Dumping: Full Threaded Screws with Hexagon Heads On 18 November 2011 a notice was published in respect of an investigation into the alleged dumping of fully threaded screws with hexagon heads, excluding those of stainless steel originating in or imported from the People’s Republic of China (China). The application was initiated by the South African Fasteners’ Manufacturers Association (Safma), an industrial origanisation for the major producers of the subject product in the Southern African Customs Union (Sacu). Safma constitutes 80% of the Sacu production value. The allegation of dumping is based on the comparison between the normal value in China and the export price from China. The normal value was constructed based on the cost of production plus general selling and administration expenses and profit in China. The export price was based on six month import statistics from the South African Revenue Service (Sars). Comment is due by 27 December 2011. Proposed Increase in the Duty: Stainless Steel Sinks On 18 November 2011 a notice appeared in respect of the proposed increase in the rate of customs duty (duty) on stainless steel sinks from 20% to 30% ad valorem. The application was lodged by Franke Kitchen Systems (Pty) Ltd who reasoned that the stainless steel sinks industry was currently distressed as a result of lowprice imports of stainless steel sinks from China and other countries. An increase in the rate of customs duty from 20% to 30% ad valorem will protect the local market and enable them to be more competitive. Comment due by 16 December 2011. Amendments of Rebate Item 470.00 In recent weeks we have advised of changes and proposed changes to Rebate Item 470.00 ie, “Goods temporarily admitted for processing, repair, cleaning, reconditioning or for the manufacture of goods exclusively for export”. Since we did not deal with these collectively, you may well have missed the significance of these changes. To recap: (i) On 11 November 2011, Note 5 was inserted - “5. For the purposes of rebate item 470.03/00.00/02.00: (a) Where the rebate registrant is contractually entitled to keep a portion of the goods manufactured, processed, finished, equipped or packed in lieu of payment for the operations carried out, he or she must – (i) also export those goods within the period of 12 months contemplated in Note 2(a); or (ii) (aa) process a bill of entry at the office of the Controller for payment of the value-added tax on the goods retained; and (bb) adjust by voucher of correction the rebate bill of entry in respect of the quantity and value of the goods used to manufacture the goods retained. (b) Notwithstanding the Notes to Schedule No. 3 and Schedule No. 4, “full duty” where it appears in the “Extent of Rebate” column opposite this rebate item means goods free of duty as contemplated in section 75A”. (ii) On 11 November 2011 Rebate Item 470.03/00.00/02.00 was inserted ie, “Goods free of duty for use in the manufacture, processing, finishing, equipping or packing of goods exclusively for export”. (iii) On 18 November 2011 comment closed with respect to a tariff application for the proposed creation of a Rebate Item, under Rebate Item 470.03 for yachts.
