On 25 September 2020, the International Trade Administration Commission of South Africa (ITAC) announced the proposed increase in the ‘General’ rate of customs duty on:
- “Cans, of a capacity of 0.125 li but not exceeding 8 li, which are to be closed by soldering or crimping, classifiable in tariff subheading 7310.21 by the creation of a new 8-digit tariff subheading under 7310.21 for “of a capacity of 0.125 li or more but not exceeding 8 li”;
- “Other cans, of capacity of 0.125 li or more but not exceeding 8 li, classifiable in tariff subheading 7310.29, by the creation of a new 8-digit tariff subheading under 7310.29 for “of a capacity of 0.125 li or more but not exceeding 8 li”;
- “Cans, of a capacity exceeding 8 li but not exceeding 25 li, which are to be closed by soldering or crimping, classifiable in tariff subheading 7310.21 by the creation of a new 8-digit tariff subheading under 7310.21 for ‘’of a capacity exceeding 8 li but not exceeding 25li”;
- “Other cans, of a capacity exceeding 8 li but not exceeding 25 li, classifiable in tariff subheading 7310.29, by the creation of a new 8-digit tariff subheading under 7310.29 for “of a capacity exceeding 8 li but not exceeding 25 li”; and
- “Aerosol cans, of a capacity of 0.075 li or more but not exceeding 0.5 li, classifiable under subheading 7310.29 for “aerosol cans of a capacity of 0.075 li or more but not exceeding 500ml” on which comment is due by 23 October 2020.
The application was lodged by Rheem SA (Pty) Ltd who reasoned that:
- Local manufacturers of tinplate cans, pails, and aerosol cans have, over the recent years, lost market share due to low-priced imports from the People’s Republic of China;
- Low-priced imports of the subject products are currently free of duty and enable importers to sell cans locally at drastically reduced prices;
- This has impacted negatively on plant utilisation, leading to higher unit costs of production, reduced profitability, and little or no return on investment;
- Low-priced imports have resulted in the downsizing of local production and subsequently led to job losses; and
- Tariff support will allow the domestic industry to compete favourably, increase market share and result in increased job opportunities.
Story by: Riaan de Lange