The Proposed Creation of Tariff Chapter 99 The South African Revenue Service (SARS) has published a notice in respect of the proposition of the introduction of Tariff Chapter 99 – ‘Miscellaneous Classification Provisions’, and the imposition of Tariff Heading 99.92. The notice reads as follows: “The Additional Notes for heading 99.92 relate to Stores for Foreign-going Ships and Aircraft: 1. (a) Any word or expression in this item in relation to stores shall have the meaning assigned thereto in section 38A and the rules for that section. (b) Goods in free circulation supplied as stores to a foreign-going ship or aircraft shall be cleared for export in terms of the provisions of heading 99.92 and not in terms of any other heading in Part 1 of Schedule No.1. 2. Heading 99.92 does not apply to the following goods that shall be cleared in accordance with the headings of Chapter 1 to Chapter 97 of Part 1 of Schedule No. 1: (a) Any goods supplied as spares or equipment; (b) Bonded goods; (c) Goods prohibited or restricted as contemplated in section 113; (d) Alcoholic beverages and tobacco products that are goods in free circulation; and (e) Fuel levy goods. Comment is due by 23 October 2009. Demystifying Customs Valuation – Part 2 – Definitions In this week’s issue we progress to part two in our series of demystifying customs valuation, based on a SARS publication titled ‘Frequently Asked Questions – Customs Valuations’. This first definition is ‘actual value’, which is the price at which such or like goods are sold for export to South Africa, or offered for sale in the ordinary course of trade under fully competitive conditions. To the extent to which the price of such or like goods is governed by quantity in a particular transaction, the price to be considered should uniformly be related to either: (a) Comparable quantities; or (b) Quantities not less favourable to importers than those in which the greater volume of the imported goods is sold in the trade between the countries of exportation and importation. ‘Ad valorem duty’ is defined as the duty expressed as a percentage based on the customs value of the goods, e.g. 10% ad valorem means that the duty payable is 10% of the customs value of the goods. An ‘importer’ includes any person who, at the time of importation: (a) owns any goods imported; (b) carries the risk of any goods imported; (c) represents that or acts as if he/ she is the importer or owner of any goods imported; (d) actually brings any goods into the Republic of South Africa; (e) is beneficially interested in any way whatever in any goods imported; and/or (f) acts on behalf of any person referred to in any of the points above. ‘Commission’ is defined as a payment made to an intermediary who acts on behalf of either the supplier of the goods (selling commission) or the importer (buying commission). Finally, ‘Free on Board’ or ‘FOB’ implies that the supplier fulfils the obligation to deliver when the goods have passed over the ship’s rail at the named port of shipment. The importer has to bear all costs and risks of loss of or damage to the goods from that point.
