This week’s column highlights
a few of the core customs
matters addressed in the
National Budget Review,
as part of the 24 February
2016 budget speech. A
comprehensive report in
Customs Buzz.
Fiscal Environmental
Levies
The intention of
environmental levies is to
internalise external costs.
In other words these levies
are imposed to ensure that
the product is offered in the
market at its true cost – actual
cost. As a consequence the
revenue generated from the
imposition of levies is ringfenced
and used to address
the externality. Unfortunately
these levies tend to have a
fiscal application, merely
serving as a means of
generating revenue.
From 01 October 2016 a
tyre levy of R2.30/kg of tyre
will be imposed; on 01 April
2016 the levy on incandescent
light bulbs will be increased
to R6 per globe, effective 01
April 2016; also on 01 April
2016 the plastic bag levy
will be increased from 6
cents to 8 cents; and on 01
April 2016 the motor vehicle
emissions levy will increase
to R100 for every gram of
emissions/km.
Sugar Tax
The introduction of a tax on
sugar-sweetened beverages
was announced for 01 April
2017.
Sacu Payments
South Africa was expected
to make payments to the
Southern African Customs
Union (Sacu) of R39.4
billion (2016/17), R51.1
billion (2017/18), and
R63.0 billion (2018/19). In
2015/16 South Africa made a
payment of R51.0 billion.
WCO News
The World Customs
Organisation (WCO) has
published its 80-page
February 2016 ‘WCO News’,
titled ‘Going Digital’, which
consists of three sections –
Dossier: Digital Customs,
Focus: Data, and Point of
View.
Customs Court Case
Sars published the judgement
of the North Gauteng High
Court in the matter between
the Commissioner of Sars and
Prudence Forwarding (Pty)
Ltd and Grovemaster Trading
Enterprises 136 CC.
According to Sars, its
Commissioner was not
afforded the opportunity
to file papers in response to
the amended notice, which
offends the tenets of natural
justice and in itself constitutes
successful grounds for
appeal. There was no basis for
concluding that the seizure
was in contempt of court.
No explanation was given by
the respondents on why the
seizure decision was unlawful,
unreasonable, irrational or
procedurally unfair.
Duty Calls’ Watch List
Comment on the following
is due:
Sars’ draft Customs
Control Act, 2014 Rules by 01
April 2016.
The sunset review of the
anti-dumping duties on
unframed glass mirrors from
India, by 29 March 2016.
The proposed increase in
the rates of ordinary customs
duty on other plates, sheets,
film, foil and strip of plastics
by 18 March 2016.
The proposed regulations
for the protection of
Geographical Indications
(GIs) by 14 March 2016.
The TDCA safeguard
investigation for frozen bonein
chicken by 10 March 2016.
The sunset review of the
anti-dumping duties on
polyethylene terephthalate
from Chinese Taipei, South
Korea and India, by 07
March 2016.
DUTY CALLS
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