On 24 May 2024, the International Trade Administration Commission of South Africa (ITAC) called for comment on the creation of a Rebate Item on palm oils and its fractions, partly or wholly hydrogenated, whether or not refined, but not further prepared, classifiable in tariff subheading 1516.20.90, for use in the manufacture of soaps and organic surface-active products and preparations, in the form of bars, cakes, moulded pieces or shapes. Comment is due by 21 June 2024.
The application was lodged by Unilever South Africa (Pty) Ltd who reasoned that:
- It faces challenges due to rising costs, inflation, and competition from cheaper imports.
- Furthermore, the company is altering its formulation for producing soap bars to support its strategy of sourcing sustainable materials to prevent harm to people and plants.
- This formulation utilises palm oil, which currently attracts a 10% ad valorem duty.
- A rebate of the duty on imported palm oil is therefore necessary to maintain local manufacturing and competitiveness in the domestic market.
- While alternatives like sunflower and soybean oils exist, they require additional processing, increasing costs and making them less competitive compared to palm oil.
Customs Weekly List of Unentered Goods
On 20 May 2024, the South African Revenue Service (SARS) published its Customs weekly list of unentered goods.
For ease of reference the following supplementary information is provided:
State Warehouses
The state provides state warehouses for the safekeeping of goods. These are managed by Customs. Their main purpose is to secure the duty and Value-added Tax (VAT) due on undeclared, abandoned or seized goods. Declared goods detained provisionally for the correct tariff classification or without a permit are also stored in state warehouses.
Once the importer or owner of the goods has met all customs requirements, the goods may be released on receipt of state warehouse rent. Unclaimed goods may be sold by public auction after a prescribed period from the date on which the goods were placed in the state warehouse. The proceeds go towards covering duties, VAT or other expenses.
The list is accessible at:
www.sars.gov.za/ClientSegments/Customs-Excise/Pages/State-Warehouse.aspx