Duty Calls

Exportation of Waste and Scrap Metal

On 21 September the International Trade Administration Commission of South Africa (Itac) renewed the 10 May 2013 “Policy Directive on the Exportation of Ferrous and Non-ferrous Waste and Scrap Metal”, until 30 June 2019.

RCG for Trains

The South African Revenue Service (Sars) on 17 September 2017 invited comment on the draft amendment of the Rules to Section 8 to the Customs and Excise Act, 1964 relating to the reporting of conveyances and goods (RCG) for trains, which is due by 8 October 2018.

RCG General Code Withdrawal

On 14 September Sars informed external shareholders, in writing, of the withdrawal of the general code for RCG. On 20 April Sars implemented the first phase of the RCG project. Persons impacted by the RCG implementation include shipping lines, airlines, rail carriers, road hauliers, freight forwarders (clearing agents), port and airport authorities, terminal operators, wharf operators, transit shed operators, licensees of depots and registered agents. Any person required to submit a reporting document in terms of the Rules to Section 8 of the Act, 1964, must, notwithstanding being registered or licensed under any other provision of the Act, 1964, apply for registration as a person submitting reporting documents. The relevant reporter codes assigned to such persons during this registration process are subsequently used and validated in both customs clearances as well as cargo reports submitted to Sars electronically. To allow sufficient time for such registrations to be completed amongst freight forwarders in the air environment, Sars has for a number of years allowed the use of Cargo Carrier Code ‘ZZZ99999’ for ‘Non-registered cargo reporters’. As a result of the impending enforcement of reporting compliance, notice is hereby given that the use of the above code will be withdrawn from 19 November. The code will be removed from the code table on that date and will no longer be available for use. Freight forwarders who remain non-registered after the abovementioned date could cause delays for their clients when clearing their goods through customs and are thus urged to register without further delay.

Safeguard Rebate on Hot-rolled Products

On 21 September Sars published the substitution of various Safeguard Items in Part 3 of Schedule No 2 to the Act, 1964 to exclude rebate items 470.03/00.00/01.00 to 470.03/00.00/03.00, in order to exempt certain hot-rolled products from safeguard duties. The substitutions are for the periods 21 September up to and including 10 August 2019, and 11 August 2019 up to and including 10 August 2020.

Safeguard Drawback on Hot-rolled Products

Sars on 21 September published the substitution of Note 3 to Schedule No 5 of the Act, 1964 to allow for a drawback of safeguard duty on certain hot-rolled steel products in terms of drawback item 521.00.

Duty Calls’ Watchlist

Comment on the Southern African Development Community (SADC) Economic Partnership Agreement (EPA) phasedowns is due by 01 October. Sars has extended the comment on its draft internal appeals to 28 September.