Goods must be mutilated or
permanently tagged, writes Alan Peat
THE TERM samples - used to gain duty-free import - is going to have
to mean just that, if Customs has its way.
In terms of Section 38 (1) (a) (iii) samples can be imported and cleared as goods which, in the opinion of the commissioner, are of no commercial value.
But some rather cunning importers have been finding ways to misuse this allowance for trade samples.
According to sources in the forwarding industry this is particularly prevalent amongst footwear imports. Here, FTW was told, importers bring in a container load of left shoes - as samples for testing the market. Then, some weeks later, in comes a container of right shoes - presumably to test that portion of the market!
Either that, or importers might bring in only very small consignments of goods - once again claiming them as samples.
But the C&E has now toughened up the loopholes, and demands that samples must meet the following criteria:
* Goods must be mutilated to an extent where commercial gain is not possible;
* Goods must be permanently tagged, or clearly marked sample.
And to define this, Customs gives the following examples:
* Mutilation - a visible hole through the sole of the shoe; clothing suitably cut, to the extent where it is not wearable or saleable;
* Tagging or marking - garment with an irremovable visible tag on the outside, marked sample; or machine marked.
Goods landed without such marking, said Customs, shall be liable to duty.
But, they also add, don't confuse this with Section 38 (1) (a) (v) - which reads: goods of a value for duty purposes not exceeding R500 - and on which no duty is payable in terms of Schedule No. 1.
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