Itac on 18 September 2015 announced a proposed increase in the ‘General’ rate of customs aluminium extrusions classifiable under tariff headings 7604.21.15; 7604.29.15; and 7604.29.65, from 5% ad valorem to 15 % ad valorem.
The application was lodged by Hulamin Extrusions (Pty) Ltd who reasoned that (i) Eroded local share of extrusion market as imports of the subject products has increased dramatically; (ii) The import of low-priced extrusion products has had a significant impact on the local extrusion manufacturing and this has forced downsizing of local production; (iii) Since Itac implemented the 5% ad valorem duty in 2011, the domestic capacity has been eroded; and (iv) Imports are largely high volume fast moving aluminium extrusion sections. The local extruder is left with low volume, slow moving and more complex extrusions to produce, diminishing their ability to achieve economies of scale and optimum manufacturing cost.
Comment is due by 16 October 2015.
