DUTY CALLS

Considering Initiating a Tariff Investigation – The Third Step Last week I highlighted Trade Insight and Tariff Book. Once you have obtained the desired trade (import and export) statistics, which provide additional substantiation and reason for an application, you are in a position to progress to step three. The third step is to obtain a Customs Tariff Amendment Application Form and a copy of the Tariff Investigations Regulations. The Application Form and the Regulations both apply to the same thing – tariff investigations. Tariff investigations can be initiated in respect of an increase in the rate of customs duty (duty), the reduction in the rate of duty, the creation and/or amendment of the rebate of the duty (rebate facility), and the creation (insertion) or a tariff subheading, and the deletion (removal) of a tariff subheading. Once you have decided which type of tariff investigation you intend to apply for, you will have to study both the Application Form and Regulations in great detail. Compliance is of the essence, since non-compliance could place your applications at risk, and could have a negative impact on your business. In next week’s issue we will consider the Application Form and Regulations in more detail. Albania 55th WCO Istanbul Convention On 29 May 2009, the World Customs Organisation (WCO) announced that Albania had become the 55th Contracting Party to the WCO Istanbul Convention. According to the media release, the Convention on Temporary Admission (Istanbul Convention) is an international instrument that combines all existing conventions on temporary admission. Certification of Origin – Exports to European Free Trade Association A letter has been issued by Government entitled, Certification of Origin for Goods Exported to the European Free Trade Association (EFTA) Countries – Southern African Customs Union (SACU) Origin. According to the letter, the Free Trade Agreement between EFTA and SACU requires that certificates of origin, also known as the invoice declarations in respect of goods exported from SACU countries to EFTA countries, reflect the origin of such goods as being of SACU origin and not of the individual member countries. SACU consists of Botswana, Lesotho, Namibia, SA, and Swaziland. The EFTA countries have also indicated that certificates/invoice declarations submitted before 12 May 2009 reflecting origin from individual countries would still be accepted. Tariff Investigations – Comment Due The reduction in the rate of customs duty on tubes, pipes and hoses of vulcanised rubber (excluding hard rubber) without fittings, reinforced or otherwise combined with only metals, from 15 percent ad valorem to free of duty. The reduction in the rate of customs duty on rope lights, having a casing of polymers of vinyl (chloride) with an outside diameter of 13mm or more but not exceeding 15mm, internally fitted with interconnected lamps from 20 percent ad valorem to free of duty, by the creation of an additional 8-digit tariff subheading. The increase in the rate of customs duty on spades and shovels of a maximum blade width of more than 150mm but not exceeding 200mm from free of duty to 20% ad valorem. Comment due by 03 July 2009. Tariff Applications and Tariff Amendments – 05 June 2009 There were no tariff applications (increase, reduction, or rebate of the customs duty), or tariff amendments for 05 June 2009 published at the time of going to print. To establish whether a tariff application, a trade remedy or a draft rule amendment is still subject to comment, visit TARIFF BOOK (www. tariffbook.co.za) or go to the EVENTS CALENDAR (www. tariffandtrade.co.za) and click on any date for further information.