Polyethylene terephthalate tariff
On 26 April the International Trade Administration Commission of South Africa (Itac) announced a proposed increase in the ‘general’ rate of customs duty on polyethylene terephthalate (PET), classifiable in tariff subheadings 3907.61.10 and 3907.69.10, currently free of duty, and tariff subheadings 3907.61.90 and 3907.69.90, currently at a rate of duty of 10% ad valorem to 15% ad valorem, on which comment is due by 24 May. The application is lodged by Safripol, a division of KAP Industrial (Pty) Ltd, who reasoned that (i) Imports of PET which are a like product to the Southern African Customs Union (Sacu) product, have flooded the Sacu market at very low prices; (ii) The flood of lowpriced imports has resulted in a decline in Safripol’s sales volumes and market share; (iii) Safripol has recently completed a significant
expansion investment of over R1 billion in order to increase its production capacity; (iv) the flood of low-priced imports has ensured that Safripol has not been able to achieve any returns on its investments.
Disodium carbonate trade remedy
Itac on 26 April announced the initiation of a sunset review of the anti-dumping duties on disodium carbonate (soda ash), classifiable in tariff subheading 2836.20, originating in or imported from the United States of America (US), on which comment is due by 27 May. On 08 June Itac notified interested parties that unless a duly substantiated request was made indicating that the expiry of the anti-dumping duties against imports of disodium carbonate originating in or imported from the US would likely lead to the continuation or recurrence of dumping and material injury, the antidumping duties on soda ash originating in or imported from the US would expire on 18 June. The application was submitted by the Government of Botswana on behalf of Botswana Ash (Pty) Ltd, and was supported by Sappi Southern Africa (Pty) Ltd, whilst the Government of Botswana requested the South African Economic Development Minister to instruct Itac to consider this application.
‘Pliers’ tariff classification
On 09 April the US Court of Appeals for the Federal Circuit affirmed the tariff classification (8203.20.60.30) of imported versatile hand tools, described as ‘pliers’, consisting of two handles, two jaws, which can be squeezed together to enable the tools to grasp an object. The case relates to Irwin Industrial Tool Co versus US in which the Federal Circuit affirmed the interpretations of the term ‘wrenches’ in tariff subheading 8204.12.00 and ‘pliers’ in tariff subheading 8203.20.60.30.
Duty Calls’ Watchlist
The Customs and Excise Bill, 2019 is due to come into operation on 01 June. Comment on Sars’ “Discussion Document on the Rewrite of the Excise Legislation” is due by 31 May. Comment a note to the “Specific Drawbacks and Refunds of Customs Duties, Fuel Levy and Environmental Levy” is due by 10 May. Deadline for applications to participate in an outward selling mission to India is 10 May. Deadline for applications to attend the Anuga 2019 agro-processing fair in Germany is 06 May.
