DUTY CALLS

Guidelines on

Certification of Origin

The World Customs

Organisation (WCO)

‘Guidelines on Certification

of Origin’, dated July 2014

and released for public

information reads as follows:

The origin of goods is

one of the crucial elements

for international trade.

Recognising the various

purposes in which the origin

of goods plays a vital role,

Customs administrations

around the world must

implement rules of origin

in an effective and efficient

manner.

What is certification of

origin? A set of comprehensive

rules of origin generally

comprises origin criteria to

determine the country of

origin/originating status of a

product and also procedural

requirements to support

a claim that the product

satisfies the applicable origin

criteria. Certification of origin

constitutes the primary part of

such procedural requirements.

On the other hand,

currently there are no clear

and effective international

standards on the definition

of a proof of origin and

related procedures. The

WTO Agreement on Rules

of Origin (RoO) is silent on

procedural aspects. Even

though the Revised Kyoto

Convention provides certain

definitions in Chapter 2 of

Specific Annex K which refers

to ‘Documentary evidence

of origin’, the provisions do

not recognise the increase

of free trade agreements

(FTAs) in recent decades

and the various concepts of

procedural requirements

included in these agreements.

In the case of preferential

trade, FTAs or legislation

on Generalised System of

Preferences (GSP) set out

the respective procedural

requirements.

The WCO offers a number

of definitions relating to

origin, such as certification

of origin, self-certification

of origin, proof of origin,

indication of origin, origin

criteria, consignment criteria,

GSP and FTA.

You may well derive benefit

from studying the guidelines.

Canned Mussels

in Airtight Metal

Containers Duty

Reduction

The South African Revenue

Service (Sars) has announced

the deletion of tariff

subheading 1605.53.20

(---Other, in airtight metal

containers:) and insertion of

tariff subheadings 1605.53.2

(Other, in airtight metal

containers); 1605.53.21 (----

Smoked); and 1605.53.22

(---- Other) to reduce the

rates of customs duty on

canned mussels in airtight

metal containers from 25%

ad valorem to free.

The reasoning for the tariff

amendments can be found

in the International Trade

Administration Commission

of South Africa (Itac) Report

513.

So if the retail price

of canned mussels is not

reduced, you know that

someone is profit taking,

which is not the intention of a

tariff reduction.

Polyurethane

Prepolymers ‘General’

Duty Increase

Sars announced the insertion

of tariff subheadings

3909.50.10 (-- Prepolymers

with an NCO percentage of

less than 20% by mass kg

10%) and 3909.50.90 (--

Other) and the substitution of

tariff subheading 3909.50 (-

Polyurethanes) to increase the

‘general’ rate of customs duty

on polyurethane prepolymers

from free to 10% ad valorem.

The reasoning for the tariff

amendments can be found in

the Itac report 514.

Duty Calls’ Watch List

Comment on the following

is due:

Sars draft Customs Control

Act, 2014 rules extended to 15

April 2016.