A weekly summary of the main changes to the
South African tariff dispensation and amendments to customs and excise legislation. Compiled by Riaan de Lange.
E-mail: riaan.de.lange@za.pwc.com PricewaterhouseCoopers Customs & International Trade (CIT) consultancy
Storage of Customs Duty Free Goods Warehoused for Export in a Customs and Excise Warehouse
In order to facilitate South Africa’s growth as a distribution hub to the rest of Africa it was announced in the Budget Review 2004 that consideration would be given to removing tax barriers on customs duty free goods intended for export, subject to certain conditions.
The Customs and Excise Act, 91 of 1964 (the Act) has not yet been amended to give effect to this announcement. As an interim measure, until the enabling legislation has been passed, the South African Revenue Service (SARS) is prepared to assist business in this regard on a contractual basis.
However, strict criteria and conditions will apply. Some of the conditions will be as follows:
l The contracts will be a temporary measure, one year or until the legislation is passed, whichever is the earlier.
l Only goods intended for export will be allowed. Goods may be consolidated or de-consolidated in these warehouses.
l Contracts will only be considered for accredited clients.
l These goods may only be removed by accredited hauliers.
l Stricter controls will apply to these warehouses compared to other warehouses.
l The number of warehouses allowed and contracts entered into will depend on the capacity of the SARS.
The conclusion of a contract does not in any way imply that
the business or warehouse will be entitled to be registered in terms of the legislation to be promulgated.
Breach of any clause of the contract will result in the cancellation of the contract and payment of any Value-added Tax (VAT) due.
No Rule Amendments
- 16 April
Rule Amendments (DAR/91) - 8 April
The substitution of the rules to Section 120 i.e. “Hours of Attendance at Office, Special and Extra Attendance, Surety Bonds and Penal Provisions” of the Act in respect of rules 120.01 to 120.07 i.e. “Hours of Attendance”, “Definitions”, “Application for Special Attendance”, “Charges and Payment for Special or Extra Attendance”, “Transportation and Accommodation”, and “Services for which Special or Extra Attendance is not Charged”.
Draft Rules for Environmental Levy
- response due
The SARS has informed that draft rules in respect of the Environmental Levy Goods will be available on its website shortly. Comments are required by no later than 30 April.
No Tariff Amendments
- 16 April
Tariff Amendments
- 8 April
Provision has been made for new pneumatic tyres, of rubber, of a kind for use on wheelchairs, classifiable under tariff subheading.... at a rate of customs duty (duty) free.
The extent of the rebate of
the duty on pneumatic tyres, whether or not fitted to wheel rims has been reduced from “full duty less 20%” to “full duty less 15%”, with retrospective effect to
1 January 2000.
Anti-dumping investigation
- Response due
Anti-dumping “sunset” review investigation of stainless steel hollowware originating in or imported from China, Taiwan and South Korea. Importers and their exporters must respond not later than 15:00 on 6 May 2004
Notice of the initiation of a sunset review of anti-dumping duties on drawn and float glass originating in or imported from the People’s Republic of China and India. Response due by 19 April.
Notice to all manufacturers in the SACU of electric cable who wish to submit a request for the anti-dumping duty to be reviewed prior to its expiry, should do so no later than 19 April.
SACU manufacturers of stainless steel sinks are reminded that they need to submit detailed information to the International Trade Administration Commission of South Africa (ITAC) by no later than 17 June.
