In 2012, the Revenue Package was developed by the World Customs Organisation (WCO) in response to WCO members’ concerns about falling revenue returns in light of the global financial crisis and declining duty rates.

The second phase of the WCO Revenue Package is to be released early in 2015 and will provide further guidance (tools and guidelines) for WCO members with regard to revenue collection. It is understood that the WCO secretariat intends to include the 2012 International Chamber of Commerce (ICC) Statement on Transfer Pricing and Customs Valuation in the Revenue Package, since it offers an overview of the different transfer pricing and customs valuation options with technical background information.

According to the ICC, this provides an excellent opportunity to promote its views with the endorsement of the WCO among customs administrations around the world. However, to include the ICC policy statement in the Revenue Package, some limited modifications are required to ensure the statement is in line with the applicable legal frameworks, such as the General Agreement on Tariffs and Trade/World Trade Organisation valuation agreement.

The ICC informal drafting group on transfer pricing and customs valuation – consisting of members of both the ICC Commission on Taxation and the ICC Commission on Customs and Trade Facilitation – has, accordingly, prepared the revision for approval by its members.

Meanwhile, the ICC national committees and members of the Commission on Customs and Trade Facilitation and the Commission on Taxation have been invited to express any major concerns they might have concerning the draft revision. According to the ICC, they want their position and messages to be the same and the changes to be limited to those necessary to ensure endorsement by the WCO. Comments were due by October 14.

The draft revised policy statement and the comments received will be discussed at the upcoming meeting of the Commission on Customs and Trade Facilitation, to be held in Brussels, Belgium, from October 16 to 17, and at the upcoming meeting of the Commission on Taxation, to be held in Geneva, Switzerland, on October 30. The revision will subsequently be submitted to the November ICC executive board meeting for adoption.

Rebate Guidelines
On October 3, the International Trade Administration Commission of South Africa (Itac) published guidelines pertaining to rebates of the duty on various rebate provisions in terms of schedule 3, 4 and 5 of the Customs and Excise Act.

According to the Government Gazette notice, in future, all permit applications for the specified rebate items must be submitted in accordance with the guidelines. Applicants now need to check whether the guidelines apply to their company. To assist in this regard, there are seven guidelines, presented as annexures to the Government Gazette notice:
• Annexure 1.1: Guidelines and conditions pertaining to permits issued under rebate item 460.02/0904.2/01.05 for the importation of dried or crushed or ground fruits of the genus capsicum (0904.2) for the extraction of paprika oleoresin (3309.90.80).
• Annexure 1.2: Guidelines and conditions pertaining to permits issued under rebate item 460:04/2008.20/01.06 for the importation of canned pineapples.
• Annexure 1.3: Guidelines, rules and conditions pertaining to permits issued under rebate item 460.05/2713.20/01.06 for petroleum bitumen.
• Annexure 1.4: Guidelines, rules and conditions pertaining to permits issued under rebate item 460.11/52.01/01.04 for cotton, not carded or combed.
• Annexure 1.5: Guidelines, rules and conditions pertaining to permits issued under rebate item 312.01/6001.92/01.06 for other pile fabrics, knitted or crocheted, of man-made fibres used for the manufacture of footwear with uppers of textile materials.
• Annexure 1.6: Guidelines, rules and conditions pertaining to textile fabrics imported in terms of rebate items 320.01/5407.61/01.06, 320.01/ 5903.20.90/01.08 and 320.01/5907.00.90/01.08 for the manufacture of upholstered furniture.
• Annexure 1.7: Guidelines, rules and conditions pertaining to rebate item 312.01/6001. 92/01.06; for other pile fabrics, knitted or crocheted, of man-made fibres, for use in the manufacture of footwear with uppers of textile materials classifiable in Chapter 64.

Mussels Tariff
On October 3, the South African Revenue Service (Sars) informed of the amendment of tariff subheadings 1605.53.20 and 1605.53.90 – canned mussels (i) in airtight metal containers, or (ii) other – resulting in an increase in the ‘general’ rate of customs duty from 5.5 c/kg to 25% ad valorem, as recommended in Itac’s Minute No M02/2014.

Paper/Paperboard Tariff
On October 3, Sars informed of an increase in the ‘general’ rate of customs duty on paper and paperboard, classifiable under subheadings 4802.56.20 and 4802.56.90, from 5% ad valorem and 10% ad valorem. The reasoning for the tariff amendments is contained in Itac’s Report No 482. The application was lodged by the Paper Manu- facturers Association of Southern Africa.

Sugar Tariff
On September 25, Sars informed of an increase in the rates (all rates affected) of customs duty, classifiable under tariff subheadings 1701.12, 1701.13, 1701.14, 1701.91 and 1701.99, from 92,6c/kg to 142,5c/kg in accordance with the variable tariff formula (there is also one for wheat). The reasoning for tariff amendments is stated in Itac’s Minute M04/2014.

Scrap Metal Export Control
Itac has invited comments by October 17 on the Price Preference System for the exportation of scrap metal.

Stainless-Steel Sinks Dumping
Itac has informed of the initiation of a sunset review of the antidumping duties on stainless- steel sinks, classifiable under tariff subheading 7324.10, originating in or imported from the People’s Republic of China and Malaysia. The application was lodged by Franke Kitchen Systems.
Comment is due by October 27.