The International Trade Administration Commission of South Africa (Itac) on 23 November 2018 published its intention to amend the description of tariff subheading 6210.10.20 as follows: “Disposable underwear of fabrics of heading 56.03” and increase the rate of duty from free of duty to 40 per cent ad valorem”, on which comment is due by 24 December.
By way of background, Itac on 20 July 2018, called for 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, which reads as follows, “Disposable panties of fabrics of heading 56.03”. The review was initially published with a view to considering 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 current tariff structure differentiates between disposable panties classifiable in tariff subheading 6210.10.20 at free of duty, and other disposable underwear classifiable in tariff subheading 6210.10.90 at a rate of duty of 40% ad valorem.
Newly submitted information at Itac’s disposal indicates that there is at least one local manufacturer of disposable underwear. This notice serves to notify interested parties of the republication of the review, with an intention to amend the description of tariff subheading 6210.10.20 as follows, “Disposable underwear of fabrics of heading 56.03” and increase the rate of duty from free of duty to 40% ad valorem.
The application was lodged by the 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 duty, makes it discriminatory and difficult to administer as some disposable underwear of fabrics of heading 56.03 are imported under tariff subheading 6210.10.90 which attracts a general rate of 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.
