DUTY CALLS is your weekly look at changes in the South African tariff dispensation and amendments to Customs and Excise legislation. This column aims to provide the reader with a summary of the main changes and is not intended to be a comprehensive statement of the law. No liability is accepted for errors or omissions.
Amendments to the Customs and Excise
Act - 6 July 2001
The 'general' and 'European Union' rate of duty on cylindrical closures of a length not exceeding 75 mm and of a diameter of 15 mm or more but not exceeding 24 mm, classifiable under tariff subheading 3923.50.10, is reduced from 15% to free.
Provisional anti-dumping and countervailing duties imposed
Provisional payments are imposed in relation to anti-dumping and countervailing duties on footwear with outer soles of rubber, plastics, leather or composition leather and uppers of leather, imported from or originating in India. The tariff subheadings in question are 6403.59 and 6403.99.
The anti-dumping duties imposed are 26.55%, 28.92% and 25.85%, whilst the countervailing duties 25.85% and 3.07%.
Tariff application -
29 June 2001
Revision of the duty on beans in airtight metal containers with a rate of duty of 4.15c/kg. Response due by 10 August 2001.
The application is made as a result of the fact that the current level of duty is deemed insignificant and does not serve as protection of the canning industry in the Southern African Customs Union (SACU) and as encouragement for this industry to manufacture canned beans. Furthermore, there is currently an anomaly in the customs tariff, as rates of duty applicable to the raw material used in the manufacture of canned beans are higher than the rate of duty on canned beans which causes a situation of negative protection.
Correction notice -
29 June 2001
Amendment of rebate item 307.09 to include butadiene styrene rubber latex, classifiable under tariff subheading 4002.11.90, with the rate of duty of 10% ad valorem, for the manufacture of compounded rubber, vulcanised in primary form.
Response due by 10 August 2001.
Tariff applications -
Still time to comment
Application of the withdrawal of rebate items 460.17/87.00/01.02 and 460.17/87.00/02.02 i.e. rebate of the duty on motorcycles and motor vehicles for the transport of disabled people subject to certification by the South African National Council for the Physically Disabled that such motorcycles and motor vehicles or similar motor cycles or motor vehicles are not ordinarily or satisfactorily manufactured in South Africa.
Response due by 3 August 2001.
The proposed amendment of the article description of the existing tariff heading 82.09 'plates, sticks, tips and the like for tools, unmounted or cerements' with the following:
8209.00.10 'of tungsten carbide whether or not clad, plated or coated with other metals, for cutting tools for use with machine tools for working metal or metal carbides'.
8209.00.20 'other, of tungsten carbide, whether or not clad, plated or coated with other metals'.
8209.00.90 'other'.
The intention of the proposed amendment is to prevent the abuse of the existing tariff provisions. The effect of the proposed amendment will be that all tungsten carbide inserts will be classifiable under tariff subheadings 8209.10 or 8209.20 instead of tariff subheading 8209.90.
Response due by 27 July 2001.
The proposed increase in the customs duty on roasted or otherwise cooked, whether or not shelled or broken, classifiable under tariff heading 12.02, from free of duty to 10 per cent ad valorem.
Response due by 20 July 2001.
Anti-dumping application - 29 June 2001
A notice appeared in respect of the initiation of a review of the anti-dumping duty imposed on carbon black originating in or imported from Egypt. The review was lodged by Algorax and pertains to products classifiable under tariff heading 28.03.
Response due by 30 July 20001.
Anti-dumping application - still time to comment
A notice appeared in respect of the initiation of an investigation into the alleged dumping of cold rolled steel products originating in or imported from the Russian Federation. The petition was lodged by Iscor Limited and pertains to products classifiable under tariff subheading 7209, 7211.2 and 7211.90.
Response due by 23 July 2001.
Compiled by Riaan de Lange of Deloitte & Touche Trade & Investment Solutions. E-mail: rdelange@deloitte.co.za
