30 November 2018 by Tax and Exchange Control Alert

Customs and Excise Highlights

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

  1. Amendments to Schedules to the Customs & Excise Act, No 91 of 1964 (Act) (certain sections quoted from the SARS website):

Schedule 2:

The substitution of safeguard item 260.03/72.08/01.04, to exclude rebate items 460.15/7208.51/02.06 and 460.15/7208.51/03.06 from being subject to safeguard duty applicable to primary flat rolled steel classifiable in tariff subheading 7208.51 (up to and including 10 August 2019); and

The substitution of safeguard item 260.03/72.08/01.04, to exclude rebate items 460.15/7208.51/02.06 and 460.15/7208.51/03.06 from being subject to safeguard duty applicable to primary flat rolled steel classifiable in tariff subheading 7208.51 (11 August 2019 up to and including 10 August 2020).

Schedule 4:

The insertion of rebate items 460.15/7208.51/02.06 and 460.15/7208.51/02.06 in order to create a rebate facility on primary flat rolled steel classifiable in tariff subheading 7208.51.

  1. In our Tax & Exchange Control Alert of 16 November 2018 we reported as follows:

“SARS issued a circular wherein external stakeholders were, among other things, advised as follows (certain sections quoted from the circular):

SARS will be changing the IP addresses for AS2 and AS3 communication in live and test environments. The date for this has now been confirmed as 30 November 2018. The switchover is expected to take place from 22:00 and will last for approximately three hours.

The public DNS hostname for the SARS EDI Gateway connection will remain “EDIB2B.SARS.GOV.ZA”.

For any support leading up to or during the changeover, you can email Carl Wilbers on cwilbers@sars.gov.za or call him on 012 422 4007.

It was later revealed that the implementation date and time has been changed from 30 November 2018 at 22h00 to 1 December 2018 at 10am for approximately 3 hours”.

It has now been revealed that the implementation time (not date) has been changed from 1 December 2018 at 10am to 1 December 2018 at 6pm for approximately three hours.

3. The International Trade Administration Commission has (certain sections quoted from the notice):

3.1  Issued a notice dated 23 November 2018 that it has drafted amended Guidelines pertaining to the administration of rebate item 460.03/0207.14.9/01.07, which provides for a quota-linked rebate of the full anti-dumping duty on frozen bone-in cuts of the species Gallus Domesticus, classifiable in tariff subheading 0207.14.9, imported from or originating in the United States of America.

ITAC invited interested parties to submit comments on the Amended Guidelines.

ITAC encourages interested parties to familiarise themselves with the proposed changes in the Amended Guidelines and to submit comments during the comment period commencing on the publication date of the notice and ending on 21 December 2018. The intention of ITAC is to have the Amended Guidelines in effect for the new quota year (1 April 2019).

Enquiries: Mrs Amina Varachia, at Tel: (012) 394-3732, e-mail: avarachia@itac.org.za; or Mr Alexander Amrein at Tel: (012) 394-3711,
e-mail: aamrein@itac.org.za.

3.2  Issued a notice on 23 November 2018 that it received the following applications concerning the Customs Tariff:

3.2.1   Notice 403 of 2018 (List 05/2018) was published in Government Gazette No. 41781 on 20 July 2018, for a review of the description of tariff subheading 6210.10.20 in Schedule 1 Part 1 to the Act, which reads as follows: “Disposable panties of fabrics of heading 56.03”.

The review was initially published with a view to consider amending the abovementioned description of tariff subheading 6210.10.20, provided there are no local manufacturers. Newly submitted information at ITAC’s disposal indicates that there is at least one local manufacturer of disposable underwear.

This notice serves to notify interested parties of the republication of the review, with an intention to amend the description of tariff subheading 6210.10.20 as follows: “Disposable underwear of fabrics of heading 56.03” and increase the rate of duty from free of duty to 40 per cent ad valorem.

Representations should be submitted within four (4) weeks of the date of the notice.

Enquiries: Ref: 33/2017, Mr Chris Sako, at Tel: (012) 394-3669, Email: csako@itac.org.za or Mrs Ayanda Gandi, at Tel: (012) 394-3672, Email: endou@itac.org.za.

3.2.2   Increase in the general rate of customs duty on:

Flat-rolled products of iron or non-alloy steel, plated or coated with tin (tinplate), classifiable under tariff subheadings 7210.11, 7210.12.10, 7210.12.90, and 7212.10, from free of duty to 10% ad valorem.

Written representations must be made within four (4) weeks of the date of the notice.

Enquiries: Ref: 09/2018, Mr Njabulo Mahlalela, Ms P Busika, and Mrs N Mokou, Tel: 012 394 3684/3595/3627 or email: nmahlalela@itac.org.za/pbusika@itac.org.za/ nramphabana@itac.org.za.

3.2.3   Increase in the rate of customs duty on certain tubes, pipes and hollow profiles, seamless of iron or steel classifiable under tariff subheadings 7304.19, 7304.23 and 7304.29.

Representations should be made within four (4) weeks of the date of the notice.

Enquiries: Ref: 09/2018, Mr. Tshepiso Sejamoholo, Mr. Mashudu Lukhwareni, Tel: (012) 394 1605/3661 or email: tsejamoholo@itac.org.za/mlukhwareni@itac.org.za.

3.3    Issued a notice of initiation of an investigation into the alleged dumping of polyethylene terephthalate imported from the People’s Republic of China dated 23 November 2018. It states (inter alia) as follows:

3.3.1   The International Trade Administration Commission accepted an application alleging that polyethylene terephthalate (PET) imported from the People’s Republic of China (PRC) is being dumped in the Southern African Customs Union (SACU) market, causing material injury and threatening to cause material injury to the SACU industry concerned.

3.3.2   The applicant submitted sufficient evidence and established a prima facie case to enable ITAC to arrive at a reasonable conclusion that an investigation should be initiated on the basis of dumping, material injury, threat of material injury and causality.

3.3.3   The product allegedly being dumped is PET, classifiable under tariff subheading 3907.6 originating in or imported from the PRC.

3.3.4   The period of investigation for purposes of determining the dumping margin is from 01 July 2017 to 30 June 2018. The period of investigation for purposes of determining the material injury is from 01 July 2015 to 30 June 2018.

3.3.5   In order to obtain the information it deems necessary for its investigation, ITAC will send non-confidential versions of the application and questionnaires to all known importers and exporters, and known representative associations. The trade representative of the PRC has also been notified. Importers and other interested parties are invited to contact ITAC as soon as possible in order to determine whether they have been listed and were furnished with the relevant documentation. If not, they should immediately ensure that they are sent copies. The questionnaire has to be completed and any other representations must be made within the time limit set out below.

3.3.6   The Senior Manager: Trade Remedies II, should receive all responses, including non-confidential copies of the responses, not later than 30 days from the date of the notice, or from the date on which the letter accompanying the abovementioned questionnaire was received. The said letter shall be deemed to have been received seven days after the day of its dispatch.

3.3.7   Late submissions will not be accepted except with the prior written consent of ITAC. ITAC will give due consideration to written requests for an extension of not more than 14 days on good cause shown (properly motivated and substantiated), if received prior to the expiry of the original 30-days period. Merely citing insufficient time is not an acceptable reason for extension. Please note that ITAC will not consider requests for extension by the Embassy on behalf of exporters.

3.3.8     Enquiries may be directed to the investigating officer, Mr Siphumelele Mkwanazi at +27 12 394 3742 or Ms Portia Mathebula at +27 12 394 1456.

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