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Customs News Bulletin

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31 March 2017

 

 

Latest News

THE EXPORTER’S ROADMAP TO GOVERNMENT SUPPORT AND COMPLIANCE

Exporters and would-be exporters often wonder where to go to for government assistance.

The  South African Department of Trade and Industry is the main actor in support to exporters and would-be exporters.  The first goal of the Department of Trade and Industry is to make sure that exporters become export-ready. Once they are export-ready, there are a number of support programmes that exporters can qualify for.

The purpose of these programmes are to increase exports, with an emphasis on value-addition and job-creation and the growth of the economy.  The target group of the programmes, the National Exporter Development Programme (NEDP), is small, micro and medium enterprises (SMME’s).  However the programme also focuses on the needs of larger exporters.

According to the dti website, the vision of the NEDP is "to provide a well-resourced, efficient and effective exporter development programme that delivers appropriately skilled exporters and contributes to the number of active exporters and the real value of exports growing consistently over time".

The mission of the NEDP is to:

  • Develop a pool of export-ready companies;

  • Ensure that exports grow, and new markets and export products are developed;

  • Ensure effective resources are available for exporter development;

  • Provide leadership to the various stakeholders involved in exporting;

  • Facilitate collaboration between the various stakeholders from both the private and public sectors; and

  • Monitor and ensure continuous improvement.

The National Exporter Development Programme (NEDP) publication on the dti website provides more information about the programme.

The Global Export Passport initiative is a training programme that forms part of the critical components of the National Export Development Programme (NEDP). It has been developed by the dti.  The initiative focuses on export capacity-building and the training of emerging and experienced exporters to ensure their export-ready status and sustainability in the international market. The programme aims to build on existing activities and capacities of the dti, provincial economic development departments, provincial trade and investment agencies (PIPA’s), the Small Enterprise Development Agency (SEDA) (the agency responsible for assisting the dti to get exporters export-ready) and other international and local stakeholders to ensure the delivery of key interventions to emerging and experienced exporters.

The dti funds the training initiatives of the dti and SEDA and make use of accredited training providers to provide training to qualifying exporters or would-be exporters.  The training costs thus have a minimal effect on the exporter. Leon Marais, the author of the Jacobsens Customs News Bulletin is a dti and SEDA training provider.

The Passport Initiative will further enhance the market competitiveness of emerging and experienced exporters. It will create an enabling export platform by addressing the significant aspects of market entry, and grow employment, with an ultimate contribution to economic growth, through the five phases of the Global Export Passport Initiative.  The five phases are listed below:

Phases    

Name of Participants   

Name of Course   

Phase 1

Explorer

Export Awareness

Phase 2

Export-Aware

Introduction to Exporting

Phase 3

Export-Ready

Planning for Exports

Phase 4

Start-Up Exporter

Succeeding in Exporting

Phase 5

Global Exporter

Global Exporting

Interested companies and exporters wishing to enrol for the Global Exporter Passport Programme are encouraged to contact the dti for more information. Visit the dti website at http://www.dti.gov.za/trade_investment/nedp.jsp for contact details.

There are also SAQA-accredited qualifications for exporters, for example the National Certificate: Export Administration.  It is a NQF Level 5 TETA Qualification. Contact your preferred TETA-accredited training provider for more information.

There will soon be a National Certificate: Export Administration: Global Exporters Passport Initiative under the Quality Council for Trades and Occupations (QCTO).

 

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.

ITAC published a notice which is titled "Initiation of sunset review of anti-dumping duties on frozen bone-in portions of fowls of species gallus domesticus imported or originating from the United States of America" under Notice 270 in Government Gazette 40717 of 24 March 2017. Comments are due by 24 April 2017.

The response to the questionnaire and any information regarding this matter and any arguments concerning the allegation of dumping and the resulting threat of material injury must be submitted in writing to the Senior Manager: Trade Remedies II at ITAC.

Enquiries may be directed to the investigating officers, Ms Thuli Nkomo at telephone number +27 12 394 1190 or Ms Boniswa Mehlomakulu at telephone number +27 12 394 3636 or at fax number +27 12 394 0518.

Comments are due by 24 April 2017. ITAC published an application to increase the current duty rates on dairy spreads of subheading 0405.20 and certain extracted oleoresins of subheading 3301.90 from the current rates of duty to the WTO bound rates in a Government Gazette under List 02 of 2017.

The applications were published in Government Gazette No. 40691 of 17 March 2017 in Notice No. 224 of 2017.

Comments are due by 13 April 2017.

Refer to the Jacobsens Customs Bulletin of 23 March 2017 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.

There were three amendments to the SACU Common External Tariff (CET) at time of publication.

The amendments were published under Notices Numbers R. 264 to R. 266 which were published in Government Gazette No. 40713 of 24 March 2017.

Under the first amendment the rate of duty on sugar of subheadings 1701.12, 1701.13, 1701.14, 1701.91, and 1701.99 is increased from free to 63.63c/kg in terms of the existing variable tariff formula as recommended in Minute M08/2016.

Provision is made in Part 1 of Schedule No. 3 (rebate item 317.06/00.00/06.00) and Part 3 of Schedule No. 5 (refund item 536.00/00.00/04.00)  to provide for duty free imports of components for heavy motor vehicles as requested by the Department of Trade and Industry (the dti).

These amendments will be forwarded to Jacobsens Subscribers under cover of Supplement 1087.

The amendments have been published in the Customs Watch which is also available on the Jacobsens website at www.jacobsens.co.za.

 

 

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 at time of publication .

 

 

 

 

 

 

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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