Citrus black spot (CBS) was first detected in South Africa in 1929 along the coast of what is now KwaZulu-Natal, after its initial detection in Australia in 1879. CBS is now found in many countries around the world, including Brazil, China and South Africa, three of the Brics countries, which include Russia. According to the Department of Agriculture, Forestry and Fisheries (DAFF), CBS occurs in most South African citrus producing areas, with only parts of the Western Cape and Free State free from it.

CBS is caused by the fungal pathogens Guignardia citricarpa and Phyllosticta citricarpa, infecting citrus plants and affecting the appearance of the fruit. According to a DAFF media statement of August 7, the visual detection of the disease is difficult since symptoms (which manifest as superficial blemishes on the fruit) tend to develop over time during storage. CBS is a cosmetic defect and the fruit is entirely suitable and safe for consumption. The DAFF states that South Africa exports citrus fruit to the European Union (EU) and one of the EU phytosanitary regulations for citrus fruit origi- nating in areas where CBS occurs states that the fruit must have originated in a field of produc- tion subjected to appropriate treatments against CBS (all strains pathogenic to citrus) and none of the fruit harvested in the field of production has shown, during an appropriate official examination, symptoms of this organism.

In 2012, the EU announced its intention to institute a five-interception cutoff point for CBS in citrus consignments originating from South Africa during the 2013 season. Subsequent to the announcement of the stringent measures, South Africa instituted a revised CBS risk management system and shared this revised system with officials of the EU Directorate-General of Health and Consumers Commission in a bilateral technical meeting in March this year. During this meeting, South Africa also engaged the EU on the five-interception threshold. At the time of the letter, there had only been one notification of CBS interception of a consignment en route to the Netherlands, received on July 21. The DAFF reported that the production unit from which the fruit originated had been deregistered and was no longer eligible for further exports to the EU. (The origin in South Africa is not known.)

At the time of writing, on August 28, it was reported that a fifth CBS interception had occurred – the cutoff point for South Africa citrus consignments to the EU. At the time, up to 50 containers a week were being shipped to Europe. According to the South African industry, about 65% of South Africa’s citrus exports are destined for Europe, and should the EU decide to now restrict South African citrus exports, it is estimated that alternative markets would need to be found for 15% to 20% of South Africa’s exports.

On August 30, Spain’s Young Farmer Association called for immediate action by the EU. The future of South Africa’s citrus exports to the EU is, and remains, an issue of great concern.

Rule Amendment – Stripped Wine
On August 29, the South African Revenue Service (Sars) informed of the amendment of Rule 19A3.03 of the Customs and Excise Act to prescribe the removal of stripped wine (fermented ethyl alcohol) from the customs and excise manufacturing warehouse for wine products to the secondary customs and excise manufacturing warehouse for spirits products, effective August 30.

Tariff Amendment – Illuminating Kerosene
On August 20, Sars informed of the amendment of Additional Note 1(f) of Chapter 27 in Part 1 of Schedule No 1 of the Customs and Excise Act, amending the distillation specifications for illuminating kerosene, effective August 30.

Draft Rule Amendment – Diamond Export Levy
On August 27, Sars informed of the proposed draft rules that provide for a situation where a return levypayer discovers an error on a return previously submitted. The draft rules propose the withdrawal of forms DL 480 (departmental diamond export levy) and the DL 481 (voucher of correction: departmental diamond export levy), as these forms will be used for internal administrative purposes.

Since the commissioner of Sars must, if satisfied that a refund applied for is due, pay the refund to the person concerned, the draft also makes provision for the deletion of the rule relating to refunds, as was provided for in Taxation Laws Amendment Act, 2009 (Act No 18 of 2009).

Provision is also made for the client type ‘holder of export permit’ on the relevant forms.
Comment was due on September 10.

Draft Rule Amendment – MIDP
On August 26, Sars published a draft rule amendment relating to the dele- tion in the Schedule to the Rules of the forms used for the Motor Industry Develop- ment Programme (MIDP) and the insertion of the forms to be used for the quarterly accounts for the Automotive Production and Develop- ment Programme (APDP). Comments were due by no later than September 9. The MIDP was concluded on December 31, 2012, and replaced by the APDP, which came into operation on January 1, 2013. Clients who participate in the APDP are required to complete an APDP quarterly account. This draft amendment proposes the deletion of the MIDP forms and the insertion of the newly developed APDP forms.

Tariff Applications – Comment due
On August 23, numerous proposed amendments were published with respect to the ‘general’ rate of customs duty, and comments are due by September 20. These include a proposed increase in the rate of customs duty on coated fine paper, classifiable in tariff subheading 4810.13.20, 4810.13.90, 4810.14.10, 4810.14.90 and 4810.29.90, from free of customs duty to 5% ad valorem.

Also proposed is an increase in the customs duty on roasted chicory, classifiable in tariff subheading 2101.30.10, from 9.2c/kg to 37% ad valorem. (A specific customs duty to an ad valorem customs duty.)

Other proposals relate to an increase in the customs duty on heat exchange units, classifiable under tariff subheading 8419.40, from free of customs duty to 15% ad valorem, as well as the creation of a rebate of the rate of duty provision for cranberry juice, classifiable under tariff subheading 2009.81.10, and passion fruit juice, classifiable under tariff subheading 2009.89.40, for the use in the manufacture of mixtures of fruit juices, classifiable in tariff subheading 2009.90.10.

Further, Sars proposes a reduction in the rate of customs duty on poly vinyl butyral, classifiable in tariff subheading 3920.91, from 10% ad valorem to free of customs duty, and amendments of tariff subheadings 8302.30.30, 8302.41.10 and 8302.42.10. With regard to tariff subheading 8302.30.30, this will effected by the deletion of ‘fittings of iron, steel or copper, commonly used in the manufacture of windows’ and the insertion of ‘fittings of iron, steel or copper (excluding window-opening mechanisms) for windows, doors and door frames’. With regards to tariff subheading 8302.41.10, (i) by the deletion of “Fittings of iron, steel or copper, of a kind solely or principally for doors and door frames, of base metal”. With regard to tariff subheading 8302.42.10, this will be effected by the deletion of ‘fittings of iron, steel or copper, commonly used in the manufacture of doors’ and the insertion of ‘fittings of iron, steel or copper, of a kind solely or principally for doors and door frames, of base metal’.