On January 25, the South African Revenue Service (Sars) extended an invitation to interested persons to comment on the draft tariff amendments to Part 1 of Schedule No 1 of the Customs and Excise Act (the Act). The proposed amendments relate to Additional Note 4 to Chapter 22 (beverages, spirits and vinegar) to clarify the scope of certain products classifiable in tariff heading 22.08.

The first proposed amendment relates to the deletion, with effect from 15:06 on February 23, 2011, up to and including February 28, 2011, of the following: “4. Tariff item 104.20.41 in Section A of Part 2 of Schedule No 1 shall only apply to liqueurs, cordials and other spirituous beverages with a (a) fermented alcoholic base (other than those made from beer of heading 22.03 or wine of headings 22.04 and 22.05); or (b) wine spirit base, to which other nonalcoholic ingredients have been added.”

The second proposed amendment relates to the insertion, with retrospective effect from March 1, 2011, of the following: “4. Tariff subheadings 2208.70.21, 2208.70.91, 2208.90.21 and 2208.90.91 shall only apply to liqueurs, cordials and other spirituous beverages containing (a)(i) distilled spirits; (ii) the final product of fermentation of fruit stripped of its character to the extent that it is not classifiable within tariff headings 22.04, 22.05 or 22.06 and of which the volume exceeds the volume of the distilled spirits; and (iii) to which other nonalcoholic ingredients have been added; or (b) wine spirits to which other nonalcoholic ingredients have been added.”

The third proposed amendment relates to the insertion of Note 5 to Section A in Part 2 of Schedule No 1 with effect from 15:06 on February 23, 2011, up to and including February 28, 2011, of the following: “5. Tariff subheadings 2208.70.21, 2208.70.91, 2208.90.21 and 2208.90.91 shall only apply to liqueurs, cordials and other spirituous beverages containing (a) (i) distilled spirits; (ii) the final product of fermentation of fruit stripped of its character to the extent that it is not classifiable within tariff headings 22.04, 22.05 or 22.06 and of which the volume exceeds the volume of the distilled spirits; and (iii) to which other nonalcoholic ingredients have been added; or (b) wine spirits to which other nonalcoholic ingredients have been added.”

Comment is due by February 22.

Specified Motor Vehicle Notes
In the Government Gazette of January 25, Sars informed of the insertion of Note 27B to Rebate Item 317.04 in Part 3 of Schedule No 3 of the Customs and Excise Act. Schedule No 3 of the Act is titled ‘Industrial Rebates of Customs Duties’ and Rebate Item 317.04 is titled ‘Industry: Specified Motor Vehicles’.

Note 27B reads: “For the purposes of Notes 27(i)(d) and 27(i)(g), registrants may carry forward any excess value for customs duty purposes of original equipment imported and used in exports during a quarter to (i) the ensuing quarter and (ii) such further quarters as the commissioner may allow in exceptional circumstances.”

The amendment is imposed with retrospective effect to October 1, 2012.

World Trade Summit in Doha
The International Chamber of Commerce has informed that its World Trade Agenda Summit will take place on April 22, in Doha, Qatar. The summit will serve as a forum for business to “shape concrete measures for helping to pull the global economy out of crisis”.

The summit will include the following session discussions: What power shifts in the global economy mean for world trade and business; What business needs from trade and the World Trade Organisation; Which way forward towards effective twenty-first-century trade; and What role can business play in building domestic political support for trade in a global economy.