Comment on the application for a proposed increase in the ‘general’ rate of customs duty on acrylic sanitary ware, classifiable under tariff subheading 3922.10, from 20% ad valorem to 30% ad valorem is due by 15 January 2016. The applicant, Libra Bathroom (Pty) Ltd, argued that the main reason for the application was to level the playing field and to cushion the domestic industry against low-priced imports, to save jobs and to bring the domestic industry back to profitability. In addition, the current load shedding is hampering production and productivity.
Commentary: This is the first tariff application that provides load shedding as a reason to motivate an increase in the rate of customs duty. Would be interesting to see whether the depreciation of the rand will ever be used in an argument for the decrease in the rate of customs duty.
