Customs and Excise highlights

1. Rule amendments (certain sections quoted from the SARS website):

1.1    Draft rules under s8 of the Customs & Excise Act, No 91 of 1964 (Act), relating to the reporting of conveyances and goods (RCG), and intended to replace the current rules under s8 of the Act were published for public comment. The content of the proposed rules under s8 is, within the context of the Act, closely related to Chapter 3 of the Customs Control Act, No 31 of 2014. The proposed rules are intended to bring the RCG requirements under the Act closer to what will be required in terms of the Customs Control Act when that Act comes into effect.

Comments can be submitted to C&E_legislativecomments@sars.gov.za by 19 January 2018. 

1.2    Amendment to rules under s13, s46 and s49 relating to amendments of the various trade agreements and forms DA 185.4A7 and DA 185.4A2. 

1.3    Amendment to rules for the implementation of the REX system of self-certification of the origin of goods exported to Norway in terms of the Generalized System of Preferences. 

2. Amendments to Schedules to the Act (certain sections quoted from the SARS website):

2.1    Schedule 1:

2.1.1     To implement the revised Tariff Rate Quota in terms of the Economic Partnership Agreement (EPA), with retrospective effect from 1 September 2017 up to and including 31 December 2017. 

2.1.2     To implement the revised Tariff Rate Quota in terms of the EPA, with effect from 1 January 2018. 

2.2    Schedule 1 Part 1:

2.2.1     The substitution of tariff subheadings 1001.91 and 1001.99 as well as 1101.00.10 and 1101.00.90 to reduce the rate of customs duty on wheat and wheaten flour from 91c/kg and 136,50c/kg to 71,63c/kg and 107,45c/kg respectively.

2.2.2     Implementation of changes to the rates of customs duties in terms of the Economic Partnership Agreement between the European Union and the Southern African Development Community EPA States for 2018 and other miscellaneous amendments, with effect from 1 January 2018. 

2.2.3     To increase the rate of customs duty on self-adhesive tape of subheading 3919.10.

2.2.4     The creation of subheading 7602.00.90 (“Aluminium waste and scrap”), with retrospective effect from 17 November 2017. 

2.3    Schedule 2:

2.3.1     Item 260.03 – To create a temporary rebate provision on safeguard duty applicable to certain hot-rolled steel classifiable in tariff headings 72.08 and 72.25. 

2.4    Schedule 3:

2.4.1     Deletion of rebate item 311.12/54.07/03.04 (“Woven fabrics of synthetic filament yarn”).

2.5    Schedule 4:

2.5.1     Item 416.15 – To implement changes to the rates of customs duties in terms of the EPA between the European Union and the Southern African Development Community EPA States for 2018 and other miscellaneous amendments with effect from 1 January 2018. 

2.5.2     Item 460.15 – The creation of a temporary rebate provision for the importation of certain stainless steel classifiable in tariff heading 73.18.

2.5.3     Item 460.15 – The creation of a temporary rebate provision for the importation of certain structural steel in the form of U, I, H and L sections, classifiable in tariff headings 7216.40 and 7228.70.

2.6    Schedule 6:

2.6.1     Item 670.03 – Amendments to provide for refund provisions on distillate fuel for the manufacture of intermediate fuel oil with retrospective effect from 30 September 2015.

2.6.2     Item 623.14 – Amendments to provide for refund provisions on distillate fuel for the manufacture of intermediate fuel oil with retrospective effect from 30 September 2015. 

3. The International Trade Administration Commission has done the following (certain sections quoted from the notices):

3.1    Invited new importers to submit permit applications in terms of the rebate item 460.11/00.00/01.00 (“Used overcoats, car-coats, raincoats, anoraks, skijackets, duffle coats, mantles, three-quarter coats, greatcoats, hooded caps, trench coats, gabardines, padded waistcoats and parkas (but no other clothing articles) classifiable under tariff headings 61.01, 61.02, 62.01, 62.02 and 6309.00.13”), for 2018, within three (3) weeks from the date of the publication, being 5 January 2018.   

For enquires contact: Mr Christopher Sako, email: csako@itac.org.za, Tel: (012) 394 3669, Mrs Edith Ayanda Gandi, email: endou@itac.org.za, Tel: (012) 394 3672 or Ms Kokami Legodi email: klegodi@itac.org.za, Tel: (012) 394 3812.

3.2    Issued a notice of initiation of the sunset review of the anti-dumping duty on glass frit originating in or imported from Brazil on 15 December 2017. On 21 July 2017, the International Trade Administration Commission of South Africa notified the SACU industry through Notice No. 546 in the Government Gazette No. 40998, that unless a substantiated request is made by it indicating that the expiry of the anti-dumping duties on the subject product originating in or imported from Brazil would likely lead to the continuation or recurrence of dumping and injury, the antidumping duties on the subject product originating in or imported from Brazil will expire on 14 February 2018. A detailed response to the Commission’s sunset review questionnaire was received.

The Applicant alleges that the expiry of the duty would likely lead to the recurrence of dumping and the recurrence of material injury. The Applicant submitted sufficient evidence and established a prima facie case to enable the Commission to arrive at a reasonable conclusion that a sunset review investigation of the anti-dumping duty on glass frit originating in or imported from Brazil be initiated.

Should you have any queries, please do not hesitate to contact the investigating officers Mr Busman Makakola at +27 12 394 3380 and Ms Charity Ramaposa at +27 12 394 1817 or at fax number +27 12 394 0518. Due date is 30 days from date of notice.

4. Government Gazette 41306 Notice 948 dated 8 December 2017 relating to Guidelines, Rules and Conditions pertaining to Permits issued under Rebate Item 460.17/87.03/04.04 for vintage and/or internationally collectable motor vehicles not imported for conventional/ Domestic Daily Transportation Use or Purposes Classifiable under Tariff Heading 87.03 has been published. 
   
   
5. The Rates and Monetary Amounts and Amendment of Revenue Laws Act, 2017 was promulgated on 14 December 2017. 
   
   
6. On 15 December 2017, the following was published (quoted from the media statement of the National Treasury):

Following the promulgation of the Rates and Monetary Amounts and Amendment of Revenue Laws Act, 2017 (Act, No 14 of 2017) (2017 Rates Act), the National Treasury and SARS today publish the 2017 Rates Act. The 2017 Rates Act deals with changes in tax rates and monetary thresholds, excise duties on alcohol beverages and tobacco products as announced in the 2017 Budget Speech and 2017 Budget Review. Further, the 2017 Rates Act also introduces a Health Promotion Levy to be imposed on Sugary Beverages, effective from 1 April 2018.

7. The levies and fees payable on goods subject to compulsory specifications relating to the National Regulator for Compulsory Specifications (NRCS) have been increased per Department of Trade and Industry Notice 1413 dated 15 December 2017. 
   
   
8. The tariff of fees charged for services rendered in terms of the Legal Metrology Act, No 9 of 2014 by the NRCS has increased per Department of Trade and Industry Notice 1412 dated 15 December 2017. 
   
   
9. Please advise if additional information is required.