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DRAFT TARIFF AMENDMENTS WITH EFFECT FROM 1
JANUARY 2015
(Comments due by 8 October 2014)
Draft Tariff Notices on annual EFTA phase-downs and other
amendments to Schedules Nos. 1, 2, 3 and 4 have been published on the
SARS website on 10 September 2014. A Revised Explanatory Note was
published on 17 September 2014.
The draft amendments are explained in an
Explanatory Memorandum.
Various draft notices as well as an Explanatory Memorandum can
be downloaded from the SARS website.
The proposed amendments include the following:
·
Draft
amendment on phase-down duties in terms of the EFTA Trade Agreement and
amendments on the reduction in the rate of duty on paper and paperboard
on tariff subheading 4811.41.90 ITAC Report No. 151.
Intended implementation with effect from 1 January 2015
·
Draft
technical amendments and creation of separate 8-digit tariff subheadings
for goods classifiable in Chapters 4, 15, 30, 32, 33, 38, 39, 70 and
85. Intended implementation with effect from 1 January
2015
·
Draft
amendment to create separate 8-digit
tariff subheadings for goods classifiable under tariff
subheading 0207.1 (chicken meat). Intended implementation with
effect from 1 February 2015
·
Draft
amendment to delete anti-dumping item 201.02/0207.14.90/01.08 and to
insert new anti-duty items which are indicated on the SARS website as a
consequence to an earlier deletion in Part 1 of Schedule No. 1 with
effect from 1 February 2015
·
Draft
amendment to delete countervailing items 235.00 and 235.01 as they
have become redundant. Intended implementation with effect from 1
January 2015
·
Draft
amendment to substitute anti-dumping items as a consequence to an
amendment in Part 1 of Schedule No. 1. Intended implementation with
effect from 1 January 2015
·
Draft
amendments to delete redundant rebate items with effect from 1
January 2015
·
Draft
amendment to substitute rebate item 311.03 to read "Industry:
Textile Weaving". Intended implementation with retrospective
effect from 7 December 2012
·
Draft
amendment to delete rebate item 497.01 as it is not in use. Intended
implementation with effect from 1 January 2015
·
Draft
amendment to delete rebate items 498.01 and 498.02 as they are not in
use. Intended implementation with effect from
1 January 2015
Download the draft notices from http://www.sars.gov.za/Legal/Preparation-of-Legislation/Pages/Draft-Documents-for-Public-Comment.aspx.
NOTE:
Comments are due on the Draft Rules to Chapters 11
to Chapter 24 and Chapter 24 of the Customs Control Act (Act 31 of
2014) before 26 September 2014. Refer to the Jacobsens
Customs News Bulletin of 13 August 2014 for more information.
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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 the 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.
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. 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.
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In the
WTO system, a member may take a safeguard action, which is, restricting
imports temporarily in the face of a sustained increase in imports that
is causing serious injury to the domestic producer of like products.
Safeguard measures are universally applied to all countries, unlike
anti-dumping and countervailing duties that are aimed at a specific
firm or country.
Schedule
No. 2 is identical in all the SACU Countries.
ANTI-DUMPING DUTY INVESTIGATIONS
ITAC has published the following notice on 19 September 2014:
This notice is titled:
INITIATION OF SUNSET
REVIEW INVESTIGATION OF
ANTI-DUMPING DUTIES ON STAINLESS STEEL SINKS ORIGINATING IN OR
IMPORTED FROM CHINA AND MALYASIA
The following Anti-dumping duty and have been introduced on the 6 November
2009 and 1 December 2010.
The following Anti-dumping duty items ) have been
introduced on the 6 November 2009 and 1 December 2010:
- 215.02/7324.10/01.06(65)
- 215.02/7324.10/02.06(61)
- 215.02/7324.10/02.06(61)
- 215.02/7324.10/03.06(64)
- 215.02/7324.10/04.06(69)
- 215.02/7324.10/05.06(64)
In
terms of the items above anti-dumping duties at various rates – ranging
from 10,74% to 95,86% - are imposed on sinks
of stainless steel imported from or originating in the People’s
Republic of China (PRC) and Malaysia.
ITAC
has published a notice to initiate a review of the current provisions –
either on own initiative or upon request made by or on behalf of the
domestic industry before the expiry date of the current
provisions. This is a
requirement in terms of Article 53.1 of the Anti-Dumping Duty
Regulations (ADR).
A
notice to notify interested parties of the initiation of the review was
published in Government Gazette
36592 on 28 June 2013 through Government Notice No. R.664 of 2013.
Comments
were received from various parties and it was established that there
was a prima facie case for
dumping.
A
notice to initiate the review was published in Government Gazette 37999 of 19 September 2014 through
Government Notice No. R.814 of 2014.
In
terms of this notice interested parties is requested to respond to the
allegations not later than 40 days from 19 September 2014.
For
more information contact the investigating officers:
Mr
Andre Zietsman telephone +27 12 394 3673
Mr
Busman Makakola telephone + 27 12 394
3380
Ms
Charity Ramaposa telephone +27 12 394 1817.
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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.
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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.
The
rates of duty on sugar is amended from
92,6c/kg to 142,5c/kg as per the existing variable tariff formula as
recommended in ITAC Minute M04/2014.
Download the latest Customs Watch to
have access to
the latest tariff amendments which were published on
22 August 2014 and sent out under cover of
supplement 1037.
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