27 October 2017 by Tax and Exchange Control Alert - 27 October 2017

Customs and Excise highlights

This week’s selected highlights in the Customs and Excise environment since our last instalment.

1. In terms of Draft Rule 3.11(2)(a) to the Customs Duty Act, 2014, SARS intends to exclude clearances for home use ex warehouse from the (future) deferment benefit. Although comments are due to SARS on 31 October 2017 and individual comments can be made to SARS directly, SARS called for consolidated comment. It is therefore suggested that comments be provided to SAAFF by 27 October 2017 to Mr. Johan Marais at jmarais@saaff.org.za. 

2. The International Trade Administration Commission has received the following Customs tariff applications (certain sections may be quoted from the Customs Tariff Applications List 12/2017 of 20 October 2017):

2.1 Creation of temporary rebate provisions on ordinary customs and safeguard duties applicable to: 

2.1.1 Flat-rolled products of other alloy steel of a width of 600mm or more, classifiable in tariff subheading 7225.99, in such quantities, at such times and subject to such conditions as the International Trade Administration Commission may allow by specific permit, provided the products are not available on the SACU market. 

Enquiries: ITAC Ref: 13/2017, Enquiries: Diphetogo Rathete/Njabulo Mahlalela, Tel: 012 394 3683/3684 or email: drathete@itac.org.za/nmahlalela@itac.org.za. Written representations must be submitted within two weeks of the date of the notice. 

2.2 The creation of a temporary rebate provision on safeguard duty for the importation of certain hot rolled steel classifiable under tariff headings 72.08 and 72.25, as follows:  

2.2.1     Flat-rolled products of iron or non-alloy steel, of a width of 600mm or more, not in coils, not further worked than hot-rolled, of a thickness of 2mm or more but not exceeding 160mm, with a yield strength of 550 MPa or more but not exceeding 960 MPa and having an impact strength of 27 Joules or more but not exceeding 69 Joules at -20°C or less but not less than -60°C, classifiable in tariff subheading 7208.5, in such quantities, at such times and subject to such conditions as the International Trade Administration Commission may allow by specific permit, provided the products are not available in the SACU market; 

2.2.2     Flat-rolled products of other alloy steel, of a width of 600mm or more, not in coils, not further worked than hot-rolled, of a thickness of 2mm or more but not exceeding 160mm, with a yield strength of 550 MPa or more but not exceeding 960 MPa and having an impact strength of 27 Joules or more but not exceeding 69 Joules at -20°C or less but not less than -60°C, classifiable in tariff subheading 7225.40, in such quantities, at such times and subject to such conditions as the International Trade Administration Commission may allow by specific permit, provided the products are not available in the SACU market; 

2.2.3     Flat-rolled products of iron or non-alloy steel, of a width of 600mm or more, not in coils, not further worked than hot-rolled, of a thickness of 2mm or more but not exceeding 160mm, with a Brinell hardness of 400 HBW or more but not exceeding 700 HBW and having an impact strength of 15 Joules or more but not exceeding 95 Joules at -40°C, classifiable in tariff subheading 7208.5, in such quantities, at such times and subject to such conditions as the International Trade Administration Commission may allow by specific permit, provided the products are not available in the SACU market; 

2.2.4     Flat-rolled products of other alloy steel, of a width of 600mm or more, not in coils, not further worked than hot-rolled, of a thickness of 2mm or more but not exceeding 160mm, with a Brinell hardness of 400 HBW or more but not exceeding 700 HBW and having an impact strength of 15 Joules or more but not exceeding 95 Joules at -40°C, classifiable in tariff subheading 7225.40, in such quantities, at such times and subject to such conditions as the International Trade Administration Commission may allow by specific permit, provided the products are not available in the SACU market; 

2.2.5     Flat-rolled products of iron or non-alloy steel, of a width of 600mm or more, not in coils, not further worked than hot-rolled and of a thickness of 40mm or more but not exceeding 160mm, with a Brinell hardness of 350 HBW and having an impact strength of 95 Joules at -40°C, classifiable in tariff subheading 7208.5, in such quantities, at such times and subject to such conditions as the International Trade Administration Commission may allow by specific permit, provided the products are not available in the SACU market; 

2.2.6     Flat-rolled products of other alloy steel, of a width of 600mm or more, not in coils, not further worked than hot-rolled and of a thickness of 40mm or more but not exceeding 160mm, with a Brinell hardness of 350 HBW and having an impact strength of 95 Joules at -40°C, classifiable in tariff subheading 7225.40, in such quantities, at such times and subject to such conditions as the International Trade Administration Commission may allow by specific permit, provided the products are not available in the SACU market; 

2.2.7     Flat-rolled products of iron or non-alloy steel, of a width of 600mm or more, not in coils, not further worked than hot-rolled and of a thickness of 5mm or more but not exceeding 50mm, with a Brinell hardness of 350 HBW and having an impact strength of 60 Joules at -40°C, classifiable in tariff subheading 7208.5, in such quantities, at such times and subject to such conditions as the International Trade Administration Commission may allow by specific permit, provided the products are not available in the SACU market; 

2.2.8     Flat-rolled products of other alloy steel, of a width of 600mm or more, not in coils, not further worked than hot-rolled and of a thickness of 5mm or more but not exceeding 50mm, with a Brinell hardness of 350 HBW and having an impact strength of 60 Joules at -40°C, classifiable in tariff subheading 7225.40, in such quantities, at such times and subject to such conditions as the International Trade Administration Commission may allow by specific permit, provided the products are not available in the SACU market;  

2.2.9     Flat-rolled products of other alloy steel, of a width of 600mm or more, not further worked than hot-rolled, not in coils, with a thickness of 2mm or more but not exceeding 100mm, with a nickel content of 1.8 per cent by mass or more but not exceeding 3 per cent, a molybdenum content of 0.7 per cent by mass or more but not exceeding 0.8 per cent and a chrome content of 1.0 per cent by mass or more but not exceeding 2.0 per cent, with a Brinell hardness of 260 HBW or more but not exceeding 640 HBW, classifiable in tariff subheading 7225.40, in such quantities, at such times and subject to such conditions as the International Trade Administration Commission may allow by specific permit, provided the products are not available in the SACU market; and

2.2.10   Flat-rolled products of other alloy steel, of a width of 600mm or more, not further worked than hot-rolled, not in coils, with a thickness of 2mm or more but not exceeding 20mm, with a copper content of 0.25 per cent by mass or more but not exceeding 0.40 per cent and a chromium content of 1.0 per cent by mass or more but not exceeding 2.0 per cent, with a yield strength of 550 MPa or more but not exceeding 960 MPa, classifiable in tariff subheading 7225.40, in such quantities, at such times and subject to such conditions as the International Trade Administration Commission may allow by specific permit, provided the products are not available in the SACU market.

Enquiries: ITAC Ref: 14/2017, Mr. Tshepiso Sejamoholo and/or Ms. Lufuno Maliaga, Tel: 012 394 1605/3835 or email: tsejamoholo@itac.org.za / lmaliaga@itac.org.za.Written submissions should be made within two weeks of the date of the notice. 

2.3 Creation of rebate provisions on ordinary customs and safeguard duties applicable on primary flat steel not manufactured locally, classifiable under chapter 72.

Enquires: ITAC Ref: 16/2017, contact Lufuno Maliaga, Daniel Thwala and Pfarelo Phaswana, Tel: 012 394 3835/5162/3628 or email lmaliaga@itac.org.za / dthwala@itac.org.za/ pphaswana@itac.org.za. Written representations should be made within four weeks from the date of the notice. 

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