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.
