DUTY CALLS is your weekly look at changes in the South African tariff dispensation and amendments to Customs and Excise legislation. This column aims to provide the reader with a summary of the main changes and is not intended to be a comprehensive statement of the law. No liability is accepted for errors or omissions.
The withdrawal of rebate item 306.04/15.16/02.00 of the full duty on hydrogenated castor oil is withdrawn, as it has become superfluous.
Withdrawal of Anti-dumping
duty - 29 June 2001
The anti-dumping duty on hydrogen peroxide, not solidified with urea, item 206.01/28.47/01.06, originating in or imported from Italy and the Republic of China (Taiwan), is withdrawn with effect from 5 July 2001. The anti-dumping duty from Italy and Taiwan is 49.5c/kg and 35.5c/kg.
It is important to note that the anti-dumping duty on this product from India and the Republic of Korea (Korea) is still in force. The anti-dumping duty from India and Korea is 59.2%, 147% and 167% respectively.
Revision of the rebate items
in Schedule No. 6 (Comment
requested) - 29 June 2001
The Commissioner for Customs and Excise has announced his intended revision of the rebate provisions in Schedule No.6 (rebates and refunds of excise duties and fuel levy) and all interested parties have been invited to submit their objections and comments in this regard by 30 July 2001.
The rebate provisions that are proposed to be deleted are:
* Rebate item 602.01.36/
105.10/01.00 - petroleum oils for use by the President.
* Rebate items
602.01.40/106.10/01.00, 602.01.40/106.20.10/01.00, 602.01/106.20.20/01.00 and 602.01/106.20.30/01.00. These items are in respect of various chemical mixtures.
* Rebate items
603.01.40/106.10/01.00, 603.01.40/106.20.10/01.00, 603.01/106.20.20/01.00 and 603.01/106.20.30/01.00. These items are in respect of various chemical mixtures.
* Rebate items
604.03.10/104.15/01.00, 604.03.10/104.15/02.00 and 604.03.10/104.15/03.00. These rebate items are in respect of unfortified still wine, fortified still wine and sparkling wine.
* Rebate items
604.03.10/104.15/01.00, 604.03.10/104.15/02.00, 604.03.10/104.15/03.00, 604.03.10/104.15/04.00 and 604.03.20/104.20/01.00. These rebate items are in respect of unfortified still wine, fortified still wine, sparkling wine and wine spirits.
* Rebate items
606.04.03/104.10/01.00, 606.04.27/104.20/01.00 and 606.04.28/104.20/01.00. These rebate items are in respect of beer made from malt, spirits obtained from distillation and spirits manufactured in the Republic of South Africa.
* Rebate item
607.04.12/104.20/01.00 in respect of plain spirits.
* Rebate items
607.04.18/104.20/01.00, 607.04.20/01.00 and 607.04.25/104.30/01.00. These rebate items are in respect of wine spirits and spirits.
* Rebate items
609.04.05/104.05/01.00, 609.04.05/104.05/02.00, 609.04.20/104.15/01.00, 609.04.30/104.20/01.00, 609.04.35/104.20/01.00, 609.04.40/104.20/01.00 and 609.04.45/014.20/01.01. These rebates are in respect of non-alcoholic beverages.
Customs and Excise Act
Amendments to the rules
(DAR 27) - 29 June 2001
Rule 200.06 was substituted. More details are available on request.
Publications issued by the South African Revenue Service
(SARS) - week of 29 June 2001
* Information Manual on the Completion of Bills of Entry for Export
* An Overview of South African Customs Procedures
* SC-SE-Form 01 - Bond: Container Depot Operator
* SC-AR-02 - Form 01 - Application for Container Depot Licence
* Revenue Laws
Amendment Bill [B36-2001]
* Explanatory Memorandum on the Revenue Laws Amendment Bill, 2001 [W.P.2-'01]
Rebate item
460.11/00.00/02.00 for a rebate of the duty on certain textiles and textile articles is withdrawn as it expired at 30 September 2000.
The amendment to rebate item 460.11/00.00/03.00 results in the provision for a rebate of duty on textiles and articles of textiles being extended to 30 September 2006.
Rebate item
460.11/00.00/06.00 has been created for textiles and textile articles entered for home consumption for the utilisation of Duty Credit Certificates (DCC) permits.
Tarrif application -
22 June 2001
Application of the withdrawal of rebate items 460.17/87.00/01.02 and 460.17/87.00/02.02 i.e. rebate of the duty on motorcycles and motor vehicles for the transport of disabled people subject to certification by the South African National Council for the Physically Disabled that such motorcycles and motor vehicles or similar motor cycles or motor vehicles are not ordinarily or satisfactorily manufactured in South Africa.
This rebate provision was created to enable physically disabled people to import those types of vehicles which are not manufactured in the Republic of South Africa at the time when the rebate provision was created, e.g. two-door sedans or stations wagons. The duty payable on these types of vehicles was considerable. Payment of the duty would have put disabled persons at a financial disadvantage compared to persons with no physical disability who were able to purchase vehicles manufactured in the Southern African Customs Union (SACU)
The available information indicates that a range of vehicles is successfully converted in the SACU to make them suitable for use by disabled persons and as a result the justification for the continued existence of the rebate provision in question. Response due by 3 August 2001.
Tarrif applications - Still time
to comment
The proposed amendment of the article description of the existing tariff heading 82.09 'plates, sticks, tips and the like for tools, unmounted or cerements' with the following:
8209.00.10 'of tungsten carbide whether or not clad, plated or coated with other metals, for cutting tools for use with machine tools for working metal or metal carbides'.
8209.00.20 'other, of tungsten carbide, whether or not clad, plated or coated with other metals'.
8209.00.90 'other'.
The intention of the proposed amendment is to prevent the abuse of the existing tariff provisions. The effect of the proposed amendment will be that all tungsten carbide inserts will be classifiable under tariff subheadings 8209.10 or 8209.20 instead of tariff subheading 8209.90.
Response due by 27 July 2001.
The proposed increase in the customs duty on roasted or otherwise cooked, whether or not shelled or broken, classifiable under tariff heading 12.02, from free of duty to 10 per cent ad valorem.
Response due by 20 July 2001.
Anti-dumping application -
22 June 2001
A notice appeared in respect of the initiation of an investigation into the alleged dumping of cold rolled steel products originating in or imported from the Russian Federation. The petition was lodged by Iscor Limited and pertains to products classifiable under tariff subheading 7209, 7211.2 and 7211.90.
Response due by 23 July 20001.
Interest rate for debt owing to the state changes on
1 July 2001
The Minister of Finance has notified in terms of section 80(1)(a) and section 80(1)(b) of the Public Finance Management Act, Act 1 of 1999 (as amended by Act 29 of 1999), that the fixed uniform rate applicable to loans granted out of a Revenue Fund and all other debts which must be paid into a Revenue Fund, at fourteen (14%) per cent per annum, with effect from 1 July 2001.
Compiled by Riaan de lange of Deloitte & Touche Trade & Investment Solutions.
E-mail: rdelange@deloitte.co.za
