Numerous amendments in respect of the ‘general” rate of customs duty were published in the Government Gazette of August 23, and comments on these amendments are due by September 20.

Coated Fine Paper Duty Increase
Proposed is an increase in the rate of 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 (the World Trade Organisation’s [WTO’s] bound rate). The appli- cation was lodged by Nampak Flexible, a division of Nampak Products, which cites as the main reason for the application the need to enhance the competitive position of Sappi Southern Africa against producers in low-cost countries, especially those in Asia and South-East Asia.

Roasted Chicory Duty Increase
Proposed is an increase in the duty on roasted chicory, classifiable in tariff subheading 2101.30.10, from 9.2c/kg to 37% ad valorem. The application was lodged by Chicory South Africa, which argued that it was experiencing fierce competition from imports, mainly from India, predominantly as a result of overcapacity in that country. Price undercutting of the imported products had resulted in the company losing significant market share.

Heat-Exchange Units Duty Increase
Proposed is an increase in the duty on heat- exchange units, classifiable under tariff subheading 8419.40, from free of customs duty to 15% ad valorem (the WTO’s bound rate). The application was lodged by GEA Aircooled Systems, which offered numerous reasons for the application, including the fact that engineering project contractors were increasingly sourcing the product from Asian countries, which offered bargain prices because of government subsidies and funding packages, and so on.

Cranberry and Passion Fruit Juice Rebate
Proposed is the creation of a rebate on 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 use in the manufacture of mixtures of fruit juices, classifiable in tariff subheading 2009.90.10. The application was lodged by Ceres Fruit Juices, which argued that it was unable to source cranberry and passion fruit concentrates in sufficient quantities in the Southern African Customs Union (Sacu) region.

Polyvinyl Butyral Duty Reduction
Proposed is a reduction in the rate of duty on polyvinyl butyral, classifiable in tariff subheading 3920.91, from 10% ad valorem to free of customs duty. The application was lodged by National Auto Glass, which argued that there was no local manufacturers of polyvinyl butyral in the Sacu region.

Metal Fittings Duty Amendment
Proposed are amendments of tariff subheadings 8302.30.30, 8302.41.10 and 8302.42.10. With regard to tariff subheading 8302.30.30, this would be achieved 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 doorframes’. With regard to tariff subheading 8302.41.10, this would be achieved by the deletion of ‘fittings of iron, steel or copper, of a kind solely or principally for doors and doorframes, of base metal’. With regard to tariff subheading 8302.42.10, this would be achieved 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 doorframes, of base metal’.

The application was lodged by the South African Revenue Service (Sars), which argued, besides others, that, when products that fall under these tariff subheadings are imported, it is not possible to establish whether or not the fitting will be used in the manufacture of windows, doors and/or doorframes.

MIDP Draft Rule – Comment Due
On August, 26 Sars published draft rule amendments to the Customs and Excise Act relating to the deletion from the schedule to the rules of the forms used for the Motor Industry Development Programme (MIDP) and the insertion of the forms to be used for the quarterly accounts for the Automotive Production and Development Programme (APDP). Comment is due by September 9. The draft amendment proposes the deletion of the MIDP forms and the insertion of newly devel- oped APDP forms, namely DA199, draft form DA199.A, draft form DA199.01, draft form DA199.02, draft form DA199.02A, draft from DA199.03, draft form DA199.04A, draft form DA199.04B, draft form DA199.06A, draft form DA199.06B, draft form DA199.10, draft form DA199.11, draft form DA199.12, draft form DA199.13, draft form DA199.14, draft form DA199.15, draft form DA199.16, draft form DA199.17, draft form DA199.18, draft form DA199.20, draft form DA199.21, draft form DA199.22, draft form DA199.23, and draft form DA199.24.

Republication – Rule Amendment
On August 20, Sars republished the draft rule amendment to the Customs and Excise Act, which was first published on August 16, proposing the substitution of form DA 185.4B1 Client Type 4B1 (licensing of special manufacturing warehouse) to make a separate provision for the licensing specifically for the manufacturing of vermouth and other fermented beverages as prescribed in Note 4 to Chapter 22 in Part 1 of Schedule No 1 of the Act.

Draft Tariff Amendment – Comment Due
On August 22, Sars published the draft substitution of Note 6(ij)(ii)(aa)C in Schedule No 6, Part 3, of the Customs and Excise Act (Rebates and refunds of fuel levy and Road Accident Fund levy: rebates and refunds of excise duties, fuel levy, accident fund levy and environmental levy) to provide clarity in the interpretation regarding eligible commercial fishing permit holders.
The proposed note reads: “(c) that are nomi- nated on a valid commercial fishing permit issued by the Department of Agriculture, Forestry and Fisheries in terms of the Marine Living Resources Act, 1998 (Act No 18 of 1998).” The note presently reads :”(c) if the master is in possession of a valid commercial fishing permit issued by the Directorate of Marine and Coastal Management, Department of Environmental Affairs and Tourism, in terms of the Marine Living Resources Act, 1998 (Act No 18 of 1998).”

Comment is due by September 13.

The notice further states: “The diesel refund is granted in respect of eligible purchases of distillate fuel for commercial fishing vessels. The criteria required for fishing vessels to qualify are clarified to address certain inter- pretational concerns. The necessary commercial fishing permit is currently issued by the Department of Agriculture, Forestry and Fisheries. The permit specifies the details of the fishing vessel(s) formally nominated to catch the allocated quota. Commercial fishing vessels must be so formally nominated on a valid fishing permit to qualify for the diesel refund. The previous requirement that the master of the vessel must possess the permit led to confusion and is replaced. The diesel refund is in actuality granted to the qualifying fishing vessel as a commercial fishing enterprise and the master is not the intended beneficiary. The requirement for a valid commercial fishing permit should, therefore, be attached to the qualifying fishing vessel and not the master of the vessel. Qualifying commercial fishing vessels must, therefore, register as diesel refund users, and not the holders of fishing permits.”