June 2006 Issue

1
LaserLink

• In this issue
• Far East rate hike on the cards
• Productivity at bulk terminal gets a boost
• Banks lock horns with Sars over wording of form
• Environmental issues add millions to cost of port
  extension
• Ports 30th anniversary brings promises of
  upgrades
• New safety rules for automotive components
• Supplier parks under the spotlight
• Input invited for meeting with Sars
• Customs Updates
• It seems that shippers will be hit with a pretty
  massive hike in sea freight rates on the SA-Far
  East trade on June 1, with what some members of
  the shipping line market have indicated is a
  US300 per TEU general rates increase (GRI) or
  general rates restoration (GRR) as the lines term
  it.The indications are that this trade is
  certainly a suppliers market with sea freight
  capacity apparently stretched to the limits,
  particularly on the incoming leg.
• A giant Buhler Portlink 800/8RK ship unloader
  arrived from Jebel Ali in Durban last week. The
  unloader will be installed at South African Bulk
  Terminals on Maydon Wharf 5. The new machine will
  have a discharge rate of 800 tons an hour
  compared with 300 tons an hour for the terminals
  existing unloader.Commissioning of the new
  unloader will take two to three months.
• The legal teams of the big four banks FNB,
  Standard, ABSA and Nedbank have rejected the DA
  651 guarantee form in its present format, with
  the FNB currently waiting for at least one of the
  other banks to join it in an appeal to the SA
  Revenue Service (Sars) customs to have a vital
  change made.The banks objection to the form is
  that, in the way it is worded, it doesnt clearly
  record the maximum guarantors liability
  leaving the banks at risk for whatever amount
  the Sars commissioner decides is due in the case
  of the applicant failing to pay. 
•  
•  

• Further delays to the proposed 300-metre stack
  extension of Cape Town Container Terminal -
  brought on by government criticism of a flawed
  environmental impact assessment submitted by the
  National Ports Authority could easily drive the
  cost from R2.2 billion to R3.6 billion, says
  Sanjay Govan, NPA port manager in the Mother
  City.
• The Port of Richards Bay pulled out all the stops
  on Friday (May 5) to celebrate its 30th
  birthday.NPAs general manager of marine
  services Mvikeli Matutu assured port users that
  the NPA was working hard towards the goal of a
  dry dock and ship repair facility at Richards
  Bay. He said the port would also be getting a
  container terminal and a second chemical berth
  for bulk liquids, while he hoped that a
  replacement marine helicopter would be in service
  by July.
• The SA Bureau of Standards (SABS) has warned that
  from Saturday July 1 certain safety-critical
  automotive components will not be released by
  customs unless confirmation is available that the
  imported articles comply with the compulsory
  standards applicable in SA. The only acceptable
  confirmation to customs is a letter of authority
  (LOA) issued by the SABS, according to the
  bureaus Dries van Tonder, who added that the
  approval and issuing of the LOA could be done the
  same day as application.
• Is the supplier park concept working in South
  Africa?This is one of the issues to be debated
  at a Chartered Institute of Logistics and
  Transport SA (CILTSA) meeting to be held on June
  21 from 1300 to 1700 at the Automotive Industry
  Development Centre (AIDC) in Rosslyn,
  Pretoria.Further information is available from
  Catherine Larkin at cvlarkin_at_ciltsa.org.za

2
. . . Pg. 2

• .
• A Business Unit South Africa (BUSA) delegation
  will meet with the Commissioner of the South
  African Revenue Service (SARS), Pravin Gordhan,
  in June to discuss matters relating to customs,
  excise, and international trade. If you believe
  there are any issues that should be placed on the
  agenda on the day email riaan_at_importsolutions.co.z
  a
• - Caustic Soda Rebate Amended On 13 April 2006
  the International Trade Administration
  Commissioner amended the existing provision for a
  rebate of the full duty on sodium hydroxide
  (caustic soda) The descriptions of the existing
  products are expanded and the rebate provision is
  expanded to include papers / paperboard coated
  with kaolin.
• - Carbon Black Amendments On 13 April 2006 the
  International trade administration Commissioner
  amended rebate items 521 and 470.03. Carbon
  Black is excluded from the general provisions
  item 470.03/00.00/01.00 and 521.00/00.00/01.00
  and new provisions are created specifically for
  carbon black under items 470.03 and 521. In both
  cases the full customs duty will be rebated or
  refunded except for the anti dumping duties
  currently on imports from Egypt, India, Republic
  of Korea and Thailand.
• - Loss Allowances On 11 April 2006 SARS issued
  temporary excise accounts (Form DA260) and a
  notice regarding loss allowances on unpacked
  spirits effective 01 February 2006. Allowance is
  made for losses of spirit in a secondary
  manufacturing (VMS) warehouse, transport losses
  of spirit between licensed warehouses , losses of
  spirit in a licensed storage (OS and SOS)
  warehouse, tolerance on measurement (volume) at
  stock take.

• The rules pertaining to these amendments, as
  well as a new procedure guide for role players in
  the Spirit Industry will be published in the SARS
  website.
• - US SACU FTA The United States and the
  Southern African Customs Union met in Pretoria to
  discuss the failing USSACU Free Trade Agreement
  negotiations. Issues raised include the
  following
• Formal FTA negotiations will be placed on hold
  in favour of working group dialogue discussing
  key trade and investment issues,
• The Framework Agreement for Dialogue is
  currently being worked out between the US and
  SACU with the goal of FAD during the AGOA forum
  in Washington in early June.
• The Private Sector will have a role in the
  dialogue The product of the working groups within
  the new framework for dialogue may include
  cooperation agreements, and possibly more
  substantive agreements.
• Should you have any enquiries please contact
  Jenny Iyer jenny_at_laserint.co.za tel.(27) (031)
  465 0577.
• The views and opinions expressed in these
  articles are those of the Authors and not
  necessarily those of Laser Logistics (Pty) Ltd or
  the Laser Group (Pty) Ltd, unless specifically
  indicated. While everything possible is done to
  ensure the accuracy of the information in this
  issue, which is believed to be correct, neither
  Laser Logistics (Pty) Ltd nor the Laser Group
  (Pty) Ltd, may be held responsible for any
  errors.