The International Chamber of Commerce (ICC) released its Global Survey 2014: Rethinking Trade and Finance on July 2. This is its largest and most comprehensive survey to date, including data from 298 banks across 127 countries. The survey concludes that the growth rate of international trade has dropped drastically, compared with the years prior to the global financial crisis.

According to the ICC, the global trade growth rate was a shade above 3% during 2013; however, it picked up to an annualised growth rate of 4% during the first quarter of 2014 and is expected to accelerate beyond 5% to 2016.

Sixty-eight per cent of the respondents reported that the availability of trade finance had increased in value, compared with the previous year. In terms of the ‘trade finance gaps’, 41% of respondents reported that they perceived a shortfall of trade finance globally. According to the ICC, this gap remains a major challenge, especially for small and medium-sized enterprises (SMEs) since, without access to trade finance, now widely acknowledged as an engine of growth, SMEs will not be able to contribute substantially towards economic recovery and development.

‘Know your customer’ and anti-money-laundering regulations caused 68% of the respondents to decline transactions, and nearly a third (31%) to close down correspondent account relationships. A total of 41.03% of the respondents reported that complying with sanctions had restricted trade finance operations in 2013 to a greater extent than in previous years. Such compliance is expensive, with the survey citing the cost of compliance for one counterparty as high as $75 000.

The survey highlighted that G20 countries accounted for three-quarters of the trade-restric- tive measures imposed since 2008, with World Trade Organisation figures showing that these countries introduced 193 new trade restrictive measures between December 2012 and November 2013. Such restrictions – many of which are protectionist and, therefore, trade distorting – have stalled the agenda to open up world trade.
Sixty-five per cent of the respondents stated that Basel III regulations had affected the cost of funds and the liquidity of trade finance. Within the Export Finance section of the survey, 72% of the respondents agreed that Basel III had made them more innovative as an organisation, although 69% also said it had prompting them to increase pricing for their customers.

One key finding of the survey is that South-South exports now represent 46% of global exports. Also, 40% of the respondents identified Asia as the primary focus for trade. Even with trade slowing in the emerging markets, the significance of these markets within the global economy is increasing, as new trade corridors are opening up. Yet it is these markets that most keenly feel the pinch of inadequate trade financing availability.

According to the ICC, one important benefit of the financial crisis is the spirit of partnership that has evolved between trade and trade finance stakeholders, which has been evident since the start of the survey.

Chicken Antidumping Duties
On July 4, the South African Revenue Service (Sars) imposed provisional payments (anti- dumping duties) on frozen bone-in portions of fowls of the species gallus domesticus, classifiable under tariff subheading 0207.14.90, originating in or imported from Germany, the Netherlands and the UK. The provisional payments are 22.03%, 22.81%, 31.30% and 73.33%, dependent on the country of origin and the company of origin. Interested parties have until July 18 to respond to the International Trade Administration Commission of South Africa (Itac) report that details the reasons for the imposition of the provisional payments.

Fluorescent Lamp Rebate
On July 4, Sars informed of the creation of rebate item 316.08/8504.10/01.06 for electronic ballasts, for the manufacture of fluorescent discharge lamps (excluding ultraviolet lamps) of tariff subheading 8539.31.90, with a power rating of 5 W or more but not exceeding 23 W. The extent of the rebate is the full customs duty.

Wine Rebate Amendment
On July 4, Sars informed, through various notices, of the amendment of rebate items 620.01, 620.02, 620.04, 620.05, 620.07, 620.08, 620.11 and 620.19, the substitution of tariff items 104.15.03/2204.21.41, 104.15.07/2204.29.41, 104.06.03/2205.10.21 and 104.16.09/2205.90.21 and the substitution of tariff subheadings 2204.21.41, 2204.29.41, 2205.10.21 and 2205.90.21 to lower the alcoholic strength of wine from 6.5% by volume to 4.5% by volume.

Dube TradePort IDZ
Trade and Industry Minister Dr Rob Davies informed on July 1, through a Government Gazette notice, by virtue of the powers vested in him by the Manufacturing Development Act and the Industrial Development Zone (IDZ) Regulation, that he had desig- nated portions of the farm La Mercy Airport 15124, owned by Dube TradePort Corporation, as an IDZ and granted an operator permit to Dube TradePort Corporation.

Automotive Investment
Davies announced on July 2 that he had approved the newly revised guidelines for the Automotive Investment Scheme (AIS) and the People-Carrier Automotive Investment Scheme (P-AIS). The guidelines are the result of consultative engagements which the Department of Trade and Industry (DTI) held with stakeholders in the automotive sector. According to the DTI, the P-AIS, a subcomponent of the AIS, has to date approved two applications, both of which were from original-equipment manufacturers. The incentives approved total R26.1-million and 191 jobs have been created in this sector.

Dumping Lapse
Itac notified all interested parties that, unless a duly substantiated request is made by or on behalf of the Southern African Customs Union (Sacu) industry indicating that the expiry of the antidumping duty would be likely to lead to continuation or recurrence of dumping and injury, the following antidumping duties will expire during 2015: garlic imported from or originating in China, float and flat glass imported from or origi- nating in China, polyester staple fibre imported from or originating in China and float and flat glass originating in or imported from India.
Manufacturers of the products in the Sacu region who intend to submit a request for the antidumping duties to be reviewed prior to their expiry are requested to do so by the following dates: garlic, September 25; float and flat glass, September 25; polyester staple fibre, November 27; and float and flat glass, September 25.

Where no replies are received from the Sacu manufacturers by these dates, Itac will recommend the termination of the duties on the date of expiry.

Sacu manufacturers who wish to submit a request for the antidumping duties to be reviewed prior to their expiry must do so by July 28.