DUTY CALLS

Wheat and wheaten flour tariff

On 5 April the South African Revenue Service (Sars) published an amendment to the variable formula tariff on wheat and wheaten flour. The tariff amendments pertain to the reduction of the rate of customs duty on tariff subheadings 1001.91 (Seed), 1001.99 (Other) from 71,63c/kg to 39,49c/ kg and on tariff subheadings 1101.00.10 (Brown wheaten meal produced by the milling of whole grains (the bran, germ and endosperm) (excluding separated wheat bran, separated wheat germ or separated wheat semolina or endosperm)) and 1101.00.90 (Other) from 107,45c/kg to 59,23c/kg. The tariff amendments follow the acceptance by the Minister of Trade and Industry of the International Trade Administration Commission of South Africa (Itac) recommendations documented in Itac Minute 01/2018.

Customs Duty Rules and Customs Control Rule

On 28 March Sars published “for sight only” the Customs Duty Rules “frozen” draft (including Part on Deferment), and Customs Control Rules “frozen” draft (including consequential amendments to Chapter 30). Quite confusingly the publication notice mentions that the “two documents were published on the Draft Documents for Public Comment”, whilst only a few lines later it states, “Please note that these drafts are not published for public comment”. The “frozen” draft of the Customs Duty Rules was published on the Sars website for sight on 6 July 2017 without Part 3 of Chapter 3 dealing with the deferment of duty, as the public participation process in respect of the deferment rules had not been finalised at that stage. Part 3 of Chapter 3 was published separately for public comment on 2 June 2017. According to Sars, after engagements with stakeholders at workshops and consideration of various rounds of comment, deferment rules were finalised. They are now published as part of the “frozen” draft of the Customs Duty Rules for sight. The changes to the deferment rules occasioned consequential changes to Chapter 30 of the Control Rules, dealing with accreditation. Therefore the “frozen” draft of the Control Rules (published on the Sars website for sight on 3 May 2017) is, with the inclusion of the changes to Chapter 30, also published for sight.

EU steel products safeguard

The European Union (EU) on 27 March notified the World Trade Organisation (WTO) Committee on Safeguards that it had, on 26 March, initiated a safeguard investigation on certain steel products, classifiable in various tariff subheadings in tariff chapters 72 and 73. A safeguard investigation seeks to determine whether increased product imports are causing, or are threatening to cause, serious injury to a domestic industry. During a safeguard investigation, importers, exporters and other interested parties can present evidence and views and respond to the presentations of other parties. Interested parties have until 16 April to provide comment.