The National Employers’ Association of South Africa (Neasa) has called on the steel industry to take urgent action to prevent AMSA from introducing 120% safeguard duties on certain long products.
According to Neasa, AMSA has submitted an application to the International Trade Administration Commission (Itac).
Long products include angles, T-sections, U-sections, beams etc. “These products are already subject to a 10% ad valorem duty and safeguard-duties would add 120%, bringing the total duty to 130%,” says a Neasa spokesman.
“This means that these sections will be 130% more expensive than what the same product will cost if it is imported from a cost-effective new technology steel manufacturer abroad.”
The organisation believes that a consultant with expert knowledge in this area is crucial to oppose this application. And since the fees are likely to amount to approximately R200 000, Neasa has called on all businesses with an interest in the matter to contribute to the cost.
“Although the outcome cannot be guaranteed, the severity of the impact of these duties on our already strained steel industry justifies that AMSA’s application be opposed in the most effective manner.”
Businesses have until July 2 to pledge their financial support.
