Sugar Reference Price Increase On 20 September 2013 the International Trade Administration Commission of South Africa (ITAC) published a proposed increase in the domestic Dollar-based reference price (DBRP) for sugar, classifiable in tariff heading 17.01 of Schedule No.1 Part 1 to the Customs and Excise Act (Act), from U$358/ton to US$764/ton through an adjustment of the calculation of the DBRP for sugar by basing it on the domestic cost of production. Using the requested reference price of US$764/ton, the variable formula for sugar will trigger an increase in the customs duty if the London No.5 sugar settlement price falls by US$20/ton below the base price, which is the 3-week moving average price for the London No.5 sugar settlement price. Conversely, a reduction in the customs duty will be triggered if the London No.5 sugar settlement price increases by US$20/ton above the base price. The application was lodged by the South African Sugar Association (SASA) who reasoned that the main motivation for an adjustment in the Southern African Customs Union (SACU) tariff on imported sugar is to have a fair level of protection which can be justified on the following basis: (i) The SASA and Sustainable Socio-Economic Development; (ii) Government Policy Coherence; (iii) Imports and the Financial Sustainability of the Industry; and (iv) The Distorted World Market and Competitiveness. SASA also submitted that the industry is a key component of the South African agriculture and national socio-economic development. However, for the Industry to continue in its present form and contribution to government’s development objectives, it requires economic stability and sustainability. It was further submitted that the SACU tariff from sugar plays a crucial role in this regard as the industry cannot maintain its contribution to national development in the absence of an effective tariff, given the nature of the distorted global sugar sector. Comment is due by 18 October 2013. Quota Allocation for Used Overcoats ITAC extended a request for comments on 20 September 2013 for the proposed increase in the allocation of quota for the importation of used overcoats under Rebate Item 460.11/00.00/01.00 for 2014. The invitation is to comment on the request by the Association of Importers of Worn Overcoats (AIWO) for a 30% increase in the level of quota for 2014 regarding applications in terms of the provisions under Rebate Item 460.11/00.00/01.00 of Schedule No.4 to the Act for permits for partial rebate of the full rate of customs duty less 30%ad valorem on used overcoats. Interested parties also need to comment on the following conditions being added to the guidelines’ rules and conditions pertaining to permits issued under Rebate Item 460.11/00.00/01.00 for used overcoats, car-coats, raincoats, anoraks, ski-jackets, duffle coats, mantles, three-quarter coats, greatcoats, hooded caps, trench coats, gabardines, padded waistcoats and parkas (but no clothing articles), classifiable in tariff headings 61.01, 61.02, 62.01, 62.02 and tariff subheading 6309.00.13 in such quantities, at such times and subject to such conditions as ITAC may allow by specific permit: (1) Containers must arrive for inspection only during Monday to Friday. No arrivals may occur during Saturday, Sunday or public holidays. (2) Importers need to provide ITAC with proof of salaries being paid to temporary workers. (3) The date for issuing permits will be changed from February to an earlier period. The application was lodged by ITAC, which indicated that the AIWO provided the following reasons for its request: (a) This increase will make up for the permit loss of 2013 and help importers back into the position where they would have been had the normal 10% increase per year been allowed for 2013 and 2014. (b) The additional 8% will cater for the present harsh economic situation every importer is presently experiencing, such as increase in salaries and other overheads. (c) The Increase will also help in sustaining the present work force and prevent job losses. (d) An earlier date will assist the importers to plan in time for the winter season. The reasons offered for amending the guidelines are to further improve the administration of the Rebate Item. Comment is due by 18 October 2013. Footwear Rebate Item On 20 September 2013 ITAC informed of the proposed rebate of the full customs duty on other pile fabrics, knitted or crocheted, of man-made fibres, classifiable in tariff subheading 6001.92 of Schedule No.1 Part 1 to the Act, for the manufacture of footwear with uppers of textile materials, classifiable in Chapter 64 of Schedule No.1 Part 1 to the Act. The application was lodged by Fast Fox Footwear t/a The Little Slippery Co, which reasoned that there are no local manufacturers of the product in question within the SACU region, and that the company is under threat from imported slippers. Comment is due by 18 October 2013. Biaxially Oriented Polypropylene Withdrawn ITAC informed on 20 September 2013 of the proposed withdrawal of the application for an increase in the rate of customs duty on biaxially oriented polypropylene, classifiable in tariff subheading 3920.20.25 and 3920.20.30 of Schedule No.1 Part 1 to the Act, from a rate of customs duty of 10% ad valorem to 20% ad valorem. The application was lodged by Fima Films (Pty) Ltd, which indicated that as a result of the change in the management structure, a new strategy which differs from that of the previous management was developed. The new management has considered the application for the proposed increase in the rate of customs duty and decided that it would not be beneficial for the company owing to the negative response received from the downstream industry opposing the application. Comment is due by 18 October 2013. Story by : Duty Bound
