The Southern African Customs Union (Sacu) has announced the appointment of Paulina Mbala Elago, a Namibian national, as its new executive secretary for the next five years. She assumed her new position on April 1.

Prior to her appointment, Elago was Tanzania country director for Trade Mark East Africa (TMEA), where she was responsible for designing, managing and implementing TMEA Tanzania’s programme aimed at supporting the implementation of East African Community regional integration frameworks and improving intraregional trade and trade competitiveness through improved trade facilitation, streamlined procedures and infrastructure development.
Elago has over 20 years’ professional experience in international trade, primarily trade policy, regional integration and trade-related capacity building. She also has ten years’ experience in managing and delivering multicountry and multiyear programmes, developing programmes to support regional integration, primarily in African, Pacific and Caribbean (APC) States and regional organisations in the ACP regions. She also served as chief trade negotiator for the government of Namibia. Elago has in-depth knowledge and understanding of the trade and socioeconomic context of the Sacu and Southern African Development Community (SADC) regions, as well as the global arena.

Sugar Duty Increase
The South African Revenue Service (Sars) informed on April 4 of the increase in the rates of customs duty on beet sugar (1701.12), cane sugar (1701.13), other cane sugar (1701.14), sugar containing added flavouring or colouring matter (1701.91) and other types of sugar (1701.99). The increase in the rate of customs duty is from free of duty to 132c/kg, and applies to all the rates of customs duty – general, European Union (EU), European Free Trade Area and SADC.

The increase in the rate of customs duty is due to an application lodged by the South African Sugar Association (Sasa), which was published by the International Trade Administration Commission of South Africa (Itac) in the Government Gazette of September 20, 2013. The application was for the increase in the domestic dollar-based reference price for sugar from $358/t to $764/t and Itac’s recommendation for an increase from $358/t to $566/t. As a motivation for the application, Sasa argued that an adjustment in the Sacu tariff on imported sugar would have a fair level of protection and could be justified on the following bases: the South African sugar industry and sustainable socioeconomic development, government policy coherence, imports and financial sustainability of the industry, the distorted world market and competitiveness.

SADC Trade in Sugar Annex
On the same day it announced the increase in the rate of customs duty on sugar, Sars also informed of the substitution of Annex VII and its appendix in the general notes in Schedule No 1 of the Customs and Excise Act, which relate to the SADC Agreement, specifically “concerning trade in sugar”. The amendment was the result of the increase in the rate of customs duty on sugar and provides for non-Sacu SADC member countries (Malawi, Mauritius, Mozambique, Tanzania, Zambia and Zimbabwe) to import the specified base quota under rebate of the customs duty.

Annex VII consists of a preamble, definitions (Article 1), objectives (Article 2), reciprocal market liberalisation (Article 3), nonreciprocal access to the Sacu market (Article 4), cooperation in areas of common interest (Article 5), implementation (Arti- cle 6) and the institutional framework (Article 7).

Upholstered Furniture Duty
Sars informed on April 4 of the insertion of three rebate items (320.01/5407.61/01.06, 320.01/ 5903.20.90/01.08 and 320.01/5907.00.90/01.08) for imported inputs used in the manufacture of upholstered furniture, classifiable in tariff heading 94.01. The extent of the rebates is ‘full duty’.

Rebate item 320.01/5407.61/01.06 reads: “Woven fabrics, containing 85% or more by mass of nontextured polyester filaments, in such quantities, at such times and subject to such conditions as International Trade Administration Commission may allow by specific permit, for use in the manufacture of upholstered furniture classifiable in tariff heading 94.01”.

Rebate item 320.01/5903.20.90/01.08 reads: “Other textile fabrics impregnated, coated, covered or laminated with polyurethane, in such quantities, at such times and subject to such conditions as the International Trade Administration Commission may allow by specific permit for use in the manufacture of upholstered furniture classifiable under tariff heading 94.01”.

Rebate item 320.01/5907.00.90/01.08 reads: “Textile fabrics otherwise impregnated, coated or covered, in such quantities, at such times and subject to such conditions as the International Trade Administration Commission may allow by specific permit for use in the manufacture of upholstered furniture classifiable under tariff heading 94.01”.

Graphite Electrodes Tariff
Itac has informed of the termination of the investigation into the alleged dumping of graphite electrodes for use in furnaces originating in or imported from the People’s Republic of China and India.

The application was lodged by GrafTech South Africa, the sole manufacturer of the product in the Sacu region. On February 6, Itac received a letter from GrafTEch informing of its decision to cease its operations, requesting that the antidumping investigation be terminated.

This explains the tariff application of March 20 for the proposed reduction in the ‘general’ rate of customs duty graphite electrodes on which comment was due by April 17.

Stranded Wire Tariff
Itac has informed of the proposed reduction in the ‘general’ rate of customs duty on stranded wire or wire from 5% ad valorem to free of duty, through the creation of an additional eight-digit tariff subheading. Comment is due by April 17.

Waste and Scrap Exports
Itac informed on March 28 of the amendment to the export control guidelines on the exportation of ferrous and nonferrous waste and scrap that was published on August 2, 2013.

The amendment relates to Paragraph 1 of the guidelines and entails substituting the words “secondary scrap processors” with the “secondary scrap smelters”.

Herbs Vat
On March 27, Sars published a value-added tax (Vat) draft binding general ruling (DBGR) on the treatment of the supply and importation of herbs. Comment is due by May 31.

Fruit and Vegetables Vat
On March 19, Sars published a Vat DBGR on the treatment of the supply and importation of fruit and vegetables. Comment is due by May 15.

Vat on Imported Potatoes
A Vat DBGR on the treatment of the supply and importation of various types of frozen potato products was published by Sars on March 12. Comment is due by May 15.