It is only 25 days to 01 January 2017. Are you prepared for it? Tariff wise that is?
On 02 December Sars announced that the Harmonised System (HS) Nomenclature of the 2017 version - simply known as HS2017 -, which was first published for comment on 03 May 2016, would enter into force on 01 January 2017.
If you are interested in obtaining a copy of the HS2017 tariff amendments, simply type the following in your browser - http://www.sars.gov.za/Legal/Primary-Legislation/Pages/HS-2017.aspx. On the front page, you will find the following categories, with its links.
HS2017
01 January 2017 marks the implementation of the 2017 version of the HS Nomenclature. The changes in HS2017 reflect the amendments to the HS Nomenclature appended to the HS Convention, which were accepted as a result of the Customs Co-operation Council's (CCC) (commonly known as the World Customs Organisation or simply the WCO) recommendations of 27 June 2014. These amendments will enter into force on 01 January 2017. Complementary amendments to the HS Nomenclature 2017 have been accepted as a result of the CCC’s recommendation of 11 June 2015.
As a signatory to the HS Convention, South Africa implements the tariff amendments in terms of section 48(1)(c) of the Customs and Excise Act, 1964.
The main sources of these amendments, amongst others, are as follows:
(i) Environmental and social issues of global concern, in particular, the classification and coding of goods of specific importance to food security and the early warning data system of the United Nations' Food and Agriculture Organisation (FAO).
(ii) The amendments for fish and fishery products are to further enhance the coverage of species and product forms which need to be monitored for food security purposes and for better management of resource. This will assist in the collection of trade statistics.
(iii) The HS 2017 amendment aims at detailed information for several categories of products that are used as antimalarial commodities.
(iv) New subheadings have been created for the monitoring and control of certain products of bamboo and rattan, requested by the International Network for Bamboo and Rattan (INBAR).
(v) New subheadings have been created for specific chemicals controlled under the Chemical Weapons Convention (CWC).
(vi) Amendments that resulted from changes in international trade patterns, such as - (a) separate identification of certain commodities in either existing or new headings; (b) some advancements in technology; and (c) amendments aimed at the clarification of text to ensure uniform application of the HS Nomenclature.
The HS 2017 amendments and correlation table (Schedule No.1) up to a 6-digit level can be viewed on the WCO website at http://www.wcoomd.org.
Explanatory Memorandum - The Explanatory Memorandum elaborates on specific changes included in the amendments of the Schedules to the Customs and Excise Act, 1964, such as the implementation of HS2017, the phase-down of duties in terms of agreements, technical amendments, amongst others.
Amendment of the General Notes to Schedule No 1 - Amendment of the General Notes to Schedule No.1 to implement various technical amendments.
Amendment of Part 1 of Schedule No.1 - These documents contain, amongst others, the recommendations made by the WCO on a 6-digit level, as well as the consequential amendments on a national (8-digit) level.
Part 1 of Schedule No 1 also contains the following:
The phase-down of duty for 2017 in terms of the EPA between the European Union (EU) and the South African Development Community (SADC) EPA States.
Amendment of Schedule No 1 Part 2A of Act, 1964 - Consequential amendments as a result of the HS 2017 amendment implemented in Part 1 of Schedule No 1 of Act, 1964.
Amendment of Schedule No 1 Part 2B of Act, 1964 - Consequential amendments as a result of the HS 2017 amendment implemented in Part 1 of Schedule No. 1 of Act, 1964.
Amendment of Schedule No.2 of Act, 1964 - Consequential amendments as a result of the HS 2017 amendment implemented in Part 1 of Schedule No. 1 of Act, 1964.
Amendment of Schedule No.3 of Act, 1964 - Consequential amendment as a result of the HS 2017 amendment implemented in Part 1 of Schedule No. 1 of Act, 1964.
Amendment of Schedule No.4 of Act, 1964 -Technical amendment in terms of Automotive Production and Development Programme (APDP) as specified in the explanatory memorandum.
Amendment of Schedule No.5 Part 3 of Act, 1964 - Technical amendments as specified in the explanatory memorandum.
Amendment of Schedule No.5 Part 5 of Act, 1964 - Technical amendments as specified in the explanatory memorandum.
Amendment of Schedule No.6 Part 1C of Act, 1964 - Consequential amendments as a result of the HS 2017 amendment implemented in Part 1 of Schedule No. 1 of Act, 1964 as well as technical amendments as specified in the explanatory memorandum.
Amendment of Schedule No.6 Part 1C of Act, 1964 - Consequential amendments as a result of the HS 2017 amendment implemented in Part 1 of Schedule No. 1 of Act, 1964 as well as technical amendments as specified in the explanatory memorandum.
Amendment of Schedule No.6 Part 2 of Act, 1964 - Consequential amendments as a result of the HS 2017 amendment implemented in Part 1 of Schedule No.1 of Act, 1964 as well as technical amendments as specified in the explanatory memorandum.
Correlation Table Schedule No.1 Part 1 of Act, 1964 - The correlation table serve as a guide to assist with the transposition of goods on a national level but has no legal status.
Correlation table for Schedule No.1 Part 1 of Act, 1964 - Correlation Table other Schedules.
The correlation table serve as a guide to assist with the transposition of goods on a national level but has no legal status.
FAQs for HS 2017.