On 29 January the International Trade Administration Commission of South Africa (ITAC) announced the proposed increase in the ‘Ordinary’ rate of customs duty on other dumpers designed for off-highway use, classifiable in tariff subheading 8704.10.90 from free of duty to 10% ad valorem, on which comment is due by 28 February.
The application was lodged by Bell Equipment Company SA (Pty) Limited who reasoned that:
- The general economic decline and uncertainties that exist in South Africa and Sub-Saharan Africa make it difficult to maintain production volumes at a level where current facilities and work force is justified;
- The domestic industry has, over the years, lost its domestic market share to foreign Original Equipment Manufacturers (OEMs) who are not subject to territorial and distribution restrictions and often have access to cheap export credit finance facilities from the importing countries;
- The loss of sales to importers has a negative impact on the employment levels across the value chain; and
- The imposition of a 10% ad valorem customs duty will assist domestic manufacturers to be more price competitive, retain current jobs, and provide an opportunities to capture additional market share and boost employment across the value chain.
Story by: Riaan de Lange