Customs Updated:
31 Jul 2017

Tariff Book (S1 P1)
Tariff Amendments 2019

In the last column of 12 December 2018, we warned you to keep a watchful eye out for the 2019 amendments, which were published on 28 December 2018.

The tariff amendments relate to Schedules No.1 (69 deletions, 52 insertions, and 57 substitutions), 3, 4, 5 and 6 to the Customs and Excise Act, 1964, which serve to implement changes to the “General” rates of customs duties in terms of the Economic Partnership Agreement (EPA) between the European Union (EU) and the Southern African Development Community (SADC) States for 2019 and other miscellaneous amendments.

The SADC EPA entered into force on 10 October 2016 and South Africa has an obligation to amend the rates of duty on certain products listed in Part 1 of Schedule No. 1 to the Act on an annual basis, with effect from 1 January of a particular year.

Schedule No. 1 Part 1 to the Act, 1964 - Ordinary Customs Duty

On 28 December 2018, the South African Revenue Service (Sars) announced the implementation of changes to the “General” rates of customs duties in Part 1 of Schedule No. 1 to the Act, “Ordinary Customs Duty” in terms of the EPA between the EU and the SADC States for 2019 and other miscellaneous amendments (with effect from 1 January 2019).

1. The phase-down of duties in terms of EPA

Fish, classifiable in tariff subheadings 0302.13, 0302.14, 0303.14 and 0305.41, in Section A, Annex II, listed as staging category “B*” was reduced to a preference margin of 33% of the most favoured nation (MFN) rate of the “General” duty; and

Fish in Chapters 3 and 16, in Section A, Annex II, listed as staging category “C*” was reduced to a preference margin of 60% of the MFN rate of duty.

2. Technical amendment to the Schedules of the Act, 1964

2.1 Additional tariff subheadings in Part 1 of Schedule No.1 to the Act.

Additional tariff subheadings have been added in Chapters 17, 28, 39, 54, 62, 64, 72, 73, 84 and 89 of Part 1 of Schedule No. 1 to the Act, for the reasons indicated in the following subparagraphs:

2.1.1 As a result of a request from the South African Sugar Association (SASA) a separate 8-digit tariff subheading for liquid sugar, classified in tariff subheading 1702.90, to enable the industry to closely monitor the movement of cane sugar in the form of syrup.

As a consequence, the following tariff subheadings were inserted: 1702.90.1 (Cane or beet sugar syrup; 1702.90.11 (Blended with other sugars, containing in the dry state 50 per cent or more by mass of cane or beet sugar); 1702.90.12 (Not blended with other sugars); and 1702.90.90 (Other).

2.1.2 The Department of Environmental Affairs (DEA) submitted a request for the creation of separate tariff subheadings for substances that contribute to the depletion of the ozone layer that result in global warming. Tariff subheading 3824.7 provides for mixtures containing halogenated derivatives of methane, ethane or propane.

The DEA indicated that the current tariff structure under tariff subheading 3824.7 posed challenges in relation to the processing of permit applications, collating and reporting consumption figures for the country that must be submitted to the Montreal Protocol Ozone Secretariat and Multilateral Fund Secretariat.

As a result, the DEA requested that some 8-digit tariff subheadings under tariff subheadings 3824.71, 3824.72, 3824.73, 3824.74 and 3824.79, be deleted as trade statistics indicated that there had been no imports under these tariff subheadings since they were created. The DEA also requested that tariff subheading 3824.78 be amended to include specific mixtures containing halogenated derivatives of methane, ethane or propane.

The creation of 8-digit tariff subheadings in Part 1 of Schedule No.1 to the Act, 1964 will enable the DEA and Government at large to monitor and control the consumption of ozone depleting substances and hydrofluorocarbons (HFCs) more effectively.

2.1.3 Propet S.A (Pty) Ltd submitted a request to Itac for the creation of separate 8-digit tariff subheadings for Polyethylene Terephthalate (PET) strapping, classified in tariff subheading 3920.62.10, to enable the industry to monitor competitive products.

The following tariff subheading is deleted, 3920.62.10, “Of a thickness exceeding 0.18mm but not exceeding 6mm”, and the following tariff subheadings will be inserted: 3920.62.1 “(Of a thickness exceeding 0.18mm but not exceeding 6mm)”; 3920.62.11 “Of a width exceeding 6mm but not exceeding 35mm”; and 3920.62.19 “Other”.

