Database
Fiscal Restrictions
SOUTH AFRICA
Since May 2017
Chapter Public Procurement |
Sub-chapter Preferential purchase schemes covering digital products and services
Preferential Procurement Regulations 2017
In April 2017, the Preferential Procurement Regulations 2017 (Regulation 2017) came into force, repealing and replacing the associated Preferential Procurement Regulations 2011 (Regulation 2011), but retaining all thresholds determined for local procurement under the 2011 framework.
Similarly to the Regulation 2011, the Regulation 2017 empowers the Department of Trade and Industry, in consultation with the National Treasury, to designate sectors, subsectors, products and industries for public procurement bids to comply with a set of local production requirements stipulated with a minimum local threshold. Such requirements are imposed on all state entities specified in Preferential Procurement Policy Framework Act, section 1, i.e. "a national or provincial department as defined in the Public Finance Management Act, 1999; a municipality as contemplated in the Constitution; a constitutional institution as defined in the Public Finance Management Act; Parliament; a provincial legislature."
Regulation 2017 sets out a number of changes including advancing the participation of small and black-owned businesses by changing prequalification criteria in the bidding process of public procurement tenders and in doing so limiting the participation of "well-established companies"; tenders worth more than R 30 million (USD 2.21 million) must impose a "specific tendering condition that the successful tenderer must subcontract a minimum of 30% of the value of the contract" to small and black-owned businesses; and changing the point system which determines the awarding of tenders in public procurement to favour B-BBEE status level of contributors - B-BBEE status level is determined from the participation of black people at a company in specific function and roles.
Similarly to the Regulation 2011, the Regulation 2017 empowers the Department of Trade and Industry, in consultation with the National Treasury, to designate sectors, subsectors, products and industries for public procurement bids to comply with a set of local production requirements stipulated with a minimum local threshold. Such requirements are imposed on all state entities specified in Preferential Procurement Policy Framework Act, section 1, i.e. "a national or provincial department as defined in the Public Finance Management Act, 1999; a municipality as contemplated in the Constitution; a constitutional institution as defined in the Public Finance Management Act; Parliament; a provincial legislature."
Regulation 2017 sets out a number of changes including advancing the participation of small and black-owned businesses by changing prequalification criteria in the bidding process of public procurement tenders and in doing so limiting the participation of "well-established companies"; tenders worth more than R 30 million (USD 2.21 million) must impose a "specific tendering condition that the successful tenderer must subcontract a minimum of 30% of the value of the contract" to small and black-owned businesses; and changing the point system which determines the awarding of tenders in public procurement to favour B-BBEE status level of contributors - B-BBEE status level is determined from the participation of black people at a company in specific function and roles.
Coverage Horizontal
Fiscal Restrictions
SOUTH AFRICA
Since 2014
Chapter Public Procurement |
Sub-chapter Preferential purchase schemes covering digital products and services
Industrial Policy Action Plan
Early in April 2014, the South African Department for Trade and Industry (DTI) published its annual update to the Industrial Policy Action Plan, containing numerous pledges to strengthen localization of products and sectors. For example, in the electronics industry, public procurement will be leveraged in support of localization.
Coverage Certain sectors, including the electronics industry
Sources
- USTR, 2015 National Trade Estimate Report on Foreign Trade Barriers: https://ustr.gov/sites/default/files/2015%20NTE%20Combined.pdf
- http://www.globaltradealert.org/measure/south-africa-new-preferential-procurement-regulations-public-entities
http://www.globaltradealert.org/measure/south-africa-localisation-measures-industrial-policy-action-plan-201415-201617 - European Commission, DG Trade, 11th Report on Potentially Trade-Restrictive Measures Identified in the Context of the Financial and Economic Crisis, 1 June 2013 – 30 June 2014: http://trade.ec.europa.eu/doclib/docs/2014/november/tradoc_152872.pdf
- http://www.globaltradealert.org/measure/south-africa-additional-products-brought-under-local-content-regulations
Fiscal Restrictions
SOUTH AFRICA
Since 2011
Chapter Public Procurement |
Sub-chapter Preferential purchase schemes covering digital products and services
Local Procurement Accord of 2011
In the case of designated sectors where local production and content is deemed “of critical importance”, the tendering procedure must be restricted to locally produced goods, services or works only. As of April 2014, these designated sectors include set-top boxes for digital TV and telecom cables.
