'Time to spring-clean Customs tarriff book'

FOR FTW Customs expert Riaan de Lange there are several issues on the boil for the year ahead. NIPF customs duty reviews In August last year the Minister of Trade and Industry Mandisi Mpahlwa released the National Industrial Policy Framework (NIPF). This document identified four lead sectors requiring special focus: capital or transport equipment and metals fabrication; automotives and components; chemicals, plastic fabrication and pharmaceuticals; and forestry, pulp, paper and furniture. These were subject to customs tariff review investigations, initiated towards the latter part of 2007. A comprehensive review of customs duties in these sectors was due to be completed by March 2008 but this could well be one of the first deadlines to be missed since not all reviews were published in 2007 and for those published there was an extension to January 25, which makes the March deadline very unlikely. Rewrite of the Customs and Excise Act Could this be the year when the much-anticipated rewrite of the Customs & Excise Act makes it into the public domain? Much has been written and said about the rewriting process, but there’s been little action. Past deadlines have come and gone. It is generally agreed that a new Customs & Excise Act is long overdue, considering that it is a 1964 Act, which makes it one of the oldest, if not the oldest Act in effect. Trade liberalisation or trade protection Last year increases in the rate of duty applications were a rare occurrence. Will the same trend persist? All indications are that it will be much the same this year, but should a strong rand persist then things might well change. Though people might not be attuned to it, a weakening rand serves the same purpose as increased tariff protection. 2008 may well be the year in which tariff liberalisation slows down. If anything, the focus should be on low if not free rates of duty on inputs, which steadily increase to duties on end products. This is the system that our trade partners employ. A New Year ‘springcleaning’ wish My wish for the year is a spring-clean of the South African Harmonised Customs and Excise Tariff – the tariff book. With all the trade agreements, tariff applications, and HS2007, I believe that a spring clean is long overdue and necessary. A tariff chapter-by-chapter review will be ideal to ensure that the tariff is clear of any anomalies.