2.1.4 Propet S.A (Pty) Ltd submitted a request for the creation of new tariff subheadings for polyethylene terephthalate (PET) monofilament classifiable in tariff subheading 5404.19. The applicant cited that PET monofilament is currently covered in a residual tariff subheading covering a variety of other products. As a result, it is impossible to gather vital import data for the product. Separate 8-digit tariff subheadings are required in order for the Southern African Customs Union (SACU) industry to be more competitive, address costing aspects and to benchmark themselves against imports of like products.

PETCO also supported the application to provide for PET monofilament products, classifiable in tariff subheading 5404.19. The following tariff subheadings are inserted: 5404.19.10 “Of poly(ethylene terephthalate) with a diameter exceeding 0,18 mm”; and 5404.19.90 “Other”.

2.1.5 Hanes South Africa Pty (Ltd) submitted a request for the creation of separate tariff subheadings for brassieres classifiable in tariff subheading 6212.10

Hanes South Africa Pty (Ltd) requested the creation of separate 8-digit tariff subheadings under brassiéres, classifiable in tariff subheading 6212.10. The applicant manufactures brassiéres and their reason for the creation of 8-digit tariff subheadings is for statistical purposes. They cited that they are unable to gather import statistics on the different kinds of brassiéres that are imported into the country as all brassiéres are provided for in one tariff subheading.

The following tariff subheadings are inserted: 6212.10.1 “Incorporating a closure using either a hook and eyelet or other fastening devices:”; 6212.10.11 “Incorporating padded cups and cup underwire); 6212.10.12 “Not incorporating padded cups but incorporating cup underwire”; 6212.10.19 “Other”; and 6212.10.90 “Other”.

2.1.6 The African Footwear and Leather Industries Association requested the creation of separate tariff subheadings for safety footwear classifiable in Chapter 64. The 8-digit tariff subheadings will assist in monitoring imports and trade data applicable to the footwear industry.

The following tariff subheadings are inserted: 6401.99.10 “Footwear incorporating a protective toe cap of materials other than metal (e.g. fibreglass or carbon fibre), with an impact strength of 200 Joules or more”; 6401.99.90 “Other”; 6403.99.40 “Incorporating a protective toe cap of other material (e.g. fibreglass, Kevlar or carbon glass), with an impact strength of 200 Joules or more”; 6404.19.19 “Footwear incorporating a protective toe cap of materials other than metal (e.g. fibreglass or carbon fibre), with an impact strength of 200 Joules or more)”; and 6404.20.50 “Footwear incorporating a protective toe cap of materials other than metal (e.g. fibreglass or carbon fibre), with an impact strength of 200 Joules or more”.

2.1.7 The Southern African Metal Cladding and Roofing Association requested the creation of new tariff subheadings 7210.41 “Corrugated:”; 7210.49 “Other:”; 7210.61 “Plated or coated with aluminium-zinc alloys:”, 7210.70 “Painted, varnished or coated with plastics:”, 7210.90 “Other:”, and 7225.92 “Otherwise plated or coated with zinc:”., arguing that the new subheadings will assist the industry in monitoring imports on both informal and formal sectors of the metal cladding industry.

The following tariff subheadings will be inserted: 7210.41.10 “Of a thickness of less than 0.45mm”; 7210.41.90 “Other”; 7210.49.10 “Of a thickness of less than 0.45mm”; 7210.49.90 “Other”; 7210.61.10 “Of a thickness of less than 0.45mm”; 7210.61.90 “Other”; 7210.70.10 “Of a thickness of less than 0.45mm”; 7210.70.90 “Other”; 7210.90.10 “Of a thickness of less than 0.45mm”; 7210.90.90 “Other”; 7225.92.10 “Of a thickness of less than 0.45mm”; and 7225.92.90 “Other”.

2.1.8 South African Wire Association (Pty) Ltd submitted a request for the creation of separate tariff subheadings for copper coated wire that is used in Metal Inert Gas welding (MIG) in the welding industry. The products are classifiable in tariff subheadings 7217.30 and 7229.90.

There are two tariff subheadings which provides for a wide scope of other wires, namely tariff subheading 7217.30, which provides for wire of iron or non-alloy steel, plated or coated with other base metals, and tariff subheading 7229.90 provides for wire of alloy-steel.

According to the South African Wire Association (Pty) Ltd the two tariff subheadings make it difficult for the welding industry to obtain product specific information on imported goods, as a consequence the creation of an 8-digit tariff subheadings will assist in monitoring imports and trade data.

