On 30 June Itac [List 6/2017] announced the proposed reduction in the ‘General’ rate of Customs duty on digital smart cards, classifiable under tariff subheading 8523.52.10 of the Customs and Excise Act 91 of 1964 (the Act), from 5% ad valorem to free of duty, by way of creating a separate 8-digit tariff subheading, on which comment is due by 30 July 2017.
The proposed tariff subheading amendments are for 8523.5 - Semiconductor media; 8523.52 - - Smart cards: 8523.52.1 - - - Digital; 8523.52.X - - - - Proximity cards and tags; 8523.52.Y - - - - Other.
The application was lodged by Gemalto Southern Africa (Pty) Limited who reasoned that there were no local manufacturers of the subject products in the Southern African Customs Union (SACU) region, and that the current Customs duty rate of 5% had an unnecessary cost raising effect on the net ex-factory selling price of the product.
