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Review on Customs Tariff applications
- 11 October 2020
- Customs and Excise
- COVA Advisory
1. Rebate facility on Warp knit fabrics classifiable under tariff heading 60.05 used in the manufacture of upholstered furniture classifiable under tariff subheadings 9401.61 and 9401.71, at a general rate of duty at 20% in such quantities, at such times and subject to such conditions as the International Trade Administration Commission may allow by specific permit.
Reasons:
- The furniture manufacturing industry faces growing input costs in the manufacture of lounge furniture, which exceed normal CPI, which makes it challenging for the industry to manufacture on a sustainable basis.
- The input subject material is currently not manufactured domestically and thus the possible relief of the input cost will enable the industry to maintain and grow employment and remain competitive in the SACU industry, competing amongst other with imported products from the East.
- Applicant: Bravo Group Manufacturing (Pty) Ltd
- Deadline for comment: 18 September 2020
View the report here.
2. Review of the description of rebate item 304.07/0404.10/01.06 for demineralised whey powder for the manufacture of prepared infant food in Part 1 of Schedule 1 to the Customs and Excise Act no 91 of 1964, which reads as follows: “Demineralised whey powder, for the manufacture of prepared infants’ food”. The review is conducted with a view to review the conditions of rebate item 304.07/0404.10/01.06 of which the general rate of duty is at 450c/kg with a maximum of 96% and the extent of the rebate will be at full duty as well as to clarify the limitation to demineralised whey powder taking into account the practices of the infant foodstuffs industry.
Reasons
- Rebate item is currently contentious due to the lack of clarity as to what constituted demineralised whey powder (DWP) and what the parameters are of its constituents.
- It has become increasingly difficult for SARS to administer the rebate item.
- Trade data shows that goods imported under this rebate item have been decreasing and ceased completely in 2019.
- Applicant: SARS
- Deadline for comment: 18 September 2020
View the report here.
This article was prepared by COVA Advisory
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