FTW 21 May 2010

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Freight & Trading Weekly 21 May 2010

Transcript of FTW 21 May 2010

  • The Freight Communitys Weekly Newspaper for Import / Export decision makers on subscriptionFRIDAY 21 May 2010 NO. 1911



    M A K I N G T H E W O R L D A S M A L L E R P L A C E

    V I S I T : W W W . K A P E L E . C O . Z A

    Warehouse 1 & Office Block D3Isando Industrial ParkGewel Street, Isando

    Tel: + 27(0) 11 398 4900Fax: + 27 (0) 11 392 1058




    00515 FTW quarter page 2/3/10 6:24 PM Page 2




    Truckers out of work, ships idle in Cape TownBy Ray Smuts

    Hundreds of Western Cape hauliers are out of work as a result of the Transnet worker strike, a total disaster for the Mother City, says Cape Town Harbour Carriers Association chairman, John Berry.

    The situation is frightening. Truckers are standing around not making any money, ships lie idle and the Cape Town container and combi-terminals remain closed, which renders it impossible for us to collect or deliver containers, says Berry, who started life as a

    trucker in the 1970s.Harbour Carriers

    Association founder member, Peter Newton, was incensed at trying to exit the port through the Heerengracht gate at 5.40 a.m. on Thursday, to find it closed.

    He only learnt on returning to office that an NPA official

    had advised of the closure by e-mail after close of business the previous evening.

    Newton, in a letter of complaint to Barbara Hogan, minister of public enterprise; Jeremy Cronin, deputy minister of transport, and other senior officials, urged the gate be reopened without

    further delay, saying: Such arbitrary, thoughtless, action is nothing short of plain, downright, stupid, not to mention dangerous.

    Berry says NPA and TPT management tried their level best to assist truckers, regrettably without much luck.

    Three-month backlog loomsBy Alan Peat

    Imorters and exporters face their biggest transport crisis since the Second World War.

    The labour strike at Transnet, now in its second week, is starting to take its toll and with no end in sight the cost to the economy is estimated to be billions.

    The unions, the SA Transport Allied Workers Union (Satawu) and the United Transport and Allied Trade Union (Utatu), said in a joint

    statement on Monday that the strike is set to intensify, with no resolution in sight.

    And, although no-one will venture to place an exact amount on it, all are agreed that the SA economy is now facing a multi-billion loss.

    The strike doesnt directly affect airfreight or courier/express movement of goods, but it does directly impact on the shipping lines and seafreight sectors, and some 80% in value (but even more

    To page 12The ongoing Transnet strike has brought many of the ports in the country, like Ncqura, Durban and Cape Town, to a near standstill as unions and management battle over a wage dispute.

    Nightmare scenario of 50 waiting ships plays out


    Editor Joy OrlekConsulting Editor Alan PeatAssistant Editor Liesl VenterAdvertising Carmel Levinrad (Manager)

    Yolande Langenhoven Gwen Spangenberg Jodi Haigh

    Divisional head Anton MarshManaging Editor David Marsh

    CorrespondentsDurban Terry Hutson

    Tel: (031) 466 1683Cape Town Ray Smuts

    Tel: (021) 434 1636 Carrie Curzon Tel: 072 674 9410Port Elizabeth Ed Richardson

    Tel: (041) 582 3750Swaziland James Hall


    Advertising Co-ordinators Tracie Barnett, Paula SnellLayout & design Michael RorkeCirculation wanitaf@nowmedia.co.zaPrinted by JUKA Printing (Pty) Ltd

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    2 | FRIDAY May 21 2010

    3rd 2010 Supreme Court of Appeal customs caseIn earlier columns this year, we informed of the three (3) Supreme Court of Appeal customs cases to be heard during the first quarter this year.

    The first case to be heard on 16 February 2010 was the Commissioner for the South African Revenue Service (SARS) versus Fascination Wigs (Pty) Ltd; the second case on 18 February 2010 was 3M South Africa (Pty) Ltd versus Commissioner for SARS and another; and the third case on 15 March 2010 was AMI Forwarding (Pty) Ltd versus Government of South Africa (Department Customs and Excise) and another.

