cid:image001.jpg@01CFAC0B.8791A2C0

Customs News Bulletin

cid:image002.jpg@01CFAC0B.8791A2C0cid:image003.jpg@01CFAC0B.8791A2C0cid:image004.jpg@01CFAC0B.8791A2C0

cid:image005.jpg@01CFAC0B.8791A2C0cid:image006.jpg@01CFAC0B.8791A2C0

cid:image007.jpg@01CFAC0B.8791A2C0cid:image008.jpg@01CFAC0B.8791A2C0

cid:image009.jpg@01CFAC0B.8791A2C0

11 September 2014

Latest Amendments and news

 

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.

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.

AMENDMENT TO THE COMPULSORY SPECIFICATIONS FOR MOTOR VEHICLES

Importers and manufacturers of motor vehicles of categories M1 and N1 should note that the Compulsory Specification on motor vehicles of categories M1 and N1 have been replaced by new specifications.

The Minister of Trade and Industry has published two notices under section 13(1)(a) of the National Regulator of Compulsory Specifications Act (Act 5 of 2008) to withdraw the current Compulsory Specifications and replace them with new specifications with effect from 5 November 2014 – that is within a date of two (2) months from the date of publication of the notices.

The notices to amend the specifications were published through Government Notices R.687 and R.688 in Government Gazette 37958 of 5 September 2014.

Download the notices by clicking on the links below:

National Regulator for Compulsory Specifications Act: Amendment to the compulsory specification for the motor vehicles of category N1 G 37958 GoN 687.

National Regulator for Compulsory Specifications Act: Amendment to the compulsory specification of the motor vehicles of Category M1 G 37958 GoN 688.

The Minister has also published a notice to amend the regulations relating to the Government Gazette of levy periods.

The notice can also be downloaded by clicking on the link below:

National Regulator for Compulsory Specifications Act: Regulations: Government Gazette of levy periods G 37959 RG 10255 GoN 668.

An updated list of the National Standards is published in Government Notice No. R.686 which can be downloaded from http://www.gov.za/documents/download.php?f=214247.

 HOW TO GET READY FOR SOUTH AFRICA’s NEW CUSTOMS LEGISLATION

Along with the changing Customs landscape comes many challenges for everyone involved in the supply chain.  New Customs legislation should aim to find the perfect balance between customs control and supply chain security on the one side, and trade facilitation on the other side.

Customs modernization today will be Customs legislation tomorrow and that is why it is so important that Customs brokers and their clients familiarize them with the changes to the industry, and that they know exactly how modernisation will impact on the relationship between all the parties.

Many brokers are concerned about their changing role and some even think that there will not be Customs brokers in a number of years to come.

If one focuses on some of the changes it is evident that self-assessment and self-compliance from the perspective of traders will become more important. For this reason some of our clients are of the opinion that importers in particular will start doing their own clearing.

However, if one critically analyses some of the changes and focus on the changes in the Customs legislation it becomes evident that Customs brokers will now really have to become customs specialists – much more so than they have been over the years.

Customs brokers should study the new Customs legislation – and that includes the draft rules which are now published – and make sure that they are on top of it.  Then they should meet with their clients and inform them about the changes and how that will impact on their business.

Training providers are training – not only customs brokers – who are already specialists – but also the clients of clients. In a recent project GMLS have been working on such a project with a client for a period of months and will have intensive training sessions with the client in order to inform the importers of the requirements under the new legislation.

It is impossible to point out all the changes in a Bulletin like this but one example is the changes in terms of the legislation pertaining to supporting documents – more specifically focusing on the new requirements for the clearance instruction – section 176 read with draft Rule 7.6 - will indicate to you that the changes will be immense and they should not be ignored until the Customs Control Act (Act 31 of 2014) and the Customs Duty Act, 2014 enter into force. 

Another solution would be to work on a strategy of communication and establishing relationships not only with Customs, but also with your clients.  And to have frequent meetings.

The time has now come to also investigate an ICT strategy, not only to Customs but also involving your clients and service providers.

 You will notice that we have been focusing on the changes and on the impacts thereof on your business in the Bulletin for some time now.  This is due to requests and to popular demand.

We welcome your inputs and will try to focus on your own needs.

 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.

 

 

 

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 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. 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

The last applications to amend the SACU tariff were published on the 22 August 2014.  These were dealt with in the Bulletin of 3 September 2014.

These notices dealt with:

NOTICE OF INITIATION OF AN INVESTIGATION INTO THE ALLEGED DUMPING OF PORTLAND CEMENT CLASSIFIABLE UNDER TARIFF SUBHEADING 2523.29 ORIGINATING IN OR IMPORTED FROM PAKISTAN; and

APPLICATION FOR CREATION OF A REBATE PROVISION ON:

Sodium hydroxide (caustic soda) in aqueous solutions (soda lye or liquid soda), classifiable in tariff subheading 2815.12 for use in the manufacture of sodium hypo chlorite solution, classifiable in tariff subheading 2828.90.

Download the Bulletin of 3 September 2014 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.

The rate of customs duty on  on graphite electrodes, of a kind used in furnaces, classifiable in tariff subheading 8545.11 was reduced from 10 % to "free" as recommended in ITAC Report No. 473.

The Notice (Government Notice. R. 659) to implement the ITAC recommendation was published Government Gazette 37959 of 5 September 2014. The Jacobsens Reference No. is A1/1/1495.

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.

 

 

 

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 Rule amendments at time of publication. The last amendment (DAR/140) was published on the
8 August 2014.

Download the latest Customs Watch to have access to the latest tariff and rule amendments.

 

 

 

 

 

 

 

Contact Information:

 

 

Contact the Author:

Mayuri Govender

Jacobsens Editor

Tel: 031-268 3273
e-mail:  
jacobsen@lexisnexis.co.za

 

 

Leon Marais 
GMLS Associate:  Customs Specialist
Tel: 011 425 1840

e-mail: leon.marais@intekom.co.za/ leon@gmls.co.za