Sars ruling targets ‘origin-switchers’

No way round Chinese quota system
ALAN PEAT
IN AN attempt to nullify possible “origin switching” as a way round the quota system on imported Chinese textiles and clothing, SA Revenue Service (Sars) has put a system into place which should control this attempted evasion. Information released to FTW by Safcor Panalpina reveals that it is aimed at importers of non-Chinese textiles and clothing falling within the 31 tariff items affected by the Chinese quota system. They may be called on to produce certificates of origin (form DA59) in order to prove that they are not attempting to circumvent the regulations. “Importers must ensure that these are available for all of their imports at the time of clearance,” said Safcor’s senior freight auditor, Jeff Epstein. The restrictions on the importation of Chinese products – implemented on January 1 – apply irrespective of whether the products are imported directly from China or through a third-party country. “Sales on the high seas of affected items will only be approved by Sars if both the seller and buyer hold relevant special import permit certificates,” Epstein added. “And, where an imported consignment exceeds the available quota, the entire consignment is subject to seizure – not just that portion for which there is no quota permit.” Brian Brink, executive director of the Textile Federation (TexFed), is delighted at the scheme. “When details of regulations and control measures were being formulated by Sars,” he told FTW, “concerns were raised about possible origin switching and transhipping to circumvent Chinese quota arrangements. “Sars undertook to address this issue, and we are encouraged by the measures introduced to eliminate origin fraud.”