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 of South African Tariff & Trade Solutions. E-mail: riaan@importsolutions.co.za SACU’s FTA with European Free Trade Association The Department of Trade and Industry (dti) has announced that the free trade area (FTA) negotiations between the Southern African Customs Union (SACU) and the European Free Trade Association (EFTA) have been concluded. SACU consists of South Africa, Botswana, Lesotho, Namibia, and Swaziland, the latter the BLNS countries. EFTA consists of Iceland, Liechtenstein, Norway, and Switzerland. The FTA is the first free trade area negotiated by SACU and is currently subject to technical and legal review. According to the dti it is expected to be signed during the first quarter of 2006, after which it will be ratified and promulgated, in accordance with the constitutional requirements of the parties. It is not expected to enter into force before 1 July 2006. The Agreement will thereafter be phased in over a period of up to 10 years. Benefiting from an Expanded Europe On 1 January 2000 the Free Trade Agreement between South Africa and the then 15-member European Union (EU) came into force. The intention of this Agreement is that by the year 2012, 95% of all trade between the contracting parties will be customs duty (duty) free. On 16 January 2006, as detailed in our second column of this year, a Government Gazette notice appeared in respect of the retrospective enlargement of the EU to include an additional 10 members. The amendment was retrospective to 1 May 2004, enabling South African businesses that had imported from these countries since 1 May 2004 to apply for duty refunds. Thus South African importers and exporters can now trade at preferential rates of duty with 25 EU countries. The latest announcement will, when it takes effect, result in the European countries with which South Africa can trade at preferential rates of duty increasing to 29 countries – a significant number. DA185 – Application Form: Licensing/Registration This form serving as an application form to the South African Revenue Service (SARS) for licensing and the registration of Customs and Excise clients was introduced in March 2003. On 31 January 2006 SARS announced its intention to amend the form. Comments due by 28 February 2006. No Tariff Amendments – 10 February 2006 Tariff Applications – Correction Notice The reduction in the rate of duty on electric arc furnace transformers published in the name of Cape Gate has been withdrawn. It was replaced with a review of the customs duty structure of electric arc furnace transformers, published in the name of the International Trade Administration Commission of South Africa (ITAC). Response due by 3 March 2006. Tariff Applications – Response Due Reduction in the rate of duty on preparations put up as mollusc food. Rebate of the duty on plates, sheets, film, foil and strips, of polymers of vinyl chloride for further processing by means of embossing or surface coating. Rebate of the duty on narrow knitted mesh fabric of nylon or polyester used in the manufacture of peaked caps. Reduction in the rate of duty on other compression-ignition internal combustion piston engines (diesel or semi-diesel engines). Response due by 17 February 2006. No Trade Remedy Amendments – 10 February 2006 Trade Remedy Applications – No Response Due No Rule Amendments – 10 February 2006
