Duty Calls

Stills and manufacture of excise goods for own use

On 16 October the South African Revenue Service (Sars) published draft amended DA forms (customs and excise forms) to provide for the excise administration of stills and the manufacture of excise goods for own use, on which comment was due by 23 October on the Sars Comment Sheet. The DA forms relate to (i) Form DA 185 - Application form - Registration/ licensing of customs and excise clients; (ii) Form DA 185.4A14 – Registration client type 4A14 – Registered still; (iii) Form DA 185.4A15 – Registration client type 4A15 – Manufacture of excisable goods solely for own use by the manufacturer; (iv) Form DA 185.4B11 – Licensing client type 4B11 – Distillation of spirits by an agricultural distiller; (v) Form DA 185.4B12 – Licensing client type 4B12 – To own, possess or keep stills; and (vi) Form DA 185.4B13 – Licensing client type 4B13 – To manufacture or import stills for sale or to repair stills for reward.

Wheat and wheaten flour duty increase

Sars on 18 October published the seventh 2019 amendment to the variable formula tariff for wheat and wheat flour, and the third such amendment in the last three months. The latest amendment is for the increase in the rates of customs duty on flour 1001.91 (seed) and 1001.99 (other) as well as 1101.00.10 (brown wheaten meal produced by the milling of whole grains (the bran, germ and endosperm) (excluding separated wheat bran, separated wheat germ or separated wheat semolina or endosperm) and 1101.00.90 (other). The recent increase in the variable formula tariff is for the rate of customs duty on wheat and wheaten flour, classifiable under tariff subheadings 1001.91 and 1001.99, from 29.85c/ kg to 49.07c/kg and those classifiable under tariff subheadings 1101.00.10 and 1101.00.90 from 44.77c/kg to 73.61c/kg. The reasoning for the increase is contained in the International Trade Administration Commission of South Africa (Itac) Minute 11/2018. The first amendment in the 2019 variable formula tariff for tariff subheadings 1001.91 and 1001.99 was a reduction from 71.63c/kg to 39.49c/kg and for tariff subheadings 1101.00.10 and 1101.00.90 from 107.45c/kg to 59.23c/kg.

Sacu Regional Financing Mechanism Tender

On 15 October the Southern African Customs Union (Sacu) published an invitation to tender for a study to explore the feasibility of establishing a regional financing mechanism for Sacu-wide infrastructure projects and industrialisation on which comment is due on 26 October. The objective of the study is to analyse, review and assess the existing regional funding mechanisms, and to present options on the most suitable structure and modalities to implement the regional financing mechanism.

Duty Calls’ Watchlist

Comment on Itac’s Sunset Review investigation on garden tools originating in or imported from the People’s Republic of China is due by 27 October, and on the combined refrigerator freezers by 26 October.

FTW 26 October 2018