Exporting to the EU – six easy steps

24th April 2015

By: Riaan de Lange

  

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In the instalment of this column for the October 31 to November 6, 2014, edition of Engineering News, titled ‘Online help desk a gold mine of information on exports to the EU’, the European Union (EU) export help desk – the European Commission’s (EC’s) online one-stop shop that provides information on how to export to the EU, EU tariffs, requirements, preferential arrangements, quotas and statistics affecting business in developing countries in just a few clicks – was first introduced to you.

The EU export help desk (http://exporthelp.europa.eu) is ‘your gateway to Europe’s market’. The EU provides you with access to a market of 500-million consumers in 28 member countries, namely Austria, Belgium, Bulgaria, Croatia, Cyprus, the Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, The Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden, the UK.

What can you expect to find at the EU export help desk? You will find all you need to know about exporting to the EU, including the health, safety and technical standards you will need to meet, the customs duties you will need to pay at the border, the internal taxes in each of the 28 countries, the rules of origin that define where a product is from and whether it should enjoy preferential duty rates, and the forms you will need to send with your shipments.

You too can be exporting to the EU in six easy steps. Step 1: check the customs code for your product; open the search box; browse the classification tree or type a keyword; and define your product, the exporting country and the importing country. Step 2: the results for your product are right there – check ‘Requirements’, namely the health, safety or technical standards your product needs to meet. Then check the ‘Internal taxes’: the value-added tax or excise duties for your product in the importing country. Step 3: check ‘Customs duties’, namely the standard rate of EU import duty for your product, a possibly reduced rate if the exporting country has a trade agreement with the EU or benefits from a preferential scheme, and any quota or antidumping duties. Step 4: check the ‘Rules of origin’ for your product – they indicate the minimum processing your product must undergo in your country to be considered as ‘originating’ there. The origin also depends on where the inputs you use for your final product are sourced from, and the customs offices at EU borders will verify your origin certificate. Step 5: check the ‘Statistics’ – in other words, find out how much of your kind of product other countries are already exporting to the EU. Step 6: click on ‘Resources’ for more information on product codes, chambers of commerce and customs offices in each EU country and/or additional information for your country.

The 28-member EU is the world’s largest single market, accounting for over 16% of the world’s merchandise trade. It is by far the most important trading partner for developing countries, including South Africa. The EU is South Africa’s largest trading partner; in 2014, it accounted for 26.19% of this country’s merchandise trade. South Africa’s exports to the EU increased by 16.64% to R192.97-billion in 2014, up from R165.44-billion in 2013. The EU and South Africa are contracting parties to the Trade, Development and Cooperation Agreement, which entered into force on January 1, 2000, and is due to be replaced by the Southern African Development Community Economic Partnership Agreement, concluded on July 15.

Lead-Acid Battery Tariff
On April 10, the South African Revenue Service (Sars) informed of the substitution of lead-acid batteries of a kind used for starting piston engines, classifiable under tariff subheading 8507.10, and the insertion of tariff subheadings 8507.10.05 – with dimensions not exceeding 185 mm (length) × 125 mm (width) × 195 mm (height) – at a ‘general’ rate of customs duty of 5% ad valorem; and tariff subheading 8507.10.10 (Other) at a ‘general’ rate of customs duty of 15% ad valorem.

The tariff application, lodged by Powertech Batteries, a division of Powertech Industries, was published by the International Trade Administration Commission of South Africa (Itac) on July 18, 2014, for an increase in the ‘general’ rate of customs duty on lead-acid batteries of a kind used for starting piston engines, classifiable under tariff subheading 8507.10, from 5% ad valorem to 30% ad valorem.

Lithium Batteries Tariff
On April 10, Sars informed of a reduction in the ‘general’ rate of customs duty on lithium batteries classifiable under tariff subheading 8506.50.25 “Other, cylindrical (excluding those of a height not exceeding 7 mm), of a diameter exceeding 19 mm” from 10% ad valorem to free of duty.

The tariff application, lodged by N&Z Instrumentation & Control, was published by Itac on December 19, 2014, for a reduction in the ‘general’ rate of customs on “Other, cylindrical (excluding those of a height not exceeding 7mm), of a diameter exceeding 19mm”, classifiable under tariff subheading 8506.50.25, from 10% ad valorem to free of duty.

Special Economic Zone
On March 20, Sars informed of the amend- ment of the rules of the Customs and Excise Act for alignment with new Special Economic Zones (SEZ) legislation to be implemented on a later date. Coinciding with this announce- ment, Trade and Industry Minister Dr Rob Davies issued SEZ Regulations in terms of the SEZ Act, for public comment, which is due by April 30.

Garlic Sunset Review
Itac has informed of the initiation of a sunset review of the antidumping duties on fresh or chilled garlic originating in or imported from the People’s Republic of China.
The notice follows an earlier one in which Itac notified interested parties that, unless a substantiated request is made, indicating that the expiry of the antidumping duties would likely lead to the continuation or recurrence of dumping and material injury, the duties will expire on March 25. Itac subsequently received a sunset review application from the South African Garlic Growers Association.
Comment is due by April 27.

Table Olive Regulations
The executive officer: agricultural product standards at the Department of Agriculture, Forestry and Fisheries informed on April 10 of proposed new regulations relating to the grading, packing and marking of table olives intended for sale in South Africa. Comment is due by May 29.

Edited by Martin Zhuwakinyu
Creamer Media Senior Deputy Editor

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