R/€ = 15.26Change: -0.01
R/$ = 14.41Change: -0.03
Au 1057.95 $/ozChange: 0.07
Pt 835.50 $/ozChange: 0.00
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?

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?

© 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 for a free assessment of the impact of the proposed changes to your business.

Edited by: Creamer Media Reporter
© Reuse this 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...
Latest News
French conglomerate Bollore may have to halt work on the Niger to Benin section of its giant West Africa rail project after a rival company won a court order to stop it going ahead. The dispute concerns rival rail schemes in the area.
A week ahead of the second annual gathering of the Forum on China–Africa Cooperation (Focac), in Johannesburg, the JSE is rolling out the proverbial red carpet for Chinese investors looking to Africa’s largest bourse for possible investment opportunities, calling...
The South African National Roads Agency Limited (Sanral) applied for leave to appeal on Friday against the Western Cape High Court judgment that set aside the approvals that would enable it to toll sections of the N1 and N2 freeways in Cape Town. This prompted the...
Recent Research Reports
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...
Road and Rail 2015: A review of South Africa's road and rail sectors (PDF Report)
Creamer Media’s Road and Rail 2015 report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail infrastructure and network, the funding and maintenance of these respective networks, and...
Defence 2015: A review of South Africa's defence sector (PDF Report)
Creamer Media’s Coal 2015 report examines South Africa’s coal industry with regards to the business environment, the key participants in the sector, local demand, export sales and coal logistics, projects being undertaken by the large and smaller participants in the...
Real Economy Year Book 2015 (PDF Report)
There are very few beacons of hope on South Africa’s economic horizon. Economic growth is weak, unemployment is rising, electricity supply is insufficient to meet demand and/or spur growth, with poor prospects for many of the commodities mined and exported. However,...
This Week's Magazine
The BMW Group will invest R6-billion at BMW Group South Africa’s (BMW SA’s) Rosslyn plant to produce the next-generation X3 sports-activity vehicle (SAV) for the local and export markets. Rosslyn will continue production of the current 3 Series through its lifecycle,...
The lack of consequences for poor performance and transgressions on the part of contractors remains a significant hurdle to tackling South Africa’s service delivery challenges, delegates heard at the Consulting Engineers South Africa Infrastructure Indaba, on...
City of Ekurhuleni executive mayor Mondli Gungubele earlier this month officially named the city’s bus rapid transit (BRT) system, Harambee.
NICK CHRISTODOULOU As about 58% of data stored by organisations is dark, they must identify this dark data to expose risks and valuable information
About 58% of unstructured data stored by companies is dark data, which means that the value or regulatory importance of the data has not been determined. Subsequently, most of the stored data add costs, rather than increasing revenue or reduce regulatory risks, says...
BRIAN VERWEY Effective management, review and administration of non-core elements can improve business operations and increase revenue and decrease unforeseen risks
Effective logistics, import/export and manufacturing consulting services require detailed industry knowledge and experience, but can add significant value to these industries by providing expert advice on various technical elements in their value chains, says...
Alert Close
Embed Code Close
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
Engineering News
Completely Re-Engineered
Experience it now. Click here
*website to launch in a few weeks
Subscribe Now for $96 Close
Subscribe Now for $96