Duty Calls

A weekly summary of the main changes to the South African tariff dispensation and amendments to customs and excise legislation. Compiled by Riaan de Lange. E-mail: riaan@importsolutions.co.za The Administration of the Russia GSP and Turkey GSP – Response Due The Russian Federation and the Republic of Turkey have extended the Generalised System of Preferences (GSP) to South Africa. The GSP provides for the reduction in the rate of customs duties on developing countries’ exports. In terms of a decision reached between the Department of Trade and Industry (DTI) and the South African Revenue Service (SARS), SARS will be responsible for the administration of GSPs where the country granting the preference insists that certification and verification be done by a governmental authority. Should that not be the case the DTI will delegate this responsibility to the chambers of commerce. The administration of the two GSPs will be taken over by SARS with effect from 1 December 2005. SARS believes that it is important to provide a solid legal base on which these initiatives are administered in order to bind exporters to declarations that they make and to take the necessary action against exporters making false declarations. For this purpose Section 46A has been included in the Customs and Excise Act and specific rules provide for the administration of each of the GSPs. SARS has released the draft rules for the administration of the two GSPs. Response due by 11 October 2005. Draft Customs and
Excise Rules on State Warehouse Rent SARS has announced that after extensive changes were made to the DA68 form i.e. “Application for Delivery of Goods Ex State Warehouse”, it has decided to invite comments on the proposed changes. Comment due before 4 October 2005. More information available on request. Invitation to comment
on Environmental Levy SARS has invited comment on the environmental levy on plastic bags that was introduced on 1 June 2004. Comments due by 13 October 2005. More information available on request. No rule amendments
– 23 September 2005 No tariff amendments – 23 September 2005 Tariff applications – response due The reduction in the rate of customs duty (duty) on complementary medicine with a rate of duty of free to 20 per cent ad valorem to free of duty through the creation of an additional 8-digit tariff subheading, which reads “Complementary medicine – isoflavone phyto estrogens”. The application was lodged by KCP Products (Pty) Ltd. Comment due by 7 October 2005. The extension of Rebate Item 316.09/8516.90/01.06 to read “Parts, for the manufacture of electric hot trays, stoves and glass-top hobs of heading 85.16”. The application was lodged by Defy Appliances Ltd. Comment due by 7 October 2005. No Anti-dumping amendments
– 23 September 2005 Note: This is a non comprehensive statement of the law. No liability can be accepted for errors and omissions. CP Ships counter-bid dropped CMA-CGM has dropped its plans to make a counter bid for the Anglo-Canadian shipping line, CP Ships, according to the latest issue of BRS Alphaliner. This follows the bid by TUI – of which Hapag Llloyd is the shipping subsidiary –of about US$2-billion (R13-bn) late in August.