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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).
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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.
The International Trade Administration Commission (ITAC)
published a notice to exclude mirrors made from glass coloured
throughout the mass (tinted glass) from existing anti-dumping duties
applicable on unframed glass mirrors originating in or imported from
China.
Comments were due by 5 December 2014.
Download the notice (Government Notice
No. R. 1051 of 2014) from http://www.gov.za/sites/www.gov.za/files/38215_gen1051.pdf.
THE SACU 2015 TARIFF AMENDMENTS
The amendments to the Customs Tariff for the year 2015 were
published on the 28 November 2014 in Government Gazette 38240
under Government Notice Nos. R. 924 to R. 936.
The EFTA rates of duty on a wide range of commodities will
be reduced with effect from 1 January 2015.
In addition, there will also be technical amendments and the
insertion of additional 8-digit tariff subheadings for goods
classifiable in Chapters 2, 4, 15, 30, 32, 33, 38, 39, 70 and 85 and
in Schedule No. 2 with effect from 1 January 2015.
The updates have been sent to print under cover of
supplement 1040.
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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. 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
a number of tariff amendments released on 22 December 2014.
See below, all
information relating to these tariff amendments:
·
Part 1 of Schedule No. 1
is amended by the substitution of subheadings 9801.00.45 and
9801.00.55 to remove the wording “dumpers designed for off-highway
use” from the exclusions listed, as recommended in ITAC Minute
M3/2014. (See Government Notice No.
R. 1048 dated 22 December 2014 (1/1/1508)) (Government Gazette
38355 dated 22 December 2014).
·
Part 1 of Schedule 3 is
amendment:
·
By the insertion of Note 2
to Rebate item 317.00 to ensure dumpers can only register for one of
the rebate provision under rebate item 317.
·
By the substitution
(amendment) of Note (d) under “specified motor vehicle” in Note 1.2
to rebate item 317.03 to include dumpers with a GVM exceeding 50 tons
in the definition of specified motor vehicles in terms of the APDP;
·
By the creation of new
Note (f) under “specified motor vehicle” in Note 1.2 to rebate item
317.03 to provide for chassis fitted with engines for dumpers with a
GVM exceeding 50 tons in the definition of specified motor vehicles
in terms of the ADPD;
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·
By the amendment of the
description of rebate item 317.03/98.01/05.04 to remove the exclusion
of dumpers as well as to allow the importation of components for
dumpers under rebate in terms of the APDP;
·
By the creation of rebate
item 317.03/98.01/07.04 to allow for the importation of components
for chassis fitted with engines for dumpers under rebate in terms of
the APDP;
·
By the amendment of Note 1
(c) to rebate item 317.07 to provide for dumpers to be included in
the definition of heavy motor vehicles in terms of the APDP; and
·
By the creation of new
Note 1 (e) to rebate item 317.07 to provide for chassis fitted with
engines for off-road dumpers provided for heavy motor vehicles in
terms of the APDP.
See
Government Gazette 38365
dated 22 December 2014.
·
Rebate item 306.01/2815.12/01.06 is created to provide for a
rebate of duty on sodium hydroxide for use in the manufacture of
sodium hypochlorite as recommended in ITAC Report No. 486. (See Government Notice No. R. 1043
dated 22 December 2014 (A3/1/709) Government
Gazette 38355 dated
22 December 2014).
·
Anti-dumping item 215.02/7318.16.90/01.08 is deleted and two
new anti-dumping items (215.02/7318.16.20/01.08 and
215.02/7318.16.30/01.08) are inserted at the same rate of
anti-dumping duty on certain hexagon nuts originating in or imported
from the People's Republic of China as recommended in ITAC Minute
M6/2014. (See Government
Notice No. R. 1042 dated 22 December 2014 (A2/1/365) Government Gazette 38355 dated
22 December 2014).
·
Anti-dumping items 206.03/2813.13/01.06 and
206.03/2813.13/02.06 are deleted in order to abolish the anti-dumping
duty on tall oil fatty acids originating in or imported from Sweden
as recommended in ITAC Report 485.
(See Government Notice No. R. 1041 dated 22 December 2014
(A2/1/364) Government Gazette
38355 dated 22 December 2014).
·
Additional Notes 9 and 10 are inserted in Chapter 99 and the
descriptions of tariff subheadings 9999.00.10 and 9999.00.20 are
amended to extend the use of the tariff subheadings to exported
goods. The statistical unit “kg” is also inserted for these
subheadings. (See Government Notice No. R. 1040 dated 22 December
2014 (A1/1/1507) Government
Gazette 38355 dated
22 December 2014).
Download the latest Customs Watch
to have access to the latest tariff amendments.
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