SACU

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SACU
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• 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
• .

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• 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

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

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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

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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

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CUSTOMS COMPONENT SHARE

• Share of any one Member
• A/B X Customs component where
• AIntra-SACU imports of a Member in year x
• BTotal intra-SACU imports of all Members in year
  x

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SHARE OF EXCISE COMPONENT

• EXCISE COMPONENT (85 OF EXCISE DUTIES)
• Each Members share is calculated
• A/B X Excise component where
• AGDP of a Member in a certain year
• BTotal GDP of all SACU Members for such year

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SHARE OF DEVELOPMENT COMPONENT (15 OF EXCISE)

• Each Members share
• A/B 1 where AGDP/capita of Member in a
  certain year and BMean 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

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THE INTERNATIONAL TRADE ADMINISTRATION BILL
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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

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Chapter 1

• Purpose, scope, definitions and application.
• In general the Bill applies to all economic
  activity within the Republic, with only one
  exception.

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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

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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

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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

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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

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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

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Chapter 5

• Enforcement and offences
• Penalties attached to contravention of certain
  provisions

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Chapter 6

• Contains general provisions, icluding Ministers
  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

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Schedules

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