Trade Negotiations with India The Department of Trade and Industry (the dti) has invited comment on South Africa’s trade negotiations with India, which are due by 15 June 2012. The comment relates to the consolidation of South Africa’s negotiation position in response to product lines of interest to Indian exporters. Readers will recall that the Southern African Customs Union (Sacu) and India have been engaged in a formal process of trade negotiations since 2008, which is expected to lead to a Preferential Trade Agreement (PTA). Reduction of Duty on AC Generators The International Trade Administration Commission of South Africa (Itac) has announced the proposed reduction in the rate of customs duty on AC generators (alternators), classifiable under tariff subheadings 8501.61.10, 8501.61.90 and 8501.62.00, with a “General” rate of customs duty of 5% ad valorem, 10% ad valorem and 10% ad valorem, respectively, to free of customs duty. The application was lodged by Hudaco Trading (Pty) Ltd who reasoned that there were no longer manufacturers of alternators in the Sacu region and that the reduction in the “General” rate of customs duty would indirectly lead to job creation. Comment is due by 22 June 2012. Withdrawal of Rebate Item 470.01 Itac has announced the proposed withdrawal of Rebate Item 470.01/00.00/01.00 in Schedule No.4 of the Customs and Excise Act that provides for a rebate of the full duty on the temporary importation of goods for processing, provided such goods do not become the property of the importer. The application was lodged by Itac who pointed to the possible inappropriate use of Rebate Item 470.01 in the absence of any control measures such as registration and permits issued by Itac while they reasoned that the processing allowed in Rebate Item 470.01 was adequately covered under Rebate Item 470.03. Comment is due by 22 June 2012. Increase in Duty on Frozen Shelled Mussels Itac has announced the proposed increase in the rate of customs duty on frozen half shelled mussels, classifiable under tariff subheadings 0307.39.10 and 0307.39.90, from 5.5c/kg and free of customs duty, respectively, to 25% ad valorem. The application was lodged by La Vie Seafood Products (Pty) Ltd who reasoned that the application was a direct proactive response by the mussel processing industry to the government’s stated industrial policy imperative for this IPAP2 priority sector. Comment is due by 06 July 2012. Review of Duties on Salmon and Trout Itac has announced the proposed review of the customs duties on salmon and trout. The application relates to salmon and trout classifiable under tariff subheadings 0302.13, 0302.14, 0302.19, 0303.11, 03 03.12, 0303.13, 0303.19, 0304.41, 0304.49.90, 0304.42, 0304.59.90, 0304.81.90, 0304.89.90, 0304.91.90, 0304. 99.90, 0305.39.90, 0305.41, 0305.49.90, 0305.69, 0302 .11, 0303.14, 0304.42, 0304.82.90, and 0305.43, and the creation of Rebate Item 460.01/0302.01/01.05 and Rebate Item 460.01/0303.1/01.05. The application was lodged by Itac who said the review was based on the recommendations in its Report No.226. Comment is due by 20 July 2012.
