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DEALING WITH CUSTOMS MODERNISATION
The new Customs Modernisation
legislation and Customs Information and Telecommunication Technology
(ICT) go hand in hand. There are many role players in the area but the
challenge is how to choose the correct service provider for your
requirements.
South Africa’s new Customs legislation is a first for Africa –
although it is way behind the international legislation, but it will
have a massive impact on the industry. The nature of the amendments is
as such that it will impact on every aspect of the industry and
importers, exporters, freight forwarders and customs brokers will now
have to invest in the development of these solutions.
However, choosing the correct service provider and platforms
will not be an easy task.
Over the next couple of weeks we will address these issues –
including the content to be focused on in the Bulletin in order to make
sure that you stay in business and provide your customers with the best
advice and service.
We would also like to address any concerns you may have and
look forward to answering your questions.
We look forward to hearing from you. See our contact details
at the end of this email.
THIRD BATCH OF DRAFT RULES TO THE CUSTOMS
CONTROL ACT RELEASED FOR COMMENTARY
(Comments due by 14 November 2014)
SARS Customs have published the third batch of draft Rules to
the Customs Control Act (Act 31 of 2014). The draft contains the draft
rules proposed under Chapters 21, 23 and Chapters 25 to Chapter 31.
These
Chapters of the Customs Control Act deal with the following topics:
·
Chapter 21 – Customs
processing of persons entering and leaving the Republic of South Africa
·
Chapter 23 – Access and sampling of
goods
·
Chapter 25 – Damaged, destroyed,
lost or unaccounted goods
·
Chapter 26 - Abandonment of goods
to Commissioner and destruction of goods under customs supervision
·
Chapter 27 – State warehouses
·
Chapter 28- Registration
·
Chapter 29 – Licensing
·
Chapter 30 – Accreditation
·
Chapter 31 – Security for payment
of tax and other money owed to the Commissioner
Comments on
the Draft Rules are due on 14 November 2014.
With the exception of the draft Rules to Chapter
22, dealing with international postal articles handled by the South
African Post Office, the draft rules of the first 31 Chapters of the
Customs Control Act have now been published. The draft Rules for
Chapters 32 to Chapter 41 are still outstanding.
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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 published the following notice on 19 September 2014:
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 duties
were introduced on
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.
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.
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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
general rate of customs duty on wheat and wheaten flour, classifiable
with tariff subheadings 1001.91, 1001.99, 1101.00.10 and 1101.00.90 is
increased in terms of the existing variable tariff formula as
recommended in ITAC Minute M5/2014.
The
general rate of customs duty on certain products of paper or
paperboard, coated, impregnated or covered with plastic or metal foil
is increased from free to 5% as recommended by ITAC Report No. 484
New
tariff subheadings 4811.59.05 and
4811.90.05 have been inserted and tariff subheadings 4811.59.10 and
4811.90.10 have been amended.
Download the
latest Customs Watch to have access to
the latest tariff amendments which were published on
10 October 2014 and sent out under cover of
Supplement 1038.
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