Import tariff amendments in a nutshell

The objectives of import tariff amendments are to promote domestic production, job retention and creation, and international competitiveness, according to a statement issued to FTW by the chief commissioner of the International Trade Administration Commission (Itac), Siyabulela Tsengiwe. Various kinds of custom duties and tariff amendments are applied by Itac during tariff investigations, he added. “Selective increases in customs duties are to grant relief for domestic producers experiencing threatening import pressures,” Tsengiwe said. “This allows them to adjust and restructure so that, in the medium- to longterm, they can become internationally competitive without any support in the form of customs duties.” This is made possible because there is a difference between the applied rates and the WTO-bound rates, which acts as a ceiling beyond which customs duty increases cannot go. Also, the tariff support decided on is tied to economic performance over time – and is reviewed after a specified period. “Selective reductions are also considered where goods (consumption, intermediate or capital goods) are not manufactured domestically or unlikely to be manufactured domestically,” the commissioner said. It’s all based on a strictly controlled procedure. Comprehensive criteria for adjudicating tariff applications have been set, and these are consistently applied across all sectors based on information obtained through comprehensive questionnaires and on-site verifications. “The adjudication process is rigorous and evidencebased,” Tsengiwe said, “and is carried out on a case-bycase basis considering the implications for the full value chain. “Also, in light of the pressing challenge of unemployment, the criteria are applied in a manner that is sensitive to employment outcomes.” Customs tariffs can take the following forms: • Ad valorem duties; • Specific duties; • A combination of ad valorem and specific duties; • Formula duties with reference prices; and • Variable tariff formulae for selected agricultural products. In the SA tariff book there is currently a total of 6 650 eight-digit tariff lines – 115 formula or specific duties; 81 specific duties; 8 variable tariff formulae; 3 254 attracting ad valorem duties; and 3 192 duty-free. Readers who feel they have a case can obtain customs tariff amendment application forms from Itac’s website – www.itac.org.za Completed application forms should be addressed to: Chief Commissioner, International Trade, Administration Commission, Private Bag x753, Pretoria, 0001.