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.