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Customs News Bulletin

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28 July 2017

 

 

Latest News

TRADE REMEDIES IN SOUTHERN AFRICA CUSTOMS UNION: CERTAIN ANTI-DUMPING DUTY PROVISIONS LIKELY TO EXPIRE IN 2018

The Bulletin of 9 June 2017 (Bulletin 478) dealt with “Anti-dumping duties, countervailing duties and safeguard duties” (trade remedies) in South Africa.

Anti-dumping duties need to be reviewed every five years after imposition. The introductory paragraph of the International Trade Administration Commission of South Africa (ITAC) Sunset Review notices states: “ In accordance with the provisions in Article 53.1 of the Anti-Dumping Regulations (ADR) of the International Trade Administration Commission of South Africa (the Commission), any definitive anti-dumping duty shall be terminated on a date not later than five years from the date of imposition, unless the authorities determine, in a review initiated before that date on their own initiative or upon a duly substantiated request made by or on behalf of the domestic industry, that the expiry of the duty would be likely to lead to continuation or recurrence of dumping and injury”.

ITAC therefore notifies all interested parties in Government Gazette Notices that substantiated requests must be made on behalf of the Southern African Customs Union (SACU) industry indicating the expiry of certain anti-dumping duty provisions which are about to expire (with a period of six months to a year from the date of publication).

ITAC gave notice of anti-dumping duty provisions that will expire in 2018 in Notice 546 of 2017 which was published in Government Gazette 40998 of 21 July 2017.

Anti-dumping provision

Product

Country

Rate of anti-dumping duty

Date of imposition

Date of expiry

206.04/3207.40/01.06

Glass frit

Brazil

24,65%

15/02/2013

14/02/2018

206.04/3207.40/02.06

Glass frit

Brazil

50%

15/02/2013

14/02/2018

213.03/7009.91/03.06

Unframed glass mirrors

China

40,22%

26/07/2013

25/07/2018

207.01/3920.49/01.06

PVC Rigid

China

32,7%

10/05/2013

09/05/2018

207.01/3920.49/02.06

PVC Rigid

Chinese Taipei

22,6%

10/05/2013

09/05/2018

215.11/8201.10.10/01.08

Spades and shovels

China

158,1c/kg

18/10/2013

17/10/2018

215.11/8201.30.03/01.08

Picks

China

262,7c/kg

18/10/2013

17/10/2018

215.11/8201.30.90/01.08

Rakes with more than 8 prongs

China

369,2c/kg

18/10/2013

17/10/2018

215.11/8201.90.20/01.08

Forks

China

480c/kg

18/10/2013

17/10/2018

ITAC will conduct its investigation in accordance with the relevant provisions of the International Trade Administration Act No. 71 of 2002 and the Anti-dumping Regulations, in compliance with the World Trade Organization  Agreement on Implementation of Article VI of the GATT 1994 (WTO Anti-Dumping Agreement).

Interested parties (manufacturers of the products listed above in Botswana, Lesotho, Namibia, South Africa and Swaziland) who wish to submit a request for the anti-dumping duty to be reviewed prior to the expiry thereof must do so six months prior to the expiry date. The due dates for comments are thus as follows:

Anti-dumping provision

Description

Due date for comments

206.04/3207.40/01.06

Glass frit and other glass, in the form of powder, granules or flakes manufactured or exported by Smalticeram Do Brazil Ltda

14 August 2017

206.04/3207.40/02.06

Glass frit and other glass, in the form of powder, granules or flakes (excluding that manufactured or exported by Smalticeram Do Brazil Ltda) imported from or originating in Brazil

14 August 2017

213.03/7009.91/03.06

Unframed glass mirrors, of a thickness of 2 mm or more but not exceeding 6mm imported from or originating in China

25 January 2018

207.01/3920.49/01.06

Plates, sheets, film, foil and strip of polymers of vinyl chloride (PVC), non-cellular and not reinforced, laminated, supported or similarly combined with other materials and having a plasticizer content not exceeding 6% (excluding PVC strips with a diameter of 2 mm thickness and a width not exceeding 20 mm) (PVC rigid) imported from or originating in China

