1
Introduction & OverviewPresented By
Itumeleng Masege
2
Introduction & Overview
• Introduction
• Aims and objectives
• Outcome
3
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
6
ITAC Strategic Objectives
• encourage specialisation and rationalisation
• enhance international competitiveness • export orientation • support sustainable industrialisation• Equitable opportunity for SMME, BEE
and WEE
7
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
13
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?
14
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
45
Statistics
05
101520
NU
MB
ER
'2003/0
4
'2004/0
5
'2005/0
6PERIOD
TARIFF INCREASES/REDUCTIONS
INCREASES REDUCTIONS OTHER
46
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
52
Challenges
• Capacity of Member States• Development of Common Policies
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Thank YouPlease Visit Our
Website
www.itac.org.za