The Freight Communitys Weekly Newspaper for Import / Export decision makers on subscriptionFRIDAY 27 November 2009 NO. 1890

FREIGHT & TRADING WEEKLY

By Ray Smuts

Vessels equipped with anti-piracy barbed wire coils are not welcome in South African ports.

Thats according to a directive from the port authorities denying entry to any Pacific International Line (PIL) vessels equipped with these coils.

The Singaporean-flagged carrier, operating several services between South Africa and the Middle East, is rightly concerned at the increase in Somali piracy attacks following the October 15 hijacking of its containership, Kota Wajar, 150 miles north of Seychelles. The vessel and crew are still in captivity.

Planning to reinforce ships sailing along the East African coast for Durban and Cape Town, PIL considered it prudent to sound out Transnet in advance, ahead of the

arrival of the first such-equipped vessel, Kota Hapas, on December 27.

The request was immediately rejected by

Cape Town harbourmaster, Captain Ravi Naicker, who advised chief harbourmaster Captain Mike Brophy: Not

acceptable. It will hamper cargo ships, tug and workboat manoeuvring and also send a negative

FTW1058SD

MF00042_print ads_CTP 4/7/09 9:11 AM Page 8

Composite

C M Y CM MY CY CMY K

FTW1761SD

SA ports deny entry to pirate-proof vesselsBarbed wire coils will hamper cargo vessels

Not welcome at SA ports one of PILs barbed wire reinforced vessels.

To page 20

World Cup will boot SA out of recessionBy Ed Richardson

Next years Soccer World Cup will help South Africa boot its way out of the global recession, according to the Organisation for Economic Developments latest Economic Outlook.

It predicts that real GDP growth will be negative overall for 2009, but should turn positive in the fourth quarter and accelerate in the first half of 2010, boosted by the soccer World Cup.

The OECD forecasts GDP growth of 2.7% next year, recovering to 4.5% in 2011 much higher than many of the countrys trading partners.

Inflation should return to the target range in 2010 aided by a substantial output gap and the feed through of past rand appreciation.

FREIGHT & TRADING WEEKLY DUTY CALLS

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

Yolande Langenhoven 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

jhall@realnet.co.sz

Advertising Co-ordinators Tracie Barnett, Paula SnellLayout & design Dirk VoorneveldCirculation ftwsubs@nowmedia.co.zaPrinted by JUKA Printing (Pty) Ltd

Annual subscriptions RSA R465.00 (full price)

R800.00 (Africa neighbouring)R1065.00 (foreign).

Publisher: NOW MEDIAPhone + 27 11 327 4062

Fax + 27 11 327 4094E-mail carmell@nowmedia.co.za

Web www.cargoinfo.co.za

Now Media Centre 32 Fricker Road, Illovo Boulevard,

Illovo, Johannesburg. PO Box 55251, Northlands,

2116, South Africa.

2 | FRIDAY November 27 2009

A weekLY summary of the main changes to the South African tariff dispensation and amendments to customs and

excise legislation. Compiled by Tariff & Trade Intelligence. e-mail: info@tariffandtrade.co.za

The Draft Customs Duty BillSince their release, the Draft Customs Duty Bill and the Draft Customs Control Bill have featured regularly in this column.

If you have not yet printed a copy of the two draft Bills, you will need more than a ream of paper to do so. A ream of paper is 500 pages. The two daft Bills total 589 pages in all, 128 pages for the Draft Customs Duty and 461 pages for the Draft Customs Control Bill.

To put it in context, if you want to have read through the Bills before comment is due, you will need to read 6.47 pages per day.

In order to contextualise the issue, we will provide you with an overview.

According to a press release, the scope of the draft Bill is confined to providing for the levying,

payment and recovery of customs duties on goods imported or exported from South Africa. It is thus a tax levying Act which for its implementation relies on the proposed Customs Control Act.

The draft Bills chapter headings, of which there are twelve (12), include:1. Interpretation,

Application and Administration of this Act;

2. Customs Tariff;3. Payment of Duties,

Penalties and Interest;4. Refunds and Drawbacks;5. Assessment of Duties;6. Tariff Classification

of Goods;7. Valuation of Goods;8. Origin (should really be

Origin of Goods);9. Preferential Tariff

Treatment;10. Advance Rulings;11. Judicial Matters; and12. Miscellaneous Matters.

Chapter 3 accounts for

20.18%, Chapter 7 for 17.98%, Chapter 8 for 14.04%, and Chapter 6 for 60.53% of all the Sections of the draft Bill. In other words, these four chapters account for 60.53% of all the Sections.

