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Customs News Bulletin

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3 November 2016

 

 

Latest News

NEW SAQA QUALIFICATION: INTERNAL AUDITOR

The South African Qualification Authority (SAQA) invites comment from interested parties on the additional designation(s) registration application received from the Institute of Internal Auditors South Africa (IIASA) in accordance with the National Qualifications Act, Act No. 67 of 2008.

The complete report may be obtained from Mr Peter Bosch at (012) 431 7501 or pbosch@saqa.org.za.

Comment regarding the additional designation application should reach SAQA at the address below no later than 30 days after publication in the Government Gazette. All correspondence should be marked and addressed to:

The Director: Registration and Recognition, SAQA, Postnet Suite 248, Private Bag X06, Waterkloof, 0145, or faxed to (012) 431 5060. e-mail: professionalbody@saqa.org.za.

The Notice to request the information (Notice 1355) was published in Gazette No. 40383 of 28 October 2016.

This Notice should be read with Notice 1363 which was published in Government Gazette No. 40395 of 2 November 2016 in respect of the SAQA Qualifications (Occupational Certificates) for Internal Auditors and Internal Audit Managers. The NQF levels are NQF 5, NQF 7 and NQF 8. The credits range from 130 to 345.

WCO HS 2017 COMPLIMENTARY PUBLICATIONS

In addition to the entry into force of the Southern African Development Community (SADC)/European Union (EU) Economic Partnership Agreement (EPA) and the Southern African Customs Union (SACU)/Mercosur Free Trade Agreement which necessitated the replacement of Schedule No. 1 Part 1 of the South African Customs and Excise Act, which is also the HS-based Southern African Customs Union (SACU) Common External Tariff (CET), the Harmonized System will also be replaced by a new version, HS 2017, with effect from 1 January 2017.

This will be the sixth version of the HS since its introduction with effect from 1 January 1988.  In terms of SACU’s commitments under the HS Agreement, large parts of Schedule No. 1 Part 1 will once again be amended with effect from 1 January 2017. All complimentary World Customs Organization (WCO) HS publications will be replaced by new publications and products.

LexisNexis acts as an agent for the WCO. We import their publications from Belgium for our local customers. Please see below the latest WCO update with regards to delivery of the 2017 editions.

Due to legal requirements the 2012 edition of the Online HS Database is applicable until 31 December 2016. If you are subscribed to the online database, your database will automatically be updated with the 2017 online edition on 1 January 2017.

Some of LexisNexis’ clients have already ordered their HS 2017 publication.

LexisNexis received correspondence from the WCO stating that there has been a delay with the delivery of the 2017 printed publications.  The following new dates have been supplied by the WCO:

HS 2017 Explanatory Notes and Nomenclature:

Subscribers can expect delivery in early December 2016. 

HS 2017 Alphabetical Index:

Subscribers can expect delivery at the end of January 2017.

The updated Compendium of Classification Opinions will be dispatched with either the Explanatory Notes or the Alphabetical Index.

See https://www.lexisnexis.co.za/Promotions/LexisNexis_WCO_2017/WCO_6th_Ed_Flyer.pdf for more information about the HS 2017 publications and products.

 

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.

There were no applications to amend the Customs Tariff of the Southern African Customs Union at time of publication.

 

 

 

 

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 Tariff at time of publication.  The latest tariff amendments were published in Government Gazette No. 40356 on 21 October 2016. The amendments will be sent to subscribers under cover of Jacobsens Supplement 1080.

For more information about these amendments see the subscribers notice to Supplement 1080 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 Rules to the Customs and Excise Act, 1964 at the time of publication.

For more information about the latest Rule amendments view the latest Customs Watch on the Jacobsens website and the Jacobsens Customs News Bulletin of 28 October 2016.

 

 

 

 

 

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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