Frozen Potato Chips Trade Remedy Investigation The International Trade Administration Commission of South Africa (Itac) has announced the initiation of an investigation for remedial action in the form of a safeguard against the increased imports of frozen potato chips (slap chips, French fries, and frites), classifiable under tariff subheading 2004.10.90. The application was lodged by McCain (SA)(Pty)Ltd, a major producer of frozen potato chips in the Southern African Customs Union (Sacu) and supported by Nature’s Choice Products (Pty) Ltd and Lamberts Bay Foods. The applicant indicated that the expansion of capacity in the European Union (EU), the financial crisis which resulted in the oversupply of frozen chips in the world market, and an aggressive export strategy by the EU producers of frozen chips augmented by the absence of sufficient duty protection as a result of the Trade Development Cooperation Agreement (TDCA) had culminated in circumstances that occurred after the negotiation of the relevant tariff concessions that “could not have been foreseen at the time the concessions were negotiated’ in accordance with Article XIX of the General Agreement on Tariffs and Trade (GATT). Southern African Customs Union (Sacu) importers and overseas exporters have until 21 December 2012 to complete an Importer and Exporter Questionnaire. If you are an interested party and want to request an oral hearing with Itac you will need to do so by no later than 21 January 2013. Rebate Item 470.00 On 07 December 2012 the South African Revenue Service (Sars) announced an amendment of Rebate Item 470.00 in Schedule No.4 to the Customs and Excise Act (Act), relating to exemptions on the importation of goods temporarily admitted for processing, repair, cleaning, reconditioning or manufacture of goods exclusively for export. The amendments relate to the amendment of a Valueadded Tax (VAT) provision (paragraph 8 of Schedule 1 of the Value-added Tax Act), and the deletion of Rebate Item 470.01/00.00/01.00 of the Act and the substitution to notes 1 to 5 to Rebate Item 470.00 to the Act. The amendment relates to the deletion of Rebate Item 470.01/00.00/01.00 to the Act “Goods for processing, provided such goods do not become the property of the importer”, and serves to regulate the exemption from VAT on such goods. Tariff Amendments On 07 December 2012 Sars announced various amendments to Schedules No.3, 4 and 5 to the Act. The amendments are too numerous to publish. Should you require any additional information, please contact us. New Account Management Procedures In a letter dated 28 November 2012 under the title “Update: New Account Management Procedures” Sars announced a new Customs Account Management System that has been implemented at a number of Customs offices, More information on the new Account Management System, including guides on the new Statement of Account and the new payment process, can be found on the Sars Customs Modernisation page. Guidelines for Used Clothing Itac has announced the publication of “Guidelines Regarding Applications for Permits in terms of the Provision Under Rebate Item 460.11/00.00/01.00 of Schedule No.4 to the Customs and Excise Act”. Details available on request. Comments are due by 21 December 2012.
