Phosphoric and polyphosphoric acids tariff On 16 February the International Trade Administration Commission of South Africa (Itac) published the proposed increase in the ‘general’ rate of customs duty on phosphoric and polyphosphoric acids, classifiable under tariff subheading 2809.20, from free of customs duty to 10% ad valorem, through the creation of an additional 8-digit tariff subheading. The tariff subheading proposed reads “Diphosphorus Pentaoxide; Phosphoric Acid; Polyphosphoric Acids, whether or not Chemically Defined: Of a phosphorous content of 78 per cent or more.” The application was lodged by Chemical Initiatives (Pty) Ltd, a Subsidiary of AECI Limited, who reasoned that (i) Chemical Initiatives (Pty) Ltd had increasingly come under pressure from imports due to increasing raw material costs as a result of the 20% export duty imposed by the People’s Republic of China on yellow phosphorus. (ii) Chemical Initiatives (Pty) Ltd competes with imports from Chinese manufacturers who are not impacted by the 20% export tax on yellow phosphorus and therefore have lower raw material costs and consequently a significant price advantage over locally produced phosphoric and polyphosphoric acids. (iv) The customs duty protection is necessary to make Chemical Initiatives (Pty) Ltd’s price more competitive against imports. Without protection of local manufacturers, local production will be lost to imports costing the Southern African Customs Union (Sacu) economy jobs and investments. (v) A 10% customs duty will assist Chemical Initiatives (Pty) Ltd in cutting back on imports by increasing local production. Chemical Initiatives (Pty) Ltd already has existing capacity and is able to supply the local market. Comment is due by 16 March. Sugary Beverages Levy Roadshows On 12 February the South African Revenue Service (Sars) announced that it would be embarking on regional roadshows, from 1-8 March, to engage industry stakeholders on the implementation of the Sugary Beverages Levy (SBL). The SBL, the latest Health Promotion Levy in support of the Health Department’s deliverables to decrease diabetes, obesity and other related diseases in South Africa, was announced by the finance minister in the February 2016 National Budget and is part of the Rates and Monetary Amounts and Revenue Laws Amendment Act, 2017. The SBL will be implemented on 01 April. 1st Global CrossBorder E-Commerce Conference The World Customs Organisation (WCO) has announced that the first Global Cross-Border E-Commerce Conference it co-hosted with the general administration of the People’s Republic of China Customs (GACC) concluded with the adoption of the Beijing Declaration on 10 February. The Beijing Declaration summarised the discussions and outlined the way forward, setting out a vision for boosting sound, secure, balanced and sustainable development of crossborder e-commerce.
