Itac on 20 July published a review of the description of tariff subheading 6210.10.20 in Part 1 of Schedule No 1 to the Customs and Excise Act No.91 of 1964 (Act, 1964), which reads as follows: “disposable panties of fabrics of heading 56.03” on which comment is due by 17 August.
The review is conducted with a view to possibly amending the abovementioned description of tariff subheading 6210.10.20, provided there are no local manufacturers, as follows: “Disposable underwear of fabrics of heading 56.03”. This proposed tariff description is intended to cover universal disposable underwear, which is currently not the case as the prevailing tariff structure differentiates between disposable panties classifiable under tariff subheading 6210.10.20 at free of duty and other disposable underwear classifiable under tariff subheading 6210.10.90 at a rate of duty of 40% ad valorem.
The application was lodged by South African Revenue Service (Sars) who reasoned that (a) Disposable under garments of non-woven fabrics appear to have evolved from their original use as substitutes for sanitary pads and are now used, inter alia, as theatre-wear for patients during surgical procedures. (b) The current description of tariff subheading 6210.10.20 currently at free of customs duty makes it discriminatory and difficult to administer as some disposable underwear of fabrics of tariff heading 56.03 are imported under tariff subheading 6210.10.90 which attracts a general rate of customs duty of 40% ad valorem. (c) If disposable underwear is not manufactured locally it is reasonable to review the description of tariff subheading 6210.10.20 to reflect this position.