http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 18.11Change: -0.33
R/$ = 16.17Change: -0.18
Au 1191.45 $/ozChange: 36.40
Pt 926.50 $/ozChange: 26.00
 
 
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?








Start
 
End
 
 
And must exclude these words...
Close Main Search
Close Main Login
My Profile News Alerts Newsletters Logout Close Main Profile
 
Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science and Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office Tenders Suppliers Directory Research Jobs Announcements Letters About Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Aug 26, 2011

Ready for Harmonised System 2012?

Back
Environment|Export|System|Product|Products|Service|Operations
Environment|Export|System|Products|Service|Operations
environment|export|system|product|products|service|operations
© Reuse this



By: Donald MacKay

Every five years, the ‘Harmonised System’, or HS, is updated to accommodate changes in the business environment. The HS is the coding system used to classify goods when you import or export and is the determiner of the level of duty you pay on the goods you import. Thus, any change to the HS may change the tariff classification of the goods imported and may, therefore, change the duty paid.

The HS code assigned to products also serves as the link to rebates accessed by importers on particular products as well as trade remedies imposed on the importation of certain products like anti- dumping or countervailing duties. Changes made to the HS may have unintended con- sequences if the HS code assigned to a particular product is affected. When such changes result in protection provided by a trade remedy being lost, the consequences for a business may be devastating.

The challenge facing importers and exporters is to assess the impact of the changes being made in HS 2012 to determine the extent to which they are impacted on. Certain industries, such as food and chemicals, will be much more significantly impacted on than others in HS 2012. The impact may not only change the tariff heading you clear your goods under, it may also change the duty you pay on those goods. The South African Revenue Service holds importers and exporters accountable for compliance with HS 2012, yet most companies have no idea how their HS classification currently being used will be impacted on and what they need to do to deal with the change.

The impact of a change to the tariff code is potentially far reaching in all sorts of unex- pected ways, such as:

  • One may lose eligibility to rebates one currently accesses.
  • One may find that goods that currently attract antidumping duties no longer have such protection. Such a change may force a local manufacturer to apply for a changed circumstances review. For an importer, the change in duty structure may suddenly cause goods to fall within the ambits of a duty that did not hitherto apply.
  • Any duty or trade remedy applications which are in progress at the time of the change in the tariff structure may no longer be applicable.
  • Any trends in imports or exports of a particular product you have been tracking in the past may be invalidated by the change in the tariff structure.

When the last structural change like this was implemented in 2007, a number of companies were unaware of the imminent change and simply reacted to it only after the change had already been implemented. In some cases, this can be quite a serious problem, especially for companies with fixed price contracts, where changes may result in cost escalations as a result of duty changes which are not built into the pricing of the contract.

With just more than four months left to the implementation of HS 2012, importers and exporters need to gain an understanding of the extent to which their businesses will be impacted on by the proposed changes to the HS. This will allow importers and exporters to act on unintended consequences, like lost import rebates or trade remedy protection, and, in so doing, limiting the impact on their profitability and day-to-day operations.

Xikhovha Advi- sory (with our partners, 3CE Online) is offering a free service to all companies wishing to assess the impact of HS 2012 on their businesses. Visit www.hs2012.co.za for a free assessment of the impact of the proposed changes to your business.

Edited by: Creamer Media Reporter
© Reuse this

To subscribe email subscriptions@creamermedia.co.za or click here
To advertise email advertising@creamermedia.co.za or click here
 
Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
Other Pieter du Plessis & Donald Mackay News
The tough economic environment in South Africa over the past few years has served as a catalyst for protectionist pressures. Increasing import competition has further flamed calls for protection from various industries. According to the press, steelmaker...
I have uncapped Internet access at home. Or so I though until recently. Suddenly, it turned out that my 'uncapped' MWeb Internet access was subject to a 'reasonable usage' policy, despite my paying for uncapped Internet access every month.
The International Trade Administration Commission (Itac) may request the commissioner of the South African Revenue Service (Sars) to impose provisional antidumping duties to prevent further material injury being caused to a domestic industry during the time it takes...
More
 
