Prohibited and Restricted Goods - Updated
On 09 July the South African Revenue Service (Sars) announced the publication of its update Prohibited and Restricted Goods.
What are Prohibited and Restricted goods?
The main difference between prohibitions and restrictions is that: (i) prohibited goods are never allowed to enter or exit South Africa under any circumstances; and (ii) restricted goods are allowed to enter or exit South Africa only in certain circumstances or under certain conditions, for example on production of a permit, certificate or letter of authority from the relevant government department, institution or body.
Sars administers certain prohibitions or restrictions in terms of Section 113(8)(a) of the Customs and Excise Act, 1964 “Prohibition and restrictions” on behalf of a number of government departments, institutions or bodies, for example the Department of Agriculture, Forestry and Fisheries, National Regulator for Compulsory Specifications (NRCS), the South African Reserve Bank (SARB), to name a few.
Prohibitions and restrictions are not limited to goods carried by travellers, but are applicable on all modalities of transport (road, rail, air, sea, post or other). This means that products subject to any prohibitions or restrictions will be subject to those no matter in what form of package or packaging they are imported or exported.
In addition to the prohibitions and restrictions, the status of the goods must also be declared as follows:
(i) N for new goods; (ii) U for used goods; and (iii) S for second hand goods.
The prohibitions and restrictions from all different government departments, institutions or bodies are incorporated in the Consolidated List of Prohibited and Restricted Imports and Exports, which is supplied here for ease of reference.
The list is categorised according to the tariff structure of the Harmonised Commodity Coding and Description System (commonly known as the HS Tariff or Tariff Book), whereby goods are classified upon importation or exportation: Consolidated list of Prohibited and Restricted Exports and Imports.
The Prohibited and Restricted Goods is accessible at:
https://www.sars.gov.za/ClientSegments/Customs-Excise/Pages/Prohibited-and-Restricted-goods.aspx
South African Automotive Masterplan – Comment due
On 08 July the South African Revenue Service (Sars) called for comment on its amendments to support the vision of the South African Automotive Masterplan of creating "a globally competitive and transformed industry that contributes to the sustainable development of South Africa’s productive economy, creating prosperity for industry stakeholders and broader society". Comment is due by 05 August.
Draft tariff amendments to amend:
- Part 1 of Schedule No.1 to the Customs and Excise Act, 1964
- Ordinary Customs Duty
- Notes to Chapter 98 (Original Equipment Components)
- Part 1 of Schedule No.3 to the Act, 1964
- Industrial Rebates of Customs Duties - Goods Used in the Manufacture of Other Goods
- Rebate item 317.01
- Part 1 of Schedule No.3 to the Act, 1964
- Industrial Rebates of Customs Duties - Goods Used in the Manufacture of Other Goods
- Rebate item 317.04
- Part 2 of Schedule No.4 to the Act, 1964
- General Rebates of Customs Duties, Fuel Levy and Environmental Levy - Temporary Rebates of Customs Duties
- Rebate item 460.17
- Part 3 of Schedule No.5 to the Act, 1964
- Rebate item 537
- Specific Drawbacks and Refunds of Customs Duties, Fuel Levy and Environmental Levy -Miscellaneous Refunds of Customs Duties and Fuel Levy
The amendments should be read with the International Trade Administration Commission of South Africa (Itac) draft published on the following link:
www.itac.org.za/pages/services/tariff-investigations/apdp-post-2020-documents
The Sars proposed tariff amendment is accessible at:
Sars External Policy on Tariff Classification – Updated
On 07 July the South African Revenue Service (Sars) announced an update of its “Tariff Classification External Policy External Policy”, which relates to: (i) The insertion of the requirement to receive priority treatment for clients accredited as preferred traders; (ii) The insertion of the Promotion of Administrative Justice Act (PAJA) paragraph; and (iii) Removing reference to Value-added Tax (VAT) penalties under the Tax Administrations Act, referred to in the appeals against decisions and the References paragraphs. All appeals are dealt with under the Customs and Excise Act, 1964.
The Summary of the Main Points of the Policy:
(a) Classification of imported or exported goods must be done according to: (i) Section 47(9); and (ii) The General Rules for Interpretation of the Harmonised System.
(b) Clients intending to export/import must, in the event that they are unable to classify the goods, apply for a tariff determination on intended imports to Customs.
(c) All imported and exported goods must be declared on a Customs clearance declaration (CCD) with an appropriate tariff heading. Refer to declaration documents SC-CF-04 and SC-CF-55.
