DUTY CALLS

Gas stove tariff
increase
On 20 November 2015
the International Trade
Administration Commission
of South Africa (Itac)
published an application for
a proposed increase in the
‘general’ rate of customs duty
on gas stoves, classifiable
in tariff subheading
7321.11, from 15% to 30%
ad valorem by the creation
of an additional 8-digit
tariff subheading, on which
comment is due by
18 December 2015.
The application was lodged
by Defy Appliances (Pty) Ltd
who reasoned, amongst other
things, that it had imported
the product in the past.
However, in order to expand
the investment and market
in the Southern African
Customs Union (Sacu)
and eventually in Africa,
it started manufacturing
the product in July 2014 in
South Africa. However, as
a result of imports, Defy is
not competitive taking into
account the current ratio
on cost (plant utilisation
and economies of scale),
which leads to higher unit
costs of production, reduced
profitability and eventually
unemployment.
Woven fabrics rebate
Itac on 20 November 2015
published an application
for the proposed rebate of
customs duty on woven
fabrics of polyester staple
fibres, containing 60% or
more by mass of such fibres
but not exceeding 70%,
mixed mainly or solely with
cotton, with a dtex of 115 but
not exceeding 145, of a mass
exceeding 100 g/m² but not
exceeding 119 g/m², dyed,
plain weave, classifiable in
tariff subheading 5513.21,
in such quantities, at such
times and subject to such
conditions as Itac may
allow by specific permit for
the manufacture of shirts,
classifiable in tariff headings
62.05 and 62.06, on which
comment is due by
18 December 2015.
A draft of the guidelines,
rules and conditions
pertaining to the proposed
rebate provision is available
on the Itac website, www.
itac.org.za, for download.
The application was lodged
by Pep Clothing, division of
Pepkor Retail (Pty) Ltd, who
reasoned, amongst other
things, that there were no
Sacu manufacturers.
Aluminium printing
plates reduction
On 20 November 2015 Itac
proposed a reduction in the
‘general’ rate of customs
duty in tariff subheading
3701.30.25 from 15% ad
valorem to free of customs
duty, for which comment is
due by 18 December 2015.
The application was lodged
by Antalis South Africa (Pty)
Ltd who reasoned, amongst
other things, that there was
no Sacu manufacturer.
Electricity supply
meters rebate
The South African Revenue
Service (Sars) on
20 November 2015
announced an
amendment to rebate item
318.03/00.0001.00 ‘Goods
of any description (excluding
mounted or populated circuit
boards) for the manufacture
of prepayment electricity
supply meters classifiable in
tariff subheading 9028.30
at such times, in such
quantities and subject to such
conditions as Itac may allow
by specific permit, provided
the commission is satisfied
that the circuit boards are
mounted and populated in
the Sacu region’.
The amendment provided
for the insertion of the tariff
subheading.