On 18 October 2013 the following tariff applications were published in the Government Gazette, for which comment is due by 15 November 2013. Uncoated Paper and Paperboard In the Government Gazette of 18 October 2013, the proposed increase in the "General" rate of customs duty on uncoated paper and paperboard, classifiable in tariff subheadings 4802.56.20 and 4802.56.90, from free of duty to the World Trade Organisation (WTO) bound rate of 5% ad valorem and 20% ad valorem respectively. The application was lodged by the Paper Manufacturers’ Association of Southern Africa (PAMSA) who offered the following reasons for the application: (i) To curb further losses on the work force, where large retrenchments have already taken place; (ii) To provide the companies opportunity to improve their competitive position in an international market where over supply is a reality. This over supply has a direct adverse effect on the pricing of the product and therefore hampers price competition; (iii) To encourage the industry to continue to invest in South Africa and create further employment; (iv) To assist upstream and downstream serves and product providers to the industry which will enable further investment into the industry value chain as a whole; and (v) To enable the local industry to maintain and expand capacity to earn foreign currency through exports. Comment is due by 15 November 2013. Blades for Windscreen Wipers The proposed increase in the "General" rate of customs duty on blades for windscreen wipers, classifiable in tariff subheading 8512.90, from free of customs duty to 30% ad valorem, by way of creating an additional 8-digit tariff subheading under tariff subheading 8512.90, for blades for windscreen wipers. The application was lodged by Viking Plastics (Pty) Ltd who reasoned that: (i) The company has steadily lost its total market share to imported blades for windscreen wipers; (ii) In an effort to remain competitive, the company has reduced the selling price of the subject product by 20% and embarked on a marketing campaign and rebranding to regain the market share; and (iii) The decline in the manufacturing sector coupled with the rising operational costs (labour, electricity and other utilities etc.) are providing challenges. Comment is due by 15 November 2013. Wheel Hubs The proposed reduction (decrease) in the "General" rate of customs duty on wheel hubs (excluding those of unmachined cast metal), classifiable in tariff subheading 8708.50.20, from 20% ad valorem to free of duty. The application was lodged by Hudaco Trading (Pty) Ltd who offered the following reasons for the application: (i) There are currently no local manufacturers of the subject product in the Southern African Customs Union (SACU) due to local of the equipment necessary for precision manufacturing and the unavailability of accurate torque level setting; and (ii) The benefits of the duty reduction will be passed on to the buyers of the products, should the application be successful. Comment is due by 15 November 2013. Methyl Ester Sulphate The proposed rebate of the customs duty (creation of a Rebate Item) for methyl ester sulphate, classifiable in tariff subheading 3402.11, for the manufacture of washing preparations (detergents), classifiable in tariff subheading 34.02. The application was lodged by Unilever South Africa (Pty) Ltd who reasoned that the product in question was not manufactured in SACU. The obvious question to this reason would be why a rebate of the customs duty is applied for and not a reduction in the "General" rate of customs duty? Comment is due by 15 November 2013.