The insertion of 2(d) Promotion of Administrative Justice Act
“i) The Promotion of Administrative Justice Act (PAJA) No. 3 of 2000 gives effect to everyone’s right to administrative action that is lawful, reasonable and procedurally fair. Any person whose rights have been adversely affected by administrative action has the right to be given written reasons, as contemplated in Section 33 of the Constitution of the Republic of South Africa, 1996. PAJA:
A) Provides for the review of administrative action by a court or where appropriate, an independent and impartial tribunal;
B) Imposes a duty on the State to give effect to those rights;
C) Promotes an efficient administration as well as good governance; and
D) Creates a culture of accountability, openness and transparency in the Public Administration or in the exercise of a public power or the performance of a public function, by giving effect to the right to just administrative action.
ii) Administrative action which significantly and unfavourably affects the rights or valid expectations of any person must be procedurally fair. A fair administrative procedure depends on the circumstances of each case.
iii) A person must be given:
A) Written reasons of the nature and purpose of the proposed administrative action;
B) A reasonable opportunity to make representations;
C) A clear statement of the administrative action; and
D) Adequate notice of any right of review or internal appeal, where applicable.
iv) Just administrative action requires the Customs Officer to consider all the facts presented and obtained in addition to affording the client the opportunity to be heard, prior to instituting any administrative action.
v) Before administrative action can be taken by Customs the declarant must be allowed the opportunity to:
A) Obtain assistance and, in serious or complex cases, legal representation;
B) Present and dispute information and arguments; and
C) Appear in person.
vi) Declarants whose rights have been significantly and unfavourably affected by administrative action and who have not been given reasons for the action may, within thirty (30) days after the date on which the declarant became aware of the action, request Customs to furnish written reasons for the action.
vii) Customs must within forty five (45) days after receiving the request, give the declarant adequate reasons in writing for the administrative action. If Customs fails to furnish adequate reasons for the administrative action, it is presumed in any proceedings for judicial review that the administrative action was taken without good reason.”
The Notice is accessible at:
Tax Clearance for Small Businesses
On 06 July the South African Revenue Service (Sars) announced the process for small businesses to obtain their Tax Clearance Information.
According to Sars, Small, Micro or Medium Enterprises (SMME), at some point or another will be required to provide/confirm / share their Tax Clearance information with another entity. This could be to apply for a tender, new contract, good standing or in respect of Foreign Investment.
The process to obtain Tax Clearance Information is accessible at:
Draft Merchant Shipping Bill, 2020 – Comment due
On 06 July the Department of Transport announced the extension of the period for public comments on its draft Merchant Shipping Bill, 2020, which was published for public comments by 06 August.
The notice is accessible at:
https://www.gov.za/sites/default/files/gcis_document/202007/43505gen369.pdf
UK, Saudi Arabia, and Kenya Nominated WTO Director-General Candidates
On 08 July the United Kingdom (UK) nominated Dr Liam Fox for post of World Trade Organization (WTO) Director-General, whilst the Kingdom of Saudi Arabia nominated Mr Mohammad Maziad Al-Tuwaijri, and Kenya Ms Amina C. Mohamed to succeed the current Director-General, Mr Roberto Azevêdo, who has announced he will step down on 31 August.
WTO Issues the Latest Edition of World Tariff Profiles
On 06 July the World Trade Organization (WTO) issued the latest edition of its annual publication World Tariff Profiles, which provides comprehensive information on the tariffs and non-tariff measures imposed by over 170 countries and customs territories. The publication is jointly prepared by the WTO, the United Nations Conference on Trade and Development (Unctad) and the International Trade Centre (ITC).
Tariff data are presented in comparative tables indicating, among other things, the average “bound” or maximum tariff each economy may apply to its imports and the average tariff it applies in practice. A one-page profile for each economy provides more detailed data, with tariffs broken down by product groups and trading partners.
A summary table providing selected indicators on the imports and exports for each country and customs territory is also included. In addition, the publication provides statistics on non-tariff measures, such as safeguards and anti-dumping measures used by WTO members.
The special topic for this issue is market access to medical goods related to Covid-19. The chapter looks into the bound and applied tariffs for a range of medical products such as medicines and medical technology critical for the global response to the Covid-19 pandemic. It finds that the average tariff applied by WTO members to all medical products is 4.8%, with the highest tariffs being applied to personal protective products (an average tariff of 11.5%).
The WTODATA portal is accessible at: