Bruce Whitfield talks to Donald McKay, director of XA International Trade Advisors, about the company’s first open case report.
Port of Cape Town. Photo: GCIS
Ministerial indecision on customs duties ties up BILLIONS – Trade Consultants
Patel’s indecision has tied up billions in ITAC’s overdue customs investigations
– Billions of rand are currently tied up in overdue customs investigations, according to XA International Trade Advisors
– The problem goes back to indecision on the part of the ministers of trade and finance, XA director Donald Mackay accuses
Billions of rand are currently tied up in overdue customs investigations, according to XA International Trade Advisors.
On Tuesday, the company released its first report on XA’s open cases, which shows how long it takes for those cases to close.
The problem goes back to indecision on the part of trade and finance ministers, accuses XA director Donald Mackay.
Delays in final decisions in dozens of Itac (International Trade Administration Commission) customs investigations have resulted in 1.25 billion rand in lost revenue, he says.
They… have significant implications for affected industries and deter trade and investment.
Donald Mackay, Director of XA International Trade Advisors
Bruce Whitfield talks to McKay on The Money Show.
Scroll up to listen to the interview (skip to 2:49)
Things seem to go wrong **before** it gets to Sars… so for now it’s in Itac or with the Trade Secretary or the Treasury Secretary. They don’t make decisions… so many cases just sit unsolved for years.
Donald Mackay, Director of XA International Trade Advisors
If you want to remove duties because there is no domestic supply of the product, you are now overpaying about 2 billion rand in taxes that should be going back into the business.
Donald Mackay, Director of XA International Trade Advisors
It is very important to first find out who is doing what Mackay says.
There were 2 lawsuits in 2018 that said the final decision on all these duties actually rested with the Treasury Secretary – which I think surprised everyone, possibly including the Commerce Secretary at the time… Such was never enacted into law…
Donald Mackay, Director of XA International Trade Advisors
Companies are also finding that **after** they have applied for a duty waiver and it has been approved, Minister (Ebrahim) Patel says, “No, I would like a bit more”… He may ask you to fix your prices for three years, or make new investments. Many companies probably balk at the idea of ​​having this presented to them at the end of the process.
Donald Mackay, Director of XA International Trade Advisors
This article first appeared on CapeTalk : Ministerial indecisiveness over customs duty cases tying up BILLIONS of rands – report
