On 24 May 2024, the International Trade Administration Commission of South Africa (ITAC) called for comment on the proposed increase in the ‘General’ rate of customs duty on conical steel drums of steel, of a capacity of 210 li or more but not exceeding 234 li, classifiable in tariff subheading 7310.10.90, from free of duty to the World Trade Organization (WTO) bound rate of 15% ad valorem, by the deletion of tariff subheading 7310.10.10 that provides for conical steel drums of a capacity of 235 li or more and the creation of a new 8-digit tariff subheading for conical steel drums of a capacity of 210 li or more, by 21 June 2024.
The application was lodged by Peninsula Drums (Pty) Ltd who reasoned that:
- In 2012, the company applied for, and was granted, an increase in duty from free of duty to 15% ad valorem for conical steel drums with a capacity of 235 li or more.
- It had come under increasing pressure from low-priced imports of conical steel drums in the capacity range of 210 li to 234 li, resulting in a loss of business;
- If the loss of business on conical steel drums continues, it will have an extremely negative effect across all products supplied; and
- Although it was aware that the requested 15% ad valorem duty will not fully address the existing price differentials, it is a good start to addressing the existing challenge.