Digital smart card
duty
On 30 June the
International Trade
Administration Commission
of South Africa (Itac)
announced the proposed
reduction of the ‘general’
rate of Customs duty
on digital smart cards,
classifiable under tariff
subheading 8523.52.10 of
the Customs and Excise
Act 91 of 1964 (the Act),
from 5% ad valorem to free
of duty, by way of creating
a separate 8-digit tariff
subheading. Comment is
due by 30 July.
The proposed tariff
subheading amendments are
for 8523.5 - semiconductor
media; 8523.52 smart
cards: 8523.52.1 - digital;
8523.52.X - proximity cards
and tags; 8523.52.Y - other.
The application was
lodged by Gemalto Southern
Africa (Pty) Limited who
reasoned that there were
no local manufacturers of
the subject products in the
Southern African Customs
Union (Sacu) region, and
that the current Customs
duty rate of 5% had an
unnecessary cost raising
effect on the net ex-factory
selling price of the product.
Amendment for
disability
Itac on 30 June announced
the proposed amendment of
rebate items 405.04/01.00
and 405.04/02.00 of the Act
by the deletion of ‘physical
or mental defects’ and the
insertion of ‘disabilities’; the
deletion of ‘handicapped’
and the insertion of ‘with
disabilities’; and the
insertion of ‘or a certificate
from a registered medical
practitioner’. Comment is
due by 30 July.
The application was
lodged by Retina South
Africa who reasoned that
the proposed amendment
served to update the
terminology of referring to
persons with disabilities,
to be more inclusive of all
forms of disability, and to
make the use of the rebate
item more accessible and
user friendly.
Motor vehicle
disposal amendment
On 30 June Itac
announced the proposed
amendment of rebate
items 460.17/87.00/04.02,
460.17/87.03/02.04, 630.20
and 630.22 of the Act to
reduce the period within
which a vehicle may not be
offered, advertised, lent,
hired, leased, pledged,
given away, exchanged, sold
or otherwise disposed of.
Comment is due by 30 July.
The proposed amendment
to the rebate items is for the
insertion of ‘three years’, ‘…
if such a motor vehicle is
offered, advertised, lent,
hired, leased, pledged, given
away, exchanged, sold or
otherwise disposed of within
a period of three years from
the date of entry under this
rebate item, such foregoing
acts shall render such vehicle
liable to the payment of duty
on a Pro Rata basis’.
The application was
lodged by National Council
for Persons with Physical
Disabilities in South
Africa who reasoned that,
amongst others, there were
limitations to the governing
legislation as persons
with physical disabilities
were required to keep the
vehicles for a period of five
years prior to buying a new
vehicle.
Duty Calls Watch List
Comment on the proposed
increase in the ‘general’ rate
of customs duty on selfadhesive
biaxially oriented
polymers of propylene is
due by 15 July; and on the
draft deferment Rules to the
Customs Duty Act, 2014,
Part 2 of Chapter 3, by 31
July.
