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 Pricewaterhouse Coopers Customs & International Trade (CIT) consultancy Safeguard Regulations Published In the Government Gazette of 27 August 2004, the International Trade Administration Commission of South Africa (ITAC) published its Safeguard Regulations for public notice.This concludes a consultation process that was initiated in the Government Gazette of 13 February 2004, with the publication of the Draft Safeguard Regulations for comment. Comment was invited by no later than 15 March 2004. One of the interesting inclusions in the regulations relates to agricultural goods. According to the regulations safeguards do not apply to agricultural goods in terms of which South Africa or the Southern African Customs Union (SACU) has reserved its right to apply a Special Safeguard Measure, contemplated in Article 5 of the World Trade Organisation (WTO) Agreement on Agriculture. This is quite interesting for two reasons. In the first instance, neither South Africa nor the SACU has ever used Special Safeguard Measures since the WTO’s inception on 1 January 1995. In addition, very little knowledge seems to exist on its exact application and use. Secondly, there seems to be some confusion in South Africa as to whether the peace clause in agriculture has expired or not, and as a consequence its impact on the applicability and use of the trade remedies in the agricultural sector. Countervailing (anti-subsidy) Regulations published for comment In the Government Gazette of 20 August 2004, the International Trade Administration Commission of South Africa (ITAC) published draft countervailing (anti-subsidy) regulations for public comment. In essence a countervailing duty is a customs duty imposed to off-set the benefit conferred by a subsidy. Copies of the draft regulations are available on request. With the publication of the draft regulations, ITAC has now published the last of the three trade remedy regulations. The anti-dumping regulations have already been finalised. All that now remains is for the safeguard regulations, published earlier this year, and now the countervailing regulations to be finalised. Comments due to ITAC by no later than 20 September 2004. No Rule Amendment - 3 September Rule Amendment - 1 September In terms of item 202.00 of the Rules of the Customs and Excise Act i.e. “Prescribed Forms”, the substitution of form DA161A i.e. “Environmental Levy Account for Plastic Bags”. No Tariff Amendments - 3 September Tariff Application - Response due Reduction of the customs duty (duty) on preparations put up as mollusk food from 20 per cent ad valorem to free by amending the existing scope of tariff subheading 2309.90.15. The application was lodged by the Marine Growers (Pty) Ltd reasoning that the abalone feed produced in the Southern African Customs Union (SACU) is not suitable for abalone production in the warm waters of the Eastern Cape. According to them, the feed produced in the SACU is recommended for use in water temperatures lower than 18 degrees Celsius, for better digestion of the feed. Response due by 1 October 2004. Rebate of duty on vulcanized rubber rods with across-section dimension not exceeding 61mm, classifiable subheading 4008.29, for the use in the manufacture of the Neidehart System. Response due by 17 September 2004. CORRECTION NOTICE: Reduction of duty on used pneumatic tyres, classification 4012.20.90, from 25% ad valorem to free of duty. Response due by 17 September 2004.