9 November 2017

207.01/3920.49/02.06

Plates, sheets, film, foil and strip of polymers of vinyl chloride (PVC), non-cellular and not reinforced, laminated, supported or similarly combined with other materials and having a plasticizer content not exceeding 6% (PVC rigid) imported from or originating in Chinese Taipei (Taiwan, Province of China)

9 November 2017

215.11/8201.10.10/01.08

Spades and shovels, of a maximum blade width of more than 200 mm but not exceeding 320 mm imported from or originating in China

17 April 2018

215.11/8201.30.03/01.08

Picks imported from or originating in China

17 April 2018

215.11/8201.30.90/01.08

Rakes with more than 8 prongs imported from or originating in China

17 April 2018

215.11/8201.90.20/01.08

Forks, with a prong length exceeding 150 mm (excluding forks with 8 or more prongs) imported from or originating in China

17 April 2018

It should be noted that, despite these dates, ITAC stated the following in paragraphs 1 and 2 of page 7 of NOTICE 546 OF 2017: “Manufacturers in the SACU of the subject products listed above, who wish to submit a request for the duty to be reviewed prior to the expiry thereof, are requested to do so not later than close of business on 21 August 2017.

SACU manufacturers who do submit a request before 21 August 2017, should submit duly substantiated information, indicating that the expiry of the duty would be likely to lead to continuation or recurrence of dumping and material injury, to the Commission.”

If manufacturers in the Southern African Customs Union do not respond prior to the expiry date of any anti-dumping duty provision it will be assumed that dumping no longer takes place and ITAC will recommend the termination of the anti-dumping duties in terms of that provision.

Anti-dumping duty provisions are reviewed every five years. It will mean that any information that is submitted will be considered and evaluated in order to determine whether or not prima facie evidence exist to justify the initiation of a review. Should there be justification for a review, notice will be given in a South African Government Gazette and other parties (importers and exporters of the products in question will be requested to comment and provide information.

Confidential and non-confidential information will be treated in compliance with section 33(1) of the International Trade Administration Act No. 71 of 2002 and section 2.3 of the Anti-Dumping Regulations.

The International Trade Administration Act (ITA) and the Anti-Dumping Regulations (ADR) are available from the website of the International Trade Administration Commission of South Africa (ITAC) – www.itac.org.za – or from the ITAC Trade Remedies section at Block E, Uuzajazi Building, the DTI Campus, 77 Meintjies Street, Sunnyside, PRETORIA.

For more information contact the Senior Manager: Trade Remedies I, Ms Carina Janse van Vuuren at tel. (012) 394 3594 or at fax (012) 394 0518.

 

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) published two notices regarding the review of anti-dumping duty provisions in the Common External Tariff (CET) of the Southern African Customs Union (SACU) which could lead to the expiry or amendment of certain anti-dumping duty provisions in Part 1 of Schedule No. 2 to the Customs and Excise Act (Jacobsens).

The notices were published in Government Gazette No. 40998 of 21 July 2017.

The Notice numbers were Notice 546 of 2017 and Notice 547 of 2017.

Refer to the feature article for more information on Notice 546 of 2017.

Notice 547 of 2017 relates to the initiation of the sunset review on clear float glass originating in or imported from Indonesia in anti-duty items in 213.03/7005.29.17/02.08, 213.03/7005.29.23/02.08, 213.03/7005.29.25/01.08 and 213.03/7005.29.35/02.08.

Contact Ms Selma Takacs at 012 394 3596 or Mr Thabelo Tshikomba at (012) 394 3638 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.

A Correction Notice was published to reflect the correct rate of Anti-dumping duty on item 215.02/7312.10.90/04.08 as 93% instead of 96% in the English version as published in Notice 728 of 17 June 2016.

The correction notice was published in Government Gazette 40993 of 21 July 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

 

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