    We have in subsequent columns informed of the first two judgments. The third judgement, however, was delivered on 03 May 2010, but only just released for

    public information. The case relates to the

    liability under Section 18 (Removal of Goods in Bond) and Section 18A (Exportation of Goods from a Customs and Excise Warehouse) of the Customs and Excise Act (the Act), as to whether a clearing and forwarding agent had proved that it was not liable for the payment of duties.

    The matter originates in October 2000 when SARS demanded that AMI Forwarding (Pty) Ltd pay customs duties in respect of three bills of entry that had been falsely acquitted. In May 2010 a second demand was made in respect of 68 bills of entry, with the allegation that bills of entry had not been acquitted. In October 2002 a third demand was made, but this time it was made in respect of 49 bills of entry in the second demand, a SARS employee having found the

    acquittals in respect of 19 bills of entry referred to in the second demand.

    The issue in question relates to the SARS allegation of falsified acquittals, which raises the question as to who bears the onus of proving the falsification? According to the judgment, when SARS alleged fraud, which it did in the plea, it had to prove that the bills of entry had been falsely acquitted. The judge indicated that he could see no reason why the onus of proving fraud should shift from SARS to AMI Forwarding (Pty) Ltd. Thus once AMI Forwarding (Pty) Ltd had proved the acquittal, then SARS had to prove its allegation. SARS was not able to do so.

    As a consequence the judge determined, in AMI Forwarding (Pty) Ltds favour, that it had discharged the onus of proving that the bills of entry had been acquitted and that it was not liable for the payment of customs duties. The appeal was upheld with costs, including those of the two counsels.

    Rebate item the manufacture of paintballsThe creation of a Rebate Item (also known as a rebate provision) for polyether-polyols containing two or more hydroxyl groups, liquids or pastes, with hydroxyl number exceeding 100mg KOH/g but not exceeding 800mg KOH/g used in the manufacture of paintballs. The tariff investigation lodged by Bulls Eye Paint Balls CC, was published in the Government Gazette of 23 October 2009. The investigation took 203 days to complete.

    Draft rule amendments for commentOn 14 May 2010 SARS published draft Rule amendments to the Customs and Excise Act for wine on line. Comments are due by 28 May 2010.

    Note: This is a non- comprehensive statement of the law. No liability can be accepted for errors and omissions.

    A weekLY summary of the main changes to the South African tariff dispensation and amendments to customs and excise legislation. email dutycalls@nowmedia.co.za.


  • FRIDAY May 21 2010 | 3

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    FTW4507 A

    Hogh and Bollore sign agency dealBy Joy Orlek

    Hogh Autoliners has appointed Bollore Africa Logistics as its agent in sub-Saharan Africa, excluding South Africa. The representation covers port agency, sales, customer services and logistics and comes in to effect on June 1.

    Its a logical development, says Per Folkesson, head of South Asia, Oceania, Middle East and Africa, Hogh Autoliners began services into South Africa in 1993. Services to West Africa followed soon after, with a subsidiary office opened in Johannesburg in 2004.

    From early 2010 we opened up a service route from the Far East to southern and West Africa which means we now cover West, Southern and East Africa from any of our main loading areas which include North America, Europe, Middle East and India and Far East, including South East Asia.

    Having created a comprehensive service network, the time was right to appoint a regional agency network, he added.

    With 50 years experience on the continent, Bollore Africa Logistics is represented in 41 countries with 200 branches.

    French line adds muscle in NamibiaBy Alan Peat

    Walvis Bay in Namibia is seen as a strategic transhipment port for Asia-West Africa services, according to Rhett van Zyl, MD of CMA CGM Shipping Agencies SA.

    To support the growing demands in West Africa, where it represents the two lines CMA CGM and Delmas, the group opened a new agency in Namibia on May 1, he told FTW.

    The subsidiary, CMA CGM Shipping Agency

    Namibia, is managed by Florian Nittscher, and currently has a staff of five.

    But, said Van Zyl, that will eventually increase to around a dozen.

    The port acts as