Coverage Set-top boxes for TV digital and telecom cables
Sources
- USTR, 2015 National Trade Estimate Report on Foreign Trade Barriers: https://ustr.gov/sites/default/files/2015%20NTE%20Combined.pdf
- http://www.globaltradealert.org/measure/south-africa-new-preferential-procurement-regulations-public-entities
http://www.globaltradealert.org/measure/south-africa-localisation-measures-industrial-policy-action-plan-201415-201617 - European Commission, DG Trade, 11th Report on Potentially Trade-Restrictive Measures Identified in the Context of the Financial and Economic Crisis, 1 June 2013 – 30 June 2014: http://trade.ec.europa.eu/doclib/docs/2014/november/tradoc_152872.pdf
- http://www.globaltradealert.org/measure/south-africa-additional-products-brought-under-local-content-regulations
Fiscal Restrictions
SOUTH AFRICA
Proposed in 2015
Chapter Taxation & Subsidies |
Sub-chapter Discriminatory tax regime on online services
Electronic Services Regulations
In the 2015 National Budget Speech, it was announced that the electronic services provisions would be amended to include the supply of software within its scope. This announcement signals a departure from the strict focus on business to consumer operations and the first steps towards the taxation of online services which are provided in business to business operations.
Coverage Software
Fiscal Restrictions
SOUTH AFRICA
Since April 2014
Chapter Taxation & Subsidies |
Sub-chapter Discriminatory tax regime on online services
Electronic Services Regulations
In South Africa, foreign e-commerce suppliers and foreign businesses supplying eBooks, music and other digital services (e.g. apps, digital books, online memberships, gaming online, streaming movies, music downloads) are required to register as Value Added Tax (VAT) vendors for business to consumer operations.
Moreover, the VAT registration threshold for foreign companies (taxable yearly turnover exceeding ZAR 50,000 (approx. USD 3,500)) is lower than that for domestic companies (ZAR 1 million (approx. USD 100,000)).
Moreover, the VAT registration threshold for foreign companies (taxable yearly turnover exceeding ZAR 50,000 (approx. USD 3,500)) is lower than that for domestic companies (ZAR 1 million (approx. USD 100,000)).
Coverage Foreign e-commerce suppliers and foreign businesses supplying eBooks, music and other digital services
Sources
- http://www.financialinstitutionslegalsnapshot.com/2014/05/foreign-e-commerce-suppliers-must-register-as-vat-vendors-by-1-june-2014/
- http://www.internationaltaxreview.com/Article/3350923/VAT-on-e-commerce-hits-foreign-suppliers-to-South-Africa.html
- http://www.nashua.co.za/south-africas-digital-tax-starts-on-1-april-how-will-you-be-affected/
- http://mybroadband.co.za/news/internet/95953-digital-products-taxed-in-sa-from-april-treasury.html
Fiscal Restrictions
SOUTH AFRICA
Reported in August 2018
Chapter Taxation & Subsidies |
Sub-chapter Discriminatory tax regime on online services
Films and Publications Amendment Bill
A bill amending South Africa's Films and Publications Act which so as to extend its application to online content will also require all content platforms to register as content distributors and pay an annual fee, based off the number titles they have in their library.
The bill passed in Parliament and has been transmitted to the National Council of Provinces for concurrence in August 2018, following which it is set to be signed off by the president and will officially come into law.
The bill passed in Parliament and has been transmitted to the National Council of Provinces for concurrence in August 2018, following which it is set to be signed off by the president and will officially come into law.
Coverage Distributors of online content
Fiscal Restrictions
SOUTH AFRICA
Since 2000, last extension: 08/04/2011
Chapter Tariffs and Trade Defence |
Sub-chapter Antidumping, CVD & Safeguards
Antidumping measure
The rate of the duty is 65.47%.
Coverage Product: Paper insulated lead covered electric cable (HS Code 8544.60); Country: India
Sources
- UNCTAD TRAINS Database
- WTO Committee on Anti-Dumping Practices, Semi-annual report under Article 16.4 of the Agreement, South Africa, 25 February 2016
- http://www.globaltradealert.org/measure/south-africa-extension-antidumping-duty-imports-paper-insulated-lead-covered-electric-cable-
Fiscal Restrictions
SOUTH AFRICA
ITA signatory?
