SADC EPA Safeguard – Comment due On 20 July the International Trade Administration Commission of South Africa (Itac) published draft guidelines and conditions pertaining to a safeguard (fair trade remedy) application in terms of Article 34 (General Bilateral Safeguards) of the Economic Partnership Agreement (EPA) between the 28 member states of the European Union (EU) and the 15 member states of the Southern African Development Community (SADC). Article 34 of the EPA provides for the initiation of a safeguard which serves to remedy or prevent serious injury or disturbances. A safeguard takes the form of one or more of the following options: (a) suspension of further reduction in the customs duty; or (b) increase in the customs duty; or (c) a tariff quota. Comment on Itac’s draft reference and procedural guide is due by 30 July. Disposable underwear description review Itac on 20 July published a review of the description of tariff subheading 6210.10.20 in Part 1 of Schedule No 1 to the Customs and Excise Act No 91 of 1964 (Act, 1964), which reads as follows: “disposable panties of fabrics of heading 56.03” on which comment is due by 17 August. The review is conducted with a view to possibly amending the abovementioned description of tariff subheading 6210.10.20, provided there are no local manufacturers, as follows: “Disposable underwear of fabrics of heading 56.03”. This proposed tariff description is intended to cover universal disposable underwear, which is currently not the case as the prevailing tariff structure differentiates between disposable panties classifiable under tariff subheading 6210.10.20 at free of duty and other disposable underwear classifiable under tariff subheading 6210.10.90 at a rate of duty of 40% ad valorem. The application was lodged by South African Revenue Service (Sars) who reasoned that (a) Disposable under garments of nonwoven fabrics appear to have evolved from their original use as substitutes for sanitary pads and are now used, inter alia, as theatrewear for patients during surgical procedures. (b) The current description of tariff subheading 6210.10.20 currently at free of customs duty makes it discriminatory and difficult to administer as some disposable underwear of fabrics of tariff heading 56.03 are imported under tariff subheading 6210.10.90 which attracts a general rate of customs duty of 40% ad valorem. (c) If disposable underwear is not manufactured locally it is reasonable to review the description of tariff subheading 6210.10.20 to reflect this position. Tax Laws and Tax Administration Bills On 17 July National Treasury and Sars announced the publication of the 2018 draft Taxation Laws Amendment Bill (TLAB) and its Explanatory Memorandum, the 2018 draft Tax Administration Laws Amendment Bill (TALAB) and its Explanatory Memoranda on which comment is due by 16 August The TLAB and TALAB include the legislative amendments for the more complex tax proposals that were announced in the 2018 Budget Review in February. The TALAB contains proposed amendments to sections 58A and 114A to the Act, 1964, and sections 1, 71 and 705A to the Customs Control Act, 2014 (Act, 2014). It has been 1 465 days since the Act 2014 was published.
