The South African Revenue Service (Sars) informed on April 17 of the retrospective insertion (from January 1) of rebate item 460.23/00.00/02.00 and the substitution of rebate item 460.23 in terms of Schedule No 4 (general rebates of customs duties and fuel levy), Part 2 (temporary rebates of customs duties) of the Customs and Excise Act 91 of 1964.

The amendments relate to the importation of goods used in the exploration for, or production of, petroleum and to distinguish between customs-duty-free and dutiable equipment used in the exploration for, or production of, petroleum as certified by the director-general of the Department of Mineral Resources. In the case of dutiable goods, it is subject to a permit issued by the International Trade Administration Commission of South Africa (Itac).

Rebate item 460.23/00.00/01.00 concerns imported goods liable for ordinary customs duty. The extent of the rate is ‘full duty less the duty in Section B of Part 2 of Schedule No 1’, which implies that liability is only for this duty. Schedule No 1, Part 2 B, of the Customs and Excise Act deals with ‘specific excise duties on locally manufactured or on imported goods of the same class or kind’.

Rebate item 460.23/00.00/02.00 concerns imported goods which are free of duty, for which the extent of the rebate is the ‘full duty’.

Sars also informed of the retrospective amendment of paragraph 8 of Schedule 1 of the Value-added Tax Act 8 of 1991, entailing the insertion of rebate item 460.23 to provide for exemption from the levying of value- added tax on equipment imported and used in the exploration for, or production of, petroleum.

Roasted Chicory Withdrawal
Itac informed on April 11 of the withdrawal of the application for the increase in the ‘general’ rate of customs duty on roasted chicory. The reason presented by Chicory South Africa is that significant pressure had been exerted on it to withdraw the application.

APDP Rebate Certificates

On April 11, the Minister of Economic Develop- ment informed of the retrospective amendment of paragraphs 14 and 15 of the Automotive Production and Development Programme (APDP) Regulations.

The amendment entails the “issuing of a production rebate credit certificate, or PRCC” (paragraph 14), and “usage of a PRCC” (paragraph 15).

A PRCC will be issued for the qualifying amount, in terms of the PI, applicable to the eligible product and will indicate whether it is based on the production of specified motor vehicles, specified motor vehicles without an engine and/or gearbox or automotive components and tooling. Where a PRCC that has been issued for the production of components, tooling or specified motor vehicles without an engine and/or gearbox is used to reduce the duty on imports of specified motor vehicles, Sars will reduce the value as shown on the PRCC by 20%. Where a holder of a PRCC, or an applicant for a PRCC, or a related party is the subject of a fraud investigation, Itac will have the right to withdraw and/or refuse to issue a PRCC.

A PRCC can be used to reduce the value for customs duty purposes of imports into the Southern African Customs Union region of the following automotive products: new right- hand-drive-specified motor vehicles as defined in Note 1 of rebate item 317.03 of the Customs Act; new right-hand-drive heavy motor vehicles as defined in Note 1 of rebate item 317.07 of Schedule No 3 of the Customs and Excise Act, components as defined in Note 8 of Chapter 98 of Part 1 of Schedule No 1 of the Customs Act for certain vehicles and components for which the tariff headings are listed in Rebate Item 460.17/00.00/03.00 of Schedule No 4 to the Customs Act for all of the specified motor vehicles. A PRCC can be used only by the original holder. However, the original holder of the PRCC may apply to Itac in the manner and on the form prescribed by Itac for the PRCC to be transferred to another qualifying South African entity, on the sole discretion of Itac. A PRCC may only be transferred once. A PRCC is valid for 12 months, with period starting on the first day of the quarter in which the PRCC claim was submitted to Itac.

Construction Dispute
This year’s International Chamber of Commerce (ICC)/International Federation of Consulting Engineers (Fidic) conference on resolving disputes in international construction deals will, for the first time, be held in Johannesburg, from June 9 to 10. The conference will have a special focus on Africa.
Internationally renowned engineers, construction arbitration specialists and in-house lawyers of leading companies, with the support of ICC South Africa, will offer insight on how the ICC and Fidic respond to the needs of the international construction industry in dispute resolution across the continent, as well as abroad.

The two-day conference will include a presentation and analysis of the use of Fidic contracts worldwide and their impact on Africa, insight into the practical experiences of dispute adjudication boards and a day-long study of ICC arbitration in construction cases. The conference will also offer the opportunity to discuss the practical issues and difficulties in resolving intercultural African construction disputes under Fidic contracts.

According to ICC International Court of Arbitration president John Beechey, this year’s special conference will afford participants an opportunity to learn for themselves how much international commercial arbitration has changed, how much perceptions need to change and how much has yet to be done in Africa. Among the subjects of particular interest will be an update on the new International Arbitration Act, in the course of preparation in South Africa.

Herbs Vat
On March 27, Sars published a Vat draft binding general ruling (DBGR) on the treatment of the supply and importation of herbs. Comment is due by May 31.

Fruit and Vegetables Vat
On March 19, Sars published a Vat DBGR on the treatment of the supply and importation of fruit and vegetables. Comment is due by May 15.

Vat on Imported Potatoes
A Vat DBGR on the treatment of the supply and importation of various types of frozen potato products was published by Sars on March 12. Comment is due by May 15.