DUTY CALLS

Paper and Paperboard
Tariff Application –
Comment due
On 23 May 2014 Itac
announced the proposed
increase in the “General” rate
of customs duty on paper
and paperboard coated,
impregnated or covered with
plastic classifiable under tariff
subheading 4811.59.90; and
other paper, paperboard,
cellulose fibres classifiable
under tariff subheading
4811.90.90 from free of duty
to 5% ad valorem by creation
of additional 8-digit tariff
subheadings, as follows:
4811.59.xx ---Paper and
paperboard fibres combined
with plastic film, printed and
the thickness of the plastic
film may not exceed fifty
microns.
4811.90.xx---Paper and
paperboard, cellulose and
wadding and webs of cellulose
fibres, combined with metal
foil, printed and the thickness
of the metal foil may not
exceed fifteen microns.
The application was
lodged by Nampak Flexible
Ltd who reasoned that the
application was made to
bring duty protection for a
group of printed laminates
between paper, foil and
polymers in line with other
flexible laminates and close
the current loophole whereby
these products carry no duty
due to the paper components
being the thickest components
of the construction and all
paper products currently
carry no duty.
Comment due by 20 June
2014.
CCA tariff amendment
On 30 May 2014 the
South African Revenue
Service (Sars) announced
the insertion of Note 8 to
Schedule No.3 “Industrial
Rebates of Customs Duties”
to the Customs and Excise
Act to allow manufacturers
in a Customs Controlled
Area (CCA). The Note reads
“8. Goods may be entered
under any rebate item of
this Schedule by a CCA
enterprise as contemplated
in rule 21A.01 and registered
in terms of such item,
provided - (a) the CCA
enterprise complies with any
notes to that item and this
Schedule, and section 75;
and (b) the VAT is paid on
goods imported by the CCA
enterprise under any item in
this Schedule.”
SCA tariff classification
ruling
The Supreme Court of Appeal
of South Africa on 23 May
2014 ruled in favour of Sars
in its tariff classification
case against Terraplas
South Africa (Pty) Ltd on
plastic interlocking tiles for
protection of turf surfaces in
stadia not a floor covering,
classifiable under tariff
subheading 3926.90.90.
Method of payment of
tax
Sars on 30 May 2014
announced that in terms
of the Tax Administration
Act (i) no payments may be
made by cheque if a taxpayer
has, in the preceding three
years, made two payments
by cheque to Sars that were
“referred to drawer”, and that
no payments may be in excess
of R50 000.
Duty Calls Watch List
Comment on the following is
due by 30 June 2014.
The draft interpretation
note on the supply of goods
and services by professional
foreign hunters, and the
registration as Value-added
Tax (VAT) vendors. The
carbon offsets paper and
the review of the taxation of
alcoholic beverages in South
Africa.
Comment on the draft
interpretation note on
VAT treatment of supply
of transport services and
ancillary transport services
has been extended to 13 June
2014.