135 days to HS2012 In an earlier issue you were alerted to the fact that on 01 January 2012, 220 sets of tariff amendments will be introduced to the Harmonised System Nomenclature, also known as the South African Tariff Book. The current Recommendations are divided as follows: (i) Agricultural sector – 98; (ii) Chemical sector – 27; (iii) Paper sector – 9; (iv) Textile sector – 14; (v) Base Metal sector – 5; (vi) Machinery sector – 30; and (vii) Other sectors – 37. Section IV ie, “Prepared Foodstuffs; Beverages, Spirits and Vinegar; Tobacco and Manufactured Tobacco Substitutes” consists of nine tariff chapters that will be introduced on January 01, 2012 to the Harmonised System Nomenclature. In this column we will focus on the tariff amendments to Section V ie, “Prepared Foodstuffs; Beverages, Spirits and Vinegar; Tobacco and Manufactured Tobacco Substitutes”. Section V consists of three tariff chapters. Tariff Chapter 25 – Salt; Sulphur; Earths and Stone; Plastering Materials, Lime and Cement; Tariff Chapter 26 – Ores, Slag and Ash; and Tariff Chapter 27 – Mineral Fuels, Mineral Oils and Products of their Distillation; Bituminous Substances; Mineral Waxes. The first section tariff subheadings to be deleted in Tariff Chapter 25 are 2528.10 and 2528.90; and in Tariff Chapter 27 – 2710.11. The second section tariff subheadings to be created (new) in Tariff Chapter 25 are 2528.00; and Tariff Chapter 27 – 2710.12, and 2710.20. The third section tariff subheadings whose scope will be modified in Tariff Chapter are 2710.19. Dehydrated Castor Oil Rebate Provision In the Government Gazette of 12 August 2011 the South African Revenue Service (Sars) announced the insertion of Rebate Item 307.01/15.18/01.04 The effect of this amendment is that a new Rebate Item is created for dehydrated castor oil, classifiable in tariff subheading 1518.00.90, for use in the manufacture of alkyd resins in primary forms, classifiable in tariff subheading 3907.50, in such quantities, at such times and under such conditions as the International Trade Administration Commission of South Africa (Itac) may allow by specific permit. The extent of the rebate is full duty. Last Opportunity to Comment The proposed increase in the rate of customs duty on canned whole peeled tomatoes, classifiable under tariff subheading 2002.10.80, and tomato puree, pastes and concentrates in powder form, classifiable under tariff subheading 2002.90 from 30% and 15% ad valorem respectively, to 37% ad valorem. The application was lodged by Norjax Canning (Pty) Ltd who stated that an increase in the rate of customs duty would bring the price of the imported product more in line with the product produced in South Africa and thus level the playing field for fair competition. Safe Containers Convention In a Government Gazette dated 14 July 2011, notice was give of the fact that the President assented to the Merchant Shipping (Safe Containers Convention) Act, 2011.
