Dairy WTO Bound
Rates
The International Trade
Administration Commission
of South Africa (Itac) on 17
March announced its second
Customs tariff application
for 2017, on which comment
is due by 14 April.
It relates to the proposed
Customs duty rates
adjustment of certain dairy
products to the World Trade
Organisation (WTO) bound
rates, or as the notice states,
to the “bound ceiling rates”.
In the first instance,
the introduction of two
8-digit tariff subheadings
under tariff heading 04.05
“Butter and other fats and
oils derived from milk;
dairy spreads:”, and tariff
subheading 0405.20 “Dairy
spreads:” namely “0405.20.**
With a milk fat content of
39% or more but less than
75%” – with rates of Customs
duty of 500c/kg with a
maximum of 37%, with the
exception of the Southern
African Development
Community (SADC) which is
free; and “0405.20.** Other”
– rates of Customs duty of
500c/kg with a maximum of
79%, with the exception of
SADC which is free.
In the second instance,
the adjustment of two tariff
subheadings from the applied
rate to the WTO bound rates.
For both, the applied rates
are 15% ad valorem and the
bound rates 12% ad valorem.
It relates to tariff subheading
3301.90.20 “Extracted
oleoresins obtained from
extraction of opium”, and
tariff subheading 3301.90.30
“Extracted oleoresins
obtained from extraction of
liquorice”.
The application was
lodged by The Department
of Trade and Industry’s
International Trade and
Economic Development
(ITED) division who
reasoned that in light
of the previous periodic
reviews and changes to
the Harmonised System
(HS) by the Committee
of the World Customs
Organisation (WCO) and
in terms of South Africa’s
WTO obligations, it is
imperative that South Africa
complies with its market
access commitments to the
WTO and the provisions
of its multilateral trade
agreements. This is
particularly relevant where
South Africa is exceeding
its WTO bound rate
commitments.
This begs the question,
which other tariff
subheadings are in excess of
South Africa’s WTO bound
rate commitments?
Plastic Tariff
Amendments
On 17 March the South
African Revenue Service
(Sars) announced the
insertion, deletion and
substitution of various tariff
subheadings under tariff
headings 39.07 to align the
8-digit tariff subheading
structure for Poly (ethylene
terephthalate) with HS 2017.
Plastic Dumping Duty
Amendments
Sars on 17 March announced
the deletion and insertion of
various tariff subheadings as
a consequence of the changes
made under tariff heading
39.07 with HS 2017.
WCO E-Commerce
Report
The WCO has published
its ‘Study Report on
E-Commerce’ – undertaken
as part of the WCO Work
Plan on Cross-Border
E-Commerce – which is
based on a short survey of
its members. It compiled
Customs administrations’
practices as well as their
ongoing and future
initiatives relating to the
processing of cross-border
low-value e-commerce.
Duty Calls’ Watch List
Comment on South Africa’s
WTO technical barriers to
trade (TBT) notification on
bananas is due by 16 April,
and comment on National
Treasury and Sars ‘Review of
the Diesel Fuel Tax Refund
System’ by 15 May.
Duty Calls
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