On 21 June the International Trade Administration Commission of South Africa (Itac) announced a proposed increase in the ‘General’ rate of customs duty on certain coated or plated flat-rolled steel, classifiable under tariff subheadings 7210.20, 7210.30, 7210.50, 7210.69 7212.20, 7212.50, 7212.60, 7225.91, and 7225.92, from free (0%) of duty to 10% ad valorem on which comment is due by 05 July.
The application was lodged by ArcelorMittal South Africa Limited who reasoned that:
(a) The Southern Africa Customs Union (SACU)-manufactured galvanised and electro-galvanised products, aluminium-zinc and colour coated steel attract a 10% ad valorem customs duty.
(b) The imported subject products are direct substitutes for SACU manufactured galvanised and electro-galvanised products, aluminium-zinc and colour-coated steel as they have similar applications.
(c) An increase in the customs duty on corrosive protection flat-rolled steel that was covered under Itac Report No.505 and several other tariff subheadings which are flat-rolled products of iron or non-alloy steel or other alloy steel did not attract any customs duty due to an oversight with regard to the initial tariff increase application and they have now become open to abuse.
(d) The subject products imported under the relevant tariff headings unfairly compete with SACU-manufactured products as they are imported free of customs duty and create a possible loophole, threatening the sustainability of the SACU industry.
(e) The increase in customs duty on these tariff subheadings will be in line with the current customs duty of 10% ad valorem that is already applicable on the tariff subheadings as set out in Itac Report No.505, which would prevent the abuse thereof.
Story by: Riaan de Lange
