Tariff amendments - 11 October 2002 The general rate of duty on ground-nuts, not roasted or otherwise cooked, whether or not shelled or broken, classifiable under tariff subheadings 1202.10 and 1202.20, is increased from free to 10% ad valorem. The general rate of duty on feed supplements, containing, by mass, 40 per cent or more lysine, whether or not containing added antibiotics or added melengestrol, classifiable under tariff subheading 2309.90.65, is reduced from 10% to 8% ad valorem. The general rate of duty on lysine and its esters and on the salts thereof, classifiable under tariff subheading 2922.41, is reduced from 10% to 8% ad valorem. The provisional anti-dumping duty on flat-rolled products of iron or non-alloy steel, classifiable under tariff heading 72.09, imported from or originating in the Russian Federation is extended to 18 January 2002. The specific provision for reach stackers of the boom type and on the front lift container handling machines, manually operated, tariff subheading 8427.90.10, is withdrawn, as it has become superfluous. The specific rebate of duty in Part 2A of Schedule No.1 for the rebate of the duty on motor vehicles imported by natural persons on change of permanent address, rebate item 407.04/87.00/01.00, is deleted. Amendments of Rules to the Customs and Excise Act On 1 October 2002 the South African Revenue Services (SARS) published amendments to the rules under section 19A of the Customs and Excise Act (the Act). Rule 19A deals with special provisions in respect of customs and excise (C&E) warehouses in which excisable or fuel levy goods are manufactured or stored and the manufacture, payment of duty and controlled movement of beer, tobacco products, spirits and fuel levy goods. Any person applying for or renewing a C&E manufacturing or storage warehouse licence must: Do so on a form DA185 and comply with its requirements, as well as with the requirements of Schedules 6 and 8 of the C&E Act. Submit the pro forma agreement to SARS. Furnish the necessary security. The powers and duties of the Commissioner in respect of C&E warehouses for the goods listed above have been delegated and assigned, unless otherwise specified, to the Assistant General Manager, Operations, C&E. Rule 19A sets out specific documentary requirements regarding the invoice or despatch delivery note for the removal of goods from these warehouses. Invoices and despatch delivery notes must be serially or transaction numbered and dated and contain some minimum information. Such invoice or despatch delivery note shall be deemed to be an entry for home consumption. Spirits removed from primary manufacturing warehouses (VMP) shall be deemed to be for home consumption and all excisable duties will become payable. Records and books must be kept for a period of 5 years, while proper stock records must be kept. Excise duty accounts DA260 (for beer, tobacco products and spirits) and DA 159 or DA 160 (for fuel levy goods) with the Bill of Entry (DA610) for each warehouse, must be submitted to SARS within 30 days after the closing of excise accounts. The 30 days are referred to as the Òaccounting monthÓ and the rules further prescribe how this month should be determined. Special storage warehouses now need to submit accounts 14 days after the close of the quarter, while this was not required in the past. Given certain conditions, excisable goods in a C&E warehouse are considered to be entered for home consumption if they are in the warehouse at 15h00 on the day of the proposal, upon which the existing excise duty becomes payable. For removal of goods in bond duty liability will cease when it can be proved that the goods have been received and entered for rewarehousing at the destination to which they were removed. Proof of export is required for duty liability to cease for exported goods. Tobacco Products Tobacco products may only be moved from one C&E warehouse to another for reprocessing and repacking when these warehouses are licensed to the same licensee. If not, duty will become payable upon the removal from the first warehouse. Within a reasonable period after 30 September 2002, all existing and new excise warehouse operators must register on a form DA 185 and complete the pro forma agreement with SARS. Existing licenses will remain in force until cancelled by the Commissioner and all licensees will furnish the additional security to be determined by the Commissioner before 30 October. All duties on tobacco products removed from C&E warehouses before 13:00 on 30 September 2002 must be paid by the penultimate working day of October. After this date and time, no goods may be removed in bond to any C&E storage warehouse unless such storage warehouse has been licensed. Amendment of the Customs and Excise Act - 1 October 2002 The amendment of the rules for section 19A of the Act in respect of the special provision of customs and excise warehouses in which excisable or fuel levy goods are manufactured or stored. An interpretation of the change will be provided in a future issue Additonal information i.r.o. tyre imports The South African Revenue Service (SARS) has informed that they intend to require importers of tyres to provide additional information on the bill of entry. Importers are invited to provide the SARS with the comments by no later than 14 October 2002. Response due on anti-dumping investigation - 14 October 2002 Initiation of an investigation into the alleged dumping of cotton floor mops, dust and brush sets, floor brooms and toilet brush sets originating in or imported from Italy Sunset review of the anti-dumping duties on capsules containing 250mg and 500mg amoxycillin trihydrate, originating in India and imported from Ranbaxy Laboratories Limited, India. Response due on tariff applications by 25 October 2002 An increase in the customs duty (duty) on containers for compressed or liquefied gas, of iron or steel from free of duty to 15 per cent ad valorem. The revision of the tariff with respect to fish and crustaceans, molluscs and other aquatic invertebrates classified under Chapter 3 of the Customs and Excise Act. An increase in the rate of the duty on UHT milk from free of duty. Compiled by Riaan de Lange of Deloitte & Touche Trade & Investment Solutions. E-mail: rdelange@deloitte.co.za
