On the afternoon of October 12, the South African Revenue Service (Sars) informed of the proposed 
insertion of Chapter 99 (miscellaneous classification provisions) into schedule No 1, Part 1 
(ordinary customs duty) of the South African Harmonised Customs and Excise Tariff and of the proposed draft rules for section 38A of the Customs and Excise Act (special provisions in respect of the storage, clearance and release of stores or spares and equipment supplied to foreign-going ships and air-
craft.

Written comment was due by October 23.

You may recall that this issue was raised in an earlier instalment of this column, in which mention was made of a letter from Sars, dated September 10 and entitled ‘The supply of goods to foreign-going sircraft/ships’, which followed an earlier letter from Sars, dated February 18.

The letter reads as follows: “The initial implementation planned for March 2009 as proposed was postponed due to legislative/regulatory constraints. 
“Subsequent to this letter, considerable 
internal engagements have been undertaken with the relevant sections. 
“This office has been advised that the proposed legislative and policy changes will be effected in the near future, which would 
then allow for implementation in November 2009.

“Clients have been engaged in the proposed processes. 
“The draft legislation regarding the Taxation Laws Second Amendment Bill, dated June 1, 2009, included the insertion of Section 38A in Act 91 of 1964 (pages 24 to 27 and paragraph 2.26 on page 59) was published on the Sars website. 
“The Customs legislation (updated with any comments received), new rules and policy will be circulated during September/October 2009 for final external/internal comment.

“Clients who do not comply with the proposed procedure will not be facilitated
in line with the simplified procedure for 
accredited clients.”


Increase in the Customs Duty on Clothing
In the Government Gazette of October 9, Sars informed of the increase in the rate of customs duty on specific clothing cate-
gories.

The tariff subheadings in respect of the clothing products covers 124 tariff lines and 35 product categories. 
The general rate of customs duty was 
increased to its bound rate of 45% ad 
valorem.

With the exception of three tariff subheadings, which were increased from 20% 
ad valorem to 45% ad valorem, the other rates of customs duty were 40% ad valorem. 


Termination of the Antidumping Duties
The termination of antidumping duties on acrylic fabrics imported from the People’s Republic of China with retrospective effect from June 25.


Deletion of Acrylic Fabrics Rebate Items
The deletion of the rebate items that relate to the rebate of the antidumping duties on acrylic fabrics, imported from the People’s Republic of China with retrospective effect from June 25.


Rebate of the Duty on Cartridge Cases
The creation of a rebate item in respect of cartridge cases and wads used in the manufacture of industrial cartridges.


Sacu/Mercosur Trade Agreement
The Common Market of the South (Merco-sur) and the Southern African Customs Union (Sacu) have signed a preferential trade agreement.

Argentina, Brazil, Paraguay and Uruguay constitute Mercosur, while Botswana, Lesotho, Namibia, South Africa and Swazi-land make up Sacu.

Article 2 of the agreement provides for the establishment of fixed preference margins as a first step towards the creation of a free-trade area between Sacu and Mercosur.