Velocity Joints – Clarification In last week’s issue we advised of the proposed reduction in the rate of customs duty on constant velocity joints (CV joints), classifiable under tariff subheading 8708.50.90, from 20% ad valorem to free of customs duty through the creation of an additional 8-digit tariff subheading for CV joints under tariff subheading 8708.50. The application was lodged by Masterparts (Pty) Ltd who reasoned that there were no local manufacturers of CV joints within the Southern African Customs Union (Sacu), and that the current customs duty only served as a cost-raising effect. Vivian Ramawtar of FT Global Logistics sent us an email in which he advised that transmission shaft couplings, constant velocity joints and universal joints did not fall within the tariff subheading 8708.50.90, but rather within tariff subheading 8483.60. The rate of customs duty for the latter tariff subheading is free. He furthermore advised that Masterparts (Pty) Ltd could apply for a refund of customs duties on their previous clearances. No further notifications appeared in Friday’s Government Gazettes, but we will inform you should there be any further developments. Comments on the application are due by 19 April 2013. Without expressing an opinion on the tariff classification, this just proves how important it is for companies to ensure that they obtain the correct tariff classification for their imported products (no matter which form they are in – primary, secondary or final). The contentious nature of tariff classifications is supported by the numerous tariff classification disputes over the years, a number of which are deliberated, considered, and reported on by the courts of law. Draft TDCA Safeguard Guidelines The International Trade Administration Commission of South Africa (Itac) invited comment, by means of a Government Gazette notice of 03 April 2013, on its draft guidelines and conditions pertaining to a safeguard application in terms of Article 16 of the agreement on trade, development and co-operation between the European Community and its member states and the Republic of South Africa. Comments due by 20 April 2013. Proposed Diesel Refund Amendments On 05 April 2013 the South African Revenue Service (Sars) published proposed amendments to Schedule No 6 to the Act relating to diesel refunds. The first amendment relates to Schedule No 6 Part 3 of the Act and involves the insertion of Note 5A to make retrospective allowance for supplementary information that farming diesel refund beneficiaries may present in the absence of logbooks to support refund claims for the period 01 April 2011 to 31 March 2013. The second amendment to Schedule No.6 Part 3 to the Act relates to the deletion of Note 5A and insertion of Note 6(a)(xi) to define the logbook record requirements expected from all diesel refund beneficiaries to substantiate diesel refund claims. Sars also published an example of a Diesel Storage Logbook, and of a Diesel Usage Logbook. Comments due by 19 April 2013. Productive Asset Allowance Sars published two tariff amendments on 05 April 2013 in respect of the Rebate Item 460.17/87.00/03.02 and Refund Item 537.02/87.00/01.02 for the extension of the periods for the issuing of the Productive Asset Allowance (PAA) certificates for goods, which are effective on the day.
