Safeguard Alert
Readers will recall from
an earlier column that on
27 April the World Trade
Organisation (WTO)
notified members of
South Africa’s intention to
impose safeguard duties
on certain f lat-rolled
products of iron and alloy,
classifiable under tariff
subheadings 7208.10,
7208.25, 7208.26, 7208.27,
7208.36, 7208.37, 7208.38,
7208.39, 7208.40, 7208.51,
7208.52, 7208.53, 7208.54,
7208.90, 7211.14, 7211.19,
7225.30, 7225.40, 7225.99,
7226.91 and 7226.99.
This follows South
Africa’s earlier notification
to the WTO’s Committee
on Safeguards on 23
February 2016, and
the International
Trade Administration
Commission of South
Africa’s preliminary
determination of 22 July
2016.
ArcelorMittal South
Africa (AMSA) expects the
imposition of safeguard
duties to come into effect
on 1 July.
Customs Preferred
Trader
On 8 May the South African
Revenue Service (Sars)
launched its Customs
Preferred Trader Programme
(PT). According to the
notification, this marks the
culmination of an extensive
process aimed at introducing
one of the most significant
trade facilitation initiatives in
Sars’ customs modernisation
journey. Ironically, South
Africa is not a signatory to
the WTO Trade Facilitation
Agreement (TFA).
Sars states that currently
28 Customs clients have been
awarded PT accreditation
status following a lengthy
period of audits and customs
competency assessments.
The PT journey began
in 2011 after extensive
benchmarking and
consultations with trade.
The main objective of the
programme is to move away
from the traditional Customs
gate-keeper approach to a
more risk-based approach.
Compliant traders will
receive benefits as stipulated
in legislation for accredited
clients. This will reduce the
frustrations and the costs
that can be incurred by
traders who are operating in
the global market.
A specialised PT team has
been set up by Sars to handle
applications and audits, while
an Accreditation Review
Customs Committee at Sars
head office makes a final
decision on all accreditation
submissions. Currently
over 250 Customs clients
are going through the PT
accreditation process, and
with a dedicated team
and process now set up it
is envisaged that all these
outstanding applications will
be processed speedily in the
coming months.
All importers and
exporters may apply for PT
status if they meet certain
compliance criteria.
Proposed Wealth
Taxes
The Davis Tax Committee –
established by the Minister
of Finance in 2013 to inquire
into the role of the tax
system in the promotion of
inclusive economic growth,
employment creation,
development and fiscal
sustainability – has called for
written submissions by 31
May on possible wealth taxes
for South Africa. A workshop
for oral submissions will be
scheduled during June 2017.
Comment is invited on the
desirability and feasibility of
possible forms of wealth tax,
namely: (i) A land tax; (ii)
A national tax on the value
of property (over and above
municipal rates); and (iii) An
annual wealth tax.
Duty Calls’ Watch List
Comment on draft tariff
amendments, the reduction
in the ‘general’ rate of
customs duty on thermal
transfer printing ribbons in
cartridges, and the creation
of temporary rebate facilities
on structural steel is due by
26 May.
Duty Calls
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