Minister of Finance, Pravin Gordhan during his budget speech earlier this year, announced several taxation amendments one of which affects the importation of monitors.
These amendments have been made in order to prevent fraudulent claims on monitor imports and also to protect the local TV manufacturing industry.
Classification of Monitors
Monitors are defined as follows:
- A PC Monitor used solely with a “Automatic Data Processing System” (PC) must have a D-SUB connector only with any of its sides not exceeding 45cm.
- A Television Monitor contains any device, connector or facility that is built into the monitor, allowing it to receive any analogue or digital television broadcast. This is not limited to SABC analogue broadcasts only but also includes digital broadcasts via satellite. Monitors incorporating a Television Reception Apparatus includes monitors with the following types of connectors:
- HDMI Inputs (Can be used with HDMI decoders)
- DVI Inputs (Can be used with HDMI decoders with a HDMI converter)
- RCA/Composite Inputs (Can be used with analogue TV reception devices and decoders)
- TV Tuners (Receive signals directly to the monitor)
Any monitor that has a capability for TV Reception with any one or more of the above listed connectors would fall in this category no matter what the size may be.
Amendments to the Tariff position of monitors
Prior to the announcement made by the minister, all LCD/CRT monitors were imported duty free since they were not incorporating a television reception apparatus.
The new amendments that have been made to the tariff headings regarding the duties on monitors affecting our monitor imports are as follows:
- Any screen with a size less than 45cm provided that they only have a D-SUB connector will be duty free.
- Any screen with a size larger than 45cm would be charged the full duty of 25% + 7% ad valorem.
- Any screen (no matter what size) with a TV Tuner, DVI, HDMI, RCA composite or any one or more similar inputs will be charged the full duty of 25% + 7% ad valorem as it would be classified as a TV Reception apparatus.
- This only affects Tariff heading 85.28 which deals with monitors only.
Notebooks and AIO fall under a different tariff heading 84.71.(Automatic Data Processing System) and is not affected by this amendment as it is a different system altogether.