Customs and Excise Highlights

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

29 Sep 2017 3 min read Tax & Exchange Control Alert Article

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

1.1     For the purposes of consistency with the latest developments in respect of the introduction and substitution of the new and old trade agreements, the rules to the following trade agreements were amended (and forms DA185.4A2 and DA185.4A):

1.1.1      The African Growth and Opportunity Act (AGOA);

1.1.2      Economic Partnership Agreement between the SADC EPA states, of the one part, and the European Union and its member states, of the other part (SADC/EPA);

1.1.3      Generalized System of Preferences (GSP) European Union, Norway, Turkey and the Russian Federation; and

1.1.4      Preferential Trade Agreement between the Common Market of the South (MERCOSUR) and the Southern African Customs Union (SACU).

The Registered Exporter System (REX system) is the new system of certification of origin of goods which is based on a principle of self-certification on statements on origin. The REX system does not impact the rules for determining the origin of goods.

Due date for comments: 4 October 2017. Comments to:

2.  Amendments of Schedule 1 Part 1 to the Act (certain sections quoted from the SARS website):

2.1     Draft amendment to the 2018 Economic Partnership Agreement phase-downs as well as various technical amendments with effect from 1 January 2018. Due date for comments: 13 October 2017 ( Draft amendments as follows:

2.1.1      The phase-down of duties in terms of EPA for 2018 relates to fish classifiable in tariff subheadings 0302.13, 0302.14, 0303.14 and 0305.41, fish in Chapters 3 and 16 and industrial products classifiable in tariff subheadings 6103.43.10, 6103.43.20  and 6103.43.90.

2.2     Technical amendments:

2.2.1      Inclusion of photoluminescent in certain tariff headings in heading 39.19 for self-adhesive plates; and

2.2.2      The creation of 8-digit tariff subheadings on mayonnaise (heading 2103.90.9) and peanut butter (heading 2008.11.1). 

2.3     Draft amendment to create 8-digit tariff subheadings under heading 2809.20 to include a phosphoric content of 78 per cent or more. 

Explanatory note: “Separate 8-digit tariff subheadings are created to distinguish between the acids used in food industry and that used in fertiliser industry”.

Due date for comments: 13 October 2017. Send comments to:

3.  The International Trade Administration Commission has received the following Customs tariff applications:

3.1     The creation of a temporary rebate facility on safeguard duty for the importation of certain hot rolled steel classifiable under tariff headings 72.08 and 72.25 (ITAC Ref: 11/2017). 

3.2     Written representations must be made within four (4) weeks of 22 September 2017 (ITAC Ref: 12/2017). The details are as follows: 

3.2.1      Application for the creation of a temporary rebate provision on hot rolled steel, structural steel classifiable under tariff subheading 7208.25 and 7208.26.

3.2.2      Reduction in the rate of duty on canola/rape seed classifiable under subheading 1205.10.

3.2.3      Creation of a rebate provision for the importation of I and H sections, of iron or non-alloy steel, not further worked than hot-rolled, hot-drawn or extruded of a height of 530 mm or more and of a height and width of 300 mm x 300 mm or more classifiable under tariff heading 7216.32 and 7216.33.

3.2.4      Exclusion of adult diapers under rebate item 412.13 and amendment of rebate item 320.12, which provides for the duty free importation of raw materials used in the manufacturing of baby diapers to also include adult diapers.

3.2.5      Increase in the rate of duty on coated paper and paper board classifiable under tariff subheading 4810.92.90.

4.  SARS invited industry to attend a workshop session to be held on the comments received on the draft deferment rules (in terms of the Customs Duty Act, 2014). 

The workshop’s details are as follows:
11 October 2017
10:00 – 11:30
2nd floor, Linton House Auditorium, SARS, Brooklyn, Pretoria

Directions: Linton House, 570 Fehrsen Street, Brooklyn Bridge, Brooklyn, Pretoria 

(GPS co-ordinates: S25 46.295 E28 14.174)

RSVP: Samantha Authar
( by 6 October 2017

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