Steel Duties Imposed
On 28 August 2015
Business Day reported
that Trade and Industry
Minister Dr Rob Davies had
approved an increase in the
‘ordinary’ rate of customs
duty on certain steel
products from free (0%) to
10% ad valorem.
The increase in the
rate of customs duty is
subject to certain stringent
conditions, including that
steel producers refrain
from increasing prices for
the products subject to the
customs duty and that they
honour their commitments
to reduce prices on some
products.
The approval is
also conditional on
ArcelorMittal SA investing
an additional R250 million
in its colour line and Safal
Steel an additional R300m
in its metal coating line
in 2017. In addition, both
companies also have to
commit to not retrenching
any workers in these
production lines over the
next three years.
It is understood
that the International
Trade Administration
Commission of South
Africa (Itac) will also
establish a committee with
industry and government
stakeholders and experts
to monitor the effect of the
change in tariffs and steel
prices on downstream users,
as well as the performance
of the applicants against the
commitments agreed on.
In the instance of default,
Itac will immediately
initiate a review of the
‘Ordinary’ rate of customs
duty. Government will
also engage with the
steel industry and the
downstream users to secure
an agreement on a pricing
model that ensures the
short- and the long-term
viability of the sector.
2015 Draft Taxation
Laws
Due to requests for
clarification and as a
reminder, National Treasury
has published for public
comment the 2015 draft
Taxation Laws Amendment
Bill (TLAB) and the 2015
draft Tax Administration
Laws Amendment Bill
(TALAB).
The TALAB contains
proposed amendments
(Section 20 of the Customs
and Excise Act, 1964 (Act)
(Goods in customs and
excise warehouses) and
(amendment or withdrawal
of, or insertion in Schedules
No 1 to 6, 8 and to the Act
made during the period
from September 1, 2014 up
to September, 30.).
The TALAB contains
proposed amendments
to the Act (Sections 1,4,
4D, 27 and 99); to the Tax
Administration Act, 2011
(Sections 68 and 69); to the
Customs Duty Act, 2014
(Sections 1, 24, 25, 39, 67,
88, 182 and 202); and to
the Customs Control Act,
2014 (Sections 1, 21, 49, 65,
67, 69, 71, 110, 112, 113, 115,
171, 205, 211, 214, 233, 235,
259, 299, 313, 332, 350,
359, 368, 373, 396, 418, 421,
432, 439, 444, 452, 458,
460, 580, 581, 590, 600,
626, 627, 695, 761, 762, 780,
789, 823, 825, 832, 877,
896, 913).
Customs Acts Clock
Due to the interest in
the ‘New Acts’, we have
introduced a a countdown
of the days since the
publication of the Customs
Duty Act, 2014 (duty) and
the Customs Control Act,
2014 (control) and when
their drafting commenced.
The days are in brackets:
duty (421), control (408),
and Acts (3 898).
Duty Calls – Watch
List
Comment on the Border
Management Agency Bill is
due by 04 September 2015.
DUTY CALLS
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