The following tariff subheadings are inserted: 7217.30.10 “Plated or coated with copper”; 7217.30.90 “Other”; 7229.90.10 “Plated or coated with copper”; and 7229.90.90 “Other”.

2.1.9 Harvey Roofing Products (Pty) Ltd submitted a request for the creation of separate 8-digit tariff subheadings for steel roofing tiles, classifiable in tariff subheading 7308.90.90. The reason for the application is that the tiles produced by Harvey Roofing Products (Pty) Ltd are covered in a residual tariff subheading. As a result, it is difficult to monitor competitive imports.

A separate 8-digit tariff subheading will assist the applicant in monitoring imports trade data.

The following tariff subheading is deleted: 7308.90.90 “Other”. The following tariff subheadings will be inserted: 7308.90.9 “Other:”; 7308.90.91 “Roof tiles, with dimensions not exceeding a width of 397mm, a length of 1 675mm and a thickness of 0,45mm”; and 7308.90.99 “Other”.

2.1.10 Stampede (Pty) Ltd submitted a request for the creation of separate 8-digit tariff subheadings for road rollers, classifiable in tariff subheading 8429.40, since Stampede (Pty) Ltd requires a granular structure in order to monitor imports of the various road rollers that are also manufactured locally.

The following tariff subheading will be inserted: 8429.40.1 “Road rollers, with a single roller, pedestrian controlled:”; 8429.40.11 “With a roller width not exceeding 650mm”; 8429.40.19 “With a roller width exceeding 650mm”; 8429.40.2 “Road rollers, with more than one roller, pedestrian controlled:”; 8429.40.21 “With a roller width not exceeding 650mm”; 8429.40.29 “With a roller width exceeding 650mm”; and 8429.40.90 “Other”.

2.1.11 Defy Appliance (Pty) Ltd submitted a request for the creation of an 8-digit tariff subheading for washing machines of a dry linen capacity exceeding 10kg, classifiable in tariff subheading 8450.20. Fully automated washing machines currently resort to a residual tariff subheading. Defy Appliance (Pty) Ltd would like to monitor import trade data on top loading, fully automatic washing machines.

The following tariff subheading will be inserted: 8450.20.20 “Top load machines, fully automatic”.

2.1.12 The Non-Ferrous Metals Industry Association submitted a request for the creation of 8-digit tariff subheadings for waste and scrap lead-acid batteries, classifiable in tariff subheading 8548.10.

There is no local producer of lead in the SACU. In order to satisfy the local demand, lead is either imported or spent lead-acid batteries must be recycled. The industry is unable to gather trade data on exported motor vehicle battery waste and scrap.

The applicant motivated that the scope of waste and scrap lead-acid batteries is too wide as it covers all waste and scrap of inter alia electric accumulators and not just those of lead-acid. The new 8-digit tariff subheadings will enable the industry to identify and monitor the imports/exports of lead-acid batteries waste and scrap.

Goods classifiable in tariff subheading 8548.10 are subject to export control measures which are administered by Itac.

The following tariff subheadings are inserted: 8548.10.10 “Of electric accumulators of lead-acid, of a kind used for starting pistons engines, of tariff heading 8507.10”; and 8548.10.90 “Other”.

The Non-Ferrous Metals Industry Association also requested the creation of a separate 8-digit tariff subheading on “lead acid, a kind used for starting piston engines with dimensions not exceeding 185mm in length x 125mm in width x 195mm in height”, classifiable in tariff subheading 8507.10.

The following subheadings are deleted: 8507.10.05 “With dimensions not exceeding 185mm (length) x 125mm (width) x 19 mm (height)”; and 8507.10.10 “Other”.

The following tariff subheading will be inserted: 8507.10.1 “With dimensions not exceeding 185mm (length) x 125mm (width) x 195mm (height):”; 8507.10.11 “Used”; 8507.10.19 “Other”; 8507.10.90 “Other”; 8507.10.91 “Used”; and 8507.10.99 “Other”.

Schedule No.1 Part 2A - Specific Excise Duties on locally manufactured or on imported goods of the same class or kind

The relevant items in Part 2A of Schedule No.1 to the Act are being deleted as a consequence of the deletion in Part 1 of Schedule No. 1 tariff subheadings as per paragraph 2.1.1.

To delete tariff items in Part 2A of Schedule No.1 to the Act as a consequence to a deletion in Part 1 of Schedule No. 1 to the Act, with effect from 1 January 2019.

