On December 7, the South African Revenue Service (Sars) informed of the amendments to rebate item 470.00 in Schedule No 4 of the Customs and Excise Act relating to exemptions on the importation of goods temporarily admitted for processing, repair, cleaning or reconditioning or goods manufactured exclusively for export.

The changes include an amendment to a value-added tax (Vat) provision (para- graph 8 of Schedule 1 of the Value-Added Tax Act) the deletion of rebate item 470.01/00.00/01.00 and the substitution to notes 1 to 5 of rebate item 470.00.

The amendments also relate to the deletion of rebate item 470.01/00.00/01.00 (goods for processing, provided such goods do not become the property of the importer) and to regulating the exemption from Vat on such goods.
Note 1 deals with the temporary admission of any goods under rebate item 470.00, which are subject, mutatis mutandis (meaning ‘similar’) to the provisions of the rules of Section 75 of the Act.

In terms of Note 2, the Sars commissioner may require the importer to register with him or her a rate of yield of the processed or manufactured goods that will be obtained per unit of the imported goods, while Note 3 holds that goods admitted under the provisions of rebate item 470.03 must be used for the processing or manufacture of goods for export and that the processed or manufactured goods shall be exported – in terms of rebate item 470.03 (01.00 and 02.00) within 12 months from the date of entry and in terms of rebate item 470.03 (03.00) within three years from the date of entry. Parts admitted under the provisions of rebate item 470.02 must be used and the goods submitted for repair, cleaning or reconditioning exported within six months from the date of entry. However, the Sars commissioner may, in circumstances which he deems exceptional, extend the period specified in each case for a further period he or she deems reasonable, provided that the application for such extension is made prior to the expiry of the period of 3 years, 12 months or 6 months, as the case may be.

According to Note 4, liability for duty on any goods specified in rebate items 470.02 or 470.03 ceases on production of proof that the goods imported have been used for repair, cleaning, reconditioning, processing or manufacture and the goods repaired, cleaned, reconditioned, processed or manufactured have been duly exported.

Note 5 holds that, in terms of rebate item 470.03/00.00/02.00, where the rebate registrant is contractually entitled to keep a portion of the goods manufactured, processed, finished, equipped or packed in lieu of payment for the operations carried out, he or she must also export those goods within the period of 12 months contemplated in Note 3(a), he or she must process a bill of entry at the office of the controller for payment of Vat on the goods retained and adjust by voucher of correction the rebate bill of entry in respect of the quantity and value of the goods used to manufacture the goods retained. Further, notwithstanding the notes to schedules No 3 and No 4, where it appears in the Extent of Rebate column opposite this rebate item, ‘full duty’ means goods free of duty as contemplated in Section 75A of the Customs and Excise Act.

Frozen Potato Chips Trade Remedy Investigation
The International Trade Investigation of South Africa (Itac) has initiated an investigation relating to remedial action in the form of a safeguard against the increased imports of frozen potato chips, classifi- able under tariff subheading 2004.10.90. Southern African Customs Union importers and overseas exporter had until December 21 to complete an importer questionnaire and an exporter questionnaire. Interested parties who want to request an oral hearing with Itac need to do so by no later than January 21.

Guidelines for Used Clothing
Itac has informed of the publication of guidelines regarding applications for permits in terms of the provision under rebate item 460.11/00.00/01.00 of Schedule No 4 of the Customs and Excise Act.

The notice extends an invitation to interested parties to comment on the guidelines regarding applications for permits in terms of the provisions under rebate item 460.11/00.00/01.00 for permits for the partial rebate of the full rate of customs duty less 30% ad valorem on used overcoats, car coats, raincoats, anoraks, ski jackets, duffle coats, mantles, three- quarter coats, greatcoats, hooded caps, trench coats, gabardines, padded waistcoats and parkas (but no other clothing articles), classifiable under tariff head- ings 61.06, 61.02, 62.01 and 62.02 and tariff subheading 6309.00.13, in such quantities, at such times and subject to such conditions as Itac may allow by specific permit.
Comments were due by December 21.

Tariff Amendments
On December 7, Sars informed of various amendments to schedules No 3, 4 and 5 of the Customs and Excise Act. The amendments are too numerous to publish.