Considering Initiating a Tariff Investigation – The Second Step Last week I discussed Tariff History (www.tariffhistory.co.za) – what I consider to be the first step in a tariff application. Once you have the Reports and Notices, which provide the true reasoning and motivation for the existence of the tariff dispensation, in other words the prevailing rate of customs duty (duty), you are ready to progress to step two. In South Africa one of the most overlooked aspects of international trade is the analysis of import and export statistics, more commonly known as trade statistics. It is critical for any business to take into account goods entering or leaving South Africa. How else do you account for international competition? If you leave it to the market to alert you to international competition, you may find yourself losing business much sooner than you expected. Trade Insight (www. tradeinsight.co.za) provides you with trade statistics on the value (South African rand value), the quantity (in which it is denominated), the unit price (South African rand value), and the country of origin or destination. Once you have this information at your disposal you are able to manipulate it in order to derive maximum benefit from it. As an example you could determine the amount of customs revenue that the Government collects for a given tariff subheading. Depending on the type of duty, all you need to do is consider the quantity and value of the imported product. The prevailing rate of duty can be determined by consulting the Tariff Book (www.tariffbook. co.za). Through a relatively simple calculation you can now determine the amount of customs revenue collected by Government. Such information will be a vital part of the information in a tariff investigation. It’s also important to consider that the import statistics provide, through manipulation and calculation, the unit price of the imported products for the respective countries of origin. In addition, they also provide the quantity of goods imported from the respective countries. This information is also of critical importance in establishing the nature and extent of foreign competition, particularly increased competition. You are now in a position to proceed to the next step in your quest to initiate a tariff investigation, which I call Tariff Book, and which will be detailed in next week’s issue. Tariff Applications and Tariff Amendments – 29 May 2009 There were no tariff applications (increase, reduction or rebate of the customs duty) and tariff amendments for 29 May 2009 published at the time of going to print. Certification of Origin – Exports to EFTA A letter was issued by Government titled Certification of Origin for Goods Exported to the European Free Trade Association (EFTA) Countries – Southern African Customs Union (SACU) Origin. According to the letter, Article 2 of Annex V to the Free Trade Agreement between the EFTA and the SACU requires that certificates of origin/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 that of the individual member countries. In addition, EFTA countries have indicated that certificates/ invoice declarations reflecting the origin on individual countries already submitted before 12 May 2009 will still be accepted. Trade in Service Conference – 18 to 19 June 2009 The Department of Trade and Industry (the dti) will host an International Trade in Services conference in Durban from 18-19 June 2009. The Conference will be a dialogue between trade negotiators, the industry, regulators and other government stakeholders to discuss critical trade policy and regulatory issues pertaining to trade in services. Services represent a dominant share of the global economy, accounting for 50 to 60% of economic activity. Nonetheless the international trade in services is only 20% of global trade.
