DUTY CALLS

Your duty wish One of the most frequent questions asked of us is ‘Why is there a rate of customs duty on my product, and could I apply to reduce or increase the rate of duty?’ If you were granted a wish that you could use to reduce or increase the rate of duty on a tariff subheading or even more than one, please let us know which it would be. Anyone involved in international trade should know the reason(s) for the existence of the rate of duty on their product(s). Graphite electrodes duty On 05 September 2014 the South African Revenue Service (Sars) notified of the reduction in the “General” rate of customs duty on graphite electrodes of a kind used in furnaces, classifiable in tariff subheading 8545.11, from 10% ad valorem to free (0%). Remember that in Customs, 0% is considered to be a rate of duty. The application that resulted in the reduction was lodged by, and published by the International Trade Administration Commission of South Africa (Itac) on 20 March 2014. Itac reasoned that since the existent Southern African Customs Union (Sacu) manufacturer is ceasing manufacturing operations the duty will no longer serve the purpose of supporting domestic manufacturing, employment and investment in the relevant industry, and the existence of a duty could place an undue cost burden on the downstream industry. This investigation follows an Itac report, dated 13 March 2014, informing of the termination of the investigation into the alleged dumping of graphite electrodes for use in furnaces, originating in or imported from the People’s Republic of China. This investigation was initiated on 22 November 2013 after the receipt of an application by GrafTech South Africa (Pty) Ltd, the only graphite electrodes producer in the SACU. On 06 February 2014 Itac received a letter from GrafTech that it had decided to cease its operations and requested the antidumping application to be terminated. Duty Calls’ Watch List Comment on the initiation of an investigation into the alleged dumping of Portland cement originating in or imported from Pakistan is due by 02 October 2014. Comment on “the second batch” of draft rules (Chapters 11 to 20 and 24) of the Customs Control Act, 2014 is due by no later than 26 September 2014. Comment on the creation of a rebate item on sodium hydroxide (caustic soda) in aqueous solution (soda lye or liquid soda) for use in the manufacture of sodium hypo chlorite solution is due by 19 September 2014. The closing date for the application for the Department of Trade and Industry’s mission to Kenya and Tanzania is 30 September 2014 and that of Uganda is 14 September 2014.