Customs

Itac on 19 June 2015 published a tariff application for the reduction in the ‘General’ rate of customs duty on diesel, petrol and electric passenger vehicles not exceeding 800kg; diesel goods vehicles not exceeding 1 100kg and petrol and electric goods vehicles exceeding 800kg, from 25% ad valorem to free of duty ", as follows: (i) Tariff heading 87.03 Motor cars and other motor vehicles principally designed for the transport of persons (excluding those of heading 87.02), including station wagons and racing cars; (ii) 8703.21 ** - - other vehicles with a mass not exceeding 800 kg; (iii) 8703.31** - - of a mass not exceeding 800 kg; (iv) 8703.90* * - -electric vehicles with a mass not exceeding 800 kg; (v) 8703.90 - - other electric vehicles; (vi) 87.04 Motor vehicles for the transport of goods:; (vii) 8704.21** - - other, of a vehicle mass not exceeding 1100 kg; (viii) 8704.31** - - other ( excluding off the road logging trucks and three wheeled vehicles) of a vehicle mass not exceeding 800 kg; (ix) 8704.90** - - electric vehicles with a mass not exceeding 800 kg; (x) 8704.90** - - other electric vehicles, of a mass not exceeding 2 000 kg or a G.V.M not exceeding 3500 kg or of a mass not exceeding 1 600 kg or a G.V.M not exceeding 3 500 kg per chassis fitted with a cab.

The application was lodged by Smith Mining Equipment (Pty) Ltd t/a Smith Power equipment who reason that (i)  There are no local manufacturers of the subject products in the Southern African Customs Union (Sacu) region; (ii) The cost-raising effect of the current customs duty has resulted in reduced market share of the local industry; and (iii) A reduction in the customs duty would increase the demand for the subject products and enable the applicant to expand its dealer network and operations in the African region.

Comment is due by 17 July 2015.