George Bernard Shaw observed that Britain and America were two nations divided by a common language. The same can be said of the building blocks of the language – its words – with meaning tending to differ, depending on the context in which they are used. This seems to be forgotten by subject matter specialists.

Take the customs (and excise) environment, for example. Consider the words ‘rebate’ and ‘drawback’. What do these words mean to you? I would venture to guess that, for most people, ‘rebate’ would imply that you bought something in bulk or in excess quantities and then get a ‘discount’. As for ‘drawback’, it tends to imply a disadvantage.

In customs, the meanings of these words tend to be quite the opposite. For instance, in customs, you qualify for the rebate of the duty if it is your intention to do something – import components to assemble or manufacture a product. In customs, you are able to recover, or draw back (some even say claw back) the duty that you paid on imported components used in the assembly or manufacture of a product that was exported. It has been said that a “drawback is not a “drawback”.

This reminds me of the days when computers were in their infancy and one of the more popular programming languages at the time was BASIC, or Beginner’s All-purpose Symbolic Instruction Code. BASIC uses certain English words as commands. But, just because you were English proficient did not, and still does not, mean that you are versed in programming in BASIC. You still need to contextualise the words and their attributable meaning and application.
It stands to reason that just because you are English proficient does not mean that you are well versed in customs terminology. It is critical to understand the meaning of a word in its customs context.

Customs Provisions
If you are well versed in customs issues, you would no doubt have identified that drawbacks and rebates represent two of the three customs provisions, the third being a refund. These provisions serve to mitigate a company’s duty liability.

This is but one of the customs trilogies, all of which have application in ensuring customs compliance.

Upholstered Furniture Tariff
The International Trade Administration Commission of South Africa (Itac) informed on January 30 of the proposed creation of two rebate items (rebate provisions), namely:

• Rebate Item 320.01/5407.73, which relates to woven fabrics containing 85% or more by mass of synthetic filaments, of yarns of different colours, in such quantities, at such times and subject to such conditions as Itac may allow by specific permit for use in the manufacture of upholstered furniture classifiable in tariff heading 94.01. The extent of the rebate is ‘full duty’.
• Rebate Item 320.01/5515.1, which relates to woven fabrics of polyester staple fibres (excluding those mixed mainly or solely with wool or fine animal hair) in such quantities, at such times and subject to such conditions as Itac may allow by specific permit for use in the manufacture of upholstered furniture classifiable in tariff heading 94.01. The extent of the rebate is ‘full duty’.

The application was lodged by Coricraft Group, which argued, besides others, that fabric supply in South Africa is relatively limited in the offerings in respect of trends and product newness, compared with offerings available from the rest of the world. A key restriction on the ability of local suppliers to meet Coricraft’s fabric requirements is the sourcing of filament/fibre which has to be imported. As a result of importation, the lead time of supply for local suppliers is significantly longer than that of the overseas supplier’s timeline.

Comment is due by February 27.

Electricity Meters Tariff
On January 30, Itac informed of the proposed creation of a rebate item for goods of any description (excluding mounted or populated circuit boards) for the manufacture of prepayment electricity supply meters classifiable in tariff subheading 9028.30, at such times, in such quantities and subject to such conditions as Itac may allow by specific permit, provided the Itac commission is satisfied that the circuit boards are mounted and populated in the Southern African Customs Union region.

The application was lodged by Itron Metering Solution, which argued that the local industry is facing fierce competition from low-priced imports of electricity meters, particularly from the People’s Republic of China, and that electricity meters are currently duty free, while some components used in the manufacture of electricity meters attract customs duties.
Comment is due by February 27.

New ICC Expert Rules Now in Force
On February 2, the International Chamber of Commerce (ICC) announced that its new expert rules had been brought into force on February 1, and this serves to clarify the ICC’s expanded services to help companies, judges, arbitrators and other parties find and use experts in resolving cross-border disputes. The rules will be administered by the ICC’s International Centre for Alternative Dispute Resolution as part of ICC’s broad suite of dispute resolution services.

The ICC has handled a growing number of cases under the outgoing Rules for Expertise, reaching some 350 cases over 12 years. While, in 2013, many of these related to Internet domain names, during the other years, the cases involved helping businesses worldwide in a range sectors – from food to finance, chemicals, construction, energy and transport. Parties from over 50 nationalities requested the centre’s services during the last few years, and the centre also regularly identifies experts from the most diverse regions and sectors.

Under the ICC expert rules, disputing parties can ask the centre for its neutral, independent help in finding and working with relevant experts, even in highly specialised fields. These include consulting engineers, construction specialists, accountants, lawyers and bankers and experts in more exotic fields, such as agricultural experts.

The standalone set of the ICC Rules for Administered Expert Proceedings have now expanded provisions which ensure a cost and time efficient dispute resolution procedure which – depending on the parties’ agreement – leads to a binding or nonbinding expert report.

The new expert rules can be used independ- ently or in conjunction with other procedures, such as ICC arbitration, and are grouped into three sets, each covering a distinct area of ICC dispute resolution services, namely the Proposal of Experts and Neutrals, the Appointment of Experts and Neutrals, and the Administration of Expertise Proceedings.

Customs Control Act Rules
On January 28, the South African Revenue Service extended the period for comment on the fourth batch of the rules to the Customs Control Act and Chapter 37 Amendments to February 20.