The proposed increase in the "General" rate of customs duty on zinc coated/galvanised steel, aluminium-zinc coated steel and paint coated steel, classifiable under tariff subheadings 7210.41, 7210.49, 7212.30, 7210.61, 7210.90, 7225.99, 7210.70 and 7212.40, from free of duty to 10% ad valorem.
The application was lodged by the Southern Africa Coil Coaters Association (SACCA) - comprising: ArcelorMittal South Africa Limited, and Safal Steel (Pty) Ltd.
The reasons for the application were: (i) Imports have exponentially increased over the last five years from Asian countries making domestic production static. (ii) South African producers of the subject product are suffering from intense import competition on the price of the subject product. Even though per-unit prices have risen over the last three years, it has been at a pace substantially lower than the increase in per unit cost of production. This has resulted in prices being significantly suppressed, especially for galvanised and painted steel. (iii) The tariff increase requested will be a relief to the serious economic conditions of the industry. It will prevent imports from entering the country at impermissible low prices.
Comment is due by 23 January 2015.