If you have not accounted for the Chapter descriptions, Chapter 7 relates to Valuation of Goods; Chapter 8 Origin of Goods, and Chapter 6 Tariff Classification of Goods, which accounts for 40.35% of all the Sections.

The draft Bill also has 36 parts to the Chapters of which Valuation of Goods account for 27.59%, Origin of Goods for 20.69% and Tariff Classification of Goods for 10.34% of all the parts. In other words these three account for 58.62% of all the parts.

In summary, the three core customs issues with

which the draft Customs Duty Bills deal are tariff classification, customs valuation, and origin

91 Days Left to Comment on Draft Customs Bills

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

FTW0972SD

FRIDAY November 27 2009 | 3

WAREHOUSINGBonded Duty paid General

DistributionContainer packing and unpacking

Specialised wine storage facility Johannesburg Cape TownTel +27 11 979 0853 +27 21 905 1250 Fax +27 11 979 0660 +27 21 905 0188

Email kwelalogist@telkomsa.net

FTW4589

FTW1698SD

Tel (+27) 31 332 0032 / 332 0036 Fax (+27) 31 332 9708Email: beverley@pacconlogistics.co.za

Ports of call Israel Hong Kong India Indonesia Japan Malaysia Taiwan Thailand Turkey South Korea Australia Bangladesh New Zealand Pakistan Philippines Singapore

Own CFS at Singapore with weekly connections

GLOBAL FREIGHT MANAGERS

FTW4319

FTW1842SD

International Consolidation Services Sea & Air

AIRFREIGHT Consolidations from the UNITED STATES

At wholesale prices 0861 237 111

www.cfrfreight.co.za

FTW1799SD

By Alan Peat

Well-known industry personality Philip Wyllie has joined national forwarding group, Access Freight International, as Johannesburg-based chief operating officer (COO).

Since joining the freight industry in 1980, Wyllie has acquired an MBA from Henley Business School in London, a full working knowledge of both the freight

forwarding and contract logistics sectors and held senior executive positions with various SA divisions of multi-national firms.

Access was recently named the 2009 Deloitte Best Company to Work For in the logistics, shipping and transport sector, an award that has gained the company brand recognition and exposure, human resources director, Dr Cristy Leask, told FTW.

wyllie joins Access

The lack of an international airport capable of handling direct f lights of wide-bodied aircraft is costing the Nelson Mandela Bay metro and surrounds jobs, says professor Richard Haines, head of the department of development studies at the Nelson Mandela Metropolitan University (NMMU).

Speaking at an NMMU-organised conference on International Offsets, Countertrade and Industrial

Participation in Port Elizabeth recently, Haines said it was clear that the Airports Company of South Africa had no intention of upgrading the existing Port Elizabeth airport.

Plans for the extension of the runway have been on hold for around 10 years.

Instead, he said, a new industrial international airport should be built in the Coega Industrial Development Zone (IDZ).

Call for upgrade of Pe airport appears in vain

4 | FRIDAY November 27 2009

email: info@sebenza.co.za www.sebenza.co.za Customer Careline 0800 20 1600FTW4450

London Tel: +44 1753 68-7093 Fax:+44 1753 68-5368

Johannesburg Tel: 011 571-0600 Fax: 011 970-3638

Midrand Tel: 011 314-0747 Fax: 011 314-0746

Cape Town Tel: 021 505-9300 Fax: 021 535-5215

Durban Tel: 031 459-5000 Fax: 031 461-1282

Port Elizabeth Tel: 041 484-2480 Fax: 041 484-2487

East London Tel: 043 742-2216 Fax: 043 742-2666

Ensuring improved service levels, business processes, and customer retention whilst

marketing aggressivelyHonesty and transparency at all times, and the current economic conditions have taught us to be more cost efficient whilst offering

value-adds and focusing on the basics Thobeka Sibisi, branch manager, Durban

LEADING LCL SERVICE PROVIDER INTO AFRICAWe offer services to the following African Ports

Sea Freight Abidjan, Bujumbura, Dar Es Salam, Kampala, Kigali, Kinshasa, Lagos, Lome, Luanda, Mali, Maputo, Mombasa, Nairobi, Ouagadougou, Tema

Road Lesotho, Lubumbashi, Malawi, Namibia, Swaziland, Zambia, Zimbabwe

Rail Gaberone

For further information please contact: Tel: + 27 (0) 31 566 0100 Cell: + 27 (0) 84 620 9115 Anna Gey van Pittius annap@sael.com Mi