SACU

• MAIN SACU PROVISIONS RETAINED• Free trade in locally produced goods• Free movement of goods once cleared by customs• Common external tariff• Common excise tariff• Infant industry protection for BLNS• Similar customs and excise legislation• Import control – each Member State has own regulations – no

intra SACU restrictionsallowed for protecting an industry• Freedom of transit and non-discrimination on transport rates

• .

• MAIN NEW PROVISIONS

• SACU an international organisation with legal personality and headquarters

• New institutions – democratised structures• Cooperation on Customs, industrial

development, competition, agriculture, unfair trade practices, dispute settlement

• New revenue-sharing arrangements

Institutions

INSTITUTIONS

Council of MinistersCustoms Union CommissionSecretariatTariff BoardTechnical Liaison Committees(Agriculture, Customs, Trade & Industry and TransportTribunal

NATIONAL BODIES

• All Member States to establish specialised, independent and dedicated National Bodies to receive requests or applications relating to the customs tariff and other related SACU issues

• In South Africa CITA will be the National Body

Revenue-sharing

• Pool may be managed by a Member State or an institution

• South Africa will manage pool for first two years• Study on all issues pertaining to the

management of the pool to be finalised by September 2003

Revenue sharing (cont.)

• Member States will share in the common revenue pool of customs and excise duties from three distinct components –

• Customs component• Excise component• Development component

CUSTOMS COMPONENT SHARE

• Share of any one Member:• A/B X Customs component where• A=Intra-SACU imports of a Member in year x• B=Total intra-SACU imports of all Members in

year x

SHARE OF EXCISE COMPONENT• EXCISE COMPONENT (85% OF EXCISE

DUTIES)• Each Member’s share is calculated:• A/B X Excise component where• A=GDP of a Member in a certain year• B=Total GDP of all SACU Members for such year

SHARE OF DEVELOPMENT COMPONENT (15% OF EXCISE)

• Each Member’s share• A/B – 1 where A=GDP/capita of Member in a

certain year and B=Mean GDP/capita of all Members in such year

• Deflate the relative difference by a factor of 10• Subtract from 1• Multiply by 20• Apply thhe percentage to the component

THE INTERNATIONAL TRADE ADMINISTRATION BILL

SUMMARY OF CONTENTS

The Bill provides for certain aspects of the implementation of the SACU Agreement, establishes a Commission for International Trade Administration (CITA) with its functions and powers as well as its procedures. Within the framework of the SACU Agreement the CITA will control imports and exports, investigate amendments of customs duties and related matters The Bill has six Chapters and three Schedules

Chapter 1

• Purpose, scope, definitions and application.• In general the Bill applies to all economic activity

within the Republic, with only one exception.

Chapter 2

• SACU is recognised as a juristic person within the Republic

• Various provisions assign authority or responsibility to act for the Republic in relation to SACU

• Minister of Trade and Industry is assigned authority to issue trade policy statements or directives which binds CITA

• It re-enacts provisions of the Import and Export Control Act of 1963

Chapter 3

• Establishes CITA that will replace the Board on Tariffs and Trade

• Investigation and evaluation of –• Alleged dumping, subsidising, tariff applications• Issuance of rebate permits• Monitors, reviews and reports on matters

assigned to it by the Minister• Independence of CITA secured• Interaction with other SACU bodies

Chapter 3 (cont)

• CITA reports to Minister and Parliament• CITA will consist of a full-time Chief and Deputy

Chief Commissioner• Maximum of ten additional commissioners – full

or part time• Appointed by the President on recommendation

of the Minister• Tenure, conditions of office and relationship with

public service provided for

Chapter 4

• Part A – Application procedures relating to import and export control and the customs tariff

• Part B – CITA evaluates applications for import/export control permits and issues these

• Part C – Procedures to follow on applications of matters relating to the customs tariff and interaction with the Tariff Board of SACU

• Rules for anti-dumping and countervailing investigations

Chapter 4 (cont)

• Part D - confidentiality of information is provided for. CITA can make determinations- appeals

• Part E – Deals with powers of investigative search and inspections

• Part F – Reviews and appeals

Chapter 5

• Enforcement and offences• Penalties attached to contravention of certain

provisions

Chapter 6

• Contains general provisions, icluding Minister’s powers to make regulations to give effect to the purpose of the Bill

• Provides for the commencement of the Act• Certain provisions only to become operative

once the SACU Agreement becomes law in the Republic

Schedules

• Schedule 1 contains the SACU Agreement• Shedule 2 contains transitional provisions• Schedule 3 provides for the repeal of laws