In the last instalment of this column, I mentioned that the Customs Tariff Act was introduced in 1914, which means customs duties have been in force in South Africa for 100 years.

However, it is not only customs duties that are celebrating their centenary in South Africa. The Customs Tariff Act introduced the concept of ‘dumping’ in Section 8 (which deals with dumping and countervailing duties) – these duties were to be adminis- tered by the Department of Customs. South Africa was the fourth country in the world to introduce dumping, following Canada in 1904, New Zealand in 1905 and Australia in 1906. (Just before you are told otherwise, trade remedies, also known as ‘bounties’ or ‘subsidies’, have a history dating back to their use in 1903 in the Transvaal colony. The Union of South Africa was, however, only established on May 31, 1910.)

The Board of Trade and Industries (BTI), now the International Trade Administration Commission of South Africa, was established in February 1923 to take over responsibility for investigating allegations of dumping and recommending the imposition of antidumping measures, where appropriate.

The first antidumping investigation under- taken by the BTI involved cement and is detailed in Report No 30, which is titled ‘The Dumping of Cement’, dated November 28, 1923. During the latter part of 2013, it was reported in the media that the Southern African Customs Union (Sacu) was expe- riencing unfair competition from cement imports from Pakistan and the People’s Republic of China and that the Southern African cement industry was contemplating an antidumping application. (Trade remedy measures are imposed for the Sacu countries.)

The Customs and Excise Amendment Act of 1967 repealed all antidumping measures on products imported prior to March 24, 1967. Ten years later, in 1977, the BTI recommended the withdrawal of all antidumping measures with effect from January 1, 1978, and this recommendation was duly adopted.
Since the World Trade Organisation (WTO) was not in existence yet (it was established only on January 1, 1995), bound rates of the ‘general’ rate of customs duty did not exist. As a consequence, the use of tariff increases was more prevalent than that of antidumping measures. This is evidenced by the fact that, nine years later, on June 30, 1987, only two antidumping measures were in place – one on labels, with woven inscriptions, originating in or imported from Zimbabwe, and the other on single-phase electricity input meters originating in or imported from Brazil.

Following the establishment of the WTO and South Africa’s commitment to bound rates (ceiling rates) of customs duty, the popularity of the use of antidumping measures increased. During the late 1990s, South Africa was one of the most prolific users of antidumping measures in the world. Though South Africa’s use of antidumping measures is no longer at the levels it reached in the 1990s, these measures remain an important element of South Africa’s tariff and trade instruments.

At the beginning of this year, 57 anti- dumping measures were in operation, as well as two countervailing (antisubsidy) measures and a provisional safeguard measure. The antidumping measures apply to 13 countries, namely Brazil, the People’s Republic of China, Germany, India, Indonesia, the Republic of Korea, Malaysia, Sweden, Taiwan, Thailand, Turkey, the UK and the US, while the two countervailing measures both apply to India. China accounts for 45.61% of the prevailing antidumping measures, while, collectively, China (45.61%), India (12.28%) and Indonesia (10.53%) account for 68.42% of the prevailing antidumping measures. Three product groups – iron and steel (35.09%), glass and glassware (22.81%) and plastics (8.77%) – account for 66.67% of the prevailing antidumping measures.

Provisional Dumping Payments
On December 20, 2013, the South African Revenue Service (Sars) imposed provisional payments (antidumping duties) on frozen potato chips originating in or imported from Belgium and the Netherlands, as well as on disodium carbonate (soda ash) originating in or imported from the US. The payments are imposed up to and including June 20.

Tariff Amendments
Sars gave notice of the introduction of two eight-digit tariff subheadings for salt, classifiable in tariff subheadings 2501.00.10 and 2501.00.90, the tariff phase-down of the European Free Trade Association rate of customs duties, and a reduction in the ‘general’ rate of customs duty on paper and paperboard, classifiable in tariff subheading 4811.41.90, on January 1.

2013 Rule Amendments
On December 27, Sars published amendments to traveller rules (Section 15 of the Customs and Excise Act) TC-01 Traveller Card, TRD1 – Travellers Declaration) and the deletion of form DA 331 (Traveller Declaration).
On December 19, 2013, Sars published an amendment to the rules (Section 119A of the Act) on excise accounts and returns that must be submitted via efiling, and the substitution of all DA 260 Excise Accounts as a result of modernisation.
On December 12, 2013, Sars published the substitution Form DA185.4B1, the amended Diamond Export Levy Rules and the substituted Diamond Levy Forms (there are different implementation dates).
On December 12, 2013, Sars published four notices added, relating to amendments to Schedule No 6 of the Act made in respect of distillate fuels used by the farming sector and diesel refunds relating to farming and to mining activities

WTO Notifications
On December 16, the Committee on Safeguards of the WTO gave notice of South Africa’s intention to impose a final safeguard on frozen potato chips. The notice indicates that it “will come into effect in mid-January”.

On December 11, the Committee on Technical Barriers to Trade of the WTO announced South Africa’s intention to regulate the control over the sale of poultry meat. The purpose of the amendment to the existing regulations is to provide for the injection (treatment) of poultry with brine mixtures, to set the levels of injection, and to provide for labelling and consumer information. This needs to be imposed by no later than March 2, 2015.

Revised Tariff Questionnaires
Itac has published three revised questionnaires for tariff amendment investigations (increase, reduction and rebate) which are applicable to applications lodged from January 1.