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

 

13 July 2017

 

 

Latest News

UPDATE ON THE IMPLEMENTATION OF THE NEW SOUTH AFRICAN CUSTOMS LEGISLATION

According to a press release issued by the South African Revenue Service (SARS) on 5 July 2017, there are still many issues that need to be resolved before the Customs Control Act No. 31 of 2014 and the Customs Duty Act No. 30 of 2014 can be implemented.

The drafting of the Rules under the Customs Control Act and the Customs Duty Act still needs to be finalized.

The draft Rules have been published in installments, some for sight only, while others have been published for comments.  The “frozen drafts” published for sight only has been published as such for the purposes of SARS systems development.

In the meantime the draft Deferment Rules have been published for public comment. 

The closing date for comments is 31 July 2017. See http://www.sars.gov.za/Legal/Preparation-of-Legislation/Pages/Draft-Documents-for-Public-Comment.aspx.

In addition to the drafting of the Rules, a lot needs to be done before the new Acts can finally be implemented. It includes:

Drafting of outstanding rules (Chapter 2 of the Customs Control Act in relation to Customs control, places of entry and exit and Customs controlled areas and Chapter 37 of the Customs Control Act in relation to reconsideration of decisions and dispute resolution) and publication thereof for public comments following internal discussions.

Drafting of the penalty lists in respect of both the Customs Control Act and the Customs Duty Act to be published for public comment following internal discussions.

Aligning the Customs Tariff to the new Customs legislation (the new Customs Tariff will be published as schedules to the Customs Duty Act).

SARS are now in the process of embarking on roadshows to “give a high-level overview” of the impact of the Customs Control Act and the Customs Duty Act on stakeholders.

During these roadshows there will also be a progress report on the implementation of the new Customs Acts.

The roadshows will begin in July 2017 and will be completed by August 2017. All major centres in each region will be covered by the roadshows.

Bookings can be made via the SARS website and will be on a first come, first served basis, limited to a maximum of one person per organisation.

Once the roadshows have been completed, the dedicated page on the SARS website will be updated with presentations and new “Frequently Asked Questions”. The page can be accessed by clicking at http://www.sars.gov.za/ClientSegments/Customs-Excise/AboutCustoms/Pages/New-Customs-Legislation-update.aspx).

 

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 Commission of South Africa (ITAC) received three applications to amend the Common External Tariff of the Southern African Customs Union (SACU).

The notices were published in Government Gazette No. 40945 of 30 June 2017.

The Notice numbers were Notice 489 of 2017 (Customs Tariff Application List 06/2017) and Notice 492 of 2017 (List 07/2017)

List o6/2017 relates to reduction of the general rate of Customs duty on digital smart cards, classifiable under tariff subheading 8523.52.10.

For more information contact Pharero Phaswana (pphaswana@itac.org.za) at (012) 394 3628 or Muklliwe Manyoni (mmanyoni@itac.org.za) at telephone (012) 394 3676.

List 07/2017 relates to an application by SARS for the review of rebate item 311.12/54.07/03.04. The reason for the application is that the extent of rebate needs to be reviewed as the rebate is higher than the rate of duty in Schedule No. 1 Part 1 to the SACU Tariff.

For more information contact Chris Sako (csako@itac.org.za) at (012) 394 3669 or Ms T Morale (tmorale@itac.org.za) or at telephone (012) 394 3694.

 

 

 

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 tariff amendments at time of publication.  The last tariff amendment was published in a Government Gazette on 23 June 2017.

 

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 time of publication. The last Rule amendment (DAR/168) was published in Government Gazette 40486 of 19 May 2017.

 

 

 

 

 

Contact Information:

 

 

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.