Paper and Paperboard Tariff Application – Comment due On 23 May 2014 Itac announced the proposed increase in the “General” rate of customs duty on paper and paperboard coated, impregnated or covered with plastic classifiable under tariff subheading 4811.59.90; and other paper, paperboard, cellulose fibres classifiable under tariff subheading 4811.90.90 from free of duty to 5% ad valorem by creation of additional 8-digit tariff subheadings, as follows: 4811.59.xx ---Paper and paperboard fibres combined with plastic film, printed and the thickness of the plastic film may not exceed fifty microns. 4811.90.xx---Paper and paperboard, cellulose and wadding and webs of cellulose fibres, combined with metal foil, printed and the thickness of the metal foil may not exceed fifteen microns. The application was lodged by Nampak Flexible Ltd who reasoned that the application was made to bring duty protection for a group of printed laminates between paper, foil and polymers in line with other flexible laminates and close the current loophole whereby these products carry no duty due to the paper components being the thickest components of the construction and all paper products currently carry no duty. Comment due by 20 June 2014. CCA tariff amendment On 30 May 2014 the South African Revenue Service (Sars) announced the insertion of Note 8 to Schedule No.3 “Industrial Rebates of Customs Duties” to the Customs and Excise Act to allow manufacturers in a Customs Controlled Area (CCA). The Note reads “8. Goods may be entered under any rebate item of this Schedule by a CCA enterprise as contemplated in rule 21A.01 and registered in terms of such item, provided - (a) the CCA enterprise complies with any notes to that item and this Schedule, and section 75; and (b) the VAT is paid on goods imported by the CCA enterprise under any item in this Schedule.” SCA tariff classification ruling The Supreme Court of Appeal of South Africa on 23 May 2014 ruled in favour of Sars in its tariff classification case against Terraplas South Africa (Pty) Ltd on plastic interlocking tiles for protection of turf surfaces in stadia not a floor covering, classifiable under tariff subheading 3926.90.90. Method of payment of tax Sars on 30 May 2014 announced that in terms of the Tax Administration Act (i) no payments may be made by cheque if a taxpayer has, in the preceding three years, made two payments by cheque to Sars that were “referred to drawer”, and that no payments may be in excess of R50 000. Duty Calls Watch List Comment on the following is due by 30 June 2014. The draft interpretation note on the supply of goods and services by professional foreign hunters, and the registration as Value-added Tax (VAT) vendors. The carbon offsets paper and the review of the taxation of alcoholic beverages in South Africa. Comment on the draft interpretation note on VAT treatment of supply of transport services and ancillary transport services has been extended to 13 June 2014.
