Duty calls

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 ICC’s First Conference on New Documentary Credit Rules According to the International Chamber of Commerce (ICC), its revised rules on documentary credits, commonly called “UCP”, are expected to be approved for release at the next meeting of the ICC Banking Commission on 24 - 25 October 2006 in Paris, France. The very next day the UCP Drafting Group that developed the rules will host the first international conference to explain how the revision differs from “UCP 500”, the previous version of the rules. The UCP, first introduced in 1933, are the most successful private rules for trade ever developed. According to the ICC the revised UCP, to be called “UCP 600”, is the result of more than three years of work by the ICC Banking Commission. In its revision process, the UCP Drafting Group and the Commission sifted through more than 5 000 comments and considered several drafts before consensus was reached on the final version. At the Conference on 26 October 2006, the UCP Drafting Group will present a complete review of the rules and take questions and answers from the audience. The conference topics include: (1) A structural comparison of “UCP 600” and “UCP 500” (2) The framework of the new UCP i.e. Articles 1 to 5(3) Structure and obligations under documentary credits(4) Standard for examination of documents; discrepant documents; waiver and notice(5) The UCP transport articles(6) Transferable credits and other issues and (7) Changes at SWIFT for “UCP 600”. Benin the 123rd Contracting Party to the Harmonised System The World Customs Organisation (WCO) announced that on 24 July 2006, the Republic of Benin deposited, with the Secretary General of the WCO, its instrument of accession to the International Convention on the Harmonised Commodity Description and Coding System i.e. the Harmonised System. Considering that more than 98% of international trade is classified in terms of the Harmonised System, the WCO welcomed Benin as the 123rd Contracting Party to the Harmonised System Convention. According to the WCO, Benin has been a Member of the WCO since 9 November 1998, and the Harmonised System will now come into force in Benin on 1 January 2008, unless Benin decides to specify an earlier date. No Tariff Amendments – 4 August 2006 Tariff Applications – Response Due The proposed creation of a manufacturing rebate for soya beans, for extraction of soya bean oil, to be used by the registrant in the production of biodiesel. Response due by
18 August 2006. The proposed reduction in the rate of duty on single-phase fractional horsepower electric motors. The proposed reduction in the rate of duty on threaded bungs and flange gaskets packed in sets for steel drums, whether or not presented with bung covers. Response due by
11 August 2006. No Trade Remedy Amendments –
4 August 2006 Trade Remedy Applications – Response Due The initiation of an investigation into the alleged dumping of white self-copy paper originating in or exported from the United States of America. Response due by 28 August 2006. Draft Rule Amendments – No Response Due No Rule Amendments –
4 August 2006