On February 18, the Minister of Trade and Industry, Dr Rob Davies, released the 2010/11 to 2012/13 Industrial Policy Action Plan (Ipap).

The plan, or Ipap2, as it is now known, builds on the National Industrial Policy Framework and the 2007/8 Ipap. Davies said: “The plan represents a significant step forward in scaling up efforts to promote long-term industrialisation and industrial diversification beyond the current reliance on traditional commodities and nontradeable services.” He outlined crosscutting interventions that will underpin focused interventions in three clusters sectors.

The first cluster of sectors, which will be new areas of focus in South Africa’s industrial policy, included metals fabrication, capital and transport equipment, green industries and energy saving industries, and agroprocessing.

The second cluster includes sectors that were identified in the first Ipap, or Ipap1, but on which government will now build and in which it will broaden its interventions. These sectors include automotives and components, and medium- and heavy- duty vehicles; plastics, pharmaceuticals and chemicals; clothing, textiles, footwear and leather; biofuels; forestry, paper, pulp and furniture; cultural industries and tourism; and business-process services.

The third cluster is focused on long-term, advanced capabilities, and includes nuclear, advanced materials and aerospace.

Transfer Pricing Conference
On April 28, the International Chamber of Commerce (ICC) will host a one-day transfer pricing seminar titled Transfer Pricing Documentation and Dispute Resolu- tion: Making or Breaking the Corporate Tax. While most transfer pricing conferences tend to focus on methods, the ICC seminar will examine the practical issue of transfer pricing documentation and its role in dispute resolution. “The often conflicting documentation requirements have become a significant challenge for international business,” remarks ICC Taxation Commission chairperson Robert Couzin. “Enterprises and governments should be working together to find practical and manageable solutions.”

According to the ICC, the seminar will look at how the documentation burden in transfer pricing has grown in volume and spread across the globe and how conflicting and cumulative requirements have become a significant challenge for international business.

WTO Appellate Body Annual Report

The World Trade Organisation Appellate Body tabled its annual report for 2009 on February 17. The annual report describes the Appellate Body’s work throughout 2009 and provides details on the appeals that were filed.

Tariff Amendments – Sin Taxes
In his Budget speech, Finance Minister Pravin Gordhan informed of amendments to the customs and excise duties in Schedule No 1, Part 2A, of the Customs and Excise Act, the so-called sin taxes – taxes on tobacco and liquor products. Gordhan did not announce any changes to Schedule No 1, Part 2B, of the Act, which deals with the so-called luxury taxes.

Picks from India
On February 19, the International Trade Administra-tion Commission of South Africa (Itac) informed of its preliminary determination in the investigation into the alleged dumping of picks originating in or imported from India.
The application was lodged by Usseher Inventions, trading as Lasher Tools, and initiated by Itac on October 23.

Itac’s preliminary determination is that picks were being dumped on the Southern African Customs Union (Sacu) market. However, the commission made a prelimanary determination that there is currently no threat of material injury to the Sacu industry. Based on this, Itac made a preliminary determination to recommend to the Minister of Trade and Industry to terminate the investigation.

All interested parties may submit comments by March 19.