Tariff Determinations Publishing
by Vusi Ngcobo
There are some very interesting developments in the space of tariff determinations. SARS announced on the 14th of May 2024 that they will start publishing tariff determinations that they make in line with the legislative changes of Section 4(3D) of the Customs and Excise Act (Act 91 of 1964).
The aim of these publications is to assist traders who are expected to make tariff determinations when clearing their own goods. This is a very important development because it will bring transparency to the reasoning that SARS applies when determining appropriate TH codes.
So, what has changed with Tariff Determinations?
SARS has also revised all relevant Tariff Classification documents to align the new process with the legislative change.
- Some of these changes relate to the withdrawal of the Excise document TDN-02.
- Two other documents namely, Customs Tariff Classification External Policy (SC-CR-A-09) and Excise Tariff Determination Policy (SE-TDN-02) have been merged.
It must be mentioned also that the newly merged policy is very nicely detailed and makes understanding tariff classification very easy.
Compliance with International Instruments:
What SARS is doing in this development is in line with the revised Kyoto Convention of the World Customs Organization. To be specific, Chapter 9 of the revised Kyoto Convention relates to Information, Decisions and Rulings Supplied by Customs.
Standard 9.1 of the Revised Kyoto Convention states that “The Customs shall ensure that all relevant information of general application pertaining to Customs law is readily available to any interested person.”
There is no doubt in my mind that SARS is hard at work in ensuring that they are fully compliant with their international obligations. This is very beneficial for the traders. Only trade can benefit when getting information on how SARS reveals their thoughts when classifying goods.
It will also be beneficial when some of their decisions are challenged in a court of law. More insight will be obtained on how they thereafter address the court decisions thus enriching jurisprudence in this country.
However, it is known that not everyone will master the technical understanding of how tariff determinations and classifications are done. We therefore encourage you to engage Mageja Customs Consulting before attempting to classify any goods. We have technically qualified people available to assist you with any tariff classification needs.
Yours in Customs Compliance
Vusi Ngcobo