Customs

Draft Rule Amendments, Tariff Amendments and Corrections

Bulk Wine Draft Rule Amendment On 03 September 2013 the South African Revenue Service (Sars) published the draft Rules to the Customs and Excise Act (Act) for the insertion of Rule 35.06 to provide for the removal of, and the placing of certain restrictions on the removal of wine in bulk by a licensee of a customs and excise warehouse or special customs and excise warehouse in which wine is manufactured in terms of Sections 35 and 64 of the Act respectively. The proposed Rule reads “35.06(a) A licensee of a customs and excise warehouse or special customs and excise warehouse in which wine is manufactured may only remove, or permit the removal, of wine in bulk – (i) to the licensee of another such warehouse; (ii) to the licensee of a special customs and excise storage warehouse licensed for the storage of wine for export; or (iii) for direct export from that warehouse. (b) For the purposes of paragraph (a),"wine in bulk" means wine not in normal packaging for sale by retail.” Comment due by 18 September 2013. Tariff Application – Correction Notice On 06 September 2013 the International Trade Administration Commission of South Africa (Itac) published a correction notice (original notice published on 23 August 2013), amending the tariff subheading for heat exchange units from tariff subheading 8419.40 to 8419.50. The proposed increase in the duty on heat exchange units, classifiable under tariff subheading 8419.50, is from free of customs duty to 15% ad valorem (the WTO's bound rate). The application was lodged by GEA Aircooled Systems (Pty) Ltd who offered numerous reasons for the application including that engineering project contractors are increasingly sourcing the product from Asian countries which offer bargain prices because of government subsidies, funding packages etc. Comments due by 04 October 2013.

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