Wheat variable formula tariff
On 13 July the South African Revenue Service (Sars) announced an unprecedented fourth amendment for the year to date of the variable formula tariff on wheat and wheaten flour. The previous tariff amendments were on 25 May 2018 (an increase), 21 May 2018 (a reduction), and 06 April 2018 (a reduction). The recent amendment is for the reduction in the rate of customs duty of tariff subheadings 1001.91 (Seed) and 1001.99 (Other) from 43.72c/kg to 28.17c/ kg, and of 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 65.59c/kg to 42.26c/ kg, in terms of the existing variable tariff formula. The reason for the reduction can be found in the International Trade Administration Commission of South Africa (Itac) Minute 07/2018.
WCO Origin Guide
The World Customs Organisation (WCO) has developed a Practical Guide to the 2015 Nairobi Ministerial Decision on Rules of Origin for Least Developed Countries (LDCs). It serves to help WCO members and businesses in understanding and using preferential market access for LDCs. It provides practical information on how to qualify for preferential treatment and detailed explanations of the elements in the decision. In addition to the guide, there are five new WCO e‑learning modules on the topics of origin certification, cumulation, origin criteria, transportation criteria, and origin verification. Furthermore, the existing modules (introduction to origin and preferential rules of origin) have also been updated. As origin is one of the three customs cornerstones, even though South Africa it not an LDC there is value in studying the guide.
WCO’s Global Standards on E-Commerce
On 10 July the WCO published the Framework of Standards on CrossBorder E-Commerce which was adopted at its council meeting at the end of June. The framework sets out baseline global standards on cross-border e-commerce. It contains 15 standards focused on the e-commerce environment, with a view to providing pragmatic, fair and innovative solutions whilst taking into account the diverse expectations and concerns of customs administrations and stakeholders. The core essence of the framework is the exchange of advance electronic data for effective risk management and enhanced facilitation of growing volumes of cross-border small and low-value business-to-consumer (B2C) and consumer-to-consumer (C2C) shipments, and the adoption of simplified procedures with respect to clearance, revenue collection and return, among other things, in close partnership with e-commerce stakeholders. The framework also encourages the use of non-intrusive inspection equipment, data analytics and other cutting-edge technologies to support safe, secure and sustainable cross-border e-commerce. To promote and support implementation of the framework the WCO has scheduled five regional workshops for 2018/2019.
