1

Introduction & OverviewPresented By

Itumeleng Masege

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Introduction & Overview

• Introduction

• Aims and objectives

• Outcome

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Overview

• ITAC’s Mandate

• Policy environment

• SACU

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ITAC Structure• Core Business

• Trade Remedies I & II

• Tariff Investigations I&II

• Import & Export Control

• Policy & Research

• Legal, Secretariat

• Corporate Services (Finance,Communications, HR, IT)

5

ITAC Strategic Objectives

• ITAC strategic objective: establish a platform that optimally contributes to sustainable growth, employment and equity

• reduce production costs • promote downstream value addition

ITAC Strategic Objectives

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ITAC Strategic Objectives

• encourage specialisation and rationalisation

• enhance international competitiveness • export orientation • support sustainable industrialisation• Equitable opportunity for SMME, BEE

and WEE

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Trade RemediesPresented by

Carina Grove

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• Anti-dumping• Countervailing • Safeguards

The Function of Trade Remedies

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• Competitiveness

• Unfair trade

Purpose of Trade Remedies

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• Not uncommon• Not prohibited• Injurious dumping• Level playing field• Not on request

Purpose of Trade Remedies

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• Public hearings

• Public interest

Purpose of Trade Remedies

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What is dumping?

• ITA Act• WTO Agreements• Regulations

Legislative framework

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What is dumping?

• Dumping occurs when a product is exported to another country, at a price which is lower than the price at which the same product is sold in the country of origin.

What is Dumping?

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What is dumping?

• Countervailing is action against imported products which are subsidised by a foreign government which causes injury to the SACU industry

What is Countervailing?

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What Is Dumping?

• Safeguard action is taken to protect the SACU industry against a surge of imports which causes serious injury

What is Safeguards?

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Allegation of Dumping or Subsidisation: What to

Prove•Dumping/Subsidy

•Material injury/threat

•Causality

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Safeguard Action : What to prove

•Surge of imports

•Serious injury/threat

•Causality

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Material/Serious injury

• 14 various economic factors

• Not all positive

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Process and Time Frames For Imposition

• Complaint, Merit assessment, Prelim determination, Final determination and recommendation

• AD & CDV – 12 to 18 months for final measures

• Provisional measures within 6 months of initiation

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Statistics on cases

2004 2005 2006

Initiated 13 13 4

Prelim 5 11 7

Final 16 17 18

Duties imposed 9 3 6

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Industries involved

• Steel

• Glass

• Paper

• Textiles

• Chemicals & plastics

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Import & ExportPresented by

PHILIP SNYMAN

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Import and Export Control

• Function

• Purpose

• Legal framework

• Policy

• Distinction between New Goods, Used or Second Hand Goods and Waste and Scrap

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Purpose For Control: New Goods

• Health and Environment

• International Agreements

• Strategic Reasons

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• Quality and Safety Reasons

• Safety and Security

• Social Reasons and Quality

Purpose for Control: New Goods

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Purpose For Control: Used or Second Hand Goods

The General Rule

Specifically Defined Circumstances

• Raw material for manufacturing

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Import and Export: Waste and Scrap

Purpose for control

• Basel Convention

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Import And Export

Export Control

Purpose of control

Beneficiation

•International Agreements

• Raw Materials for Manufacturing

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Import And Export

• Assist Strategies of Crime Prevention

• Strategic Reasons

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Import And Export

Enforcement of the Act

• Inspections

• Investigations• Seizure of Goods

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Import and Export

General• Systems• Information and Application Forms

Import And Export

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Import and Export

STATISTICS 2005/2006 FINANCIAL YEAR

• Permit applications adjudicated 29 145

• Import Permits Issued 17 870

• Export Permits Issued 3 985

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•MoU with PRC

•Regulations

Import And Export

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Tariff Investigation

Presented by

Brenda Mabaso

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Function• Conduct customs tariff

investigations on behalf of the Commission

• Responsible for :

1. Customs Tariff Amendments Investigations

2. Administration of customs rebates

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Tariff AmendmentsWhat is a tariff amendment?

– Amendment of customs duty applicable to imported product

– Types of amendments:

• Increase in customs duties

• Reduction in customs duties

• Creation of industrial rebates

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Rebates and Drawbacks

What are they?• A waiver provided for the domestic

industries not to pay customs duties

• Allows sourcing of inputs at competitive prices

• Promotes exports

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• Whether the product or a substitute is manufactured in the SACU?

• The competitiveness position of the product concerned

• The effective rate of protection• Calculation of the % of the duty rate in

relation to the factory selling price of the product

• Production and market factors• Tariff simplification• Investment and employment

Assessment Criteria

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• Facilitate normal trade• Trade liberalisation • Compliance to Trade Agreement

obligations• Encourage tariff reduction as

opposed to rebate creation

Role of the Instruments

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• ITA Act•Customs and Excise Act,

1964•Customs Tariff Policy

Legal Framework

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Structure of the Unit

Tariff 1• Chemicals•Textiles•Agro Processing•Duty Credit Certificate (DCCS/TCIDP)

Tariff 2• Metals• Machinery•Motor Industry Development Programme (MIDP)

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Applications Process

•Receive•Assessments•Preliminary Investigation•Table findings of prelim before adjudicating body –Commission•Publish for further investigation

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Applications Process

•Table for final determination•Recommendation to Minister of Trade and Industry•Trade and Industry Minister to Finance Minister for implementation•Gazette•TIME FRAME OVERALL

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Statisticsapplications received (withdrawn) approvedrejected

Increases 9 8 1Reductions 19 11 8Creation / Amendment of Rebates 25 7 18Increases 13 (1) 3 9Reductions 34 (4) 16 14Creation / Amendment of Rebates 36 (1) 17 18Increases 4 (2) 0 2Reductions 39 (3) 18 18Creation / Amendment of Rebates 20 9 6

2004

/520

05/6

2003

/4

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Statistics

05

101520

NU

MB

ER

'2003/0

4

'2004/0

5

'2005/0

6PERIOD

TARIFF INCREASES/REDUCTIONS

INCREASES REDUCTIONS OTHER

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How To Apply

• Information is available on ITAC’s website- www.itac.org.za

• Come for consultation – ITAC offices

• Post

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Southern African Customs Union

(SACU)BRENDA MABASO

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Operationalisation of SACU Institutions

• Article 7 of the SACU Agreement, states the democratisation of SACU through the establishment of institutions

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Organogram

S ec re ta r ia t

T e ch n ica l lia ison com m itte es

C o m m iss ion T ribu na l

N a tio na l B o d ies

T ar i ff b oa rd

C o un ci l o f m in iste rs

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The SACU Process

SACU Secretariat (administrative support)

National Institutions

Council of MinistersSACU Tariff

Board

Commission of Senior Officials

Tribunal

recommendations recommendations

deadlocks

advice

 

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SACU RoadmapEstablishment of NB

Operation of NBs

Sept 2007

Jan 2008

Nomination of Experts to serve on TB

Commencement of Training of TB Members

Feb 2007

Feb 2007

Establishment of TB

Operation of TB

Sept 2007

Jan 2008

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Challenges

• Capacity of Member States• Development of Common Policies

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Thank YouPlease Visit Our

Website

www.itac.org.za