DUTY CALLS

Laminates Customs Duty
Reduction – Comment
Due
Comment is due by 28
June 2013 in respect of the
proposed reduction in the rate
of customs duty on laminates
of phenolic resins with a
basis of paper, classifiable in
tariff subheading 3921.90.05
from 10% ad valorem to
free of customs duty, by the
creation of a new 8-digit tariff
subheading under 3921.90
for “laminates of phenolic`
resins with a basis of paper,
thermosetting”.
The application was lodged
by FX Veneers CC who
reasoned that the product
was not manufactured in the
Southern African Customs
Union (Sacu) and it was
unlikely to be manufactured
due to high capital costs.
In addition, this product
is used as an input in the
manufacturing of an end
product as well as sold directly
in the Sacu market.
Screws, Bolts and Nuts
Increase – Comment Due
On 28 June 2013 comment is
due in respect of the proposed
increase in the rate of customs
duty on certain screws, bolts
and nuts classifiable under
tariff subheadings 7318.15.39,
7318.15.43 and 7318.16.80 from
the existing 10% ad valorem
to the 30% ad valorem bound
rate.
The application was lodged
by CBC Fasteners (Pty) Ltd
who offered the following
reasons (i) Sacu manufacturers
need to be protected against
price undercutting from
Chinese exporters exempted
from the existing dumping
duty on fasteners; (ii) CBC
Fasteners (Pty) Ltd is unable
to recover manufacturing
overheads at the current low
levels of production. There
is an urgent need for CBC
Fasteners (Pty) Ltd and
other Sacu manufacturers to
increase the volumes required
to sustain critical mass and
have sustainable businesses
that continue to contribute
to employment whilst
maintaining investment; (iii)
Domestic producers are facing
significant price disadvantage
against imported screws,
bolts and nuts from Asian
countries; (iv) The dumping
duties imposed by Itac against
imports from China are a
clear indication that there is
a problem in the industry.
Therefore the requested
duty increase of 20% ad
valorem is justified; and (v)
Increasing the customs duties
on the bound level of 30% ad
valorem will level the playing
field for manufacturers.
Dust Masks Customs
Duty Rebate – Comment
Due
Comment is due by 28 June
2013 in respect of the proposed
rebate of the customs duty on
(i) polyurethane flat shapes
with dimensions not exceeding
50 mm x 10 mm, self-adhesive
on one side only, in rolls of
a width not exceeding 20
cm, classifiable under tariff
subheading 3919.10.07, for the
manufacture of dust masks;
(ii) silicone elastomeric
straps with a length not
exceeding 315mm and with
a width not exceeding 7mm,
classifiable under tariff
subheading 3926.90.90, for the
manufacture of dust masks;
(iii) natural rubber straps with
a length not exceeding 315mm
with a width not exceeding
7mm, classifiable under
tariff subheading 4016.99.90,
for the manufacture of dust
masks; and (iv) inner and outer
shells of non-woven material,
classifiable under tariff
subheading 6307.90.10, for the
manufacture of dust masks.
The application was lodged
by 3M South Africa (Pty) Ltd
who offered the following
reasons for the application:
(i) re-introduce local
manufacturing; (ii) increase
labour work force from 130
heads to 145 heads; (iii)
reduce the cost of production
to the market and allow it to
be competitive as the costs
will have decreased; and
(iv) advance investment and
promote employment by 2015.