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Customs News Bulletin

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13 October 2016

 

 

Latest News

SOUTH AFRICA NEEDS TO DEVELOP ENTREPRENEURS

International trade has become one of the areas with the most potential for small, medium and micro enterprises in South Africa, and one of the most significant contributions any business can make to grow the South African economy. According to a report entitled: “Entrepreneurship education and training at the Further Education and Training (FET) level in South Africa”, research clearly showed that various problems in schools hinder the effective implementation of entrepreneurship education. 

The authors found that better entrepreneurship education could make a significant contribution to job creation and ultimately to poverty alleviation.

South Africa needs to develop a culture of entrepreneurship which should start at school level: from Grade R to Grade 12. According to the authors of the report, one of South Africa’s greatest limitations to economic development can be ascribed to its lack of entrepreneurs. The ratio of entrepreneurs to workers in South Africa is approximately 1 to 52, compared to the ratio of 1 to 10 in most developed countries.  This is confirmed by quoting various sources in the report.  Download the report at http://www.ajol.info/index.php/saje/article/viewFile/25136/4335.

A lack of self-confidence is also identified as problematic. This is directly linked to lack of training and education.

The report provides a better understanding of the problems inherent to entrepreneurial development in South Africa. Your fate – and that of your children – lies in your own hands. It can however not be denied that entrepreneurs need further training, which start at school level. Importers and exporters should also consider obtaining a qualification in Customs compliance and freight forwarding. This qualification is not restricted to customs brokers.  For more information about the Freight Forwarding and Customs Compliance Qualification, see the Jacobsens Customs News Bulletin dated 26 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 08/2016". (Comments due by 21 October 2016).

The application deals with the review of the general rate of duty on various downstream steel products classifiable under tariff headings 73.06, 73.15, 73.26 and 87.16.

ITAC Ref: 16/2016, Enquires: Lufuno Maliaga/ Njabulo Mahlalela/ Pfarelo Phaswana, Tel: 012 394 3835/3684/3628 or e-mail: lmaliaga@itac.org.za/nmahlalela@itac.org.za/ pphaswana@itac.org.za.

The document was published in Government Gazette No. 40293 of 21 October 2016 under General Notice No. 614 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.

There were no amendments to the SACU Common External Tariff. The latest tariff amendments were published in Government Gazette No. 40294 on 23 September 2016. The 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

 

LexisNexis

 

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