SARS Detains 56 Shipping Containers The South African Revenue Service (Sars) recently detained 56 shipping containers – with an estimated value of R10 million – containing clothing suspected of being illegal imports, at the China Shopping Centre south of Johannesburg. During the same operation immigration officials from the Department of Home Affairs seized computers and hard disks suspected of being used in the production of false identity documents and passports. Sars Customs officials also removed equipment suspected of being used in the production of counterfeit CDs and DVDs. As a result of government’s concern about the illicit economy and its impact on the local clothing and textile industry in particular, Sars was mandated to initiate an intergovernmental response to deal with the illegal importation of clothing and textiles. According to Sars one of the biggest threats remains the under-invoicing of import clothing and textile consignments, resulting in low-revenue flows into the fiscus. Coupled with this is the significant loss of jobs in the local clothing and textile industries over the past years. Customs Duty Reductions On 08 April 2011 the South African Revenue Service (Sars) announced the following tariff amendments: (i) 2933.49.10 The General, European Union (EU) and European Free Trade Area (EFTA) rates of customs duty on compounds of polymerised 1, 2-dihydro-2, 2, 4-trimethyl- quinoline are reduced respectively from 10% ad valorem, 1.3% ad valorem and 5% ad valorem to free (0%); (ii) 5902.10 The general and EFTA rates of customs duty on tyre cord fabric of high tenacity yarn of nylon or other polyamides are reduced respectively from 15% ad valorem and 9% ad valorem to free (0%); (iii) 5902.20 The general, EU and EFTA rates of customs duty on tyre cord fabric of high tenacity yarn of polyesters are reduced respectively from 15% ad valorem, 9% ad valorem, and 9% ad valorem to free (0%); (iv) 5902.90 The general, EU and EFTA rates of customs duty on tyre cord fabric of high tenacity yarn of other polyamides, polyesters or viscose rayon are reduced respectively from 15% ad valorem, 9% ad valorem, and 9% ad valorem to free (0%); and (v) 5906.10.15 The general, EU and EFTA rates of customs duty on woven fabrics of polyvinyl alcohol of a width of 30 mm or more but not exceeding 60 mm and of a mass of 60 g/m² or more but not exceeding 130 g/m² are reduced respectively from 22% ad valorem, 10% ad valorem, and 10% ad valorem to free (0%). Duty Calls’ “Watch List” Comment in respect of the following tariff applications is due by 15 April 2011: The proposed increase in the rate of customs duty on semi-fabricated aluminium rolled products. The proposed rebate of the customs duty on ethyl alcohol of an alcoholic strength by volume of 80% volume or higher, for the manufacture of petrol. The proposed new application forms, guidelines, rules and conditions pertaining to donated goods. The proposed reduction in the rate of customs duty on bags of low density polyethylene. The proposed rebate of the full rate of customs duty on dehydrated castor oil for the manufacture of alkyd resins, in primary form. The proposed rebate of the rate of customs duty on artificial filament yarn, yarn, other yarn, and yarn excluding sewing thread.
