On 04 November the International Trade Administration Commission of South Africa (Itac) announced an amendment to the wording for tariff subheading 8704.21.75 published in the Government Gazette of 23 October 2015 for a reduction in the “general” rate of customs duty on diesel goods vehicles of a mass not exceeding 1 100kg and petrol and electric goods vehicles with a capacity of a mass not exceeding 800kg.
Tariff subheading 8704.21.75 “- Other, with an engine capacity not exceeding 1 000 cm3 (excluding the vehicles of subheading 8704.21.77)”.
The rate of customs duty for the European Union (EU) - 25% ad valorem; the European Free Trade Association (EFTA) - 18% ad valorem; and the Southern African Development Community (SADC) – free.
The application was lodged by Smith Mining Equipment (Pty) Ltd t/a Smith Power equipment who reasoned that (i) There are no local manufacturers of products classified under tariff subheading 8704.21.75 in the Sacu region; (ii) The amendment to tariff subheading 8704.21.75 as published in Publication Notice No.1007 of 2015 erroneously omitted the word ‘’not” in the description; and (iii) The current erroneous description of tariff subheading 8704.21.75 caters for all vehicles with an engine capacity exceeding 1 000 cm3 classifiable under tariff heading 8704. As a result, it has the unintended consequence of rendering tariff subheadings 8704.21.81, 8704.21.83 and 8704.21.90 obsolete.
Comment is due by 18 November.