Last week, I highlighted tariff history (www.tariffhistory.co.za), which I consider to be the first step in a tariff application. Once you have the tariff reports and notices, which provide the true reasoning behind, and motivation for, the existence of a tariff dispensation – in other words, the prevailing rate of customs duty – then you are ready to progress to step two.

In South Africa, one of the most over- looked aspects of international trade is analysing import and export statistics, more commonly know as trade statistics. It is critical for any business to account for goods entering or leaving South Africa. How else do you account for international competition? If you leave it to the market to alert you to international competition, you might find yourself losing business much sooner that you are prepared for. Trade Insight (www.tradeinsight.co.za) provides trade statistics in respect of the value (in South African rands), the quantity, the unit price (also in South African rands) and the country of origin or the destination.

Once you have such information at your disposal, you are able to manipulate such information to derive maximum benefit from it. As an example, you could determine the amount of customs revenue that govern- ment collects for products falling under a given tariff subheading. All you need to do, depending on the type of duty, is to consi- der the quantity and value of the imported product. The prevailing rate of duty can be determined by consulting the tariff book (www.tariffbook.co.za). By performing a relatively simple calculation, you can determine the amount of customs revenue collected by government. Such information will be a vital part of the information in a tariff investigation.

Another important consideration is that the import statistics provide, through manipulation and calculation, the unit price of the imported products for any given countries of origin. In addition, it also provides the quantity of goods imported from the respective countries. This information is also of critical importance in arguing the nature and extent of foreign competition, particularly increased competition.

You are now in a position to proceed to the next step of a tariff investigation, which I call the tariff book and which will be detailed in next week’s instalment of this column.

Exports to EFTA Countries
A letter, titled Certification of Origin for Goods Exported to European Free-Trade Association (EFTA) Countries – Southern African Customs Union (Sacu) Origin, has been issued by government.

According to the letter, Article 2 of Annex V to the free-trade agreement between the EFTA and Sacu requires that certificates of origin/invoice declarations in respect of goods exported from Sacu countries to EFTA countries reflect such goods as being of Sacu origin and not as originating from the individual member countries of Sacu. In addition, EFTA countries have indicated that certificates/invoice declarations reflecting products as originating from the individual Sacu countries submitted before May 12 will still be accepted.

Tariff Investigations – Comment Due
The reduction in the rate of duty on tubes, pipes and hoses of vulcanised rubber (excluding hard rubber) without fittings, reinforced or otherwise combined with metals only, from 15% ad valorem to free of duty.

The reduction in the rate of duty on rope lights, having a casing of polymers of vinyl (chloride) with an outside diameter of 13 mm or more but not exceeding 15mm, internally fitted with interconnected lamps, from 20% ad valorem to free of duty, by the creation of an additional eight-digit subheading.

The increase in the rate of duty on spades and shovels of a maximum blade width of more than 150 mm but not exceeding 200 mm, from free of duty to 20% ad valorem.
Comment is due by July 3.