Steel Panels Rebate Item - Deletion and Insertion Schedule No.3

Rebate item 315.05/7308.90.90/01.01 in Part 1 of Schedule No.3 to the Act was deleted as a consequence of a deletion in Part 1 of Schedule No.1. to the Act, Rebate Item 315.05/7308.90.99/01.01 is inserted to align with the new structure in Part 1 of Schedule No. 1 to the Act.

Note 10 to Rebate Item 317.03 which covered the transitional note for the migration from the Motor Industry Development Programme (MIDP) to the Automotive Production and Development Programme (APDP) was deleted as it had become redundant.

Schedule No.4 Rebate Items

“Rebates and Refunds of Customs Duties, Excise Duties, Fuel Levy, Road Accident Fund Levy, Environmental Levy and Health Promotion Levy - Temporary Rebates of Customs Duties”

Rebate item 460.02/12.06/01.04 in Part 2 of Schedule No. 4 to the Act provides for sunflower seed, in such quantities as the Director-General: Department of Agriculture, Forestry and Fisheries may allow by specific permit issued on or before 10 May 2002.

The Rebate Item is deleted as it was created for goods entered for home consumption on or before 10 May 2002.

Rebate item 460.07/39.19/01.04 in Part 2 of Schedule No. 4 to the Act, provides for plates, sheets, film, foil and strip, of polyethylene terephthalates, self-adhesive, with removable protective substances, entered on or before 12 April 1997, in such quantities and subject to such conditions as ITAC may allow by specific permit issued on or before 12 April 1997.

The Rebate Item is deleted as it was created for goods entered for home consumption on or before 12 April 1997.

Schedule No.6 Rebate Items

“Rebates and Refunds of Excise Duties, Fuel Levy, Road Accident Fund Levy, Environmental Levy and Health Promotion Levy - Rebates and Refunds of Specific Excise Duties - Rebates and Refunds of Specific Excise Duties on Mineral Product.”

Rebate Items 623.27, 623.27/105.10/01.01 and 623.27/105.10/02.01 were created for fuel supplied to the line-fill of the new multi-purpose products pipeline Government project before 31 March 2012. These Rebate Items are being deleted as they have become redundant.

Part 1F of Schedule No. 6 to the Act, to delete Rebate Items 623.27/105.10/01.01 and 623.27/105.10/02.01 as they have become redundant, with effect from 01 January 2019.

Rebate Item 623.27/105.10/01.01 “Fuel supplied by Petroleum Oil & Gas Corporation of South Africa (SOC) Ltd for the trunk line-fill of the NMPP from Island View Durban to Jameson Park, before 31 March 2012, not exceeding 154 744 400 li”, the Extent of Refund is “The duty in Part 2A of Schedule No. 1 of Act, 1964.”

Rebate Item 623.27/105.10/02.01 “Fuel supplied by Sasol Oil (Pty) Limited for the secondary line-fill of the NMPP from Jameson Park to Alrode, from Alrode to Langlaagte and from Kendal to Waltloo, before 31 March 2012, not exceeding 20 358 410 li”, the Extent of Refund is “The duty in Part 2A of Schedule No. 1 to Act, 1964.”

Part 1C of Schedule No.6 to the Act, by the insertion of Note 7 as well Rebate Items 620.25; 620.25/604.15.21/01.01 and 620.25/604.15.23/02.1, to create a rebate provision for unfortified wine used in the manufacture of foodstuffs.

Schedule No.1 Part 1 “Ordinary Customs Duty”

Schedule No.1 Part 1 to the Act, to implement the revised Tariff Rate Quota in terms of the EPA, with retrospective effect from 01 September 2018 to 31 December 2018, and with effect from 01 January 2019.

02032200 “Hams, shoulders and cuts thereof, with bone in”; 02032990 “Other”; 02091000 “Pig fat”; 04051010 “Butter, in immediate packaging of a content of 20 kg or more”; 04059000 “Other”; 04061000 “Fresh (un-ripened or uncured) cheese, including whey cheese, and curd”; 04062000 “Grated or powdered cheese, of all kinds”; 04063000 “Processed cheese, not grated or powdered”; 04064000 “Blue-veined cheese and other cheese containing veins produced by Penicillium Roqueforti)”; 04069012 “Other”; 04069022 “Other”; 04069099 “Other”; 10019 “Other”; 100300 “Barley”; 16010020 “Mortadella bologna”; 19019040 “Other, in immediate packaging of a content of 5kg or more”; and 2105000 “Ice Cream”.