 
Latest News
Updated 5 hours ago Despite a number of African countries being buffeted by falling commodity prices and fluctuating currencies in 2015, the latest Nielsen Consumer Confidence Index results have provided relatively stable overviews of East, West and South Africa, with Nigeria positioned...
Updated 6 hours ago JOHANNESBURG - South Africa's Illovo Sugar said on Monday it has received a non-binding expression of interest from its largest shareholder Associated British Foods to acquire the rest of the company's shares. ABF, which holds a 51.35% stake in Illovo, intends to...
South African REIT Association chairperson Laurence Rapp
Updated 6 hours ago The South African Real Estate Investment Trust (SA Reit) Association has published a best-practice guide book – Best Practice Recommendations (BPR) – in an effort to make the financial reporting of South African real estate investment trusts (REITs) clearer and more...
More
 
 
Recent Research Reports
Construction 2016: A review of South Africa's construction industry (PDF Report)
Creamer Media’s Construction 2016 Report examines South Africa’s construction industry over the past 12 months. The report provides insight into the business environment; key participants; local demand; geographic diversification; corporate activity; black economic...
Energy Roundup – February 2016 (PDF Report)
The February 2016 roundup covers activities across South Africa for December 2015 and January 2016 and includes details of a Government Gazette notice that confirms Cabinet’s decision to move ahead with the 9 600 MW nuclear procurement programme; State-owned power...
Energy Roundup - December 2015 (PDF Report)
The December 2015 roundup includes details of State-owned utility Eskom’s application to claw back R22.8-billion; South Africa’s ranking as an investment destination for renewable energy; and a nuclear expert’s thoughts on reactor designs for South Africa’s nuclear...
Water 2015: A review of South Africa's water sector (PDF Report)
Creamer Media’s Water 2015 Report considers the aforementioned issues, not only in the South African context but also in the African and global context in terms of supply and demand, water stress and insecurity, and access to water and sanitation, besides others.
Input Sector Review: Pumps 2015 (PDF Report)
Creamer Media’s 2015 Input Sector Review on Pumps provides an overview of South Africa’s pumps industry with particular focus on pump manufacture and supply, aftermarket services, marketing strategies, local and export demand, imports, sector support, investment...
Liquid Fuels 2015: A review of South Africa's liquid fuels sector (PDF Report)
Creamer Media’s Liquid Fuels 2015 Report examines these issues in the context of South Africa’s business environment; oil and gas exploration; fuel pricing; the development of the country’s biofuels industry; the logistics of transporting liquid fuels; and...
 
 
 
 
 
This Week's Magazine
Power and automation company ABB is in the launch phase of its highest payload, multipurpose industrial robot, the IRB 8700. The robot has a reach of 3.5 m and can handle a payload of up to 800 kg. “When designing the IRB 8700, we emphasised reach and payload, as...
Identity and Access Management (IAM) is a critical facet of a connected security ecosystem, as controlling the confidentiality, integrity and authorisation of data access and use is key to securing new digital business channels. However, companies face several...
RORY YOUNG Managed security services provide companies with a means to actively monitor their environment and ward against threats
Data underpins digital business models, the digital economy, the Internet of Things and the fundamental changes in the ways people interact and protecting data is crucial to securing new ways of doing business, says T-Systems South Africa information and...
The City of Cape Town will issue a tender for the procurement of electric buses for its MyCiTi service, in line with the council’s commitment to lower its carbon footprint, says executive mayor Patricia de Lille. The tender, to be advertised early in February, will...
The iSimangaliso Wetland Park Authority signed a R10-million contract last month with local tailings storage facility specialists Cyclone Engineering Projects to remove about 100 000 m3 of dredge spoil obstructing the natural course of the uMfolozi river, in...
 
 
 
 
 
 
 
 
 
Alert Close
Embed Code Close
content
Research Reports Close
Research Reports are a product of the
Research Channel Africa. Reports can be bought individually or you can gain full access to all reports as part of a Research Channel Africa subscription.
Find Out More Buy Report
 
 
Close
Engineering News
Completely Re-Engineered
Experience it now. Click here
*website to launch in a few weeks
Subscribe Now for $149 Close
Subscribe Now for $149