms of the existing variable tariff formula as recommended in ITAC Minute M05/2016. The notice to implement ITAC’s recommendation was published in Government Gazette No. 40282. On 23 September 2016 the following amendments to the SACU CET were published: The anti-dumping duties on paper insulated lead covered electric cable originating in or imported from India were terminated, with retrospective effect to 7 April 2016 as recommended in ITAC Report 531. Under a second notice the definition for “VAA” where it appears under “Definitions” in Note 1.2 to rebate item 317.03 was amended with retrospective effect to 1 January 2016 insofar as it relates to the Automotive Production and Development Programme (APDP) as recommended in ITAC Minute 04/2016. Part 1C of Schedule No. 6 was also amended with immediate effect to provide for refund items on wine, vermouth and other fermented beverages that have become off-specification, contaminated or have undergone post-manufacturing deterioration. The loose-leaf pages reflecting the latest tariff amendments were sent to subscribers under cover of Jacobsens Supplement 1079. For more information about these amendments see the subscribers notice to Supplement 1079 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

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