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SA Revenue Services takes on the GSP administration

Published date:
Friday, 03 October 2003

From October 1, 2003, the Customs Division of the South African Revenue Service (Sars) will be taking over the administration of the fifteen-member European Union (EU), Norway and Switzerland Generalised System of Preferences (GSP), from the Department of Trade and Industry (DTI). To date, the DTI’s Cape Town, Durban, Port Elizabeth and Pretoria offices were responsible for its administration. The handover of the GSP administration to the Sars has effectively resulted in the remainder of the GSPs being administered by certain South African chambers of commerce and industry. This decision by the DTI could arguably lead to the eventual centralisation of all the GSPs by the Sars.

In its letter to the public informing of this development, the Sars indicates that the transfer of the certification and verification functions under the said GSPs will provide for a one-stop-shop service within government structures. The centralisation of this function is in respect of those GSPs which the government has committed itself to administer.

In addition to the administration of the GSP, the Sars is also responsible for the administration of the South Africa/EU Free Trade Agreement (FTA), the Southern African Development Community (SADC) FTA, and the African Growth and Opportunity Act (Agoa). The Sars has invited exporters to avail themselves of the draft legislation, that is rules and forms, that was developed by the Customs Division, for comment by no later than September 30. Readers will recall that details of the draft legislation were discussed in last week’s column under the heading ‘Draft rules for the administration of the GSP published for comment’.

It is important to bear in mind that exporters are now required to register at any of the Sars Customs branch offices, and should have done so October 1. Exporters that have not done so should do so as a matter of urgency. The Form A, that is ‘movement certificate’ or ‘certificate of origin’ can now be obtained from any Sars Customs branch offices. In future, Form As will be linked to the export declarations and the certification process and the export documentation processing will be done simultaneously. Thus it would not be possible in future to get certification for products to be exported without making the necessary export declaration as well. The Sars has committed itself to ensuring that the processing and certification processes be seamless, ensuring a speedy and efficient service.

Exporters should be cognisant of the fact that it has been legislated that false declaration made on the Form A and to customs offices will be in contravention of the South African Customs and Excise Act. The Sars has indicated that it will not hesitate to take action against exporters making false declarations in order to circumvent the GSPs rules-of-origin provisions.

Tariff amendments – September 19

The deletion of rebate items in respect of the textile knitting industry.

Tariff applications – response due

The reduction in the rate of customs duty on radical deep-groove ball bearings from 20% ad valorem to free of duty.

Response due by October 24.

Rebate of the duty on 4,6 diamine-2-methyl-1, 3, 5-trizine, coated release papers and printed décor papers for the manufacture of plates, sheets, film, foil and strip decorative laminate of phenolic resin.

Aluminium alloys from 5% ad valorem respectively to free of duty.

Response due by October 17.

No rule amendments – September 19

No antidumping amendments – September 19

No response due on antidumping investigations

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