|
DEALING WITH
CUSTOMS MODERNISATION: HOW INTERNET ENABLED INTERNATIONAL LOGISTIC
SOLUTIONS CAN ASSIST
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 Customs Information and
Telecommunication Technology (ICT) and internet-based international
logistic solutions.
International trade transactions generally involve customs
clearing, shipping the goods and payment. These transactions are
inter-related and cannot be separated from one another. There are many role players in
international trade and if you choose a platform for your company make
sure that your service provider/developer is familiar with the
complexities of international trade and that the service provider you
select to develop solutions know the industry or that the developer
makes use of specialists to assist them with the development of such
solutions.
The research company, Stephens Inc. suggests that investors of
these solutions should focus on solutions that have a strong market
demand and relatively high barriers to entry and exit. Such solutions,
in the opinion of Analyst Robin Y. Roberts and Brad Eichler,
CFA, Managing Director of Stephens Inc. must have a strong emphasis on
Customs Compliance (and Trade Facilitation), including landed cost
solutions, shipping (transportation) and payment solutions for
international trade. These solutions should be integrated and should
“speak” to one another as international trade is inter-related and
since Customs trade compliance (in relation to customs control, trade
facilitation, including land cost and processes, procedures and rules), international freight forwarding and payment are
inter-related through documentation and national and international
legislation.
Stephens Inc. regards these solutions as important since a
huge amount of domain expertise is required in the development in these
solutions. However, if you want to invest in these solutions you must
make sure that the developers are indeed experts, or that they make use
of experts to assist in the development of these solutions.
One of the challenges that you, as customs brokers, will face
in the future is to identify the correct solution, or maybe to even
have your own solution developed, which will enable you incorporate
your current and new service offerings in the solutions in line with
new technology.
We welcome your comments. 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.
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. Download the Jacobsens Customs News Bulletin of 16 October 2014
for more information.
|
|
|
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
ITAC published the following notice on 19 September 2014 and
comments on the application is due by 28 October 2014:
INITIATION OF SUNSET REVIEW INVESTIGATION OF
ANTI-DUMPING DUTIES ON STAINLESS STEEL SINKS ORIGINATING IN OR IMPORTED
FROM CHINA AND MALYASIA
The investigation relates to
anti-dumping duties 215.02/7324.10/01.06(65) to
215.02/7324.10/05.06(64) which were introduced on 6 November 2009 and 1
December 2010.
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.
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 or
download the Jacobsens Customs News Bulletin
of 16 October 2014.
|
|
|
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 the time of publication.
The last tariff amendments dealt with the increase in 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;
and
An increase in the general rate of customs duty on certain
products of paper or paperboard, coated, impregnated or covered with
plastic or metal foil from free to 5%.
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.
|
|
|
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.
The
last Rule amendment set a limitation of R50 000 on cheque payments in
Rule 120.12.
Download the latest Customs Watch to
have access to the latest tariff and rule amendments.
|
|
