National Treasury issued a media statement on July 5 extending an invitation to interested parties to submit comments by August 5 on the Draft Taxation Laws Amendment Bill and the Tax Administration Laws Amend- ment Bill 2013.
These Bills cover a range of tax types, but the focus of this column is on amendments relating to customs, excise and international trade matters.
The Draft Taxation Laws Amendment Bill proposes amendments related to a bene- ficial tax regime for companies to locate in special economic zones (SEZ) approved by the Minister of Finance (tax incentives), proposals to revitalise the marine sector in South Africa through the implementation of an attractive tax regime, proposals requiring foreign e-commerce suppliers to register for value-added tax to ensure that they compete on an equal footing with local e-commerce suppliers, and proposals for the streamlining the research and development tax incentive.
The Tax Administration Laws Amendment Bill proposes amendments relate to the amendment of the search-and-seizure provision in the Customs and Excise Act (the result of the judgment by the Western Cape High Court in the case Patric Lorenz Martin Gaertner v the South African Revenue Service (Sars), it was found that certain provisions in the Customs and Excise Act were unconstitutional. The Bill also includes amendments to goods unconditionally abandoned and goods imported or cleared from a customs and excise warehouse for the exploration for and production of petroleum.
There is also an interesting proposed amendment relating to the Value-Added Tax Act requiring foreign e-commerce suppliers to register for Vat to ensure they complete on an equal footing with local e-commerce suppliers.
The National Treasury has indicated that, based on the comments received, workshops or meeting will be held with stakeholders to ensure consistency between policy and the wording of the Bills. Following this process, the National Treasury and Sars will revise the Bills and introduce them in Parliament for the more formal Parliamentary process.
Frozen Potato Chips Safeguard
On July 5, a provisional safeguard duty of 61.42% was imposed on frozen potato chips (also known as French fries), classifiable under tariff subheading 2004.10.90. The imposition of the safeguard was initially notified by the World Trade Organisation (WTO) member countries on June 24, with the proposed imposition date identified as July 1.
The safeguard was imposed from July 5 up to and including January 20, 2014, but excludes frozen potato chips imported from or originating in Afghanistan, Albania, Algeria, American Samoa, Angola, Antigua and Barbuda, Armenia, Azerbaijan, Bangladesh, Belarus, Belize, Benin, Bhutan, Bolivarian Republic of Venezuela, Bolivia, Bosnia and Herzegovina, Botswana, Brazil, Bulgaria, Burkina Faso, Burundi, Cambodia, Cameroon, Cape Verde, Central African Republic, Chad, Chile, China, Colombia, Comoros, Congo, Costa Rica, Côte d’Ivoire, Cuba, Djibouti, Dominica, Dominican Republic, Democratic People’s Republic of Korea, Ecuador, El Salvador, Eritrea, Ethiopia, Federal States of Micronesia, Fiji, Gabon, Gambia, Georgia, Ghana, Grenada, Guatemala, Guinea, Guinea-Bissau, Guyana, Haiti, Honduras, India, Indonesia, Iraq, Islamic Republic of Iran, Jamaica, Jordan, Kazakhstan, Kenya, Kiribati, Kosovo, Kyrgyzstan, Lao People’s Democratic Republic, Latvia, Lebanon, Lesotho, Liberia, Libya, Lithuania, Madagascar, Malawi, Malaysia, Maldives, Mali, Marshall Islands, Mauritania, Mauritius, Mexico, Mongolia, Montenegro, Morocco, Mozambique, Myanmar, Namibia, Nepal, Nicaragua, Niger and Nigeria.
It also excludes frozen potato chips imported from Pakistan, Palau, Panama, Papua New Guinea, Paraguay, Peru, Philippines, Republic of Moldova, Romania, Russian Federation, Rwanda, Saint Lucia, Saint Vincent and the Grenadines, Samoa, São Tomé and Principe, Senegal, Serbia, Seychelles, Sierra Leone, Solomon Islands, Somalia, South Africa, South Sudan, Sri Lanka, the State of Palestine (the West Bank and the Gaza Strip), Sudan, Suriname, Swaziland, Syria, Tajikistan, Tan- zania, Thailand, the Democratic Republic of Congo, the former Yugoslav Republic of Macedonia, Timor-Leste, Togo, Tonga, Tunisia, Turkey, Turkmenistan, Tuvalu, Uganda, Ukraine, Uruguay, Uzbekistan, Vanuatu, Vietnam, Yemen, Zambia and Zimbabwe.
An interesting observation is that the list excludes the Bric countries (Brazil, Russia, India and the People’s Republic of China), Southern African Development Community members, granted that none of them are exporters of frozen potato chips. The list also surprisingly excludes South Africa and Southern African Customs Union members.
Trade Remedies
The International Trade Administration Commission of South Africa (Itac) has informed that, unless a duly substantiated request is made by or on behalf of the Southern African Customs Union (Sacu) industry indicating that the expiry of the trade remedy will likely lead to the continua- tion or recurrence of dumping, subsidised exports or injury, the following trade remedy duties will expire:
- antidumping duties imposed on wire ropes, classifiable in tariff subheading 7312.10, imported from or originating in China, Germany, South Korea and the UK, which are due to expire on February 12, 2014;
- antidumping duties imposed on gypsum plasterboard, classifiable in tariff subheading 6809.11, imported from or originating in Indonesia and Thailand, which are due to expire on March 5, 2014;
- antidumping duties imposed on stainless-steel sinks, classifiable in tariff subheading 7324.10, imported from or originating in Malaysia and the People’s Republic of China, which are due to expire on November 5, 2014;
- anda countervailing (antisubsidy) duty imposed on wire ropes, classifiable in tariff subheading 7312.10, imported from India, which is due to expire on February 12, 2014.
Sacu manufacturers that wish to submit a request for the trade remedy duties to be reviewed prior to the expiry date should do so by no later than close of business on July 29.
Source : engineeringnews.co.za