Poligras Tariff Classification Judgement On 31 August 2010 the Kwazulu-Natal High Court in Pietermaritzburg delivered its judgement in respect of the tariff classification dispute between Durban North Turf (Pty) Ltd and the Commissioner of the South African Revenue Service (Sars) pertaining to poligras 2000. The judgement related to the appeal against the determination of Sars dated 21 December 2005 that Poligras 2000 imported by Durban North Turf (Pty) Ltd should be classifiable under tariff subheading 5703.30, rather than tariff subheading 9506.99. Tariff subheading 5703.30 reads “Carpets and other textile floor coverings, tufted, whether or not made up: Of other man-made textile materials”. The rate of customs duty dependent on country of origin is 30% ad valorem in respect of the general rate of customs duty, 15% ad valorem for the European Union (EU), 15% ad valorem for the European Free Trade Association (Efta), and free of customs duty in respect of the Southern African Development Community (SADC). Tariff subheading 9506.99.90 reads “Articles and equipment for general physical exercise, gymnastics, athletics, other sports (including table-tennis) or outdoor games, not specified or included elsewhere in this Chapter; swimming pools and paddling pools: Other: Other: Other”. The rate of customs duty irrespective of the country of origin is free of customs duty. The 23-page judgement found in favour of Durban North Turf (Pty) Ltd. Incoterms®2010 Rules for Trade Last Friday the South African Chapter of the International Chamber of Commerce (ICC) launched Incoterms®2010 in South Africa. Since the launch a number of training sessions have been hosted around the country. The Incoterms®2010, a set of three letter terms, describe the tasks, costs and risks involved in the delivery of goods from sellers to buyers. The ICC suggests the following four principles in respect of using Incoterms®2010 in contracts of sale: (i) Incorporate the Incoterms®2010 rules into your contract of sale by accounting for the following “the chosen Incoterms rules including the named place or port followed by Incoterms®2010”; (ii) Choose the appropriate Incoterms®2010 rule – consider the Guidance Notes to each of the Incoterms®2010; (iii) Specify your place or port as precisely as possible – example FCA Main Building, Now Media Centre, Duty Calls Street, Sandton, South Africa, as per Incoterms®2010; and (iv) Incoterms rules do not give a complete contract of sale – Incoterms®2010 do not deal with the price to be paid, the method of payment, or the transfer of the ownership of the goods, or about the consequences of a breach of contract. Duty Calls’ “To Do List” A reminder of comments that are due. If you are interested in obtaining additional information, you can simply email us, or alternatively refer to earlier columns. Comment in respect of the proposed reduction in the rate of customs duty on glass ampoules is due by 08 October 2010. In terms of the Marine Living Resources Act, 1998 the “Fees Payable in respect of Applications and the Issuing of Rights, Permits and Licences” are effective from 01 October 2010.
