South Africa
Notice of Expiration of VAT Certificate Issued in Terms of Schedule 1(8) of the Value Added Tax Act 89 of 1991
General Notice 305 of 2020
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Published in Government Gazette no. 43384 on 3 June 2020
- Assented to on 2 June 2020
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Commenced on 2 June 2020
- [Up to date as at 3 June 2020]
1.On 15 March 2020, the Minister of Cooperative Governance and Traditional Affairs, Dr Nkosazana Dlamini Zuma ("the Minister"), declared a national state of disaster in terms of Section 27(2) of the Disaster Management Act, 57 of 2002 ("the Act") (See Government Gazette Notice No. 43096 of 15 March 2020).2.Having declared a national state of disaster, the Minister promulgated regulations in terms of section 27(2) of the Act. In the Regulations published on 25 March 2020 in Government Gazette No. 43148, the Minister set forth a list of essential goods ("essential goods"). The essential goods were contained in Annexure B, paragraph A (Categorisation of Essential Goods and Services during Lockdown) of said Regulations.3.Rebate Item 412.11 provides for the relief of distress of persons caused by, amongst others, a national disaster, such as the Covid-19 pandemic. The relief provided under Rebate Item 412.11 is an exemption of VAT at the time of importation (clearance).4.To operationalise Rebate Item 412.11 and afford an exemption of VAT for imports of essential goods, the South African Revenue Service requested ITAC to issue the VAT certificate.5.ITAC issued the VAT Certificate, which came into effect on 8 April 2020. The VAT Certificate provides that it may be amended from time to time. 6.To date, SARS has recorded significant imports of essential goods benefitting from an exemption of VAT under the VAT Certificate. With the advent of Alert Level 3, the domestic economy will see increased activity, including production of essential goods.7.Additionally, there is no indication, based on information available to ITAC, that the continued incentivising of imports through an exemption of VAT is necessary.8.On a policy level, although the benefit afforded imports through the exemption of VAT at the time of importation is small, imports and domestic production of essential goods should be competing on a level playing field.9.The VAT Certificate provided that it may be amended from time. Pursuant to this Notice, the validity period of the VAT Certificate is being amended, which period is set forth in a new certificate being issued herewith.10In light of the foregoing consideration, ITAC is issuing a new VAT certificate, which will remain in effect up to and including Friday, 5 June 2020. As a result, imports of essential goods will no longer benefit from an exemption of VAT after that date. Pursuant to this certificate (Certificate), the International Trade Administration Commission of South Africa (ITAC) hereby certifies that for the purpose of Schedule 1(8) of the Value Added Tax Act, Act No. 89 of 1991, item no 412.11/00.00/01.00, the list of essential goods set out in Annexure B of the Regulations (the Annexure B list of essential goods) (R.398, Government Gazette No. 43148 of 25 March 2020) under the Disaster Management Act, Act No. 57 of 2002 (the Disaster Management Act), are goods imported for the relief of distress of all persons in South Africa as a consequence of the COVID-19 pandemic, which was declared a national disaster on 15 March 2020 by the Minister of Cooperative Governance and Traditional Affairs in Government Gazette Notice No. 313 of Government Gazette No. 43096 in terms of section 27(2) of the Disaster Management Act (the National Disaster).This Certificate does not apply to, and therefore does not cover, the following goods set out in the Annexure B list of essential goods:1. goods that are subject to an ordinary customs duty as set forth in Schedule No. 1 to the Customs and Excise Act, Act No. 91 of 1964 (the Customs Act) and a trade remedies duty (anti-dumping, countervailing or safeguard duty) as set forth in Schedule No. 2 to the Customs Act;2. goods that would be subject to the duties referred to in paragraph 1, but that are entering South Africa duty fee because of a preferential trade agreement or other agreement, such as a customs union3. goods that are currently subject to an application made under the International Trade Administration Act, Act No. 71 of 2002 (the ITAC Act), which application was submitted to ITAC's Tariff Investigations units for tariff assistance in terms of No. 1 to the Customs Act; and 4. goods that are currently the subject of an investigation by ITAC's Trade Remedies units.The goods referred to in paragraphs 3 and 4 above are set out in the table immediately below, together with the relevant tariff subheadings. This Certificate will be valid on the date of signature hereof, replacing the previous Certificate dated 08 April 2020, and shall remain valid until Friday, 5 June 2020.This Certificate may be amended from time to time by ITAC, including for purposes of amending the goods subject to it, and such amended Certificate shall supersede any previously issued Certificate.Meluleki NzimandeChief Commissioner: ITACDate: 02/06/2020Background
