Customs

Tariff Applications – Comment due

In a Government Gazette of 23 August 2013 numerous amendments in respect of the “General” rate of customs duty (duty) were published for which comments are due by 20 September 2013. Coated Fine Paper Duty increase The proposed increase in the rate of customs duty on coated fine paper, classifiable in tariff subheading 4810.13.20, 4810.13.90, 4810.14.10, 4810.14.90 and 4810.29.90 from free of customs duty to 5% ad valorem (the World Trade Organisation's bound rate). The application was lodged by Nampak Flexible, a division of Nampak Products Ltd who provide substantive reasoning for the application, citing as the main reason to enhance the competitive position of Sappi Southern Africa (Pty) against producers in low-cost countries, especially Asia and South-east Asia. Roasted Chicory Duty Increase The proposed increase in the duty on roasted chicory, classifiable in tariff subheading 2101.30.10, from 9.2c/kg to 37% ad valorem. (A specific customs duty to an ad valorem customs duty.) The application was lodged by Chicory SA Ltd who argue that it is experiencing fierce competition from imports, mainly India, predominantly as a result of overcapacity in their market; consequently, the price-undercutting of the imported products have resulted in the company losing significant market share. Heat Exchange Units Duty Increase The proposed increase in the duty on heat exchange units, classifiable under tariff subheading 8419.40, from free of customs duty to 15% ad valorem (the WTO's bound rate). The application was lodged by GEA Aircooled Systems (Pty) Ltd who offered numerous reasons for the application including that engineering project contractors are increasingly sourcing the product from Asian countries which offer bargain prices because of government subsidies, funding packages etc. Cranberry and Passion Fruit Juice Rebate The proposed creation of a rebate of the rate of duty provision for cranberry juice, classifiable under tariff subheading 2009.81.10, and passion fruit juice, classifiable under tariff subheading 2009.89.40, for use in the manufacture of mixtures of fruit juices, classifiable in tariff subheading 2009.90.10. The application was lodged by Ceres Fruit Juices (Pty) Ltd who reasoned that they were unable to source cranberry and passion fruit concentrates in sufficient quantities in the Southern African Customs Union (SACU) region. Poly Vinyl Butyral Duty Reduction The proposed reduction in the rate of duty on poly vinyl butyral, classifiable in tariff subheading 3920.91, from 10% ad valorem to free of customs duty. The application was lodged by National Auto Glass (Pty) Ltd who reasoned that there were no local manufacturers of poly vinyl butyral in the SACU region. Metal Fittings Duty Amendment The proposed amendment of tariff subheadings 8302.30.30, 8302.41.10 and 8302.42.10. With regards to tariff subheading 8302.30.30, (i) by the deletion of "Fittings of iron, steel or copper, commonly used in the manufacture of windows", and (ii) the insertion of "Fittings of iron, steel or copper (excluding window opening mechanisms) for windows, doors and door frames." With regards to tariff subheading 8302.41.10, (i) by the deletion of "Fittings of iron, steel or copper, of a kind solely or principally for doors and door frames, of base metal". With regards to tariff subheading 8302.42.10, (i) By the deletion of "Fittings of iron, steel or copper, commonly used in the manufacture of doors", and (ii) The insertion of "Fittings of iron, steel or copper, of a kind solely or principally for doors and door frames, of base metal". The application was lodged by the South African Revenue Service (SARS) who reasoned, amongst other, that on importation of the products that fall under these tariff subheadings, it is not possible to establish whether or not the fitting will be used in the manufacture of windows, doors and/or door frames.

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