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DEALING WITH
CUSTOMS MODERNISATION: HOW THE INTERNET, INFORMATION AND TECHNOLOGY
COMMUNICATION CAN HELP IMPORTERS
South Africa’s new Customs Acts are based on international
instruments such as the WCO Revised Kyoto Convention and other
instruments of the World Customs Organization.
The International
Convention on the Simplification and Harmonization of Customs procedures
(Kyoto Convention), went into
force in 1974. The Kyoto Convention was then revised and updated in 1999 and
entered into force in 2006. The convention is now known as the Revised
Kyoto Convention (RKC).
The revision of the International Convention on the
Simplification and Harmonization of Customs Procedures became necessary
to ensure that it
meets the current demands of governments and international trade
that were the result of globalization and the successes of the WTO
Agreement.
The RKC
provides international trade with the predictability and efficiency
that modern Customs administrations and trade requires. The RKC
elaborates several key governing principles that provide Customs
administrations with modern Customs control tools that assist with trade
facilitation for compliant traders.
Some of the chief
governing principles outlined in the RKC are:
·
Transparency and
predictability of Customs actions
·
Standardization and
simplification of the goods declaration and supporting documents
·
Simplified procedures
for authorized persons (see Chapters 24 and 30 of the Customs Control
Act)
·
Maximum use of
information technology
·
Minimum necessary
Customs control to ensure compliance with regulations
·
Use of risk management
and audit based controls by making use of information technology
·
Coordinated
interventions with other border agencies
·
Partnership with the
trade (customs brokers and importers/exporters)
According to the World Customs Organization, the Revised Kyoto Convention promotes
trade facilitation and effective controls through its legal provisions
that detail the application of simple yet efficient procedures.
The challenge for modern Customs administrations is to draft
their customs legislation in such a way that it strikes a balance
between customs control and trade facilitation. There are ways in which
customs administrations can be evaluated.
Global trade management solutions that enable traders to
manage their customs compliance and mainly focus on customs compliance
must be Harmonized System-based and document management, but there is
certainly room for improvement of these solutions. When the new Customs
Control and Customs Duty Acts enter into force, there will be a lot of
work for developers of these solutions. We have been focusing on these
solutions and will continue to focus on them since LexisNexis and
Jacobsens believe these solutions are essential for the survival of
their clients.
LexisNexis are also investing in these solutions.
We welcome your feedback on our new website and solutions.
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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.
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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.
THE SACU 2015 TARIFF AMENDMENTS
The amendments to the Customs Tariff for the year 2015 will be
published soon.
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
creation of separate
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.
Subscribers will be advised as and when the updates are
published.
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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 today, 24 November 2014.
The tariff amendments dealt with the
following:
·
The
deletion of tariff subheadings 3923.21.05, 3923.21.15, 3923.29.05 and
3923.29.15
· The insertion of the tariff subheadings 3923.21.07,
3923.21.17, 3923.29.40 and 3923.29.50
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· The deletion of the following items
relating to environmental levies: 147.01.01/3923.21.05,
147.01.03/39.21.15, 147.01.05/3923.29.05, and 147.01.07/3923.29.15
· The insertion of the following items relating
to environmental levies: 147.01.01/3923.21.07, 147.01.03/3923.21.17,
147.01.05/3923.29.40 and 147.01.07/3923.29.50
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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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.
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There
were no rule amendments at time of publication. The last amendment
(DAR/140) was published on
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.
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