Discussion
Certificate issued in terms of Schedule 1(8) of the Value Added Tax Act, Act 89 of 1991, Rebate Item 412.11/00.00/01.00
Tariff Investigations:
TYPE
PRODUCTS
TARIFFS SUBHEADING
Rebate
Woven fabric for trousers and shirts
5513.11
5210.31(a)
5210.31(b)
5407.82
5209.32
5208.33Rebate
Woven fabrics for dyeing and finishing
5208.11, 5208.12, 5208.19, 5208.21, 5208.22, 5408.10 and 5408.21
Temporary rebate
Men's or boy's suits ensembles (Karate uniforms)
6103.22
Rebate
Titanium dioxide for paint
3206.11
Rebate
Warp knit fabrics for upholstered furniture
60.05
Rebate
Titanium dioxide for master batch
3206.11
Reduction
PVC capping
Reduction
Carboxymethl Cellulose
Review rebate
Rebate 304.07/0404. 10.06/01.06 -whey powder
0404.10
Rebate
Soap noodles for the manufacturer
Rebate
Woven fabrics of cotton used for absorbed gauze
5208.21
Temporary Rebate
Hatmaker roller mix preparation
0404.90.90
Increase
Phosphoric and polyphosphoric acid
2809.20.10
Review
Description of tariff subheading -disposable panties
6210.10.20
Reduction
Motorcycle safely headgear
6506.10.90
Increase
Frozen vegetables
0710.90
Rebate
Sodium hydroxide for uncoated paper and paperboard
2815.12
DBRP trigger (Increase)
Wheat
1001.9 and 1101.00
AGOA annual quota
Chicken from US
02007.14.9
Increase
Bone-in and boneless poultry products, excl. mechanically deboned meat, offal and whole bird
0207.14.9 and 0207.14.1
DBRP trigger (Reduction)
Sugar
17.01
Increase
Acrylic resins
3208.20.90 and 396.90.20
Increase
Polyethylene Terephthalate
3907.61.10, 3907.69.10, 3907.61.90 and 3907.69.90
Increase
Certain flat rolled products
7210.20, 7210.30, 7210.50, 7210.69, 7212.20, 7212.50, 7212.60, 72259.91, 7225.92.10 and 7225.92.907212.50,
Increase
Certain seamless tubes and pipes
7304.19.90, 7304.23.90, 7304.29.90 and 7304.39.35
Increase
Certain flat-rolled stainless steel
7219.11.90, 7219.12.90, 7219.13.90, 7219.14.90, 72220.12.90, 7219.21.90, 7219.31.90, 7219.32.90, 7219.33.90, 7219.34.90, 7219.35.90, 7220.20.90 and 7220.90.90
Increase
Grinding bails and similar articles for mills
7325.91
Increase
Primary cell and primary batteries
8506.10.25 and 8506.10.80
Increase
Foot operated grease gun
8479.89.90
Reduction
Certain outer rings of journal bearing
8482.99.17
Reduction
Air conditioning machines used in building
8415.10.50
Reduction
Radial tyres used in agriculture or forestry vehicles and machines
4011.70
Reduction
Certain tubes, pipe and hallow profiles, seamless, of iron (excluding cast iron) or steel
7304.19, 7304.23 and 7304.29
Increase
Top loader washing machine not exceeding 10kg
8450.11
Increase
Crystalline silicon photovoltac modules or panels
8541.40.10
Increase
Side-by-side refrigerators
8418.10
Increase
Aluminium rolled products
7606.11.07, 7606.11.17, 7606.11.90, 7606.12.07, 7606.12.17, 7606.12.90, 7607.11, 7607.19.10, 7607.19.25, 7607.19.90, 7607.20.20, 7607.20.25 and 7607.20.90
Reduction
Distributors and ingnition coils identifiable for use solely or principally with motor vehicles
8511.3030
Reduction
Tinplate
7210.11, 7210.12.10, 7210.12.90 and 7212.10
Reduction
Cooking hoods having a maximum horizontal side not exceeding 120cm
8414.60.20
Rebate
Certain input material used in the manufacturing of optical ground wire cables
9001.10, 2712.10.20, 3916.90.90, 8544.70
Rebate
Aluminium bars, rods and profiles for use in the manufacturing of stabilisation fins
7604.29.15 and 7604.29.65
Rebate
Styrene-butadiene rubbers for tyres
4002.19.90
Rebate
Review - Certain automotive air conditioning machines
8415.20
Rebate
Optical fibre cable for use in submarine optic fibre cable infrastructure
8544.70
Trade Remedies:
PRODUCTS NAMES
TARIFF SUBHEADINGS
INVESTIGATION TYPE
COUNTRY OR COUNTRIES UNDER INVESTIGATION
Wire Ropes and Cables
7312.10.17
7312.10.24
7312.10.30
7312.10.90Anti-Dumping
Germany, China, UK
Gypsum Plasterboard
6809.11
Anti-Dumping
Thailand, Indonesia
Clear Float
7005.29.17
7005.29.23
7005.29.25
7005.26.53Anti-Dumping
Egypt
PET
3907.61.90
Anti-Dumping
Belgium and Netherlands
Fasteners
7318.15.41
7318.15.42
7318.16.30Safeguard
All
Potato Chips
2004.10.2
Anti-Dumping
Belgium and Netherlands
Set Screws
7318.15.39
Safeguard
Inclusion of Thailand as import above 3%
Frozen Bone -in chicken portions
0207.14.9
Anti-Dumping
Germany, Netherlands, United Kingdom
Hot Rolled Steel
72.08
7208.10
7208.2
7208.25
7208.26
7208.27
7208.3
7208.3
7208.36
7208.37
7208.38
7208.39
7308.40
7308.5
7308.51
7308.52
7308.53
7308.53
7308.54
7308.53.
7308.90
7211.1
7211.14
7211.19
7225.1
7211.14
7211.19
7225.1
7225.30
7225.40
7225.99
7226.9
7226.91
7226.99Safeguard
Inclusion of Russia as imports above 3%
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