Rebate facility for tinplate
August 14, 2024
Tariff Code Separation
Are you a manufacturer or an importer and want to separate your products out of the so-called “Other” tariff codes or do you want your product tariff code to be described in more granular detail?
— 6 digits and 8 digits tariff codes
The South African tariff book contains tariff codes at 6 digits and 8 digits level. The 6 digits tariff codes are the same for all countries around the world. However, tariff codes at 8 digits level differ between countries depending on the needs of the local industry. SARS can split or separate products classified in 6 digits tariff codes into specific 8 digits tariff codes that describe products in more granular detail.
Using pineapple juice and cranberry juice as an example. Tariff code 2009.81.10 is at an 8 digits code and the exact type of cranberry juice is described in detail. In contrast tariff code 2009.41 (pineapple juice) is described in less detail.
Furthermore, tariff code 2009.49 contains all other numerous types or grades of orange juice that do not fall under 2009.41. The “Other” tariff code makes it a problem to monitor import volumes and FOB prices of orange juice competing with locally produced orange juice.
Pineapple juice:
2009.41– Of a Brix value not exceeding 20
2009.49 — Other
Cranberry juice:
2009.81.10 — Concentrated, not containing added sugar or other sweetening matter, of a Brix value exceeding 45
Many products manufactured or produced locally are still classified in 6 digits level tariff codes. This is despite the advantages provided by 8 digits level tariff codes.
— Why you are better off with 8-digit tariff codes
It becomes possible to accurately monitor import competition because trade statistics for the specific product will be more reliable. This includes statistics on imported quantities, average FOB import prices, and countries of origin among others.
8 digits tariff codes assist industries or manufacturing companies to identify threatening import trends on specific products before significant harm is done. Appropriate protection instruments to reduce the possible harm can be applied.
Exporters also benefit from tariff codes described in granular detail because useful information such as export destinations, average export FOB prices, actual volumes, and values will be more accurate and useful for decision making.