I
II
Chapter Tariffs and Trade Defence |
Sub-chapter Applied tariffs on digital goods
Average MFN rate
1.82%
Weighted average MFN rate
1.26%
Maximum tariff rate
25%
Coverage rate of zero-tariffs
74.92%
Coverage: Digital goods
Sources
- UNCTAD TRAINS tariff data for tariff year 2015
- https://www.wto.org/english/tratop_e/inftec_e/itscheds_e.htm
Trading restrictions
RUSSIA
Since 2006
Chapter Online sales and transactions |
Sub-chapter Online sales
Fedeal Law 2006 no. 244-FZ
In Russia, online advertisement for alcohol is prohibited and alcohol cannot be sold online.
Coverage E-retail
Trading restrictions
RUSSIA
Reported in March 2018
Chapter Online sales and transactions |
Sub-chapter Barriers to fulfillment
De minimis rule
According to Russia's de minimis rule goods not exceeding 61 SDR / 5000 RUR / 89 USD of value are exempted from taxes and duties collected by customs.
Coverage Horizontal
Trading restrictions
RUSSIA
In 2014
Chapter Online sales and transactions |
Sub-chapter Barriers to fulfillment
Statement from Russian Prosecutor General's Office
The use of bitcoins is banned in Russia.
Coverage Bitcoin services
Trading restrictions
RUSSIA
Since 2013
Chapter Online sales and transactions |
Sub-chapter Barriers to fulfillment
UNICTRAL model law
Russia has not adopted UNICTRAL model law on e-commerce or e-signatures. The Russian law on e-signatures however states that electronic signatures have the same legal effect as handwritten ones.
Coverage Horizontal
Sources
- http://www.idosi.org/wasj/wasj23(1)13/15.pdf
- http://www.uncitral.org/uncitral/en/uncitral_texts/electronic_commerce/1996Model_status.html
- http://www.martindale.com/business-law/article_Capital-Legal-Services_1336968.htm
- http://www.uncitral.org/uncitral/en/uncitral_texts/electronic_commerce/2001Model_status.html
Trading restrictions
RUSSIA
Since 2011
Chapter Online sales and transactions |
Sub-chapter Barriers to fulfillment
Amendments to Federal Law No. 161-FZ “On the National Payment System,” dated 27 June 2011 (the NPS Law)
Amendments to the Federal Law on National Payment System (NPS Law) significantly affect e-payments. In fact, they require international payment cards to be processed locally and aim to cement the role of the National Payment Card System (NPCS) as the single operator providing payment clearing and operations services in Russia.
The NPS Law also requires security deposits by operators of such payment systems not qualifying as “nationally important payment systems.” Representatives of international payment systems have criticised the introduction of security deposits.
The NPS Law also requires security deposits by operators of such payment systems not qualifying as “nationally important payment systems.” Representatives of international payment systems have criticised the introduction of security deposits.
Coverage International payment cards
Trading restrictions
RUSSIA
Reported in 2014
Chapter Online sales and transactions |
Sub-chapter Barriers to fulfillment
Burdensome custom procedures
It is reported that DHL and FedEx have stopped express deliveries into Russia because of new customs procedures that are considered burdensome. Furthermore, e-commerce companies that work with the Russian Post complain about slow delivery and stolen goods.
Coverage E-retailing
Trading restrictions
RUSSIA
Since 2003
Chapter Standards |
Sub-chapter Product safety certification (EMC/EMI, radio transmission)
Federal Law on Communications
The Communications Law establishes a separate procedure for licensing and certification in the sphere of telecommunications. All communication devices are subject to a procedure of mandatory conformity acknowledgement by way of either compulsory certification or compulsory declaration of conformity. The certificate is one of the documents required for customs clearance of the equipment and therefore import is not allowed without such certificate.
All other devices are subject to a mandatory declaration of conformity. Additional documents may be required either at the moment of project’s commissioning for commercial exploitation (by Rossvyaznadzor inspectors) or when the goods have been placed on retail shelves (by trade inspectors).
All other devices are subject to a mandatory declaration of conformity. Additional documents may be required either at the moment of project’s commissioning for commercial exploitation (by Rossvyaznadzor inspectors) or when the goods have been placed on retail shelves (by trade inspectors).
Coverage Communication devices