5 September 2019 by Tax & Exchange Control Alert

Customs & Excise Highlights

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

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

  1. In Schedule 4, the substitution of rebate item 460.03/0207.14.9/01.07 in order to increase the annual quota for bone-in cuts of the species Gallus Domesticus, frozen and imported from or originating in the United States of America;

  2. Draft amendments to Schedules 4 and 6 to the Act and Schedule 1 to the Value Added Tax Act, No 89 of 1991 (VAT Act):

2.1     The draft amendments are proposed to rebate and refund items 412.09/00.00/01.00, 495.00/00.00/01.00, 497.01/00.00/01.00, 624.50/00.00/01.00, 634.03/00.00/01.00, 670.10/00.00/01.00, 680.02/00.00/02.00 and 690.01/00.00/01.00 in Schedules 4 and 6 to the Act, to exclude duty rebates in circumstances where damage, destruction or loss of goods as contemplated in those items occurs due to robbery or theft. SARS states that these are in line with an international tendency to not allow duty rebates in cases of robbery or theft, the rationale being that the amount of any duty payable should be covered by an insurance policy;

2.2     Amendment to item no. 412.09/00.00/01.00 of Schedule 1 to the VAT Act as a consequence of the amendment of rebate item 412.09/00.00/01.00 in Schedule 4 to the Act;

2.3     The draft amendment is likely a result of the judgment in SARS v Encarnacao N.O. (543/2017) [2018] ZASCA 71 (29 May 2018) in the Supreme Court of Appeal reported earlier in relation to what occurrences fall within vis major and the meaning of ‘such goods did not enter into consumption’ in the current item(s); and

2.4     Due date for comments is 11 September 2019 and may be sent to technicaltariff@sars.gov.za.

The International Trade Administration Commission (ITAC)

  1. ITAC has received the following applications concerning Customs Tariff (notice dated 24 August 2019) (certain sections quoted from the notices):

1.1     Rebate of customs duty on sodium hydroxide (caustic soda), in aqueous solution, classifiable in tariff subheading 2815.12, for the manufacture of semi-chemical fluting paper, in rolls or sheets, classifiable in tariff 4805.11, in such quantities, at such times and under such conditions as the International Trade Administration may allow by specific permit.

[Ref no: 27/2017, Enquiries: Email: Ms. Elizabeth Kekana, Fax: (012) 394 4668, email: ekekana@itac.org.za, and Mr Nkulana Phenya, Fax: (012) 394-4677; Email: nphenya@itac.org.za].

1.2     Review of the general rate of customs duty on coated steel, classifiable under tariff subheadings 7210.41, 7210.49, 7212.30, 7210.61, 7210.90, 7225.99, 7210.70 and 7212.40.

Ref: 13/2019, Enquiries: Mr. Njabulo Mahlalela/Ms. Lufuno Maliaga. Tel: (012) 394-3684/3835 or email nmahlalela@itac.org.za/ lmaliaga@itac.org.za.

Representations should be submitted to ITAC within four weeks of the date of the notice.

  1. ITAC has published a notice (dated 23 August 2019) in relation to:

2.1     Initiation of an investigation into the alleged circumvention through country hopping from Saudi Arabia and the United Arab Emirates (UAE) to Egypt of clear float glass with a thickness of 3mm to 6mm classifiable under tariff subheadings 7005.29.17, 7005.29.23, 7005.29.25 and 7005.29.35.

The Applicant alleged that subsequent to the imposition of the provisional anti-dumping duties on imports of clear float glass of a thickness of 3mm to 6mm originating in or imported from Saudi Arabia and the UAE, the major importer in the original investigation has shifted sourcing of the subject products from Saudi Guardian International Float Glass Co Ltd in Saudi Arabia and Guardian Zoujaj International Float Glass Co. LLC in the UAE to its related company in Egypt.

The Senior Manager: Trade Remedies I, 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 questionnaire was received. The said letter shall be deemed to have been received seven days after the day of its dispatch.

For queries, please contact: Mr Zuko Ntsangani at (012) 394-3662 and Mr Thabelo Tshikomba at (012) 394-3638 and fax number (012) 394-0518.

SARS communication

  1. SARS published a communication to trade stating as follows:

“SARS recently hosted roadshows around the country to discuss the new Registration, Licensing and Accreditation (RLA) system and process. During the roadshows it was mentioned that the first release of the new system – which included introducing eFiling as a registration channel for certain client types – was expected to take place during September 2019.

However, a decision has been made by SARS to postpone the release until early in 2020. This is to enable us to fine-tune various technical issues in order to ensure a smooth implementation”.

Department of Agriculture, Land Reform and Rural Development

  1. The Department of Agriculture, Land Reform and Rural Development has published notices in relation to the following commodities intended for sale in South Africa, including imported items (certain sections quoted from the notices):

1.1     Coffee, chicory and related products; and

1.2     Tea and related products.

  1. The draft regulations deal with the following topics:

2.1     Types of regulated products and standards;

2.2     Requirements for containers and outer containers;

2.3     Marking requirements;

2.4     Sampling and inspection; and

2.5     Offences and penalties.

Please advise if additional information is required.

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