DUTY CALLS

Laundry/Soap
Guidelines
On 14 August 2014
the International
Trade Administration
Commission of South
Africa (Itac) published
the guideline, rules and
conditions pertaining
to rebate items
306.06/2815.11/01.06 and
306.06/2815.12/01.06 to
the Customs and Excise
Act, 1964 (Act) for rebate
of the duty (customs) on
solid and liquid caustic
soda for the manufacture
of laundry and toilet soaps
SEZ Act amendments
On 14 August 2015 the
South African Revenue
Service (Sars) announced
two tariff amendments
to the Act and one
amendment to the Valueadded
Tax, 1991 to ref lect
the Special Economic
Zones Act, 2014 (SEZ Act)
at the request of the Trade
and Industry Minister.
The first tariff
amendment relates
to the substitution of
the ‘NOTES’ of rebate
item 498.00 to Part 6
of Schedule No4 to the
Act ‘Imported Goods
Admitted under Rebate of
Duty for use in Specified
Activities in the Customs
Controlled Area (“CCA”)
Contemplated in Section
21A’ of the Special
Economic Zones Act, 2014
(SEZ Act).
It reads ‘For the
purposes of this item and
the application of any
provisions of Schedule
No 4. 1. Goods may only
be entered under item
498.01 by a registered CCA
enterprise as contemplated
in section 21A. 2. Goods
may only be entered
under item 498.02 by a
registered SEZ operator
as contemplated in rule
21A.04. 3. Goods imported
under item 498.00 must
be entered thereunder
whether or not the goods
are liable to any duty.
However, any goods
imported for storage in a
CCA enterprise may not
be entered under item
498.00. 4. Goods imported
under item 498.00
or goods produced or
manufactured therefrom
may not be removed from
a CCA for consumption
in the common customs
area except if the goods
have been entered at the
office of the controller
and the duty due thereon
has been paid. 5. The
expression “infrastructure”
shall be limited to the
basic structural elements
permanently installed
in a CCA (including eg,
sanitation, electricity,
roads, bridges, buildings
and the like). 6. The
movement of any goods
to or from a CCA
enterprise, including
the movement of goods
to another enterprise,
any other rebate user
outside the CCA or partly
manufactured goods to
any rebate user shall be
subject to the rules for
section 21A.’
The second tariff
amendment relates to the
substitution of rebate item
498.02/00.00/01.00/02
to the SEZ Act, to read
‘Goods of any description
imported by a registered
SEZ operator for use in
the construction and
maintenance of the
infrastructure of a CCA in
an SEZ’.
The implementation
date will be the date the
regulations of the yet to be
published SEZ Act come
into operation.
Duty Calls – Watch
List
Comment on the Border
Management Agency Bill is
due by 04 September 2015.
Comment on the
2015 draft Taxation
Laws Amendment Bill
and the 2015 draft Tax
Administration Laws
Amendment Bill is due by
24 August 2015.