Numerous trade remedy applications, tariff applications and draft customs amendments were published recently, some of which are mentioned below.

Tall Oil Fatty Acid Dumping
On November 22, the International Trade Administration Commission of South Africa (Itac) published a notice of the initiation of a sunset review of antidumping duties on tall oil fatty acid, classifiable under tariff subheading 3823.13 and originating in or imported from Sweden.

The application was lodged by Industrial Oleochemical Products, the only manufacturer of tall oil fatty acid in the Southern African Customs Union (Sacu).
The investigating period is January 1, 2012, to December 31, 2012, and the injury investigation involves the evaluation of data for the period January 1, 2010, to December 31, 2012.

Comment is due by December 30.

Graphite Electrodes Dumping
On November 22, Itac published a notice of an investigation into the alleged dumping of graphite electrodes, classifiable under tariff subheading 8545.11, for use in furnaces origi- nating in or imported from the People’s Republic of China and India.
The application was lodged by GrafTech South Africa. The period of the investiga- tion to determine dumping is May 1, 2012, to April 30, 2013, and the period of the investigation to determine material injury is May 1, 2010, to April 30, 2013.
Comment is due by December 30, 2013.

Sanitaryware Rebate
On November 22, Itac published a notice pertaining to the creation of the rebate of the full customs duty on other plates, sheet, foil and strips of poly (methyl methacrylate) noncellular and not reinforced, laminated supported or similar combined with other materials, classifiable in tariff subheading 3920.51 for the manufacture of sanitaryware, of plastics classifiable in tariff heading 39.22.

The application was lodged by Libra Bathrooms, which argues that there are no local manufacturers of the subject products, since the sole manufacturer, Perspex South Africa, stopped production in 2012. Libra Bathrooms incurred losses during the last few years. The current import duty of 10% ad valorem on the main raw materials makes it difficult to compete with low-priced imports from the Eastern countries, which are also gaining substantial market share each year. Investment and jobs will be at risk if Libra Bathrooms does not become profitable.
Comment is due by December 20.

New Pneumatic Tyres of Rubber
On November 22, Itac published a notice proposing the amendment of the customs duty structure for certain new pneumatic tyres of rubber: tariff subheading 4011.10 (30% or 2 884c/kg less 70%), 4011.20.15 (25% or 2 780c/kg less 75%), 4011.20.22 (25% or 3 114c/kg less 75%), 4011.20.24 (25% or 2 774c/kg less 75%), and 4011.20.26 (25% or 3 083c/kg less 75%).

The application was lodged by Apollo South Africa, which argues that there has been a massive influx of low-priced and under- invoiced imported tyres, mainly from the People’s Republic of China. Chinese tyre exports climbed 35% and 40% in 2010 and 2011 respectively. China boasts a complete upstream and downstream tyre industry value chain, and its cheap energy and low labour costs make it impossible for South African tyre manufacturers to compete against their Chinese counterparts. During the period 2004 to 2012, the Sacu region’s production of passenger and commercial vehicle tyres declined from 12.4-million to 10.1-million units. The proposed introduction of a reference price into the duty structure is aimed at countering underinvoicing. The reference price is based on material content and direct labour.

Comment is due by December 20.

Rebate Item 498.00
On November 22, Itac published a notice proposing the amendment of Note 1 of rebate item 498.00 in Part 6 of Schedule No 4, which will be substituted by Table 3 – the ‘description’ reads: “Notes: 1. Goods, excluding goods required to be entered in terms of any other item of Schedule No 4 or any item of Schedule No 3, imported by a registered customs controlled area (CCA) enterprise into the CCA as contemplated in Section 21A.”

The proposed amendment (insertion) of Note 9 of Schedule No 3 reads: “Notes: 9. Goods may be entered under any rebate item of this schedule by a CCA enterprise as contemplated in rule 21A.01 and registered in terms of such item, provided (a) the CCA enterprise complies with any notes to that item and this schedule and Section 75; (b) the value-added tax (Vat) is paid on goods imported by the CCA enterprise under any item in this schedule.”

The application was lodged by the Department of Trade and Industry, which argues that companies locating within a CCA and intending to import manufacturing inputs are currently at a disadvantage in terms of customs duties, which have to be paid on the imported content at the time the manufactured goods are declared for domestic use in terms of rebate item 498. Under Schedule No 3, which applies outside the CCA, a manu- facturer qualifies for a rebate of customs duty but pays the Vat, if the manufacturer chooses to supply its finished products into the domes- tic market.

Comment is due by December 20.

Diesel Refund
On November 22, the South African Revenue Service (Sars) published for comment the proposed amendment (substitution) of Note 6(f)(iii)(cc) in Part 3 of Schedule No 6 to specifically exclude the processing of minerals from diesel refunds. Qualifying own primary production in mining is limited to activities required for the recovery of minerals. The proposed amendment is to the effect that the subsequent processing of minerals and related activities cannot qualify for the diesel refund. The proposed note is to read: “(cc) Operations for the recovery of minerals bring mining for those minerals, including the recovery of salts but not including any postrecovery or postmining processing of those minerals.”

Comment was due by November 29.

Farmers/Flood Management
On November 20, Sars published the proposed amendment (insertion) of Note 6(h)(ii)(cc)(B)(CCC) in Part 3 of Schedule No 6 to allow qualifying farmers to claim diesel refunds collectively in respect of rail carriage and, in terms of Note 6(h)(vii) in Part 3 of Schedule No 6, flood management performed exclusively on their adjacent farming properties. The farmers must effectively render these services to themselves in a closed collective system operated by a company wholly owned by the farmers.

Also proposed is the insertion of Note 6(h)(ii)(cc)(B)(CCC) in Part 3 of Schedule No 6 to read: “(DDD) Flood management on farming property”, and the insertion of Note 6(h)(vii) in Part 3 of Schedule No 6 to read: “(vii) Not- withstanding anything to the contrary in this paragraph, if the activities described in subparagraphs (ii)(cc)(CCC) and (DDD) are exclusively performed for farmers of adja- cent properties by a company of which all the shareholders are those farmers, the company may register as a user and claim a refund in terms of this Notice.”

Comment due by December 6.

eFiling Returns
On November 20, Sars published the proposed draft rules [(Rule 119A.R101A(10)(d)] to provide for the efiling of returns and payments for customs and excise clients.

Comment was due by November 29.