Problems relating to Trade and Investment on South Africa

 
9. Restrictive export/import trade, duty, and customs clearance
Issue
Issue details
Requests
Reference
(1) High Import Tariffs - GOSA levies 10% import duty on wheel loaders originating from Japan. - It is requested that GOSA reduces or repeals the import duty.
(2) Unratified Japan-South Africa FTA - Under the EU-SA FTA already concluded, imports of finished vehicles (FVs) from EU enjoy the difference of 7% benefit in import tariff compared to imports of FVs from Japan (namely, as of 2014, 25% on Japanese FVs versus 18% on EU FVs).On the other hand, the tariff rate on car parts in SA is nominal 20%, which is higher than that of EU FVs tariff rate. As of now, the effective tariff rate is low on car parts, under the preferential measures, which, however, cannot be expected to last forever. Member firm's subsidiary (MFS) is concerned about its continued cost competitiveness on a long-term basis.
- GSA grants 7% reduction in customs duty from 25% to 18% only on car vehicles manufactured in EU. It makes difficult for car vehicles manufactured in Japan and other Asian countries by way of cost competitiveness.		 - It is requested that both GOSA and GOJ ratify Japan-SA FTA just as soon as possible.
- It is requested that EU applies the same customs duty reduction on car vehicles from Japan and Asian countries as well.
(3) Pending Ratification of NCA - Into the year 2014, GSA ratified Nuclear Cooperation Agreement (NCA) with the U.S., France, Russia, ROK, PRC, EU, and Algeria. The unratified status of NCA between GSA and GOJ could block Japan's contribution to GSA (being anxious to expand the scope of operation) of further information, etc., hence its entry into this Project. - It is requested that GOJ and GOSA ratify NCA as soon as possible.
  (Action)
- In September 2010, negotiation started on Japan/SA Nuclear Cooperation Agreement (NCA).
(4) Pilferage of goods upon import into SA - Pilferages frequently occur during the import customs clearance and domestic transportation in SA. The shipper is held responsible for the loss in most cases. It drives up the cost. - It is requested that GOSA will exert it efforts for further improvement of public security.

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