WCO Customs Valuation and Transfer Pricing Training I have just returned from a memorable two-day training session presented by the World Customs Organisation (WCO) in Brussels on Customs Valuation and Transfer Pricing. The training took place on 24 and 25 November 2008. As with all overseas training, it has become prohibitively expensive and arguably out of reach of the majority of South Africans. Another compounding issue is the fact that the international books are excessively expensive and are without exception priced at more than R1 500 per book. This means that you will need to make a sizeable investment in order to obtain the necessary reference material that you need. If there is one thing that needs to be addressed it is this. As for the course, no similar course is available in South Africa or on the African continent for that matter, although it would be of great benefit if it was. For this reason there may well be benefit in sharing my experience of the training session in future columns. The intention of the training was to explore the possible harmonisation and convergence of the Customs Valuation and Transfer Pricing. This was done through a theoretical study of the subject, and then enforced through practical case studies. It is quite evident that this topic has very high priority at the WCO, and consequently one should not be too surprised at Sars’ interest in this matter. If you are trading with a foreign company that is related to your South African operation then, as a related party, you will have to fulfil certain administrative requirements. At present more than 60% of international trade is conducted between related parties. This means that Customs Valuation will continue to increase in prominence. As for Transfer Pricing, at present this is considered to be the priority tax internationally. Tariff Applications – Final Opportunity You have until Friday, 05 December 2008, to comment on the following three tariff applications. Whichever action your consider taking, be forewarned that the next you hear of these tariff applications will be their formalisation into tariff amendments. The proposed reduction in the rate of duty (“duty”) on alphabetical, anatomical, botanical, mathematical and other education charts (“posters”) to free of duty. The proposed reduction in the rate of duty on pencil leads, black or coloured. The proposed withdrawal of certain rebate provisions in Schedule No.3 and Schedule No.4 to the Customs and Excise Act. The Intention of the application is to establish whether there are any industry role-players who are still making use of these rebate items, or would have any objection to their being withdrawn. The notice covers 27 pages of rebate items. Proposed Levy on Pipeline- Gas 2009/10 The Department Of Minerals and Energy Has Published A Notice in the Government Gazette In Respect Of the “Proposed Levy of Pipe-Gas and Petroleum Pipeline Industries For 2009/10”. Comment is due by 15 December 2008. Proposed Rules for Petroleum Pipelines Act The Department of Minerals and Energy has published a notice in the Government Gazette in respect of the “notice of intention to make rules in terms of the Petroleum Pipelines Act, 2003”. Comment is due by 19 December 2008.
