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 Jet Intelligence. E-mail: riaan@tariff.co.za At the start of what will no doubt be an eventful and challenging year, we invite you to send us your critical comments and suggestions on how we can improve this column. It is through your input that we are able to constantly add value. This week’s ‘bumper’ column incorporates the many changes announced since the publication of our last column in December. Termination of Trade Remedy Duties – Response Due The International Trade Administration Commission of South Africa (Itac) has announced that based on the Supreme Court of Appeal’s decision in the case of Progress Office Machines versus Itac and others, it is considering recommending to the Minister of Trade and Industry that certain anti-dumping duties be terminated with effect from 2 6 September 2 007. Any comment on the termination of the anti-dumping duties should be submitted to ITAC by no later than 31 January 2008. 2010 FIFA World Cup – Rebate Item The South African Revenue Service (Sars) has published its “External Policy” and “Standard Operating Procedure” relating to the Customs Requirements for the 2010 FIFA World Cup in terms of Rebate Item 413.00. The scope of the policy covers the customs requirements with which qualifying persons must comply in order to benefit from the Rebate Item, also known as a Rebate Provision. Effective from 01 January 2008 • EU Phase Down Sars has published the phasedown schedules of rates of duty in terms of the European Union (EU) and the South African Free Trade Agreement (FTA). • SADC Phase Down The phase-down of the rates of duty in terms of the Southern African Development Community (SADC) is limited to the Motor Industry. • EFTA Phase Down The European Free Trade Area (EFTA) will take effect on 01 January 2 008 but in terms of fish and marine products, and agricultural and industrial products, the phase-down of duties remains 01 January 2 006. • MIDP Phase Down The phase-down of duties in terms of the recommendations made by Itac pertaining to the Motor Industry Development Programme (MIDP) includes the following: • The general rate of duty on light motor vehicles is reduced from 01 January 2 008. • The rates of duty on original equipment components are reduced from 01 January 2 008. • A note to Rebate Item 317.04 is amended to restrict the value of import rebate credit certificates to 74% from 01 January 2 008. Deletion of Tariff Subheading New pneumatic tyres for buses and lorries are covered in two tariff subheadings depending on the load index. Tariff subheading 4011.20.90 serves no purpose and is now deleted. Additional Tariff Subheading for Abalone In order to monitor the effect of law enforcement efforts being made it is essential that law enforcement agencies have accurate trade data on abalone and to assist these efforts additional tariff subheadings for abalone products have been introduced. Withdrawal of Antidumping Duties The anti-dumping duties on woven fabrics of polyester staple fibres mixed mainly or solely with cotton, unbleached or bleached, dyed, colour woven and printed, imported from or originating in the People’s Republic of China, have been withdrawn. Withdrawal of Countervailing Duties The countervailing duty on stranded wire, ropes and cables of iron or steel, not electrically insulated, of a diameter exceeding 8 mm (excluding that of wire of stainless steel, plated, coated or clad with copper and identifiable as conveyor belt cord) imported from or originating in India, has been withdrawn. Imposition of Countervailing Duties Countervailing duties have been imposed for ropes and cables of iron or steel, and stranded wire of iron or steel, imported from or originating in India. Rebate Item Amended The description of the rebate item has been amended to enable the importation of palm stearin in dehydrated form, for blending with paraffin wax. Creation of a Temporary Rebate A new temporary rebate provision has been created for oil-cake and other solid residues, whether or not ground or in the form of pellets, resulting from the extraction of soya-bean oil, in such quantities and at such times as Itac may allow by specific permit issued on or after 01 July 2 008 but not later than 30 June 2 011, for the manufacture of preparations of a kind used in animal feeding. Rebate Item Created A new rebate provision is created for partially oriented yarn of nylon and other polyamides, single, untwisted or with a twist not exceeding 50 turns per metre, for the manufacture of textured yarns of nylon and other polyamides, measuring per single yarn not more than 2 00 dtex, classifiable in tariff subheading 5402.31. Rebate Item Created A new rebate provision has been created for polyethylene filament yarn (excluding sewing thread), with a tenacity of 300 cN/tex or more, single, untwisted or with a twist not exceeding 50 turns per metre, for the manufacture of twine, cordage, rope and cables, whether or not plaited or braided and whether or not coated, covered or sheathed with rubber or plastics. Amendments of Items for Motor Industry The amendments relate to two paragraphs of a rebate item and a drawback item, respectively, for the motor industry. The effect of these amendments is that the wording “has submitted a business plan on or before 31 December 2 007 and entered on or before 31 December 2 012” has been substituted with the wording “has submitted a business plan on or before 31 December 2 009 and entered on or before 31 December 2014”. Note: This is a noncomprehensive statement of the law. No liability can be accepted for errors and omissions.
