Duty Calls

Caustic soda rebate application

The International Trade Administration Commission of South Africa (Itac) on 20 April published a notice for the creation of a rebate item for caustic soda, classifiable under tariff subheading 2815.12, for the extraction of copper and nickel, classifiable under tariff headings 26.03 and 26.04, on which comment is due by 4 May.

Phosphoric and polyphosphoric acids tariff

On 20 April Itac published an amendment to its 16 February tariff application for an increase in the rate of customs duty on phosphoric and polyphosphoric acids, classifiable under tariff subheading 2809.20, from free of customs duty to 10% ad valorem, by way of creating an additional 8-digit tariff subheading. The amendment was required due to the South African Revenue Service (SARS) amendment of the tariff structure pertaining to tariff subheading 2809.20 through the introduction of two new 8-digit subheadings, 2809.20.10 and 2809.20.90, with retrospective effect from 1 January 2018. The revised tariff application for tariff subheading 2809.20.10 is for an increase in the rate of customs duty on diphosphorus pentaoxide; phosphoric acid; polyphosphoric acids, whether or not chemically defined: of a phosphorous content of 78 per cent or more from free of customs duty to 10% ad valorem. The application was lodged by Chemical Initiatives (Pty) Ltd, a Subsidiary of AECI Limited, who reasoned, that, (i) It had come under increasing 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) The customs duty is necessary to make them more pricecompetitive against imports. (iii) Without protection Southern African Customs Union (Sacu) manufacturers and production will be lost to imports costing the Sacu economy jobs and investments. (iv) The customs duty will assist in cutting back on imports, whilst Chemical Initiatives already has existing capacity to supply the Sacu market. Comment is due by 4 May.

Polymer of Vinyl Chloride Sunset Review

Itac on 26 April published a notice of initiation of the sunset review of the antidumping duties on plates and sheets, film, foil and strip of polymers of vinyl chloride (PVC), classifiable under tariff subheading 3920.49, originating in or imported from the People’s Republic of China and Chinese Taipei (Taiwan) on which comment is due by 30 May. A detailed response to Itac’s sunset review questionnaire was received from Arango Plastics (Pty) Ltd on 09 November 2017.

EU SADC EPA Tariff Quota

On 26 April Sars published an amendment to the General Note IJ to Schedule No 1 to the Customs and Excise Act, 1964 which substitutes the Sacu allocation of cheese tariff rate quota under the Economic Partnership Agreement (EPA) between the European Union (EU) and Southern African Development Community (SADC) EPA states. The tariff amendment is with retrospective effect from 1 January 2018.

Duty Calls Watchlist

Comment on the safeguard investigation of other screws fully threaded with hexagon heads made of steel is due by 20 June