Harmonised system simplification could alter duty

Importers urged to assess the changes
ALAN PEAT
A TRADE and customs specialist has recommended that all SA industry sectors should assess the possible impact of recent changes to the harmonised system nomenclature (HS). These amendments have been published by the World Customs Organisation (WCO) – and come into effect on January 1 next year. According to information released to FTW by Duane Newman, head of indirect tax at Deloitte, the amendments are intended to simplify the HS and take into consideration technological progress, trade patterns, and clarification of texts – and to ensure uniform application and trade practices. The changes include the deletion of certain tariff headings and subheadings and the insertion of new ones. This, Newman added, could result in certain products being reclassified and subjected to duties where they were previously duty-free - or become duty-free where they would have been subject to customs duties. “Business should review these changes as soon as possible.”