No liability is accepted for errors or omissions. Tariff amendments - 7 March There were no amendments at time of going to press. Changes in Budget - A Customs Perspective “Sin Taxes” The ad valorem customs and excise duties for the following products were increased at the indicated rates: beers and ciders (10%), sorghum beer (0%), still wine (10-11%), sparkling wine (10%), spirits (10%), cigars (39%), cigarettes (11%), cigarette tobacco (21%), and pipe tobacco (11%) Ad Valorem Excise Duties The ad valorem duty (nominal rate of 5%) on imported and locally manufactured computers and parts thereof has been removed with effect from 1 April 2003. The formula for the calculation of the ad valorem duties on motor vehicles has been amended. In effect this formula was exponential based on the value of the car and did not take into account inflation. This resulted in an undue burden at the lower end of the market. The proposed calculation should correct this anomaly. Duty on Plastic Bags A levy has been imposed on plastic bag polluters. This levy will be used to ensure that bags are recycled. Duty at source (“DAS”) Initiative Negotiations are in place to attempt to move the liability for excise duty earlier in the chain. This initiative is to be implemented in March. Other changes to the Customs and Excise Act Changes to Section 91 of the Customs and Excise Act are proposed to ensure that fair penalties are imposed and also to ensure that the statistics are correct and reflect the correct value of exported goods. Uncertainty exists in various sections relating to amounts owing. This is important when dealing with provisional tax payments and the relevant time periods. Collection and Administrative Issues Private companies can be appointed to collect unpaid customs and excise duties once assessed by the South African Revenue Service (“SARS”). SARS will be improving its collection mechanisms of customs and excise duties by: ¥ Enhancing physical inspections of goods on import and export. ¥ Improved verification of information declared on bills of entry. ¥ Targeting specific investigations into certain high-risk industries. Tariff applications - response due Rebate of the customs duty (“duty”) on aluminium foil laminated to polyethylene, classifiable under tariff subheading 7607.19.90/1, for the manufacture of bottle capsules for wine and spirits. Response on the applications due by 28 March. Valves of aluminium of a mass of 150g or more but not exceeding 200g, and of a capacity of 5.3kW or more but not exceeding 8.4kW, commonly known as thermostatic expansion valves and identifiable for use in automotive air-conditioning units, classifiable under tariff subheading 8481.80.90, from 15% ad valorem to free of duty. Rebate of the duty on cork insoles, classifiable under tariff subheading 6406.99.90, for the manufacture of footwear. Reinstatement of a rebate provision on other evaporators and condensers, classifiable under tariff subheading 8418.99.40, for the manufacture of refrigerators. Response on the applications due by 21 March. Revision of the customs tariff dispensation, including rebate facility 460.01/04.00 with respect to dairy products, classifiable under tariff headings 04.01 to 04.06. Reduction of the customs duty (“duty”) on folding knives incorporating five or more auxiliary tools, classifiable under tariff subheading 8211.93.30, from 20 per cent ad valorem to free of duty. Response on the applications due by 14 March. Compiled by Riaan de Lange of Deloitte & Touche Trade & Investment Solutions. E-mail: rdelange@deloitte.co.za
